CCMC not happy with direct debit procedures 21 May 2009 4:28PM Jason Bryce The Code Compliance Monitoring Committee has engaged a market research company to shadow shop banks to see how well they handle requests from customers to cancel direct debits.The CCMC's move, which was flagged in its latest bulletin, comes in response to feedback from customers and financial counsellors that there are ongoing problems in this area.Clause 19 of the Code of Banking Practice requires banks to promptly process instructions to cancel a direct debit request and to deal with complaints that direct debits were unauthorised or irregular.A common situation is that the bank refers the customer to the direct debit user or service provider to cancel the facility. The Code requires the bank to carry out the customer's request without any need to raise the matter with the service provider.The CCMC has asked banks to report on their policies, procedures and training in this area.According to the CCMC bulletin: "In addition to this being a customer service issue for the banks it is now compounded by increasing hardship."We are now starting to see instances where transaction accounts with nil or negative balances are being charged a dishonour fee for direct debits that the bank has failed to cancel as instructed."