Wrong amount taken by Direct debit

nursek

Hi I have a bit of a query. I took out a new mortagage in december. The first payment due turned out to be almost 2 payments and couldnt afford it,. Arranged with Mort co. to pay back in increments and this was no problem. I finally paid the final difference by April plus that months mort payment. This has all been done by direct debit and organised by the mort co. In May all the money for the mortgage was in the bank account (£830) but the mort co only called a direct debit for £193. I didn't think that this was a problem at the time as i had paid all the monies owed and thought that this was a readjustment figure. I got a letter a few days later advising that we now owed the mort co £637 . I rang and queried this and was told that I should not worry about it and that it would be passed onto arrears to sort out.
I have suvbesequently received asecond letter just yesterday adivising of the deficit. Having rung the mort co. I have been told that it was my fault that this happened even though the direct debit was set by the company.

Oakies so firstly if i owe the money then i owe the money but how do I stand in terms of the error being made in the first instance and can i insist that if this is their fault in terms of the mandate being incorrect, that they do not put this as an arrears on my credit history. Plus how does the direct debit guarantee work in this situation.

I have been asked to pay the deficit back in installments which is ok but yet again i am in the red with them. Before you ask the money in the bank went on other outstanding bills and wasn't just frittered away!

Sorry this is a bit long winded
hope some of you can offer a bit of advice. Thanks

JohalaReewi

With regards to the direct debit. Your mortgage co should have notified you of how much they were going to take by DD and on (or after) which date.

If they didn't do this, or they took too much money, or they took the money early, then you can reclaim the money taken under the direct debit guarantee scheme. However, your problem seems to be that the money wasn't taken (or not enough of it) so the DD guarantee scheme would appear not to be of use here.

With regards to the DD in May, had you received a new schedule of payments from the mortgage co showing that £830 would be taken in May? You should have done. If not, there is an element of blame with the mortgage company for not advising you of your new payment amount (under the DD guarantee scheme). Hope this helps a bit.

mitchb

With a dd the company requests the payment, so if the wrong amounts been asked for then the fault is at the mortgage companies end.