Direct Debit cancellation deadline

Hi all! If I cancel a DD (from the Monzo app) at 11pm on Wed, and it’s due to come out on Friday…will it still come out?

From my experience, I have cancelled dd the day before and its been OK.

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May not be applicable to you, but as a general reminder, cancelling a direct debit won’t necessarily terminate your contract with a company. You may still owe the money, and you may be charged more if the company takes action to be paid. (For example, if you’re required to give notice on, say, a gym contract.)

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Thanks Jamie, yeah it’s not one of those cases. It’s a weird credit card issue where I received a CC refund, but possibly too late for the CC to realise they didn’t need to take the DD this month (because the statement had already been produced).

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Just be sure that the CC provider won’t record it as a missed payment still just because the DD didn’t go through. I’ve read enough horror stories so I’d rather overpay

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I’ve had exactly this happen to me a few years ago - got £12 fee charged.

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Usually (if not always) the DD amount is set at the time the statement is produced, and will therefore not take account of the recent refund.

Your best bet is to contact the card issuer and check. They may advise you to cancel the DD mandate with Monzo, and should be able to tell you about any charges that you might incur.

Yes, I was going to add the refund may not actually be credited on the date shown.

Manual payments are treated differently by different providers.

If your minimum payment is £25, have a direct debit to take the minimum, and you then manually pay £25 after the bill but before the direct debit date, Lloyds will still activate the direct debit. Amex, on the other hand, will take the manual payment into account and reduce the direct debit accordingly, if there’s time.

Similarly, some companies will not recognise refunds from a company as payment of the bill, and dates can get confusing anyway as I said above, as the date a credit is actually effective on your statement can differ from the date you see it appearing.

I would always let the direct debit be taken, and sort it out afterwards. If you’re in credit, you’ll get a refund.

So the refund is actually from the CC company itself and it’s cleared on my CC account so I’m now at a zero cleared balance. It should be ok.

And if they do try to take the DD and it bounces, I would still have another two weeks or so to make a manual payment (so I won’t be in default).

i’ve cancelled DD 11:50pm the night before it comes out and no money was taken on monzo, i can’t say for nationwide though because they have a cut off time to cancel DD before it’s supposed to be taken the day after

Does anyone know what Monzo’s cut off time is for Direct Debits? I think HSBC’s is 3:30pm?

So the Direct Debit payment has credited to my CC account (and cleared) - but it didn’t come out of my Monzo account. How…what…?

The credit card companies tend to assume that a request made is a debit paid. Tandem were always good at showing the DD as paid the day before it came out and I’ve seen it with others too. Reality will catch up with them sooner or later, presumably.

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That happens with Amex all the time. They jump the gun at their end with crediting your statement, then undo it if the DD fails.

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