Rent Arrears - They setup the wrong direct debit amount

Modcore

Hello All,
A quick low down of the situation.

We have a shared ownership house, half mortgage half rent.

The Housing Assocation setup the direct debit over a year ago for £336.67 per month in March 2017.

In May 2017 I asked them to confirm the amount was correct and that it wouldnt change for a year, they agreed (have email chain of this).

In March 2018 they have contacted me saying the amount was wrong and it should of been £366.67 and they we are now in arrears of £360.00.

Do I have any legs to stand on here, they have admitted has been caused though no fault of my own.

Any advice would be great!

M

david1951

Sounds like you didn't actually agree a change in the rent; therefore owe the money.

Did you know that the amount was incorrect in May 2017 when you emailed? If so, did you notify them of the error and ask them to confirm the amount was correct?

You have to check these things yourself as well. Their error doesn't change the terms of an agreed contract.

Modcore

The amount was different than what we expected, when we asked about it they said there was an amount of credit on the account following on from the purchase of the house.
I quoted how much had been taken from the direct debit and asked them to confirm as was expecting it to be higher. This is a quote from the email reply May2017-

"I have checked your account and can see that your monthly rent is £400.37. Your Direct Debit is worked out as the remaining balance over the year and as there was a balance on your account when you completed; the amount of your Direct Debit is indeed £370.37"

So not sure where that leaves us

takman

Modcore wrote: »

The amount was different than what we expected, when we asked about it they said there was an amount of credit on the account following on from the purchase of the house.
I quoted how much had been taken from the direct debit and asked them to confirm as was expecting it to be higher. This is a quote from the email reply May2017-

"I have checked your account and can see that your monthly rent is £400.37. Your Direct Debit is worked out as the remaining balance over the year and as there was a balance on your account when you completed; the amount of your Direct Debit is indeed £370.37"

So not sure where that leaves us

So you had agreed initially to pay a certain amount of rent and due to a mistake with the Direct Debit amount you now have £360.00 of arrears.

Personally i would just pay the £360 in full as it's not a great deal of money and then make sure the Direct Debit amount was adjusted to prevent it happening again in the future.

Pixie5740

Doesn't your original shared ownership contract tell you how much rent is due?

david1951

Modcore wrote: »

The amount was different than what we expected, when we asked about it they said there was an amount of credit on the account following on from the purchase of the house.
I quoted how much had been taken from the direct debit and asked them to confirm as was expecting it to be higher. This is a quote from the email reply May2017-

"I have checked your account and can see that your monthly rent is £400.37. Your Direct Debit is worked out as the remaining balance over the year and as there was a balance on your account when you completed; the amount of your Direct Debit is indeed £370.37"

So why are they saying the amount is now wrong?

G_M

I can see that the calculation was complex since the DD was affected by 2 factors:
1) the monthly rent and
2) the balance on the account resulting from the purchase


However, your figures are confused.

The Housing Assocation setup the direct debit over a year ago for £336.67 per month in March 2017.

In March 2018 they have contacted me saying the amount was wrong and it should of been £366.67

I have checked your account and can see that ..... the amount of your Direct Debit is indeed £370.37"

However, putting that aside, there are 2 issues.

3) what is actually owed.
* What is the accurate figure that should have been taken?
* what was taken, and thus
* what are the arrears, if any?

You need to get a clear break-down, and check it yourself.

Legally, if you owe the money you will have to pay it

4) The error
The HA has admitted tthey made an error, therefore there is a moral obligation to treat you sympathetically. ie
* write off the amount owed or
* allow you to pay it back in installments

However they do not have to do this - they can simply enforce 3) above.

TBagpuss

Is there a mistake in your post at 10.28? You quote the e-mail as saying that the amount is £370.37 but in your original post, you refer to the direct debit being £336.67.

If the correct figure was £370 but they set the direct debit up for £336, then I think it is as much your fault as theirs, for not checking.

If the correct figure was £366 and they set up the DD for £336 and told you that the figure was £336 then it is their error.

i think either way you have to pay the arrears, but if it was wholly their fault (i.e. if the amount they told you and the amount they set the dd up for were the same, if incorrect) then it would be reasonable to point this out and to ask them to confirm that they will ensure that as the error is their fault, that they will not seek to add any additional interest or charges (if there would normally be any, for arrears) and will ensure that their records are updated to show that you were not at fault

AylesburyDuck

Modcore wrote: »

Hello All,
A quick low down of the situation.

We have a shared ownership house, half mortgage half rent.

The Housing Assocation setup the direct debit over a year ago for £336.67 per month in March 2017.

In May 2017 I asked them to confirm the amount was correct and that it wouldnt change for a year, they agreed (have email chain of this).

In March 2018 they have contacted me saying the amount was wrong and it should of been £366.67 and they we are now in arrears of £360.00.

Do I have any legs to stand on here, they have admitted has been caused though no fault of my own.

Any advice would be great!

M

Modcore wrote: »

The amount was different than what we expected, when we asked about it they said there was an amount of credit on the account following on from the purchase of the house.
I quoted how much had been taken from the direct debit and asked them to confirm as was expecting it to be higher. This is a quote from the email reply May2017-

"I have checked your account and can see that your monthly rent is £400.37. Your Direct Debit is worked out as the remaining balance over the year and as there was a balance on your account when you completed; the amount of your Direct Debit is indeed £370.37"

So not sure where that leaves us

Totally confussed, which is it?
Anyhows, despite the error (which ever way it is) you still owe the money, although, as it is their error, maybe they will allow a catch up over the year of 12 monthly installments instead of a lump sum.

Modcore

Sorry! Been copying and pasting from their emails.

The rent should of been £400.37
The first two direct debit payments were £370.37
I queried the amount as it was different in May 2017
They replied with
"I have checked your account and can see that your monthly rent is £400.37. Your Direct Debit is worked out as the remaining balance over the year and as there was a balance on your account when you completed; the amount of your Direct Debit is indeed £370.37"

They have now asked for the difference of £360.00

InterestedParty2018

Can you clarify, do you have a lease/Tenancy Agreement which specifies that annual/monthly rent?

If so, this will determine how much you are obligated to pay - and will be the final "say".

If the landlord/HA told you the incorrect amount for setting up the direct debit, then this is an error.

They have identified the anomaly, notified you of such, apologised and told you the balance outstanding for you to clear - you need to pay this.

I would hope that the Landlord/HA take a sympathetic look at the circumstances and knowledge that their incorrect information contributed to this issue, thus, they *should* offer payment terms to settle the o/standing balance over a reasonable time, instead of in a lump sum.

Two points:
1. You need to check what the lease/AST states, this is the most important document
2. Miss-calculation can happen when there are varied dates/figures/apportionment. As long as the issue is remedied correctly.