What are companies allowed to do regarding customer payments

ShawtyShawty

Hi All,

New user on this forum so I apologize if this post is in the wrong place (It seemed like the most appropriate)

anyway, I'm just looking for a few pointers based on a discussion I previously had with a company I have to deal with.

I have a fairly small bill to pay, nothing major, but one that I would prefer to split into 2 or 3 parts. I could pay it in one go, but I have a couple of other bills to go out at the same time.

Ideally (and the other 2 companies have agreed) I would like to split all 3 bills into 2 or 3 parts, so each of the 3 companies involved gets a fair share of the pot over the next 3 months.

Companies one and two have both agreed, and can see the reasoning in this, so have accepted the proposal.

Company number 3 on the other hand will not, they are flat out refusing and insist that the bill either be payed in one go, or be set up to allow them to take an as yet undisclosed amount from my bank account over the next 12 months via either Direct Debit or CPA.

I've made it quite clear, that CPA is out of the question, and as a last resort I might consider direct debit.

My preferred method is via a Standing Order, which I've already suggested, complete with a payment plan (as I did with companies one and two)

So my question is this.

I believe that any British company has to at least try to honor any payment plan that a consumer paying a bill suggests (AT least that's what I remember reading somewhere at some point in the past) however, company number 3 are stating all sorts of rubbish from preventing their web site from being hacked (As an excuse not to give a sort code and account number) to outright telling me to my face that they have to by law have control of my account other and I may go to prison if I refuse.

Now I don't for one second believe any of this, so here is my question.

What exactly do companies operating in the UK have to abide by when it comes to things like this, and more importantly how much say do I as the consumer get when telling them how I wish to pay any monies due to them.

While where doing a lot to get customer rights out in the open air and expose many of these crooks with regards to what they can do once a bill is overdue, I feel there is still a lot of mis-information on the "black" side of the payment barrier too.

As for my situation, the company in question have made it clear that they are only prepared to discuss or entertain ideas where they have control of my account, and unfortunately this is a bill I have to pay to this company, I don't have the luxury of switching as it's a housing estate wide company that the estates management committee have elected to use.

My payment plan will see the yearly bill paid in 3 months maximum, but they seem to be prepared to forgo quicker payment in favour of taking control, and for the record I've not had any debits, mis-payments or anything outstanding with this company previously, they are a new company recently contracted to perform the various estate tasks in the later half of last year. The company previous to them responsible for the same tasks had absolutely no problems with the standing order approach, and happily gave me a sort code and account, along with the ability to pay what I owed as and when able as long as payments where fairly regular.

On a final note, the reasons why I prefer to take this approach is because I'm self employed, so some months see me with a healthier income than others.

In the months when my income is up, I prefer to pay larger chunks off (especially on yearly recurring bills like this) so that I can budget and navigate the lower paid months with better success and less bank charges.

(Company number 3 by the way at this point in time is unaware of this being the reason for my approach, as I've not yet disclosed to them that I'm self employed)

Thanks in advance for anyone's input on this.

k3lvc

Easy option that avoids this question is to pay the bill as per your commitments to them. Given their request for DD/CPA presumably they've no confidence/guarantee that you'll follow through on your promise and don't want to expend any more money chasing you.

antrobus

ShawtyShawty wrote: »

.....What exactly do companies operating in the UK have to abide by when it comes to things like this, and more importantly how much say do I as the consumer get when telling them how I wish to pay any monies due to them.....

The companies have to abide by the terms set out in the contract. As do you. Subject to the usual qualification about the terms being 'fair' in the first place.

But basically if the contract states that £x is due on such-and-such date, then £x is due on such-and-such date. You can always ask for more time to pay or whatever, but your creditor has the perfect right in law to tell you to go and boil your head in a bucket.

colsten

One thing companies are allowed to do is decline to do business with anyone they don't like to do business with, without giving any reason. I would think no company will be overly keen to ever do business again with someone who doesn't pay their bills in a timely manner.

agrinnall

ShawtyShawty wrote: »

What exactly do companies operating in the UK have to abide by when it comes to things like this, and more importantly how much say do I as the consumer get when telling them how I wish to pay any monies due to them.

You can say whatever you like, but if they don't agree and you don't pay in a timely manner then the company is quite entitled to take you to court in order to enforce payment.

