Credicorp

Direct Debit

A Direct Debit (DD) is an instruction a business gives to its bank that allows a lender or supplier to collect agreed payments from its account on a schedule. Unlike a one-off payment, it runs automatically once set up. Direct Debits in the UK are governed by the Direct Debit Guarantee, a protection that requires the payer's bank to refund a payment taken in error.

What it is: A standing instruction allowing scheduled collections from an account.
Who collects: The lender or supplier, on the agreed dates and amounts.
The protection: The Direct Debit Guarantee — a refund if a collection is taken in error.

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The Direct Debit Guarantee

The Direct Debit Guarantee is a key protection for the payer. If a payment is taken on the wrong date, for the wrong amount, or in error, the payer's bank will reverse it. It also requires advance notice of any change to the amount or date. This makes Direct Debit a safe, predictable way to make scheduled repayments.

/legal/vulnerability/ How Credicorp, a UK business lender, supports customers going through a difficult time — vulnerability policy and support routes. Late-payment fee A late-payment fee is a charge added when a scheduled payment is missed, typically after a failed Direct Debit collection. It is separate from interest… Arrears Arrears are payments that a borrower has missed and not yet made up — money that is overdue under a credit agreement but has not yet reached the threshold… Forbearance Forbearance is the temporary arrangements a lender offers a borrower in financial difficulty — such as reduced or paused payments — to help them recover… Eligibility Eligibility is the set of published criteria a business must meet to be considered for a facility. Credicorp's criteria: a UK limited company or LLP… KYC (know your customer) Know your customer (KYC) is the process of identifying and verifying who a lender is dealing with — the business, its directors and its ultimate owners… Business overdraft A business overdraft lets a company spend beyond its bank balance up to an agreed limit, with interest on the amount overdrawn. A revolving credit… Incorporation Incorporation is the act of forming a company so that it exists as a separate legal person, registered at Companies House. It is what gives a business… MLR 2017 (Money Laundering Regulations) The Money Laundering Regulations 2017 require lenders to verify the identity of the businesses they lend to and to screen them for sanctions and… ICO (Information Commissioner's Office) The ICO is the UK's independent data-protection regulator, responsible for upholding information rights and enforcing UK GDPR and the Data Protection Act… Secured loan A secured loan is backed by an asset the lender can recover against if the loan is not repaid. It contrasts with unsecured lending, where no asset is…

Failed collections

If there are insufficient funds when a Direct Debit is due, the collection can fail. A failed collection usually means the payment is missed, which can move an account into arrears and may attract a late-payment fee. Where a business knows a collection will fail, the best step is to contact the lender in advance so an arrangement can be made.

Direct Debit and Credicorp

Credicorp collects scheduled repayments from UK business bank accounts by Direct Debit, under the Direct Debit Guarantee. If you know a collection will fail, contact us early at /help/ so we can agree a way forward; support for vulnerable customers is at /legal/vulnerability/. Credicorp is an independent UK lender, not affiliated with Credicorp Inc of Peru, Credit Corp of Australia, or any other Credicorp entity outside the United Kingdom (Company No. 16093826; ICO ZC157682).

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