Sydney, 29 September, 2006: The Australian Bankers’ Association (ABA) would like to help bank customers who have direct debit arrangements with Internet service provider, Veridas Communications, understand what they can do about their Direct Debit Requests that they have provided to the company for payment of Internet services.

This follows a media release from the Queensland Office of Fair Trading (OFT) which has advised that Veridas Communications closed its doors this month bringing the Veridas network to a halt. The OFT advises Veridas has left around 35,000 businesses and individual customers without Internet access. 

Ian Gilbert, Acting Chief Executive Officer of ABA, said: "Some bank customers may be concerned about cancelling their Direct Debit Requests with Veridas."

Direct debits to Transaction and Savings accounts

If the Direct Debit Request authorises Veridas to debit a customer’s savings or transaction account with their bank, the customer can request their bank to assist them in cancelling their Direct Debit Request.  Customers wishing to do this should contact their bank.   

Mr Gilbert said: “ABA member banks will act on instructions from a customer to process their request for a Direct Debit Request to be cancelled to stop payment of any direct debit from their account in favour of Veridas under a Direct Debit Request.”
“Customers should also read carefully their contractual arrangements with Veridas so that they fully understand the ramifications of cancelling their Direct Debit Requests.”

Direct debits to credit cards

Mr Gilbert said that in the case of credit cards there is a different protection for customers.
“Unauthorised debits to credit cards or debits for services that have not been provided can be treated as a chargeback which means your account will be refunded. There are time periods within which a chargeback must be claimed.  Customers should check their credit card statements as soon as they receive them and contact their bank immediately if there is a disputed debit to their credit card accounts,” Mr Gilbert said.

For further information:

Heather Wellard
Director, Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439

ENDS