Thread: Are Direct Debits subject to the Consumer Credit Act?

Are Direct Debits subject to the Consumer Credit Act?

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No - they are subject to the direct debit guarnatee - the person you are paying may be subjrct to CCA
Whats the problem.?

Hi gizmo111, yes i am aware that the direct debit Guarantee has a direct link to Direct Debits, however there may be an indirect link to the CCA.

Now if a company wishes to transfer the total costs of Direct Debit including the originator licence fee to 100 customers for example.

-a - - - b - - c - - - - - - d - - - - - - -e
405 + 270 = 675 / 100 = 6.75 / 12 = 0.5625

a: 100 * DD costs per year.
b: Originator licence fee.
c: Total DD costs per year.
d: Total DD cost per customer per year.
e: Total DD cost per customer per month.

RBS: Direct Debit Solutions: (Tarrifs)
RBS: Corporate Markets - Direct Debiting Business Payments

Now i have got 6.75 that needs to be bundled to each and every customer on DD, the best known mechanism is `The total charge for Credit'.

Service cost + DD cost = `The total charge for Credit'.

Do you agree that `The total charge for Credit' is a component part of the CCA!?

Do you agree that some companies can opt-in and opt-out of the CCA at will!?

Now go back and answer the first question.

Are Direct Debits subject to the Consumer Credit Act?

Hi gizmo111, what my angle!

Telecommunications sector, the companies that have a non-D-D fee and usually state `We are excluded from the CCA'!

In addition there are companies that only advertise the D-D price per month, no cash price is offered, a bit like my sisters contract phone.

Are Telecommunications companies excluded from the Consumer Credit Act 1974?

(Home page | Ofcom)
Ofcom does not gain its powers from the Consumer Credit Act 1974 and so we are not best placed to answer the question that you have raised. I would suggest that you direct your query to the Office of Fair Trading. (Office of Fair Trading - making markets work well for consumers)

2: If a company references any part of Consumer Credit Act within their contracts or T & C's, does the CCA only apply to that section or the whole document?