In securitisation, direct debit is a payment method used to collect payments from borrowers. Under a direct debit arrangement, the borrower authorizes the issuer of the securitization to collect payments directly from their bank account on a regular basis. This can be a more convenient and efficient way for borrowers to make their payments, and it can also help to reduce the risk of late payments.
Direct Debit is a common payment method in Australia, and it is increasingly being used in securitisations.