MOrtgage direct debit cancelled with bank but taken anyway

catherinerose

Hi, probably posting wrong place but hopefully someone here can pick their brains and give a little advice.

I cancelled the mortgage direct debit for this month as we have been experiencing some problems and wish to pay them manually.(NRAM). I cancelled the DD on friday last week however it is showing on our bank stuff that a withdrawl has occured to NRAM.

we do not have the money in there as i need to make the manual payment form eslewhere and as the account the payment has been withdrawn from is a co-op account for those that have gone bankrupt there is no over draft facility.

does anyway know if the payment will have bounced or has any advice why it shows that it was paid.

ta

Busy_bee_3

A Direct debit is an arrangement between you and the mortgage company, the bank purely facilitates the arrangement. If you wish to cancel the arrangement albeit temporarily you need to contact the direct debit originator (the mortgage company) at least 3 working days before the payment is due. This should be sufficient time to stop the company claiming the funds from your bank account.
The bank will take your instruction to cancel the direct debit however they cannot stop the payment debiting ( or try to be debited ) from your account if there is still a valid direct debit mandate in place and if you still owe the mortgage company money.
I don't bank with the co-op but I suspect the payment will bounce due to insufficient funds and you will incur a bank charge. Some banks allow you to pay in the same day to cover direct debits going out, so if you pay in before their cut off time, the direct debit might go through. If not, I would get in touch with your mortgage lender ASAP so they can take the payment from elsewhere, to prevent a late payment charge and/or damage to your credit history. In respect to the bank charge, technically there has been no bank error as it is your responsibility to ensure there are sufficient funds available when a direct debit is called for. However if you have run your account well, I would call them and explain the situation and ask if they would consider waiving the charge as a one off gesture of goodwill. It's worth a shot. Good luck

DannyboyMidlands

Why not just put the money from elsewhere into the co-op account?

Thrugelmir

Busy_bee wrote: »

If you wish to cancel the arrangement albeit temporarily you need to contact the direct debit originator (the mortgage company) at least 3 working days before the payment is due. This should be sufficient time to stop the company claiming the funds from your bank account.

Will already be set-up to collect and not possible to stop. 5 to 10 working days is nearer the mark.