Bacs Direct Debit dormancy period temporarily extended

Bacs Direct Debit (operated by Pay.UK) recently implemented a temporary rule change enabling non-AUDDIS service users to send password-protected scanned copies of Direct Debit Instructions (DDIs) via email to paying banks, for the duration of the Covid-19 pandemic. 

In a further move, announced yesterday, Pay.UK have also taken the step to temporarily extend the Direct Debit dormancy period to a minimum of 24 months – for those operating a 13 month dormancy period – with effect from 29 June.

Due to the increasing offering of payment holidays and deferments during the pandemic the operators of the Bacs Direct Debit scheme believe that these changing payment schedules could cause the minimum 13 month Direct Debit dormancy period to be exceeded in some limited cases.

Pay.UK advise that the good news is that you should not need to amend your systems. If the last Direct Debit you collected was more than 13 months from the date of the change, you will not need to obtain a new authority so long as you collect the next Direct Debit within 24 months of the last collection date.

And, any service user with a dormancy period of greater than 24 months will retain their existing dormancy period, so will not be impacted by this change; for example, if it is currently set at 60 months then it will remain as it is.

Pay.UK will regularly review the requirement for this temporary extension, and will communicate in advance of it being returned to the original 13 month period. 

Find our more at Pay.UK Direct Debit Dormancy Period

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