What is the maximum number of direct debit requests a lender can process in a calendar month if the borrower has a payment shortfall?

What is the maximum number of direct debit requests a lender can process in a calendar month if the borrower has a payment shortfall?

• A. 2
• B. 1
• C. 3
• D. 4

Answer: (A)

When a borrower has a payment shortfall, there is a limit on how often a lender can attempt to collect via direct debit in a single calendar month. The rule is two attempts per month. This cap helps balance recovering arrears with treating the borrower fairly and avoiding pressurising them with repeated debits. If the shortfall persists after two attempts, the lender should pause direct debit requests and explore other options or arrangements with the borrower. So, the maximum number of direct debit requests is two.

When a borrower has a payment shortfall, there is a limit on how often a lender can attempt to collect via direct debit in a single calendar month. The rule is two attempts per month. This cap helps balance recovering arrears with treating the borrower fairly and avoiding pressurising them with repeated debits. If the shortfall persists after two attempts, the lender should pause direct debit requests and explore other options or arrangements with the borrower. So, the maximum number of direct debit requests is two.