Direct Debit issues!

Deanne_S

Hi,

I'm seeking any advice or anyone that has had a similar issue...

My mortgage direct debit goes out on the 28th of every month and has done for the past 8 years...
However on a couple of occasion where funds were not transferred in time the first attempt at direct debit failed. We were told by mortgage company that an automatic attempt would always be made in 10 days time and to make sure funds were available for then. On these couple of occasions the second attempt at direct debit always cleared with no further issues.

Now it has been brought to my attention that on these couple of occasions where this has happened my mortgage company has marked these on our credit report and account as a late/missed payment due to the fact that the second attempt at direct debit has rolled in to following month as first attempt is always due 28th of each month (so 10 days for second direct debit attempt from that day would always calculate into following month).

This has obviously had an effect on my credit report and may have a detrimental effect on me getting a new mortgage!!!!!!!!!!!!!!!!!!

Is it possible to argue this case in any way and resolve by requesting my mortgage company to adjust information on credit file????

Many thanks in advance to any advice given.

sjbrun

Basically you missed the direct debit and so you paid late. The company is just reporting the truth.

In future just make sure there is enough in your account when the direct debit hits.

muhandis

Unfortunately, from what you have said, it appears that you might have misunderstood what the lender meant.

Not making a payment in a particular month would ordinarily be considered (and reflected accordingly in the credit history) as a late payment, irrespective of whether it was later paid.

I would chalk this one down to experience and make sure that funds are available for mortgage DDs in the future. My salary date being the end of the month, I had my mortgage payment date changed to the 1st just so it went out before anything else.

Deanne_S wrote: »

Hi,

I'm seeking any advice or anyone that has had a similar issue...

My mortgage direct debit goes out on the 28th of every month and has done for the past 8 years...
However on a couple of occasion where funds were not transferred in time the first attempt at direct debit failed. We were told by mortgage company that an automatic attempt would always be made in 10 days time and to make sure funds were available for then. On these couple of occasions the second attempt at direct debit always cleared with no further issues.

Now it has been brought to my attention that on these couple of occasions where this has happened my mortgage company has marked these on our credit report and account as a late/missed payment due to the fact that the second attempt at direct debit has rolled in to following month as first attempt is always due 28th of each month (so 10 days for second direct debit attempt from that day would always calculate into following month).

This has obviously had an effect on my credit report and may have a detrimental effect on me getting a new mortgage!!!!!!!!!!!!!!!!!!

Is it possible to argue this case in any way and resolve by requesting my mortgage company to adjust information on credit file????

Many thanks in advance to any advice given.

chelseablue

I would just change the DD date, for example the day after pay day


I get paid on the 16th and set my mortgage to come out on the 18th

kingstreet

Do you not pay fees to your bank for each time they "RDPR" your direct debits?

Many lenders who are also clearing banks would consider the above to be poor account conduct as well, influencing their decision to lend on a mortgage application.

Deanne_S

Thank you to all for above.

I take full responsibility for not being more vigilant to make sure funds were available initially.

My understanding was that for a late payment to be recorded on your credit file it had to be 30 days or more late. You see I have technically not been in arrears any more than 10 days! Whilst i also appreciate 10 days or 30 days late, its still a late payment non the less.

As I've now been informed if my direct debit went out on the 5th of every month for example and the same mistake happened where funds weren't available at first direct debit attempt but automatic second attempt is taken with no further issues, this would NOT be marked as a late payment as it's within the same month!!!!!!!!!!!!!!!!!!!!!!!!!........................... morally this information doesn't seem fair and not being advised it sooner also doesn't feel morally fair...

For me the date of direct debit is irrelevant, i am self employed so have no specific pay date.
From this advice i'd advise anyone irrespective of pay date to make sure that every significant direct debit go out at the beginning of each month to not fall in to the same problem...

armchaireconomist

It seems to me they are reporting late as (although you did have means to pay) it was, as you stated, 10 days late. Unfortunately from the lenders perspective this could be a seeming inability to pay - how are they to know?


Not sure what your situation is but if I were you I'd set up a standing order/direct debit to yourself from wherever you regularly transfer the money from for the value of the mortgage. It removes any risk of human error and get you back on track with a good run of on-time payments.

muhandis

Very interesting! Thanks for sharing that.

I agree with you, it seems quite stupid that the date of the DD can affect whether a payment is marked as late or not on the credit file.

Deanne_S wrote: »

As I've now been informed if my direct debit went out on the 5th of every month for example and the same mistake happened where funds weren't available at first direct debit attempt but automatic second attempt is taken with no further issues, this would NOT be marked as a late payment as it's within the same month!!!!!!!!!!!!!!!!!!!!!!!!!........................... morally this information doesn't seem fair and not being advised it sooner also doesn't feel morally fair...

glentoran99

Deanne_S wrote: »

Thank you to all for above.

I take full responsibility for not being more vigilant to make sure funds were available initially.

My understanding was that for a late payment to be recorded on your credit file it had to be 30 days or more late. You see I have technically not been in arrears any more than 10 days! Whilst i also appreciate 10 days or 30 days late, its still a late payment non the less.

As I've now been informed if my direct debit went out on the 5th of every month for example and the same mistake happened where funds weren't available at first direct debit attempt but automatic second attempt is taken with no further issues, this would NOT be marked as a late payment as it's within the same month!!!!!!!!!!!!!!!!!!!!!!!!!........................... morally this information doesn't seem fair and not being advised it sooner also doesn't feel morally fair...

For me the date of direct debit is irrelevant, i am self employed so have no specific pay date.
From this advice i'd advise anyone irrespective of pay date to make sure that every significant direct debit go out at the beginning of each month to not fall in to the same problem...

its very relevant the money wasn't there

csgohan4

are you living on the edge??? Generally have a few months worth of mortgage payment to cover yourself is wise.

Thrugelmir

Deanne_S wrote: »

My mortgage direct debit goes out on the 28th of every month and has done for the past 8 years...

That's the due date of your payment to the lender. Subject to the 28th being a working day.

However on a couple of occasion where funds were not transferred in time the first attempt at direct debit failed. We were told by mortgage company that an automatic attempt would always be made in 10 days time and to make sure funds were available for then. On these couple of occasions the second attempt at direct debit always cleared with no further issues.

Takes that length of time for the lender to act on the rejection and resubmit the direct debit again.

Now it has been brought to my attention that on these couple of occasions where this has happened my mortgage company has marked these on our credit report and account as a late/missed payment

This has obviously had an effect on my credit report and may have a detrimental effect on me getting a new mortgage!!!!!!!!!!!!!!!!!!

If you do not have the funds to pay your mortgage on the due debt. Then indicates that you are financially stretched. Your credit report merely provides an accurate history of what occurred. Wouldn't have any value if it didn't.