Unknown debit order on your account? What to do

You check your balance and see a debit order you do not know. Or a company keeps taking money after you asked it to stop. This is stressful when every rand is planned. You can act, and the first days matter most.

This post is general information. Rules and fees differ between banks, so check the details with your own bank.

What is a debit order?

A debit order lets a company take money from your account on a set date. You normally sign a form or agree on a call or online, and that agreement is called a mandate. Rent, insurance, gym fees and loan repayments are often paid this way.

What should you do first?

1. Open your statement and find the debit order. Write down the date, the amount and the name shown.
2. Ask yourself if you ever agreed to it. Sometimes the name on the statement is not the name of the shop or lender you know.
3. Take screenshots or keep your statement. You may need them later.

Can you get the money back?

Banks generally say that if a debit order was not authorised, you can dispute it. Several banks report a time limit of about 40 days from the date of the debit. If you dispute inside that time, the bank may return the money to your account quickly.

After that time, getting your money back can be slower and is less certain. The bank may have to ask the company's bank for proof that you agreed. So do not wait. Look at your statement every week, even when the balance is low.

The bank may not reverse a debit order if the company can show a mandate that you signed. This is why it helps to know what you agreed to.

How do you stop a debit order?

You can tell the company in writing that you cancel. Keep a copy, or a screenshot if you used email. You can also ask your bank for a stop payment instruction, in the app, at a branch or by phone. Ask your bank two things: does it cost money, and how long does the instruction last? Some instructions do not last forever, so check your statement again next month.

Stopping a debit order does not cancel what you owe. If you signed a contract, such as a loan, a phone contract or a gym membership, the company can still ask you to pay or follow the cancellation rules in that contract. Cancel with the company too, and keep proof.

What if you cannot pay a debit order this month?

If you know the money will not be there, speak to the company before the date. Ask if you can pay on a different day or pay less this month. A failed debit order can bring bank fees and fees from the company. Ask for any agreement in writing.

If the debit order is a loan repayment, read how to check if a money lender is registered. A registered lender must follow rules that protect you. If your income changes from month to month, how to budget when your income changes every month can help you plan for debit order dates.

How can you stay safe?

• Never give your bank card, PIN or one-time PIN to a person who calls you.
• Do not sign a debit order form for a stranger, or for a job, prize or loan that asks for it before anything else happens.
• Turn on bank notifications if your bank offers them, so you see each debit order when it happens.
• Check each statement and ask about every name you do not know.

If your bank does not help, you can ask for a complaint to be escalated. The Ombudsman for Banking Services takes complaints after you have tried your bank first.

A small note on earning

Earning from surveys and offers on apps like Mocash is small, slow and not guaranteed, and it is not a replacement for income. Rewards can be withdrawn as airtime, data, electricity or vouchers. Do not plan a debit order around money you have not yet received.