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standing order vs direct debit

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  • 13-08-2013 5:17pm
    #1
    iPearly
    Registered Users Posts: 246 ✭✭


    I figured I'll ask here first. I'm in the process of accepting an offer of moratorium from ptsb and one of the conditions is setting up a direct debit for the mortgage protection amount for the duration of moratorium. I currently have a standing order for the mortgage. I asked the bank representative today what is the difference between standing order and direct debit and she told me she doesn't know cause she works in mortgages.

    I just find it really odd, is there a catch I should be aware of?


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    #2
    homer911
    Registered Users Posts: 5,115 ✭✭✭homer911


    A standing order is a "push" by you for a fixed amount at regular intervals/dates from your current account

    A direct debit is a "pull" by the bank for variable amounts at variable dates/intervals from your current account


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    #3
    iPearly
    Registered Users Posts: 246 ✭✭iPearly


    homer911 wrote: »
    A standing order is a "push" by you for a fixed amount at regular intervals/dates from your current account

    A direct debit is a "pull" by the bank for variable amounts at variable dates/intervals from your current account

    In other words it is in my benefit to change the direct debit to standing order after my moratorium is finished. Of course they wouldn't tell me that. . . Thanks for your answer


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    #4
    Monkeybonkers
    Registered Users Posts: 1,784 ✭✭✭Monkeybonkers


    I was in the bank today and was told that a standing order is better for the customer than a direct debit. With a DD a company can keep on requesting payments from your account even after you have cancelled the DD. My understanding was that this cannot happen with a SO.

    I would put in a complaint against the staff member that told you they didn't know the difference.


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    #5
    phormium
    Registered Users Posts: 3,326 ✭✭✭phormium


    Standing order is under your control, direct debit once you set it up is under the control of whoever is doing the debiting. The usual advantages promoted for direct debits with mortgages was because when rates changed regularly or TRS changed the direct debit would automatically change, if you had a standing order you would have to contact the bank yourself every time and change it. This then had an effect when there were, and probably are now again, charges for every amendment to a standing order. Both have their advantages and disadvantages.


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    #6
    GerardKeating
    Registered Users Posts: 7,582 ✭✭✭GerardKeating


    Monkeybonkers wrote: »
    I was in the bank today and was told that a standing order is better for the customer than a direct debit. With a DD a company can keep on requesting payments from your account even after you have cancelled the DD. My understanding was that this cannot happen with a SO.

    Not exactly, the customer can forget to cancel the Standing Order, just as easily as the "company" can forget to cancel the DD.

    With the latter, you have easy recourse to "resolve" this, since the DD scheme will oblige them to resolve it quickly.

    They might be slower to repaid with a SO which over ran.
    Monkeybonkers wrote: »
    I would put in a complaint against the staff member that told you they didn't know the difference.

    Why? Not all staff know all areas of a companies business.


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