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Gosport Borough Council

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Myths about Paying by Direct Debit

Direct Debit

I’m on Housing Benefit so I can’t pay by direct debit
-NOT TRUE

If you have made an application for Housing Benefit and are entitled to it, or you are already in receipt of Housing Benefit, the Direct Debit will be continually monitored. Should your entitlement to Housing Benefit change, you will be contacted in writing and advised of the necessary action prior to a direct debit being requested.

 

I can’t pay by Direct Debit as I am in arrears-NOT TRUE

Even if you are in arrears on your account, it is still possible to pay by Direct Debit monthly.  Your Direct Debit will be calculated to spread arrears over an agreed number of payments, or in line with any previous Court Orders if applicable.  Once the arrears are repaid, the direct debit will be amended to reflect the reduction and you will be notified in writing of these changes.


If a Direct Debit Payment is taken in error, I have the right to a full refund-TRUE

Where ever you see the Direct Debit symbol, this means that the payments are covered by the Direct debit guarantee.  If an error is made by Gosport Borough Council, a full refund will be issued.

 

If I pay by Direct Debit, I am not entitled to the Rent Free weeks (if paying rent)-NOT TRUE

You will still be entitled to the Rent Free weeks (as long as you are not paying arrears as well). However, your monthly payments will be reduced slightly as the Rent Free weeks are spread evenly through the year, ie, 48 weeks rent due ÷ 12 monthly payments.  If you take up the Direct Debit facility during the financial year, your calculations will be adjusted accordingly.

 

Direct Debits can be taken from my bank any time during the month-DEFINITELY NOT TRUE!

You have the choice of the 1st or 15th of the month, which ever suits your financial circumstances.  Unless your bank operates on a clearance time for Direct Debits, the money should not leave your bank account until the date specified.  Please note, however, if the Debit Date falls on a weekend or Bank Holiday, some banks submit the payment the previous working day.

 

If you are considering paying for your charges by Direct Debit and wish to discuss your options further, please feel free to contact the Income Recovery Team on

(023) 9254 5286 and we will be happy to help. Or click here for a Direct Debit Mandate.

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