Bacs, part of Pay.UK, have released a new copy of the Direct Debit Scheme Rules. If you are an organisation collecting Direct Debits, you should ensure you have the correct version.
Version 5.8 – Dated January 2025
“The Service User’s Guide and Rules to the Direct Debit Scheme” contains all the rules and best practice advice for organisations collecting Direct Debits. The aim of the document is to standardise the Direct Debit Scheme for all participating organisations. It is typically updated, once a year.
This week, Bacs have released version 5.8 – dated January 2025. It contains 166 pages of information about the obligations placed upon Service Users who operate a Direct Debit Scheme.
Access version 5.8 from the Bacs Information Hub
The Service User’s Guide and Rules to the Direct Debit Scheme is available from the Bacs Information Hub. Via this website, individuals can log-in (using a username and password) and then access and download useful documents. As well as the Service Users Guide and Rules to the Direct Debit Scheme, individuals can also access documents such as “The Service user guide – Bacstel-IP” & “Getting Started Guide – Bacstel-IP for Direct Submitters”.
The information can also be obtained from the Bacs microsite. This gives visitors the ability to navigate to the relevant sections of the Direct Debit Scheme Rules. They can also download a PDF copy.
Latest updates to the Direct Debit Scheme Rules
Each time a new version of the rules is released, the document contains a useful table on page 2 to show what has changed versus the previous issue. This time, the changes are:
- Section 7A.1 – This contains an updated table to reflect reason code evidence that can be provided to challenge a reason code 4 Direct Debit Indemnity Claim
- Section 11B – New definition for Facilities Management (FM) following FM Redesign
- Section 11B.2 and 11B.3 – Updated wording related to FM Client Monies
Rule changes relating to Indemnity Claims – section 7A.1
In 2024, the Direct Debit Indemnity Claim (DDIC) process was updated. Changes allowed Service Users to monitor and manage DDICs and DDIC challenges via the Payment Services Website (PSW).
With this further amendment, the ability of Service Users to challenge DDICs raised for reason code 4 has been updated. With evidence, Service Users can now challenge this reason if they are able to demonstrate that goods / services were still provided in relation to the claimed DD. If this might be relevant to you and you wish to discuss the implications, please contact us.
Rule changes relating to Facilities Management (FM)
“Facilities Management” is defined as being where…
A service user (the Facilities Management (FM) Provider) collects and possibly also administers Direct Debits on behalf of another organisation (the FM Client), whether or not that other organisation is a service user in its own right.
In this version of the Direct Debit Rules, the definition of FM and of ‘client monies’ has been updated. If this might be relevant to you and you wish to discuss the implications, please contact us.
Complying with the Direct Debit Scheme Rules
Our one-day, Direct Debit training courses cover all the Direct Debit Scheme Rules and best practice approaches that a Service User needs to know. Our courses are accredited by Bacs and can be run over one or two days, depending on needs. You can see more details about our courses on our training page.
Questions?
Our team of experts are here to help. If you would like to discuss the Direct Debit Scheme Rules, please contact us.