Changing from Standing Order to Direct Debit
May 27, 2016 10:25:03 GMT
nick, markdirac, and 2 more like this
Post by rebsrep on May 27, 2016 10:25:03 GMT
Hi all,
As many of you are aware we are changing from a Standing Order (Borrower sends money to us) to a Direct Debit (we pull money from borrowers account) method. However, Standing Orders are received the same day in most cases under the banking systems Faster Payment Service. However Direct Debit takes 3-5 business days to transfer through the banking system.
We are working through active loan accounts and transferring the accounts from standing orders to direct debits in phases.
We use a 3rd party direct debit provider to complete direct debits on your behalf. A direct debit is not an immediate transaction like a standing order or Faster Payment, a direct debit needs to go through a series of checks and parties before being sent to use. A standard process chain for a direct debit usually involves:
1. We request the DD
2. Payment Submitted to Bacs
3. Bank reviews request and authorises / denies
4. Payment Scheduled to leave borrower account
5. Payment confirmed and received by 3rd party DD partner
6. Paid out to Rebs
These actions, are only actioned on business days, and at times delays can occur.
As we move to bring all borrower accounts on to DD repayments, we need to align the current displayed repayment date on which you expect to receive a repayment, with the date the borrower expects the funds to be debited from their account.
The repayment dates on current active loans have been chosen by borrowers so that their repayment date falls in line with their cashflow needs, as such we are unable to change the date we expect the funds to be debited form their account. Therefore, for these active loans that are being transferred to Direct Debit Accounts, we will be moving the date you can expect to receive the payment in your lender client account, forward by 3 days so the Borrower’s repayment schedule matches up with the date on which you expect to receive the repayment.
Future loans repayment schedules will all automatically be aligned so that the direct debit is pulled a few days before your expected repayment date.
It is important to remember that like Standing Orders, Direct Debits can be cancelled by the Borrower, however unlike a STO we will receive notice of any DD cancellation.
Kind regards,
ReBS team
As many of you are aware we are changing from a Standing Order (Borrower sends money to us) to a Direct Debit (we pull money from borrowers account) method. However, Standing Orders are received the same day in most cases under the banking systems Faster Payment Service. However Direct Debit takes 3-5 business days to transfer through the banking system.
We are working through active loan accounts and transferring the accounts from standing orders to direct debits in phases.
We use a 3rd party direct debit provider to complete direct debits on your behalf. A direct debit is not an immediate transaction like a standing order or Faster Payment, a direct debit needs to go through a series of checks and parties before being sent to use. A standard process chain for a direct debit usually involves:
1. We request the DD
2. Payment Submitted to Bacs
3. Bank reviews request and authorises / denies
4. Payment Scheduled to leave borrower account
5. Payment confirmed and received by 3rd party DD partner
6. Paid out to Rebs
These actions, are only actioned on business days, and at times delays can occur.
As we move to bring all borrower accounts on to DD repayments, we need to align the current displayed repayment date on which you expect to receive a repayment, with the date the borrower expects the funds to be debited from their account.
The repayment dates on current active loans have been chosen by borrowers so that their repayment date falls in line with their cashflow needs, as such we are unable to change the date we expect the funds to be debited form their account. Therefore, for these active loans that are being transferred to Direct Debit Accounts, we will be moving the date you can expect to receive the payment in your lender client account, forward by 3 days so the Borrower’s repayment schedule matches up with the date on which you expect to receive the repayment.
Future loans repayment schedules will all automatically be aligned so that the direct debit is pulled a few days before your expected repayment date.
It is important to remember that like Standing Orders, Direct Debits can be cancelled by the Borrower, however unlike a STO we will receive notice of any DD cancellation.
Kind regards,
ReBS team
