direct debit question

ferger

hi,

i recently switched to ESB over phone, the lady asked for my bank details for direct debit
I got my first bill due on 20th
I never had direct debit pays before. I can only assume that it would show up on my boi online under direct debit listings, right? i do not have anything there
is this ok? will it be taken from my bank account on 20th?

another question: what if I go to post and pay the bills (gas+elec) and dont wait for the direct debit? just to make sure that it will be paid.

thanks for your answer

EI: Una

Hi Ferger,

Direct debit comes out of a customer's account approximately two weeks after the bill is issued - yes, it would be reflected on your statement with the name of the company next to it.

If you wish to pay before the direct debit comes out, e.g. via our website by Laser or Visa debit, online banking (Banking 365 for Bank of Ireland) or at the post office, you can do so, but ensure to put through the payment approximately five working days before the direct debit date, in order to prevent paying twice (if you make a manual payment too late, the direct debit will already be presented for collection).

All the best
Una

ferger

thanks for your reply
my concern was, if I should see that direct debit in advance in my BOI online: eg to show that the money will be taken on the 20th.
no show of anything like that, my online statement says: "There are no Direct Debits for this account."
should i be worried? shall I contact boi? or is this normal?

EI: Una

Hi Ferger,

No, a direct debit would only show on a bank statement after it has been taken.

Regards
Una

dub45

ferger wrote: »

thanks for your reply
my concern was, if I should see that direct debit in advance in my BOI online: eg to show that the money will be taken on the 20th.
no show of anything like that, my online statement says: "There are no Direct Debits for this account."
should i be worried? shall I contact boi? or is this normal?

You are now beginning to experience the mess that is the direct debit system and in particular the lack of information provided for the bill payer.

Firstly be aware of this:

http://www.ipso.ie/section/section/YourRightsasaPayer


There are two types of direct debit:

The first is the older version where you sign a paper mandate and it is held by your bank so that at least they know of its existence! The minimum notice which is required under this type of dd is 14 days. That means you should have your bill 14 days before the amount is debited - not "approximately two weeks after the bill is issued" also ignore the date of issue on the bill as being relevant in respect of notice - companies can and do print any date they want to on a bill. The date of issue on a bill has nothing got to do with the required minimum period of notice.

Originators must give advance notice of the date and the amount of each direct debit. The advance notice period is generally fourteen days, or in some cases seven days or less if agreed by all parties, before the direct debit is applied

The second type is called dd+ and is a real mess for customer and bank. In this one you sign up over the phone or on line and the company concerned hold yor details - this means that the bank is unaware of any such dds on your account. This is the type of dd that appears to have been set up for you. You should have received a letter subsequent to your phone call to the ESB giving you full details of the dd.

If I set up a direct debit over the telephone or online, what record will I have of the agreement?

The originator will send you written confirmation of your direct debit instruction within three working days of the telephone call or online sign-up. You should check the details without delay and contact the originator if you have a query.

Under the dd+ your minimum notice is only 7 days. This period is supposedly to allow the customer to contact the company in the event of a query on the bill. But seven days is a farce - two days in any seven will be a weekend and the billing informmation is sent to the bank three days before the due date so there is virtually no time to correct any disputed amounts. The dd scheme rules specifically state that disputed amounts should not be debited.

Remember your bill should tell you on what date your account is debited.

Also be very careful not to miss a dd. Your bank will charge you about 12 euro if you do and unless they have become honest very recently the ESB will charge you 6 euros - a charge which disgracefully they do not warn customers about when the are setting up a dd. So much for being a reputable company!!!

Also once a dd has been set up on your account you have to be ever vigilant.

There was a post on here recently where an ex customer was debited a considerable amount of money long after they had left the ESB. Something which once again demonstrates the weakness of the dd system and also raises very serious questions about the ESB's internal records and procedures.

You should also be aware that no matter what a company does under the dd system they have nothing to fear - there are no sanctions even if your account is emptied and you are caused considerable bother.