Stopping a debit order | Fin24
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Stopping a debit order

May 11 2015 17:09

A Fin24 is worried about a debit order he agreed to and wants to know how he can stop it. He writes:

I signed up for an investment product where a debit order is deducted from my bank account each month.

I now want to get out of the deal, but cannot seem to stop the debit order and cannot get hold of the company offering the investment service.

I am worried this could be a scam.

So I just want to know this: How can someone stop a debit order in such a case? That means a case where one did initially give permission for the debit order, but now wants to stop it, but cannot get hold of the people in whose favour the debit order is.

READ: Worry over debit orders and public holidays

An Absa spokesperson responds:

You may dispute a debit against your account for the following reasons:

- You did not authorise the debit in question, or

- The debit is in contravention of your instruction, for instance the amount, date, duration is incorrect, or

- You already instructed the user to cancel the mandate, or

- You have cancelled the authorisation.

In this instance the customer is seemingly suffering from a failure by the collector to adhere to the instruction to stop collection. The customer can go to his or her bank and request for future debit orders to be stopped/returned without being paid.

The debit order will still be reflected on the customer’s account, but their bank will automatically return the debit on the same day.

READ: This is how crooks get into your bank account

Information required by your bank for stopping such a debit order includes:

- The exact amount;

- The reference number;

- The beneficiary name;

- The collection date;

- Frequency and term.

If some of the above is not available, then the stop payment process may not be effective.

The stop instruction might also be rendered ineffective if the collector presents future debit instructions on an amended collection date (day of the month) or with an amended reference number or amount.

ALSO READ: Call to bar debit orders on child grants

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

absa  |  money  |  money clinic  |  banking


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