Why do direct debit dishonours occur?
Direct debit dishonours will occur if Netwealth is unsuccessful in requesting funds from a client’s bank account. This may be due to:
- Restrictions on the client’s bank account (doesn’t allow direct debits);
- Insufficient funds in client’s bank account;
- Client’s bank account has a direct debit limit; or
- Bank details are incorrect.
How long does it take for a direct debit dishonour confirmation to be received?
Netwealth receive the dishonour confirmation after 3 business days of requesting the direct debit.
How to resolve a direct debit dishonour if funds have been invested?
If the money has been invested and there is not enough available cash to cancel out the dishonoured funds, the client will need to process a deposit into their Netwealth account as soon as possible. Once the funds are received by Netwealth, the team will reconcile the client’s account and finalise the dishonour.
If Netwealth does not receive a response regarding the dishonour after 5 business days, Netwealth will sell down the assets to recoup the dishonoured funds.
How to resolve a direct debit dishonour if funds have not been invested?
Netwealth will cancel out the dishonoured funds from the client’s Netwealth account if there is sufficient available cash.