Settling a loan with Moorgate/Paragon just before a DD is due to be taken

The_pc_tech

Hi

My Egg loan was sold to Moorgate/Paragon recently.

I currently have the funds to be able to settle and intend to ring them on Monday for a settlement figure BUT one thing is concerning me, the Direct Debit for the next payment is due out on 1 August.

If I settle by debit card or sending the money to them via transfer on Monday after discussion and cancel the DD instruction will it stop any money going out to them on the 1st i.e. are they likely to have to rwquested the money from my bank by now or could a request be on the way?

Apologies if this is a dumb question but I do PC tech support (hence the forum name) for a living rather than finance.

All advice is very much appreciated.

NeverEnough

You can cancel a Direct Debit at any time - that won't prevent the lender from requesting it however, and it may still leave your account but the bank will re-credit it back to you the next day - that's how Barclays has always worked in my experience, other banks likely the same. Why don't you just wait till the 1 August? Its only a week from now- let the DD payment go through then settle the balance when it has - that might be simpler.

The_pc_tech

Just want rid TBH


I have done a bit of research on the company it has been sold to and it looks to me as though they are a doorstep lending type of company so I'd rather get rid as soon as while I've never dealt with these type of companies I've seen the ads and the bad press so don't want to give them chance to add fees for doing stuff like moving a piece of paper from one side of the office to the other etc.

I appreciate your reply by the way, thank you.

The_pc_tech

Settled it this morning via bank transfer.

Bloke at lender said they'd cancel the DD at their end but advised me to cancel it at the bank which I have done.

One debt down, just a couple more to go.