Direct debit dishonour fee

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  • #22054
    Andrea Dolan
    Participant

      Canterbury-Bankstown

      Hi everyone,
      I am looking at the possibility of introducing a dishonour fee for direct debit accounts. Currently CBCity doesn’t charge anything for accounts that bounce as part of the Council initiated direct debit process. Do any of you charge one? If so, how much? And how do you pass on that charge to the owner?
      Thanks
      Andrea

      #22060
      Dajana Poblete
      Participant

        Sutherland Shire

        Hi Andrea

        We currently charge a direct debit dishonour fee of $26.00. We are increasing this each year towards $30. This direct debit rejection fee is based on our estimate of the fee charged to Council by the bank plus our administration costs, which includes our staff having to contact the ratepayer due to non-receipt of the rate instalment and reprocessing of the direct debit to ensure the instalments is receipted correctly. This fee is a direct cost and Council does not profit from it. Thanks

        #22067
        Suzy Melki
        Participant

          Strathfield

          Hi Andrea
          we charge $25.00 dishonour fee and it is listed under our fees and charges, We make contact via phone where a contact number is available with the customer for replacement funds and inform them of the $25.00 dishonour fee, followed by a letter, if they dishonour 3 times we stop the direct debit and inform them to make payment via other payment options available to them.
          Regards
          Suzy

          #22070
          Lee Clarke
          Participant

            Tweed Shire

            Hi Andrea
            Tweed have an $11.00 direct debit dishonour fee listed in the fees and charges.
            We usually give the ratepayer 1 free dishonour but charge after by raising the fee against the rate account. If they dishonour 3 times in a row, we stop the D/D.
            Regards
            lee

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