Direct Debit dates for loans

xavtia

Hi

the repayment date on my car loan is the 30th of the month, as february doesnt have a 30th I assumed that the payment would be taken on the 1st but it was taken on the 28th which made me go overdrawn, I contacted the loan company who initially said it was their error and to write a complaint, I wrote in but received a letter stating that I didnt have a case so I would have to pay any bank charges myself. Could anyone please advice me who is in the wrong

thanks

scotsgirl_3

Generally due date for direct debits will go back if the date doesn't exist, or if it lands on a weekend - so for example a lot of people who;s direct debit date was the 31st or 1st would have had their d/ds take out on friday as it landed on a weekend. I would actually suggest you contact the company and ask them to move the due date by a couple of days to stop this happening ( make sure they dont charge for this though!)

xavtia

strange thing is whenever this payment has fallen at the weekend they have always taken the payment the 1st working day after the weekend so the september payment was taken on the 2nd October, I had thought about asking them to change the date but the paperwork says there will be a charge for this.

jamesd

Last day of the month when the date is after the end of the month is normal.

Weekends and bank holidays are different, according to BACS:

"Q. Will the payment always be on the same day every month?

A. Normally payments will be made on the same day each month, quarter or annually according to the payment frequency. If any payment due date falls at a weekend or on a bank holiday, the organisation is obliged to debit your account just after that due date unless they notify you in advance of a change of date."

I suggest that you ask your bank to waive the charges.

recyclingbox

another problem with the payment rolling over to the first is that you have moved into a new month. Technically you wouldn't have made a payment the previous month and, potentially, you could be in arrears until the next normal payment. You never know but this could appear on a credit report as a missed payment!