Rent Money

kirstiem

Hi ive been living in a flat for the past 6 months, i handed in my notice that i was leaving more than 28 days ago. And the rent company has just took the rent money out my bank. Im due to leave on Fri as this is when my tennancy expires, however ive arranged removal companys to come on thursday and i have no money now that they have wiped my bank clean... what should i do?

dacouch

Did they collect it by DDM or standing order?

kirstiem

standing order! ? any idea? Thanks

Fire_Fox

If you pay by standing order you are the only person who can cancel the payments, if you pay by direct debit either party can cancel the arrangement. You may be able to do a chargeback with the bank if a DD was taken in error, or you may be able to appeal to the letting agency to get the money paid to you in cash tomorrow. Not sure what happens if the money is in 'no man's land' between one account and the other. Can you borrow some money? Can you write a cheque (not a rubber one) or use a credit card? Can you get an advance on your wages or do an (expensive) 'cash til payday' loan? Can you cancel the removals firm and move yourself?

dacouch

If it was DD you good have done an immediate reclaim under the DD guarantee

kirstiem

I wasnt aware that i could only cancel the standing order. Surely they dont have the legal right to keep it as i gave enough notice ect? I am going to phone the bank just now and see if they can reverse it as it has only just came out my account in the past few hours. I wouldnt be able to get a loan of any money as i am a student with only a bursary and i need the removal company as there is alot of heavy furniture and i only have a small polo lol.

princeofpounds

I wasnt aware that i could only cancel the standing order. Surely they dont have the legal right to keep it as i gave enough notice ect?

Of course only you can amend a standing order. It's a standing (continues until further notice) order (instruction) for your bank account. Unless you think it is reasonable for other people to put payment instructions on your back account without permission why would they possibly have any control over it?!

Direct debits are a bit different, as you give someone limited rights to put payment instructions on yout account. But in return you get a guarantee via the bank that if things go wrong you can get refunded immediately.

They don't have a legal right to keep it, however if they choose to try it is a civil matter that will have to be resolved in the small claims court. No crime has been committed as you sent the money to them.

Jowo_2

They did not wipe your bank account - you did when you failed to cancel the standing order which only you control.

You may have given notice to the agent but its your responsibility to end the payments to them - there is nothing remotely illegal of them being sent funds by you that they did not demand, nor expect.

Having said that, many landlords and agents do issue a reminder to the tenant to do this in their check-out instructions as presumably they've encountered this kind of naivity before. They are obliged to return your rent but if your bank can't cancel it, the transfer back will probably take a few working days to be processed and show up in your bank account.

Sounds like you have confused it with a direct debit, common to payment of bills to large companies and where payment is variable, which both parties can control but an SO is the most common way to pay rent (and some other fixed non-variable bills)

What's the difference between direct debits and standing orders?

http://www.bbc.co.uk/dna/h2g2/A62049594
http://www.guardian.co.uk/money/2005/jun/14/consumernews.consumeraffairs1

If you can't get your over-payment back in time, and can't borrow the cost of the removals from friends or relatives, then speak with the Removals company to see if they are happy to invoice you and await payment next week. I imagine that man and van types and smaller companies will want cash on receipt of their services but many other companies operate by performing the service, then sending through an invoice which requires settlement within a few weeks.

tbs624

kirstiem wrote: »

Hi ive been living in a flat for the past 6 months, i handed in my notice that i was leaving more than 28 days ago. And the rent company has just took the rent money out my bank. Im due to leave on Fri as this is when my tennancy expires, however ive arranged removal companys to come on thursday and i have no money now that they have wiped my bank clean... what should i do?

Kirstie - the others have explained to you that a Standing Order is your instruction to pay someone else and that you have to contact your bank to stop the payments. It amazes me that someone can get to University, where they are going to be living on a tight budget , and yet have no knowledge of the basic workings of their own bank account. Always check for yourself that no further payments will be made when an agreement of any sort is coming to an end - do it in writing and keep a copy.

There will be a delay in the return of your money so try negotiating with the removals firm or talk to the welfare officer at your Uni - they may have a short term loan scheme.

scottishblondie

I don't think you can reverse a standing order. Call the company and explain, they could well be co-operative and send the money back once they receive it. Be aware, however, that the money could take 3 working days to reach them if the payment goes by BACS and then a further 3 to come back to you. It is unlikey you will get your own money back in time to pay the removal company.

kirstiem

there is no need to be cheeky my god i am only 17 and looking for some advice!!!!