Direct Debit for Guild subscription payments
Direct Debit for Guild subscription payments
After much discussion, the management Council of the Guild has decided to ask all members to switch from Standing Order to Direct Debit for subscription payments due in 2008.
The reason is simply that Direct Debit is more efficient and should eliminate the time-consuming problems and queries that currently plague the administration of Guild membership subscriptions.
Similar organisations, such as the Farmers Club and Worshipful Company of Farmers, have already changed to Direct Debit for the same reason.
The following notes aim to explain the background and reasons for this change, as well as the procedure for switching to the new system. Members with other questions about moving to Direct Debit can email the Treasurer Tim Price.
A letter and a single form – comprising a Standing Order cancellation and a Direct Debit mandate – are being sent out. With some 500 members’ subscription payments to administer, Tim Price (above) appeals to everyone to fill-in and return these forms as a matter of urgency to minimise the risk of duplicate payments at the end of January.
Q: What is wrong with using Standing Orders?
They cause a number of problems, largely because they depend on individual members remembering to set-up, change or cancel them – the Guild’s treasurer can not alter or cancel Standing Order instructions on a member’s behalf. This causes several problems for members:
- members who retire or leave the Guild for other reasons often forget to cancel their Standing Order instruction so continue to pay a subscription;
- the Guild sometimes loses all contact with members who move jobs and house, so the benefits of membership can not be delivered but the subscription continues to be paid;
- some Standing Order payments give no clue as to whose subscription they are settling, which makes it difficult to keep track of whose subscriptions have been paid;
- on the few occasions that there is a change of subscription rate, a considerable number of members invariably forget to update their Standing Order in time, so they have to make up the balance by cheque.
Q: How will Direct Debit solve these problems?
Once a Direct Debit instruction is in place, the Guild’s new bank (Lloyds TSB), under instruction from the Guild treasurer, will administer the collection of subscription payments.
- it will be easier to match payments received to individual members.
- when members have been granted Retired status, the reduced subscription rate will automatically be applied.
- when members leave the Guild or lose contact, their Direct Debit subscription payment instruction can easily be cancelled by the Treasurer.
Q: When will subscription payments be collected?
At present, most members’ Standing Order payments are made on 31 January. Direct Debit payments will be collected over several days in January.
Q: What safeguards are there?
The usual Direct Debit controls and guarantees apply – see the Direct
Debits website for full details. Members will be informed before any variations in payments are made, any monies collected in error will be refunded without delay and members can always cancel Direct Debit instructions themselves if they wish.
Q: Is the subscription rate changing with the introduction of Direct Debit?
No. Members who switch to Direct Debit will continue to pay the current annual subscription introduced in January 2007. This is £52 for all members except those who qualify for Retired member status; they pay £26
Q: What will I need to do?
To make the switch-over as easy as possible, members will be mailed details of the new arrangements and be asked to fill-in, sign and return a single-page form comprising a Direct Debit mandate and an instruction cancelling their Standing Order. A stamped addressed envelope will be provided.
All new members joining the Guild will be required to complete a Direct Debit mandate as a condition of membership.
As required by the rules, the Treasurer will write to each member confirming that a Direct Debit has been set up and confirming the bank details that will be used. You only have to respond to this letter if any of these details are incorrect.
Q: How will you know whether I have paid my subscription?
With the new system, each member will have a unique membership number and this will be used as the identifier for Direct Debits. The membership number will be printed on the letter accompanying the form mentioned above and needs to be written on the Direct Debit mandate where indicated.
Q: Does it matter if payments are made from an account not in my name?
Where the subscription is paid from an account that does not have the same title as the member’s name published in the Guild Year Book (eg Maiden versus Married name), it would be helpful to draw this to the Treasurer’s attention.
Q: What if my company or employer pays my subscription and their bank account does not accept Direct Debit instructions?
Members are individually responsible for their subscriptions, so it is best to pay the subscription personally and, if necessary, reclaim the amount from your employer or business. The Treasurer will send you a receipt if you ask for one. Also, managing your subscription in this way will avoid the confusion that can arise when a member changes jobs or leaves the Guild.
Q: Can I cancel the existing Standing Order myself?
Yes, in fact it would be helpful to do so, either by writing to your bank or by using an online banking service. However, as a back-up, it is essential to also fill-in the Standing Order cancellation section of the Direct Debit form.
Q: What happens if my Standing Order is not cancelled in time?
The Guild’s old current account with HSBC has been closed, so any Standing Order payments will be blocked and the money should be returned to your account.
Q: Can I use online banking to set up the Direct Debit?
The Treasurer would prefer you to use the form supplied so that the details can be checked and a paper record kept.
Q: What should I do about my Standing Order subscription to the GAJ Charitable Trust ‘200 Club’?
There is no need to do anything, as this is quite separate from the membership subscription and is paid into a separate account. And please don’t cancel your Standing Order to the ‘200 Club’ cash prize draw by mistake; it’s a very effective – and potentially rewarding – way of supporting this important initiative for members who fall on difficult times.
Q: If I don’t receive the Treasurer’s letter or form by the end of December, what should I do?
Contact the Treasurer, Tim Price. He will send you a replacement letter and form.
Congratulations to Simon Gee, editor of the Holstein Journal, who wins a case of excellent wine for returning his Direct Debit mandate by the January 14 deadline. Many thanks to him and all other members who met this deadline; it will make the Treasurer’s task of switching to Direct Debit a whole lot easier. Those who missed the deadline are asked to respond with their form as soon as possible.
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