Direct Debit: Can I be forced to use it?

Shed

Just received a written request from a company demanding that I now pay them by Direct Debit instead of the previous invoiced arrangement.

Can I actually be forced to pay by this means? They are a nasty bunch but infortunatly are the leaseholders to the home that I own. I'm happy to pay by standing order but absoluetly do not want to give them the power of a direct debit.

zppp

Shed wrote: »

Just received a written request from a company demanding that I now pay them by Direct Debit instead of the previous invoiced arrangement.

Can I actually be forced to pay by this means? They are a nasty bunch but infortunatly are the leaseholders to the home that I own. I'm happy to pay by standing order but absoluetly do not want to give them the power of a direct debit.

They can choose to accept whatever payment method they like and can make it a condition of you doing business with them.

bryanb

I assume you mean freeholders. Offer them standing order, they cannot force DD

tellmeitsfriday

Does your lease say you must pay by DD? I don't think they can change terms without having the lease altered.

Bizarrely, my management co. only take cash or cheques, and refuse to give out bank details to pay by SO!

Jake'sGran

I use DDs or perhaps that should be, I allow payments by DDs. In all the years I have done this there has never been a problem. I also use standing orders and another system for money transfers called "verified by Visa" which I think is quote new. My bank, Smile, have told me that I can stop a direct debit anytime.

I pay ground rent once a year by cheque.

xyz123

as mentioned previously, what does your contract between you and freehold company say. this is legally binding so if there is no mention in that then they can not force you to pay by DD without getting your written agreement first.

olly300

Don't understand what the issue is paying by BACs or Standing Order as long as they get the money on schedule.

My freeholder allows any method of payment but have worked hard to make it difficult to pay in cash or by cheque. My lease doesn't actually specify a payment method.

I've found due to problems with 2 telecommunications companies that cancelled direct debits can be reset up. However if you have a good current account provider you can send them an online message and they will refund the direct debit and stop any more being set up again by the company concerned. This means the company has to contact you for alternative payment. This is what the FOS has ruled should happen.

Unfortunately while some current account providers i.e. Nationwide are good at this some are extremely poor such as RBS and you have to threaten them with legal action before they undertake do follow the direct debit guarantee.

davidgmmafan

Not sure how they can compel it, as thier only recourse would be legal action for non payment, and that would look pretty daft if you were saying here is a cheque where should I send it or give me your bank details and the money will appear.

This comes up a lot with utility companies saying they cannot accept standing orders. Its non-sense of course they can, its an automated payment into thier account just like if someone was making a one off BACS payment.

olly300

davidgmmafan wrote: »

Not sure how they can compel it, as thier only recourse would be legal action for non payment, and that would look pretty daft if you were saying here is a cheque where should I send it or give me your bank details and the money will appear.
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If the OP has online banking then they should just pay by BACs. Lots of banks allow you to set up monthly or regular BACs payments. You need to check whether the amount will go by Faster Payments or not so you can decide when you need to send it.

In short OP check what your lease says and if it doesn't state anything about how payment should be made write a polite letter (sent by recorded signed for) to the freeholder offering alternative payment methods pointing out the lease doesn't state that you should pay in a particular way.

If they are then still a problem contact LEASE (google it) for advice.

Mark_In_Hampshire

Shed wrote: »

Just received a written request from a company demanding that I now pay them by Direct Debit instead of the previous invoiced arrangement.

Can I actually be forced to pay by this means? They are a nasty bunch but infortunatly are the leaseholders to the home that I own. I'm happy to pay by standing order but absoluetly do not want to give them the power of a direct debit.

The interpretation I have, which may or may not be correct - someone please follow on:

If you enter business with a company who makes it clear that they only accept DD, and you agree to that, they you are bound to pay that way.

If you have business with a company who has experienced issues with sending people bills only to have the wretched customers dispute them, and thinks that the answer is power of attorney over their bank accounts via direct debit, you'd have to be stupid to fall for that one.

If a matter of payment (or lack thereof) ever became a legal matter and ended up in court because the payee would not accept e.g. cheque, cash, and insisted on a DD payment then unless they fall into the first category above, they would be laughed out of court.