What is a Direct Debit Guarantee?

If you make payments via Direct Debit, you may have heard the term Direct Debit Guarantee.

All organisations that accept instructions to pay Direct Debits must offer customers a Direct Debit Guarantee, which entitles the customer to a full and immediate refund if an error is made by the billing organisation or the bank/building society in the payment of a Direct Debit. For example if a payment is taken on the incorrect date, or the wrong amount is collected.

In the event an error is made with your Direct Debit payment and you wish to claim a refund, you will need to contact your bank or building society - they are responsible for issuing you with a refund, even if the error was made by the organisation collecting your payment.