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Direct Debit Instructions
(DDI)
As Dial Direct have no facilities to accept
cash or cheque payments, clients are required to authorise payments
directly from bank accounts. The Direct Debit Instruction (DDI)
is used in the UK by account holders to instruct their bank or
building society, to make regular deductions, such as bill payments,
from their account. Traditionally the account holder signs the
instruction and in so doing agrees to its terms and conditions
of the instruction.
The conditions allow for variable amounts
to be deducted on any date from the account. The agreement remains
in force until either the account holder or the bank cancels it.
Our part of the agreement states that we must advise account holders
in writing of any changes to the amounts or dates of the deductions.
Verbal
Authorisation
BIS are part of a scheme whereby the client may give verbal authorisation of
the DDI. Under this arrangement the account holder gives permission directly
over the telephone permitting BIS to make regular deductions from their bank
account. There is no requirement for a signature on the DDI.
It takes 10
working days for the first payment to be deducted from the client’s
account if verbal authorisation is received.
The deduction details are confirmed in
writing with the client. Deduction dates and amounts are printed
on the Details of Cover document, and on the confirmation letter
which accompanies the policy documentation.
When verbal authorisation was introduced
there was a marked reduction in the number of client cancellations.
Written
Authorisation
A direct debit instruction may be issued for 2 main reasons.
- The account holder is not available
to provide immediate verbal authorisation.
- The account holder is not prepared to
give verbal authorisation.
The client is allowed 7 days to sign and
return the DDI. A postage paid envelope is also provided. It takes
17 days before the first payment can be deducted from an account
if a signed DDI is required.
If a client has previously cancelled an
instruction at the bank a DDI will be issued automatically by the
system for signature.
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