The Direct Debit Scheme

We would like to see changes made to the Direct Debit Scheme to provide more protection for customers: 1. The setting up of Direct Debits by a simple verbal agreement on the telephone or online is open to abuse. The signed Direct Debit mandate needs to be re-introduced to stop companies setting up Direct Debits on people's bank accounts without their knowledge or authorisation. 2. Companies should not be able to reinstate Direct Debits once they have been canceled by the customer. This occurs on a regular basis without the customer being informed by the company or the bank. No mention is made in the Direct Debit Guarantee that companies can do this. 3. If a Direct Debit has been set up by a company, or a previously canceled Direct Debit is reinstated, without the account holder's knowledge or authority, the bank should not be allowed to charge the account holder for returning that Direct Debit request unpaid. 4. Ideally the Direct Debit Scheme would be scrapped altogether and the Standing Order (controlled entirely by the customer/bank account holder) become the standard method of payment of most bills. 5. Companies should not be allowed to discriminate against customers who wish to pay by methods other than Direct Debit (they do this by offering a discount to customers who pay by Direct Debit).