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DDICA - Direct Debit Indemnity Claim Automation

Under the Direct Debit Scheme Rules paying banks are required to refund the Direct Debit payer in the event of an error by a Direct Debit Originator. Paying banks will use the indemnity claim process to reclaim the refund from that Originator.

The service user must settle an indemnity claim within 14 days of the date of the indemnity claim. Currently this process is a manual one using paper indemnity claim forms. DDICA will automate the process between banks and DD Originators and provide automated settlement of the resultant sums of money involved by the banks raising Direct Debits against the Originators

DD Originators will benefit from the centralised and timely provision of details of indemnity claims submitted against them and reduced costs because the settlement occurs without them needing to submit entries through whatever mechanism they currently use. Banks will benefit from reduced paper flows and certainty of settlement of the values involved.

The mandatory go live date for the (DDICA) service is 18th October 2010.

There is a mandatory final migration date for all banks to be using the new process by 30 April 2011. Therefore, for a period of time, indemnity claims may be received either in automated or in paper form. After 30th April 2011 paper indemnity claims will not be produced (except in a small number of specific instances.

Further information regarding Direct Debit Indemnity Claim Automation can be found on the Bacs Ltd website

Registration to these areas of the Bacs website will be required to access all the information.

www.bacs.co.uk/banks/DDICA
www.bacs.co.uk/businesses/DDICA

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