Martgage monthly payment by Direct Debit

winter52

Hi Need some help and assistance please -

Basically my mortgage lender set up date for direct debit for mortgage to be taken from my bank account.

They set up last working day of the month - I have just received a statement from them which shows that they have been charging me £25 per month late payment fee.

On checking the statement my mortgage monthly payment is taken from my account on the last working day - it is then broken down into date it arrives to them, normally the 1st of the month then it shows date mortgage payment (funds) cleared as 3 to 4 days later on or about the 5th of the month.

Can they do this seeing as how they set up the direct debit date?

Thanks for you help in this.

kazd

I would query that, your payment becomes due on the 1st oem but you have until the end of the month to pay. If you pay into the next calendar month you are deemed as being in arrs. The last date a dd should be set to on a mortgage acc is 28th, if they set the date making you a late payer every month I would say that is non compliant and you have every right to complain and refer it to the fsa as they are deliberately making you a late payer.

winter52

thanks for your help kazd - I will be writing to them and will keep you all posted on the outcome or saga

minimike2

Who is your lender?

A direct debit should go through to them the same day it leaves your account, there is no way it should take that long for them to receive it.