Rent arrears while paying by direct debit?

kaylouise

Question does pretty much what it says on the tin!
We (me and hubby) have been living in our rented house (local housing assoc) for 11 years. When we first moved in for a couple of years we were paying by cash, and admittedly it was a bit erratic, but we got sorted our, always ensured arrears were paid, and at some time in 2008 (or most likely earlier, but that's the oldest paperwork I can find) began paying by direct debit.
Yesterday we received a letter from the landlord stating that we were in arrears by £268 and could we please bring this up to date without delay? to add insult, the letter also reminds us about failure to make regular payments putting the tenancy at risk and adding further costs! Now this is first letter we've had and it has raised some questions....
Firstly, can arrears even be built up if we're paying by DD? Surely the onus is on the landlord to request the correct amount in the first place? (which they always have done by my record. They're statement compares weekly charged rent with a monthly DD, but anually the correct amount is paid overall)
And if the arrears date back as far as I think they do, can they chase it after so many years (at least 6 now)?? I don't belive we were in debt to that extent, or the DD wouldn't have been set up, surely?
I'll pay what we owe, but this seems wrong to me?

HappyMJ

Local housing association or private landlord paid by housing benefit?

Do you pay by direct debit or do you pay by standing order?

If it seems wrong then it may just be wrong. I'd be asking for a breakdown of the payments.

The arrears aren't 6 years old as every month you pay the rent you clear the arrears and pay towards the next months rent. You've just been building up arrears.

t0rt0ise

You need to ask for a statement of account. I get one sent to me regularly which shows that for part of the month I'm in arrears and then part of the month I'm in credit. It always works out but as you say it's due weekly but paid monthly so it's off for part of the month. If that's all it is then they have probably made a mistake in contacting you. Ask them?

kaylouise

Its a local housing assoc; I just tend to refer to them as 'landlord' since they've changed hands three or four times since we've been here. It's a direct debit payment.
They have sent a statement of account, but not only does the weekly charge / monthly DD lead to it being off each month for the 4/5 week months, the demand they've made is taken from the mid-point of a month anyway! The statement never shows a credit, just a varying debt (although never anywhere near as much as £268) depending on the time of month. What I don't understaned is how any arrears could have built up on DD - I thought that was supposed to keep payments up to date and avoid all this?
I'll give them a call tomorrow.

HappyMJ

kaylouise wrote: »

Its a local housing assoc; I just tend to refer to them as 'landlord' since they've changed hands three or four times since we've been here. It's a direct debit payment.
They have sent a statement of account, but not only does the weekly charge / monthly DD lead to it being off each month for the 4/5 week months, the demand they've made is taken from the mid-point of a month anyway! The statement never shows a credit, just a varying debt depending debt (although never anywhere near as much as £268) depending on the time of month. What I don't understaned is how any arrears could have built up on DD - I thought that was supposed to keep payments up to date and avoid all this?
I'll give them a call tomorrow.

Probably just a miscalculation on their end.

£120 weekly rent times 52 divided by 12 is £520 a month but over 5-6 years you'll end up a week in arrears as there are 365 days in a year.

They should divide the weekly rent by 7 then multiply by 365.25 then divide by 12 which would make the monthly rent £521.79.

I'd clear the arrears and go back to paying the rent when it's due by standing order on a weekly basis. You would then be in control of it.

lighting_up_the_chalice

With the advent of the bedroom tax and the prospect of UC and payments to tenants, many SH landlords are making efforts to bring their rent accounts up to date so that rents are paid in advance rather than arrears. Because HB has always been paid in arrears, most providers have been happy to tolerate such a level of arrears as long as the account is up to date when HB is paid in. This has extended even to those not dependent on HB to pay their rent, so a couple of hundred quid hasn't bothered them...... Until now.

We are even seeing some providers demanding a months rent up front before the tenant is signed up. Interesting times.