When a direct debit is taken by a company and money in my account does not cover it, what happens?
If a direct debit were to be presented for payment against insufficient funds to pay it, the bank would either pay the debit, creating an overdraft in the account, or return the debit unpaid to the originating depository institution where it would be charged back to the business or other firm that originated the transaction. Presumably, that originating business would either resubmit the debit if it believed the funds would be on deposit on its second attempt, or it would accept the charged-back debit and take appropriate measures to recover the funds in another way. If the bank paid the direct debit to create an overdraft, the bank would likely assess you an overdraft fee, and of course, expect a covering deposit.
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If a direct debit were to be presented for payment against 