The Direct Debit Guarantee is provided by the banks and building societies that take part in the Direct Debit scheme. It is not a Credicorp product and it is not the same as consumer-credit protection. It applies to how a Direct Debit is collected, regardless of who the originator is.
What the Guarantee covers
- If we change the amount or date of a collection, we must give you advance notice in line with the scheme rules.
- If an error is made in collecting a payment, you are entitled to a full and immediate refund from your own bank.
- You can cancel a Direct Debit at any time by contacting your bank.
What it does not change
The Guarantee protects the payment mechanism. It does not turn your facility into a regulated consumer-credit agreement. Credicorp lends only to UK limited companies and LLPs for business purposes, so your facility sits outside the FCA regime — there is no Financial Ombudsman Service and no FSCS cover. The Direct Debit Guarantee still applies to your collections because it is a banking-scheme protection.
If you claim a refund under the Guarantee
If you reclaim a payment that was actually due, the amount remains owed on your account. Please tell us straight away so we can agree how to bring the account back in line and avoid it being treated as a missed payment.
See also: I think I was charged twice or for the wrong amount — what should I do?, Does FSCS protection cover my Credicorp facility? and Is Flex secured, and do directors need to give a guarantee?.