Who are DFC

murphster

Hi, does anyone one who Debit Finance are. I used to pay my gym membership via this company. I decided to cancel my membership. I e mailed the gym and cancelled the DD but two days after the usual payment date I got a text message from them saying my DD was late and I would incur a late payment. I have e mailed them and told them the membership was cancelled and could they cancel the late payment, I'm still waiting for a reply, I re emailed the gym and they have updated my membership account but I'm still worried about the information with DFC and this late payment appearing on my credit file (a file which is sweaky clean otherwise).

Does a late payment with this company affect credit ratings in the same way as a credit card, loan etc.

[Deleted User]

It depends if they report to your credit files. Impossible to know without seeing the terms of your contract with the gym.

ashp_2

Shocking as it is. Depending on terms as above this could have an impact on your credit.

How long ago was this? Have you looked at your credit report? You should try to find some details about the terms of your membership.

murphster

So my membership with the gym has been updated / cancelled but I have just received a letter from this company, they are bespoke direct debit services.

The letter says:

We note you have not made the payment due 01/10/2015. We are not sure you are aware of the significance of this unpaid instalment.

If this was an error you have now incurred a £10 late payment fine (some details of how to pay).

If it it your intention to cancel we require the unpaid instalment and one months notice, as stipulated in the original paperwork.

Can they do this if the gym has already cancelled my membership or can I argue that it's been a mistake on the gyms part. Would it be really bad to just ignore this, I'm thinking it would be a bit like ignoring the threatening letters people get from private car companies.

How bad is an unpaid direct debit on a credit report compared to saying missing a loan repayment, I was hoping to move house next spring and worried about the impact on a mortgage application.

murphster

Just had a look, the letter is dated the same day as the e mail confirmation from the gym (05/10/2015) saying they will update my membership and clear the outstanding late payment charge, the DD was only due on 01/10/2015. Should this be OK.

[Deleted User]

Did you give them one month's notice?

murphster

I was sure I sent an e mail, can't find it though. To be fair the gym didn't create a fuss just said they would update the records. I have asked for clarification if the late payment has been cancelled, I'll wait and see what they say.

GingerBob_3

It would be very unusual for a gym to report you to the CRAs. While some contributors here would argue to the contrary, a gym is not providing you with credit. The only issue might be if it escalates and eventually they obtain a CCJ against you. Again, this is unlikely.

boo_star

GingerBob wrote: »

It would be very unusual for a gym to report you to the CRAs. While some contributors here would argue to the contrary, a gym is not providing you with credit. The only issue might be if it escalates and eventually they obtain a CCJ against you. Again, this is unlikely.

Not strictly true, some gyms outsource this to third party finance companies, where you are effectively taking out a loan for the duration of your contract (usually 12 months) and then repaying it.

It wouldn't be surprising if they still reported to CRAs when you completed it and moved to a rolling 30 day contract.

murphster

It's been well over twelve months, would that make a difference. I think it's one of those companies. I will pay the two month if necessary, but is it too late to stop it being reported?