The Payment Systems Regulator (PSR) has published Policy Statement 17/3: Direct Debit Facilities Management: Switching Providers: Our decision on changes to the Direct Debit rules relating to the switching of Facilities Management providers (PS17/3).
In PS17/3 the PSR sets out its decision to make use of its powers under section 54 (Directions) of the Financial Services (Banking Reform) Act 2013 to require the operator of the Bacs payment system Direct Debit (DD) scheme to develop a PSR-approved plan in relation to changes to the scheme rules relating to customers seeking to change their DD facilities management service provider and to direct it in relation to that change.
The PSR’s direction will require the operator to:
- ensure that commercial facilities management service providers that wish to do so can use the Bacs bulk change process to help clients who wish to switch to/from another provider; and
- submit for the PSRs approval a plan and timetable to achieve that outcome through the alternative approach put forward by Bacs Payment Schemes Limited.
In terms of implementation, the PSR has decided not to prescribe a detailed approach to be used by the Direct Debit operator.
View PSR decision on proposals to improve switching of Facilities Management providers, 13 December 2017