Not for us

This one is contentious...First Direct Debit date

  • 12 October 2018
  • 7 replies
  • 86 views

Userlevel 7
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  • Rocket Scientist
  • 10695 replies
Idea Status: Not For Us


In fairness to customers who have complained, taking the first DD on day one can exacerbate the issues caused by the time taken to close the previous account.
It would almost never cure the problem wherever you put it in the month, BUT it would help a lot to be able to delay it.
How about offering customers a date in the month for their first payment. OK, potentially the worst case scenario for those who deliberately time it to be as late as possible is PP would wait a month for the first payment, but if customers stay that would even itself out over time.

My guess is that 'abuse' or default would be tiny.

My issue here is, is it truly defensible to ask for a full month in advance? If bill finalisation only took two weeks I'd be more comfortable, but the upshot is that customers on tight budgets and those customers who have no savings or find budgeting difficult are hit worse by the current arrangements than those who can afford to pay 2 suppliers for what will be at least 2 payments and could be 3 in worst circumstances.
I must admit, I'm uncomfortable with it, but I understand the business reasons.
There are many potential solutions to this, but most are messy or complicated.
The simpler and perhaps simplest and most ethical solution is to make the default 1 week after the switch date, but offer a choice.
I now have my body armour on....

7 replies

Userlevel 7
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I can understand the problems some people would have with making a payment on day one.
Could an option be added where you can defer the first months payment and the other 11 payments would increase 9% per month to recoup the deferred payment?
Userlevel 7
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Too messy Jon 👎
Userlevel 7
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That's messy but not as messy as some of the other solutions I thought of.
How about half the 1st payment on day 1? Review after 4 months?
Hi @Jon1 @woz @Bev
We may review this in the future but it's not for us right now. It could have, as you guys have said, impact on our business.
Maybe in the future when we're a bit bigger?
The issue of two DD payments in one month when a Member changes their date in the app - that's a bug which has been fixed in an app release today. So at least that annoying double-payment issue is no more.
Userlevel 7
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Well I said it was contentious and it was. Not surprised but a little disappointed that even a 2 week grace period couldn't be considered, it would make little difference to PP ,it would give switchers a fighting chance..

marc, may I ask, what was the DD fix, because it may well be that (for example) someone wants to change their DD from 2nd to 28th of the month in the same month, will it now allow that?

Marc;23009:
Hi @Jon1 @woz @Bev
We may review this in the future but it's not for us right now. It could have, as you guys have said, impact on our business.
Maybe in the future when we're a bit bigger?
The issue of two DD payments in one month when a Member changes their date in the app - that's a bug which has been fixed in an app release today. So at least that annoying double-payment issue is no more.
woz;23141:
marc, may I ask, what was the DD fix, because it may well be that (for example) someone wants to change their DD from 2nd to 28th of the month in the same month, will it now allow that?


Hi @woz
You can change from 2nd to 28th but it won't take two payments in one month. That's the fix 🙂
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Marc;23325:
Hi @woz
You can change from 2nd to 28th but it won't take two payments in one month. That's the fix :)


This would appear to be the closest 'way around' some customers problems of too much debit up front (or a bit of a hole from PPs point of view.)

In the most extreme example, if a customer were on-boarded on the 1st of the month and this is when their DD kicked in, they could then go into the app and change the DD date to the last day of the month.

So 1st Feb is the first DD, the change date of payment to 28th of the month means next payment is 28th March.

This would give them approximately 8 weeks between direct debit payments!

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