Advance Notice, Direct Debit, Direct Debit Guarantee, direct debit training
Bureau Service, Direct Debit, Guarantee, Training, Uncategorised
05, SEP 2018

Bureau Service

We often field questions from our clients regarding Direct Debit Advance Notice rules. Common questions we are asked about providing Advance Notice of Direct Debit collections include the following:

– Do I have to provide Advance Notice in writing?

– Do I have to give 10 days’ Advance Notice?

– If I fail to collect the Direct Debit on time do I have to provide Advance Notice again?

So, do you know the Direct Debit Advance Notice rules and regulations you need to be compliant with the Bacs Direct Debit scheme? Read on for the answers you need.

What is Advance Notice?

Advance Notice is the method by which the organisation (the Service User) gives notice to the Payer (the person paying the Direct Debit), before the first Direct Debit is collected or when any changes are made to the amount, collection date or frequency of the Direct Debit collection.

Who should receive the Advance Notice?

The Advance Notice must be issued to the person who signed the Direct Debit Instruction (the Payer). This is the person who has the authority to authorise Direct Debits to be collected from the bank account. Most of the time this will also be your customer, but not always. If you are a Student Housing Organisation, for example, your customer may be the student renting a flat, but the Payer may be their parent who pays the bill.

What should an Advance Notice contain?

Direct Debit notification requirements stipulate that an Advance Notice must always contain details of:

– Direct Debit Reference (if this is a credit card number it can be partially masked)

– Amount to be debited from the account – if the amount is an amalgamation of more than one collection, the amount of each collection forming part of the Direct Debit must also be shown

– Collection date (date, month and year)

– Frequency (for example, if the Advance Notice is a schedule of payments)

– Service User contact details, so the Payer can contact you with a query – if this is not present the Payer may be more likely to simply cancel the Direct Debit with the bank

– Details of the Advance Notice period should be given on an initial advance notification but is optional for paperless sign-ups/subsequent notifications

– Service User name and contact telephone number

– Service User Number (SUN) (optional)

How do I Give Advance Notice?

The Direct Debit Rules allow the Advance Notice to be given in written or electronic form, or orally. Whatever form is used, the information must be clear and easily identifiable by the Payer (so it’s best if it doesn’t also contain marketing/sales material) and it should be approved in advance by your sponsoring bank. Forms can include:


– Letter – addressed to the Payer

– Invoice

– Statement

– Within a Contract

These would usually contain a statement such as, “This is for information purposes only. The amount due will be collected by Direct Debit on or immediately after …”

Electronic – (with prior agreement of the Payer)

– Email

– Via a secure website – in a durable medium, e.g. an invoice which allows the Payer to store and access the information and reproduce it unchanged. The Payer can then be emailed or texted to advise that the information is available on the website

– SMS (text message). This may be more suitable for some types of organisation – for example, mobile phone providers who are collecting for a top-up and/or organisations who have already provided a written Advance Notice


– This is usually used on an ad hoc basis with a Payer and isn’t suitable for providing a schedule of collections. Note: transcripts of calls aren’t accepted by the bank as proof of Advance Notice being given, but they can be useful for any future discussions with the Payer

– Service Users may provide Advance Notice to blind or visually impaired Payers on CD/cassette

Remember: proof that Advance Notice has been issued does not provide proof that the Payer has received it! If you hold incorrect address or email details, for example, or if the Payer is different from your customer, the correct person may have never received the information – just one of many reasons why it’s important to keep Payer details up to date.

How much Advance Notice do I have to provide?

Advance Notice must be provided to the payer before any collections are taken from an account and the length of the Direct Debit notice depends on what has been agreed with the sponsoring bank. If you are unsure what time period your organisation has, you can check the information contained within your Direct Debit Guarantee as it has to state this time period.

Typically, the default period (the time allowed for receipt of the Advance Notice by the payer) is a minimum of 10 working days plus postal time. If your organisation has not requested anything different to this you will typically be required to give 10 days’ Direct Debit notice. It is possible, however, to request a shorter time period from the bank – for example, 3 working days. If this was agreed, your Direct Debit Guarantee should reflect this and you would be required to provide Advance Notice of 3 working days plus postal time.

If I don’t collect on time, should I provide a new Advance Notice?

There are clear rules about when Direct Debits can be collected – for example, Direct Debits must never be collected early – see our blog on what to do if this ever happens in error. They also shouldn’t be collected late. The Direct Debit Advance Notice rules state that Service Users must collect the Direct Debit on or within 3 working days after the date advised to the Payer.

Sometimes it is not possible to collect a Direct Debit when planned. Software failures, unexpected staffing absence or database issues could all affect an organisation’s ability to transmit their files to Bacs. This should be avoided if possible and is why it’s good practice to have a Bureau on contingency standby for emergencies, even if you have your own software. Click here to read more about the advantages of this service.

If your organisation fails to collect the Direct Debit as advised to the Payer, you could collect it at a later date. Where this is more than 3 working days after the originally advised date, then you will need to provide Advance Notice again. If the date is amended then you must remember to allow the full Direct Debit notice period – unless you agree differently with the Payer.

Any more questions?

If you have any questions about this information – or about any of the other rules relating to Advance Notice Direct Debit rules and procedures – please contact us and we will be happy to help.

Providing Advance Notice is a key cornerstone of the Direct Debit Scheme and an important responsibility for the Service User. Failure to comply with scheme rules could result in failed collections and refunds (for example, if the Payer doesn’t have sufficient funds in their account or disputes the payment as they were not expecting it). In both these examples, there could be a serious impact on customer relations as well as upon organisational cash flow, so it’s important to get it right.

If you are interested in learning more about the Direct Debit Scheme and how it can work to your organisation’s advantage, see our website for details of our comprehensive Direct Debit Training.