Direct Debit for Overpayment Recovery

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    I am looking into offering Direct Debit as a way of customers paying back Housing Benefit overpayments. We have an increasing number of arrangements or standing orders that people are defaulting on and some actually ask to pay by DD.

    Does anyone already offer this, and what was/is your experience?

    How many collection failures did you have, and how do you limit that?

    Many thanks.

    Andrea Palmer

    we set up DD’s earlier this year and is becoming more and more popular. We offer 3 DD dates in line with 3 of the CT collection dates.
    The extract file does require some manipulation (although one bug has now been fixed in 5.14). We collect approx £300 per date and on our 5th date the most people we have set up is 14.
    The majority of the work is the setting up of the DD mandate with the bank and BACS but one this is done, the rest is easy!
    Roll on Auddis!

    We don’t have many failures on collection and these are dealt with by the overpayments officer if they do occur.


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