I don't see how is that direct debit system better for consumers than what we have here in Portugal, where the consumer is the one initiating the debit authorization (using a code provided by the merchant).
Because it would be unfortunate if one were to accidentally forget to authorise one's mortgage payment to be paid for a few months, only to find oneself repossessed. Direct debit allows a regular bill payment to be forgotten about, but with the protection that you are informed well in advance of any changes (for instance if the mortgage interest rate goes up).
If your house gets repossessed after missing a payment, you have something very wrong with your legal system. Not even my $5 VPS gets repossessed after missing a payment.
The point is it gives you all the same powers with the added convenience of being able to passively approve payments. Active direct debit agreements can be viewed through banks' online banking services and you can cancel them with one click. I don't really see how your system is better for consumers.