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Are you aware the Direct Debit Indemnity Claim process is changing from 31st May?

As of 4th March, Direct Debit Service Users can now simplify the way they challenge Direct Debit Indemnity Claims (DDIC), with the old process no longer available after 31st May 2024.

Bacs, part of, have implemented a new change to streamline what was often an individual and difficult bank process that relied on emails for any Service User wanting to counter-claim an indemnity.

Direct Debit Management – a step forward

The new DDIC process enables Service Users to follow the same easy process, regardless of their sponsoring bank. By logging into the Payment Services website, they will now be able to challenge incorrect indemnity claims quickly and efficiently.

What does it mean for charities?

Direct Debit Indemnity claims are rare in the charity sector, but they do occur. Supporters have the rights and protection under the Direct Debit Guarantee to request an Indemnity claim if the Direct Debit was taken in error. For most charities, counter-claiming a donation does not often occur, however, for Direct Debits where a membership or lottery play has been taken correctly but a claim made, this process will be a welcome step in challenging the refund request.

For more information on DDIC, please refer to the Direct Debit Service User Guide & Rules or discuss with your sponsoring bank. If you are utilising our Bacs Bureau for the management and collection of your Direct Debits, please feel free to contact us if you have any questions.

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