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What to do if your debit order bounces

Posted  January 14, 2019

Bounced debit orders don’t have to mean the end of your insurance policy. We’ve got all the details on what to do if your debit order is returned unpaid.

It’s that time of year again when, even if you didn’t overspend in December, your budget can be stretched, which could mean your 1Life debit order is returned unpaid by your bank. Learn more about how to make use of alternative payment methods or arrange for the debit order to be deducted later in the month.

What is a bounced debit order?If a company like 1Life has your authority to debit your bank account directly for a premium and the bank does not honour this debit order, your debit order is returned unpaid and is said to have ‘bounced’. There are a few reasons this might happen – you might have changed banks, there may be a hold on the account, or there may be insufficient funds in the account to pay the debit order.

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How do you know if your 1Life debit order has bounced?The bank will notify 1Life that the debit order has bounced, and we will notify you via SMS, email and/or a posted letter as soon as the bank notifies us. You can also pick up on unpaid debit orders on your bank statement within a few days of the payment date.

What next?You can call us to arrange for the debit order to be submitted on a different date or you can make use of one of the alternative payment options detailed in the SMS, email and letter. If you don’t pay the premium using one of these options, or contact us to arrange a new payment date, we’ll resubmit the debit order after the expiry date indicated on the SMS, email or letter.

Alternative payment options
Resubmit the debit order
You can ask us to resubmit the debit order when your bank account has sufficient funds. We’ll do this later in the month, but the exact date will depend on your original debit order date, your grace period (you will find this in your policy schedule, it is usually 15 days) and when the bank notifies us the debit order is unpaid.

Pay your premium at a retail store
In the case of a bounced debit order, we offer the option to pay the unpaid premium at a retail store including PEP, Ackermans, Checkers and Pick n Pay.

Pay using an app such as SnapScan or Zapper
We also offer the option to pay using an app on your smartphone such as SnapScan or Zapper. We’ll include details on how to do this in our SMS, email and letter.

Pay with your debit or credit card
Details on how to do this will also be included be in the SMS, email and letter.

Will I pay extra if my debit order bounces?1Life does not levy any additional charges for bounced debit orders. However, if you pay your premium using the apps detailed above you will need a few minutes of data to complete the transaction, usually less than 1 minute. Your bank may charge for unpaid debit orders.

Is my credit record affected when a debit order bounces?1Life does not send information about unpaid debit orders to credit bureaus but your bank might. Too many unpaid debit orders may reflect negatively on your credit record.

What if I have several unpaid debit orders?We want you and your family to be covered in case of an unexpected event but if premiums are not paid for three months, your policy will lapse and you won’t be covered.

I’ve changed my banking details or changed banksNot all banks notify us of a change in banking details. If your details have changed or you have moved to a new bank, you should inform us of the changes. You can call our client services team on 0860 10 51 94 or change your details on our policyholder USSD string by dialling *120# and following the prompts.

Select a debit order day that suits youYou can select any day of the month for your debit order to go off. We recommend you choose the day your salary is paid into your account. If you are self-employed, a contract or freelance worker and don’t get paid on a set date we also offer variable debit order dates.

Take action before a debit order bouncesWe know how important your 1Life policy is to you and your family. If you are in difficulty and don’t have enough in your bank account to cover the premium, talk to us about making alternative arrangements such as debiting at a later date. Debit orders are usually submitted to banks the day before they are due, so you will need to give us at least 24 hours’ notice to stop the debit order and prevent an unpaid returned premium.

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