A bounced direct debit happens when your scheduled, automatic payment doesn’t work, and money is not taken from your bank account to pay a bill.
This occurs for a variety of reasons: the direct debit was not correctly set up, the payments have not been authorised, or there’s not enough money in your account.
It happens to more people than you’d think, so don’t panic if you find yourself in a situation where your direct debit has failed. The important thing is to fix the problem quickly. Let’s explore how you do this.
What Is A Bounced Direct Debit?
Will The Bank Try To Take The Payment Again?
Can Direct Debit Dates Change?
What Is A Bounced Direct Debit?
A bounced direct debit happens when a payment you agreed to make isn’t taken. There are multiple reasons why, but the most common one is not having enough money in your account.
If this happens, don’t worry—it’s not the end of the world. A single missed payment is fixable, but it’s important to act quickly. Repeated bounces can harm your credit score, making it harder to get loans or finance deals in the future.
What Should You Do Next?
If your direct debit bounces, you may get a notification from your bank or the company you owe money to; or you may also even spot this if you’re checking your bank balance.
If your direct debit bounces, here’s what you need to do:
- Check Your Account: See if the funds are available; if they are, great! Speak to your creditor – i.e. the company you’re owe money to, like LM Operations, to make a quick payment over the phone.
If you cannot, it is still vital you move to the next step: - Contact Us: Reach out as soon as possible to either make a payment, or to discuss your options. In this call, you will go over your options, such as deferring the payment, extending the due date, changing your monthly payment dates, or setting up a new plan.
The most important part is to address the issue immediately, as it can stop bigger issues coming up in future, like your credit score coming down.
If you’re with LM Operations, you can contact us at collections@lmoperations.ie or call us at 01695 0698. We’re here to help and will work with you to resolve the issue.
Will The Bank Try To Take Payment Again?
Most banks will try to process the payment again, usually on the same day before 2pm. If they can’t process the payment after a few tries, they’ll let you know.
This gives you some extra time to explore what the issue is or to move money into the account. To note, if the direct debit fails, you may incur a charge from your bank.
Can Direct Debit Dates Change?
Yes, direct debit dates can change depending on weekends or holidays. For example, if you set up payments for the 5th of the month, and the 5th lands on a Saturday, payment from your bank may occur on the Friday before or next working day (the Monday after).
How To Avoid Bounced Direct Debits
Here are some tips to stop direct debits from bouncing:
- Set Payments After Payday: Schedule direct debits to come out right after you get paid, when your account is most likely to have enough money.
- Use Notifications: Set up alerts or reminders a few days before your payment is due. Most companies (such as LM Operations) send reminders about your payments, but it is worth setting them in your calendar too.
- Save for Direct Debits: Put money aside in a separate account just for your direct debits. This helps you stay prepared for unexpected expenses. Banks like Monzo let you set up pots for bills or other savings to ensure you cannot spend the money needed for vital items.
If you need help budgeting or planning your monthly direct debits, MABS offer free advice and online resources to assist.
Conclusion
A bounced direct debit isn’t something to panic about. It happens, and it can be fixed. The key is to act fast, move money around if needed, and contact the company you’re paying.
If this happens with LM Operations, we’re here to help. Contact us at collections@lmoperations.ie or 01695 0698, and we’ll work with you to get everything back on track. With a little planning and quick action, you can avoid bounced direct debits in the future.