ARUDD Reports

ARUDD is an acronym made up from the Automated Return of Unpaid Direct Debits.

The ARUDD report is only triggered when you have submitted a collection file in an attempt to collect from your payers. This report is available to Service Users (Organisations that collect Direct Debits) the day after the day that Direct Debits are due to be collected. On the day that the money is due to be taken from the Payer’s bank accounts the paying bank will check a number of factors to ensure that the Direct Debit is correctly paid or unpaid. Any payments that cannot be made will be returned.

There are again a number of different reason codes depending on why the transaction cannot be completed by the payers bank or Bacs.

The most common of these is usually “Refer to Payer” this may be that there are insufficient funds in the account however this cannot be assumed as there could be a number of other reasons that this occurs. The term “Refer to payer” simply means that the bank are unable to advise the reason for the failed collection.

Depending on the circumstance it is sometimes possible to represent an unpaid item, however there are specific rules around doing this. Other reasons may be no account or no instruction, these reason codes are much more likely if you are not using AUDDIS instructions, migrating to AUDDIS is likely to result in fewer failures.

Our Direct Debit Training, Consultancy and Direct Debit Audits have helped a number of organisations to reduce the number of unpaid items that they receive.

The report will detail all unpaid items resulting from one of the following reasons:-

· Refer to payer

· Instruction cancelled

· Payer deceased

· Account transferred

· Advance notice disputed

· No account

· No Instruction

· Amount differs

· Amount not yet due

· Presentation overdue

· Service user differs

· Account closed

For more comprehensive information on the reasons, what they mean and the resulting actions to take, please contact us directly.