Finance Glossary

Direct Debit

A payment instruction that authorises a company to collect payments directly from your bank account on agreed dates and for agreed amounts. Direct Debits are protected by the Direct Debit Guarantee, which means your bank must refund you immediately if an incorrect or unauthorised payment is taken. Many lenders use Direct Debits to collect loan repayments.

Related terms

Standing Order
A fixed, regular payment instruction you set up with your ow…
Debit Order
A regular payment authorisation allowing a company to debit …
Loan Agreement
The legally binding contract between a borrower and lender t…
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