ShawtyShawty

While I appreciate what folks are saying, I'm not trying to get out of paying the bill, nor am I trying to shirk any kind of responsibility.

My intention is to pay the bill, fully. SO please, all those that are just here to tell me off "For not paying on time" please, I'm not interested in that, that in my opinion is not in any way helpful.

What I want to know is what a company has to abide by, are there any laws, guidance that the FSA publishes or anything that the DTA or any of the other governing bodies publish that states what guidelines they must follow.


If I pay one bill in full, the other two will have to wait, I'm trying to negotiate with company 3 in order to keep all 3 creditors happy BEFORE any of them get to the point where the bills are overdue and do have a reason to be upset.


At this moment in time, nothing is overdue, no one owes anything and there is still time to make the payments in full, what I'm trying to determine is do I have any leverage as a customer to get them to honor the way I propose making the payments.


The current situation in my own honest opinion is that the 3rd company to which a bill has to be paid is being unreasonable.

If I set up a direct debit with them, then they'll want it over 12 months in piddly little payments, what I'm propsing to them is to break the value down (Just as a direct debit would) but in larger payments over a shorter time.

They however are currently showing no interest in this and insist that it's either Direct Debit over the course of a year or one payment right now.

To compound matters I've also since found out that they have a debit card payment facility on their website allowing you to log-in and pay what ever value you need to pay when you need to pay it, upon asking if I can use this facility I was told outright only if they agree.

Further to that, I was told in no uncertain terms if I use the debit card payment, and they have not allowed me to, they will send the payment back and then treat the account as overdrawn and take unnecessary action.

Again as with my previous comment I cannot see how they are allowed to enforce something like this, because I'm trying to make good on the payments, using the various methods they claim to support, however as far as I've gotten with them now, everything appears to just be for show so they can claim they support it.

At this point in time this company has no reason to believe that I will not pay the outstanding bill, all I'm looking for is guidance on what they are or are not allowed to do if anyone has any other comments.

ShawtyShawty

colsten wrote: »

One thing companies are allowed to do is decline to do business with anyone they don't like to do business with, without giving any reason. I would think no company will be overly keen to ever do business again with someone who doesn't pay their bills in a timely manner.

You've gotten the wrong end of the stick here, please re-read the question, this has nothing to do with me not paying them or anything to do with not paying in a timely manner.

ShawtyShawty

agrinnall wrote: »

You can say whatever you like, but if they don't agree and you don't pay in a timely manner then the company is quite entitled to take you to court in order to enforce payment.

That's fine, and I don't dispute that, what I'm trying to do is essentially reason with said company and trying to discuss alternatives will will see a far speedier and more efficient payment of the bill, while still allowing me to do the same and pay the other two bills that are outstanding.

If the company in question accepts my proposal, then they get paid on time, at the exact time as well as the other two and everyone wins, except they don't appear to want to win, or at least they appear to want to win at the expense of everyone else.

The attitude they are coming back to me with is not just questionable, it's down right terrible, almost as though I've just tried to screw them over.

For the record here, this is the FIRST time either of us have had to deal with each other, I don't know them, they don't know me, my credit score however is A+ 100% and in excellent status on all the credit check agencies out there, so I really can't understand why said company is taking the stand it is, considering that neither of us have any previous history.

Thrugelmir

ShawtyShawty wrote: »

What I want to know is what a company has to abide by, are there any laws, guidance that the FSA publishes or anything that the DTA or any of the other governing bodies publish that states what guidelines they must follow.

You have to abide by the contractual terms and conditions that you agreed. The contract will be written in English contract law.

You are looking at this from totally the wrong perspective. As failure to pay in accordance with the T&C's will result in a breach of contract.

Savingdad

You say you want to break the bill down into smaller chunks to better handle your cash flow but reject their offer of 12 monthly direct debit payments in preference of 3 payments when you feel you can afford it, surely the simple thing to do is open a new bank account, pay in you 3 chunks of money and let them set up their direct debit on it and everyone gets what they want.

PeacefulWaters

There is little in legislation that forces a business to accept payments in a particular manner, in a particular number of instalments or by a particular time.

A contract, entered into by both parties, can insist on all these things. Step outside the terms of a contract and expect the other party to be naffed off.

You've written a remarkable number of words without really clarifying why you seem to have a problem.