Returned direct debits: the protocol that stops them becoming arrears

A returned direct debit is not a debtor: it is a warning. The difference between the two is what you do over the next 15 days.

The first week

• Check the reason: insufficient funds, a changed account, or a deliberate return.
• A direct, friendly message to the owner: "the March payment came back to us, could you check it?". 80% is resolved right there.

The cost of the return

The bank charges a fee for each returned payment. It is legitimate (and healthy) for a resolution to provide that this fee falls on whoever returned it — mention it gently in the reminder.

Reissuing and recording

Mark the payment as outstanding (do not write it off in the accounts), and reissue or collect by transfer. The important thing: the real status of every instalment must always be visible.

When it changes category

Two consecutive returns with no reply, or repeated excuses: move to the arrears protocol (formal reminder → resolution at a meeting → certified letter → fast-track claim). The sooner it is put in order, the less it grows.