Direct Debit set up by third parties. When do they appear?


(Andy Barnes) #1

I’m taking the plunge to move everything over from HSBC to Monzo. I’m slightly anxious about how direct debits work. I’ve changed two direct debits with my phone provider and the lottery (to Monzo). When would I expect to see the direct debits in the scheduled payments section? Is it when the first payment is taken?

A friend worried me somewhat by suggesting if a DD fails, it could impact my credit rating. Is that the case, even if you try and sort out the same day?


(Jack) #2

As far as I’m aware once you’ve instructed the company to setup the new DD it can take a few days to appear in the app.

If you have informed the company of the new account details for the DD you will be protected should it not go through due to the Direct Debit Guarantee. So your credit rating wouldn’t be effected or any late payment fee’s shouldn’t apply should it not be setup correctly or the payment fails, unless you don’t have enough funds in your account.

Can anyone confirm?


(Ben Green) #3

Excellent, great choice :+1:t2:

I’ve had it show up on the day that notifed the payee company before and the payment was taken several days later. It’s most probably due the requirement that the payee requests the money from the bank several days before. This is something that most, if not all, of the legacy just fail dismally on showing to the account holder.

It mostly depends on the company you’re dealing with, the majority of them are very lenient and understanding in such circumstances. They have to be if they want happy customers and almost certainly will be especially if you’ve been keeping up with payments to them recently. I would recommend you try to switch at least 6 working days before your next payment is due because they will request the money from the bank they have on your file 5 days before it’s due. Failing that, just pay this month manually from Monzo and the following months will happen automatically from your shiny coral current account.

I’ve personally never had any negative impact on my credit rating for missing a payment by a few days.


(Andy Barnes) #4

Thanks folks. The next payments aren’t coming out until next month. So I’ll check the app every now and then to see it appears :slight_smile:


(Jamie 🏳️‍🌈) #5

You can confidently reassure your friend that neither they, nor you, nor I have a ‘credit rating’. The numbers that the credit reference agencies, and Noddle and ClearScore etc. show you are made up and mean jack all. They exist so that these companies can upsell you useless services to curate these meaningless ‘scores’ and mine your data.

You do, however, have a credit history which can be impacted if you pay a bill late. Keep an eye on the bills attached to the direct debits you have switched across to Monzo and ensure they’re paid by the due dates, or other lenders may see that you have late payment markers on your credit file, which can then adversely affect future credit applications. Generally, a company will confirm when they have your new bank details and you can relax; if your direct debits are not paid correctly after this confirmation, the Direct Debit Guarantee will cover you.


#6

This is an important piece. Wait for the confirmation (which usually take a few days or weeks). Any companies were you haven’t received a confirmation within a couple of weeks, I’d suggest following up on it.


#7

Hey there dont worry. Ive got all my Standing Orders Direct Debits and even Salary going into my Monzo Account have had no problems. Direct Debits normally show up once Monzo gets them 3 days , so just keep looking.
Closed my Legacy Account today so it shows how much faith i have with Monzo.


(Andy Barnes) #8

This is an important piece. Wait for the confirmation (which usually take a few days or weeks). Any companies were you haven’t received a confirmation within a couple of weeks, I’d suggest following up on it.

I’ve got confirmation from both companies. So I guess that means everything has gone well their end, if the account number was wrong or similar, it’d not have gone through for them I guess.

Direct Debits normally show up once Monzo gets them 3 days , so just keep looking.

Yeah. Will do. Nothing yet in Monzo, but only been a couple of days.


#9

I guess that if you have a wrong but existing account number it might have gone through. I don’t think they check the account holder name (I have repeatedly successfully set up DD from my wife’s account using my name [with her permission of course] and was never a problem.)


(Andy Barnes) #10

I don’t think they check the account holder name

I did wonder about that when they asked. As any variation of my name seemed to work in the past!


#11

Isn’t it a tad premature to fully switch over to Monzo given HSBC are launching the revamped ‘Open Banking’ app as early as mid-April & certainly by May 2018?


(Daniel Rivers - Proud Current Account Holder) #12

This is where I am at with this, its my biggest bugbear with Monzo to date.

  1. I have direct debits show on my spending direct debit screen, only 1 has a value, but know 2/3 of them have taken money.
  2. I get a notification helpfully when I don’t have enough money in my account and the direct debit is to be taken the following day. This is great, but here comes the problem… No idea what direct debits it’s for… The notification vanishes on selection and can’t be found in app. The value mentioned in the notification is nowhere to be seen. Contact support they can see the notification, but cannot say which direct debits it’s for, but can confirm the amount. Even after the payment has been taken, still doesn’t update the interface.
  3. You can’t get payment history for a direct debit, nada, nothing. Can only cancel the direct debit

I have spoken to support about this and they have passed on and can understand the frustration, but as it stands, direct debits are very underdeveloped and consider how much these drive peoples bill paying and financial world, really needs an update.

For me this is the #1 item preventing me migrating fully, can bring all the pots, marketplaces and any other bells and whistles, but need to get the basics of an account right too, direct debits being one of them. Its just not quite there yet.


(Andy Barnes) #13

Not for me. I’ve been with HSBC since I was a student, just because that’s all I’ve known. Their banking app and online service it’s just not very good. Admittedly the app was recently given a lick of paint, but that’s all it was.

I’ve seen what the new app will be offering, and also screenshots etc, and I have no doubt that the user experience I’ll recieve in Monzo (combined with the fact that HSBC have already said they need to replicate and then surpass the likes of Monzo) will far exceed any benefits I’ll see from HSBC.

Everyone’s use case and cost benefits will be different. But I also believe that the more folks who switch fully over to Monzo will benefit everyone in the long run with resources for quicker enhancements.

I’ve done similar with my energy supplier. Switched to Bulb, because the experience I get from them (live chat and resolutions in minutes, great user interface, open and honest about smart meters etc) far outweighs anything I expect to see from the big energy companies given how bad my past experiences have been.


(Andy Barnes) #14

As an update, both direct debits now showing with lovely formatting and correct logos :slight_smile:

I’ll also not be closing my HSBC account, so I have funds elsewhere, and can test drive the app. But Monzo will be my main account from now on.


(Andy Barnes) #15

Does the direct debit coming out not show up on the main feed and in the statements?


(Daniel Rivers - Proud Current Account Holder) #16

It shows once it’s gone out, but not before when the notification happens