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Have you been caught short by direct debits?

August 18th, 2017 Posted by Financial Management, Internet Safety, Time Management 0 thoughts on “Have you been caught short by direct debits?”

Want to dispute a bill? Low on cash towards the end of the month? Too late, your account has already been debited. While direct debit can save you the hassle of bill payments, being locked into fixed automated payments can also get you into trouble.

With direct debit, billers don’t need to contact you or ask for permission before withdrawing funds. This gives a third party control over payments, potentially leaving you with extra fees or bills for products you no longer use. So, if you’re thinking about setting up a direct debit, make sure you understand the pros and cons. Read our article about direct debits.

Ms. Ocea Smith spoke to the Gobbill team about her bad experience with direct debit. “I find it frustrating when it comes to direct debit and there’s a public holiday…The trouble I had was with Vodafone, who direct debited from my account on the 5th of every month. A while back it was taken early due to a public holiday and I didn’t transfer in time.

Sometimes they [billers] decide to deduct early while others wait for the closest business working day. I really wish they would confirm so I can be sure my end is all okay. All I would need to do is transfer between my accounts. Instead I’ve been caught with fees for bounced payments.…So I received a dishonour fee from my bank of $40! I complained to my bank and it was revoked, which was great.”

Do you have a horror story about direct debit? Share it with us here: gobbill@gobbill.com.au