The total Direct Debit failure rate in August 2023 has increased by 14% when compared with August 2022.
The brand new data has come from Pay.UK and Vocalink, which are part of a new monthly real-time indicator tracking Direct Debit average transaction and failure rate.
The news comes as the UK economy shrinks more than expected in July, contracting by 0.5%.
Consumer behaviour indicators are generally showing decreased activity in the latest week. For example, Revolut debit card spending fell by 11 percentage points when compared with the previous week, with a notable 21 percentage point call in ‘Automotive fuel’ spending.
“As a leading life insurance broker, we oversee hundreds of thousands of UK direct debits. We are seeing a significant increase in direct debits bouncing, and not necessarily from customers intending to cancel their policies.” comments David Brewer, co-founder of Read full release