Can they take DD when they want

sammyjammy

Hi,

Simple question, if I've got a Direct Debit set up for the 2nd of the month is the person collecting the DD allowed to take money before that date? Example being they took mortgage payment on 2.10 and next one due on 2.11, if they took month next week would that break the DD guarantee?

Sam

daisypoppy

Hi Sam,
Pretty sure that the company collecting the DD must give at least 7 days notice before changing date and if they take tmore than one payment in any month without your permission, they must refund you. Hope this helps.
Daisy

david78

Info here

http://www.bacs.co.uk/BACS/Consumers/Direct+Debit/FAQ/?st=nwzlyz45zbue1q55zk5tp5bo&c=

You must have been given notice of payment dates and amounts when you agreed to the DD. If a payment can't be collected on a particular day (e.g. a bank holiday or weekend) the company must take the money on the next working day. Often your bank manages this automatically, so if a company claims a collection on a Saturday, your bank will move it to the next Monday.

They can't normally move bring collections in time unless this is specified in your agreement.

Mikeyorks

sammyjammy wrote: »

Hi,

Simple question, if I've got a Direct Debit set up for the 2nd of the month is the person collecting the DD allowed to take money before that date?

Not without giving you prior notice of a change in either value or date. But if they correctly took a repayment 2/10 - what makes you think they will be premature with that due 2/11? But if they do go early - and don't give you between 7-10 days notice of the variation - you can invoke the DD guarantee and ask your Bank (not the Mtge provider) to replace the money

sammyjammy

Thanks guys,

Mike, its a really tiresome story but I'm currently remortgaging, my fixed rate with Abbey ran out last Wednesday and completion due last Thursday until my solicitor rang and said couldn't complete as my mortgage payment to Abbey wouldn't complete until the payment made on the Tuesday cleared, this would take 10 days so now I basically owe Abbey two weeks interest at SVR rate, I'm concerned they will just take this money when they feel like it, I'm tempted to just cancel the DD and pay them over the phone when they request it but don't want to make trouble!

It's all a big mess! I have had three different stories from different people at the solicitors, letters from new mortgage company but nothing at all from Abbey!

Sam

Mikeyorks

That's the bit that was missing, Sam.

In the circumstances you describe - most (quality) organisations would bill you the balance outside the DD. Or write with the 'settlement' figure - and advise they will take it via the existing DD mandate in x days. Not sure where Abbey fit in the 'quality' stakes!

But the bit that bemuses me is the assertion your last DD takes 10 days to clear! As the DD payment is routed by BACS they have cleared funds the following day (if collection account) - or within 48hrs at worst. Someones making up the story as they go along I'm afraid.
Best of luck with it.

sammyjammy

Hmm.... Quality? Abbey? Maybe once but not these days, one of the reasons I'm moving is they don't "do" remortgage deals for existing customers, well they do if you want 0.2% off the variable rate.

Its Abbey that are insisting the DD takes ten days to clear, I'm just os mad that I didn't cancel the Direct Debit so that i could make any payment due manually, I'm still getting conflicting stories and the Royal mail strike doesn't help as none of the letters are getting through, I've had a letter today from Halifax today saying "Congratulations - your mortgage started on 5/10"!! My biggest trouble is I get a bit het up trying to talk to people on the phone, especially if I'm frustrated, I turn into a tearful pathetic woman that cannot stick up for herself .

I'll see what happens in the next couple of days and maybe cancel the DD, don't want any nasty overdraft charges! Thanks again

Sam

Mikeyorks

sammyjammy wrote: »

I turn into a tearful pathetic woman that cannot stick up for herself .

You're unique then ..... never met one before! Most I've seen 'frustrated' ... you quickly remove the knives from the kitchen drawer.;)

If you're unsure of how they will behave - I would personally cancel the DD. As they have cited clearing your 'final' payment as the reason for the 10 day delay ... you basically have their word that activity via the DD is complete?

Then either 'phone the settlement figure through - or 'bill payment' it if you bank online (but watch the account numbers if you do that).

Best of luck - you appear to have done the hard work, so just look upon this as the down slope (with bumps!)