Debt Collecters Didn't Set Up Direct Debit

kate87

Hi,

I've got a debt with Natwest in the form of a £1000 overdraft which I was paying back to them at £50 per month. Bizzarely, it got passed over to Allied International Credit even though I was making regular payments.

Anyway, I started making payments to them from January at £50 p/m, and all of a sudden in July, the payments stopped. I didn't realise straight away, but they of course did, and began harassing me! They explained that they had been taking the payments from my debit card and they are only allowed to do this for a certain amount of months, so when that time ended the payments stopped.

I found it a bit weird that they didn't just set up a direct debit with me in the first place if they knew that was going to happen, but we decided to set up a direct debit instead and agreed a date which was convienient for me. They sent me a letter and an email confirming the direct debit, and all was fine.

I've not heard from them in a while until now. They rang me this morning but unusually for them they didn't leave a message.
I started wondering what it could be, and I checked my internet banking to see if they had been taking my payments, and they haven't. The DD date we agreed was just after my payday, so it is impossible for any payments to have been returned (also the bank would have told me). I checked my list of direct debits and standing orders, and there is nothing on there for them, which would suggest to me what they never set up the direct debit.

Where do I stand with this? I know I should have checked my statements more closely, but I have given them all the information they need, surely its up to them to make sure they set up the direct debit in the first place! After all, you wouldn't expect a debt collection agency to 'forget' to take your money!!

Any help with this I would appreciate, I've tried ringing them back but their number is busy, I'm going to try again later so I thought I would take the opportunity to get a few opinions!

Thankyou x

timbstoke

Leave them to it. When they finally get round to contacting you, tell them simply that they already have authority to set up a DD for £50/month, and that you have a letter to confirm this. If they haven't bothered to set it up, it's not your problem. Even if you had noticed, what can you be expected to do? They're the ones who need to set up a DD, not you, and they can't be bothered to answer their phones.

kate87

timbstoke wrote: »

LThey're the ones who need to set up a DD, not you, and they can't be bothered to answer their phones.

Haha! This made me laugh, thankyou for your reply, I'll be sure to tell them that!

RAS

Actually, you really should not set up a DD, as this allows them to take money when it inconveniences you and it is not unheard off for a creditor to fail to take a paymentor for one to be rejected and then decide to take a large punative chunk because they can.

YOU need to set up a standing order for a date that suits you and let them know when.

And do not give them your bank card number.

Angreal

kate87 wrote: »

Haha! This made me laugh, thankyou for your reply, I'll be sure to tell them that!

be very careful taking this approach.

although I appreciate the dilemma you are in, Direct Debit is a method of payment and does not revoke any responsibility to make an agreed payment. it is your responsibility to ensure a payment is made, moreso if you are in a contract to make these payments. If you try and avoid/wait longer to pay they wont accept a missing DD as an excuse unfortunately.

Hanky_Panky

Angreal wrote: »

be very careful taking this approach.

although I appreciate the dilemma you are in, Direct Debit is a method of payment and does not revoke any responsibility to make an agreed payment. it is your responsibility to ensure a payment is made, moreso if you are in a contract to make these payments. If you try and avoid/wait longer to pay they wont accept a missing DD as an excuse unfortunately.

This is correct - unfortunately the DD is just a means to pay, responsibility for ensuring payment is actually made lies with the borrower.
Having said that under the circumstances it's worth a punt to see if they will just allow you to set up the dd from now on and continue with the previous arrangement.

good luck

timbstoke

Angreal wrote: »

be very careful taking this approach.

although I appreciate the dilemma you are in, Direct Debit is a method of payment and does not revoke any responsibility to make an agreed payment. it is your responsibility to ensure a payment is made, moreso if you are in a contract to make these payments. If you try and avoid/wait longer to pay they wont accept a missing DD as an excuse unfortunately.

True - I should have mentioned that you should also be putting money aside to pay any arrears if you plan to go this route. However, if they're too busy to answer the phone when you try to tell them about their mistake, I certainly wouldn't be in a huge rush to chase them for it. They'll undoubtedly be in touch soon enough.

Hanky_Panky

timbstoke wrote: »

True - I should have mentioned that you should also be putting money aside to pay any arrears if you plan to go this route. However, if they're too busy to answer the phone when you try to tell them about their mistake, I certainly wouldn't be in a huge rush to chase them for it. They'll undoubtedly be in touch soon enough.

Meanwhile more late markers on your credit file (which may or may not bother the OP) and more importantly potentially more late payment charges.

OP - take the initiative and get it sorted.

thechippy

RAS wrote: »

Actually, you really should not set up a DD, as this allows them to take money when it inconveniences you and it is not unheard off for a creditor to fail to take a paymentor for one to be rejected and then decide to take a large punative chunk because they can.

YOU need to set up a standing order for a date that suits you and let them know when.

And do not give them your bank card number.

The OP REALLY needs to heed this advice.....;)