Delayed Direct Debit

VoucherMan

I bought a fireplace on 9th August. Paid a deposit with the rest to be paid on 12 months interest free credit (from Ikano Bank).

I've had no letter yet advising me of the start date. I don't know if the supplier's not passed the details to the bank, or if the bank's just not got around to dealing with it. Either way I'm quite happy having the extra money in my account instead of theirs.

As far as I can tell from the T&C I don't need to do anything. Provided I have enough money in my account for the DD when they finally get organised then I've nothing to be concerned about. It just means it may run from December to November instead of September to August.

Anyone know if this is this correct? Don't want to end up with some unforeseen charges through no fault of mine.

mgdavid

if you have authorised a DD mandate then conceivably they could spend four months setting it up and take four months' payments in one go.

VoucherMan

mgdavid wrote: »

if you have authorised a DD mandate then conceivably they could spend four months setting it up and take four months' payments in one go.

Nothing to suggest that on the paperwork though.

On the loan agreement:
We will determine your first monthly repayment date and write to tell you when it will be. Subsequent payments will be on the same date in each following month.

In the T&C:
You agree to repay the amount of credit by monthly payments as set out over the page...
You must make the first payment on the day we tell you. Following payments will be due on the same date in each following month.


Nothing I can see that says they can 'catch up' if they're late starting.

McKneff

Well they would have to play catch up because if they didn't set one up for 2 months, it wouldn't be 12 months interest free then.

jonesMUFCforever

Most companies set up direct debits themselves these days so you can't blame your bank for not doing so.

[Deleted User]

VoucherMan wrote: »

Nothing to suggest that on the paperwork though.

On the loan agreement:
We will determine your first monthly repayment date and write to tell you when it will be. Subsequent payments will be on the same date in each following month.

In the T&C:
You agree to repay the amount of credit by monthly payments as set out over the page...
You must make the first payment on the day we tell you. Following payments will be due on the same date in each following month.


Nothing I can see that says they can 'catch up' if they're late starting.

Perhaps if you posted a complete legible image of the consumer credit agreement you entered into (removing any personally identifiable information first), rather than posting selective extracts as and when you feel like it just to disprove the advice others have spent their own time & energy attempting to provide you with, it would all be much easier to give you the correct advice from the outset?

:cool:

VoucherMan

Starline wrote: »

Perhaps if you posted a complete legible image of the consumer credit agreement you entered into (removing any personally identifiable information first), rather than posting selective extracts as and when you feel like it just to disprove the advice others have spent their own time & energy attempting to provide you with, it would all be much easier to give you the correct advice from the outset?

:cool:

I posted selective extracts which I thought were relevant. I often under estimate as I didn't expect anyone would want to read through the entire page.

jonesMUFCforever wrote: »

you can't blame your bank for not doing so.

I'm not blaming anyone for anything. Simply trying to find out what rules, if any, there are about taking payments.

If, as replies so far suggest, they can take out more than one month's payment when they finally set it up, then I'll go and give the company a nudge as I'd prefer it sorted sooner rather than later.

If on the other hand they can only take one payment a month even when they're late setting it up, then I only need leave enough in my account to cover the one payment.

mgdavid

OP the point is, what is to stop the company doing what I suggested even if it breaks some rule in the small print of the Ts & Cs? What can you do, take them to court? Sue them? Realistically would one go to the expense and work in doing so, for a small possibly trivial sum of money? Just ensure on a monthly basis all the money due to them is in the account a couple of days before it is due, if they don't take it on time at least you will have had some interest on it.

VoucherMan

When I asked the question I'd been hoping there was an 'industry standard' answer, backed up with some documentation on a website somewhere.
If not, I do plan, as you suggest, to make sure I have enough in my account to cover any likely outgoings. The small issue for me being that since the first payment was not taken at the expected time, I'm now in a situation where the only way I can do this is to cancel my next monthly mortgage overpayment. It's not a problem, just something I don't want to do unnecessarily.

mgdavid wrote: »

Realistically would one go to the expense and work in doing so, for a small possibly trivial sum of money?

I wouldn't go as far as court, but certainly I'd write to them if I was satisfied that they'd taken money against the T&C. Just as a matter of principle. On the rare occasion I've contacted anyone I've usually had any additional expenses covered, even if it's just as a 'goodwill gesture'.

mgdavid

VoucherMan wrote: »

When I asked the question I'd been hoping there was an 'industry standard' answer, backed up with some documentation on a website somewhere......'.

I expect there will be; have you tried googling something like 'UK banking code of practice for direct debits'?