Payments made on finance but not coming out of account

damocoleman

This is an interesting one and wondering if anyone else has had this issue?

I live in Ireland and bought a couple of things from a large homeware chain on finance. The company offering the finance was a well known UK based bank. This was back in 2018. (I'm being sketchy with details for obvious reasons!)

Now I am applying for a mortgage over here and they have brought up the finance which only has a couple of months left on it. They asked where the payments are on my statement and for the life of me, I have gone back the 2 years and cant find any of them.

Bewildered, I called the finance bank and they had the correct bank details and are telling me that all payments have been made (with 2 left to make).
I double checked the dates the payments were made, the amount etc and there is nothing on my account!

Has anyone come across this issue before? What the hell do I say to the mortgage company?

Ben8282

What business of anybody is it to ask what account the payments are coming from? Who has asked this - who is they?
If the finance is almost fully repaid as you say then I can't really see that a mortgage lender would be particularly concerned about it.
You tell the mortgage company to mind their own business.

[Deleted User]

Of course its the business of the mortgage lender they need to see that a borrower is 100% upto date with any repayments, if they aren't happy they could and do withdraw the offer.

OP I would you suggest that you contact the finance company and ask for a statement showing all payments made etc, are you sure about the payment reference? also you could check with one or more of the credit agencies see if the loan and payments show up there.

Nearlyold

One albeit remote possibility is a crossover of bank details at the finance company that has led to them taking the DD's from someone else's account and that "someone else" hasn't noticed. This is not an entirely unknown scenario - I've known pension contributions collected for 3 years plus from the wrong customers bank account and nobody realise.

Ben8282

venison wrote: »

Of course its the business of the mortgage lender they need to see that a borrower is 100% upto date with any repayments, if they aren't happy they could and do withdraw the offer.

OP I would you suggest that you contact the finance company and ask for a statement showing all payments made etc, are you sure about the payment reference? also you could check with one or more of the credit agencies see if the loan and payments show up there.

You are misunderstanding.
The payments to the finance company are up to date and the finance company have confirmed this.
The payments however are not showing on the OP's bank statements as having been made from his/her current account to which that statement refers.
So long as the payments have been made, which apparently they have, I don't think the mortgage lender has any right to ask where they are coming from.
I am of course wondering how somebody who lives in Ireland has obtained UK finance on a sofa and are applying for a UK mortgage. Would they even have a UK credit report to check?

phillw

Ben8282 wrote: »

So long as the payments have been made, which apparently they have, I don't think the mortgage lender has any right to ask where they are coming from.

Of course they have a right to ask. If the lender has asked to see all your current accounts and you provide them, but they are missing transactions that they know you have been making then it would be reasonable for them to assume you have another current account.

One that you are withholding because it has incriminating transactions.

From the looks of things the payments haven't been made, either a mistake at the original lender or a mistake in his own bank. If he doesn't raise complaints at both then he is at risk of committing fraud.

Gaz83

Surely you would have noticed the payments not leaving your account?

Or are you saying they have been leaving your account but for whatever reason are not showing on your statement?

Terry_Towelling

Why are you asking us what to tell the mortgage company? What can we possibly say to you? If we are generous and take you at face-value, someone else has paid for your goods (despite what the finance company has in their records) and your current account has effectively been overstating your wealth for the duration of the finance agreement.

If the mortgage company is worried that you will suddenly be hit with a claim for the full value of the finance that you have oddly not noticed you weren't paying, that may dent your case and may also show you up to be dishonest or negligent in the way you manage your finances.

If they believe you have another current account that you're deliberately concealing, that may also cause you problems.

Why don't you just speak to them and tell them what has happened and that you hadn't noticed? How could we possibly suggest anything else? You also ought to be properly ashamed that a mortgage company has spotted something that you have apparently missed (or deliberately ignored) for a couple of years.

damocoleman

Terry_Towelling wrote: »

Why are you asking us what to tell the mortgage company? What can we possibly say to you? If we are generous and take you at face-value, someone else has paid for your goods (despite what the finance company has in their records) and your current account has effectively been overstating your wealth for the duration of the finance agreement.

If the mortgage company is worried that you will suddenly be hit with a claim for the full value of the finance that you have oddly not noticed you weren't paying, that may dent your case and may also show you up to be dishonest or negligent in the way you manage your finances.

If they believe you have another current account that you're deliberately concealing, that may also cause you problems.

Why don't you just speak to them and tell them what has happened and that you hadn't noticed? How could we possibly suggest anything else? You also ought to be properly ashamed that a mortgage company has spotted something that you have apparently missed (or deliberately ignored) for a couple of years.

Sarcasm duly noted and about as helpful as a waterproof sponge.
This is something that slipped through the net on my side and actually over the past 2 years forgot about.

I'm asking because I wanted to see if others has had this issue.
If there is an error and something needs paying, I'll gladly pay it.

However, the mortgage company have my previous 6 months statements and if they cant see the funds leaving my account on there and the statement from the finance company says otherwise, I'm worried they will think something remiss has happened and I want to see if anyone has come across this as well

BrassicWoman

damocoleman wrote: »

I live in Ireland and bought a couple of things from a large homeware chain on finance. The company offering the finance was a well known UK based bank. This was back in 2018. (I'm being sketchy with details for obvious reasons!)

There is really only one obvious reason - that you want to continue having something for nothing.

So I think it's a bit rich to be short with people pointing out pitfalls and querying motives!

Come clean, pay off the finance, then apply for the mortgage. You'll sleep better.

Terry_Towelling

damocoleman wrote: »

Sarcasm duly noted and about as helpful as a waterproof sponge.
This is something that slipped through the net on my side and actually over the past 2 years forgot about.

I'm asking because I wanted to see if others has had this issue.
If there is an error and something needs paying, I'll gladly pay it.

However, the mortgage company have my previous 6 months statements and if they cant see the funds leaving my account on there and the statement from the finance company says otherwise, I'm worried they will think something remiss has happened and I want to see if anyone has come across this as well

There was no sarcasm in my post - sorry you thought there was - but bluntness was there.

Others may have had this issue, but for it to occur in the same manner and to coincide with a mortgage application is not that likely - although definitely possible. My point was, what are you going to do with the information if someone else says they did have this issue? This issue can only be resolved between you and the mortgage company (and the finance company). You've said you intend to pay up if there has been an error and you can quite clearly see there has.

So my waterproof-sponge of a suggestion still stands; talk to the mortgage company and tell them what appears to have happened and find out what they want you to do about it - if anything. They obviously want you to provide an explanation, or they wouldn't have bothered raising the issue, and I'm impressed that they tied up information from your credit file with your bank account, understood the payment terms/arrangement and found no record of any payments being made in the past 6 months. For all they know, you could be taking an extended payment holiday, or it could have been a buy-now-and-pay-in-a-year's-time deal. Or you could have altered the source of your payments to come from, say, your parents' bank account as they might have offered to take over the payments.

Obviously, I don't know what your credit file reveals about the finance agreement but, from what you say, it has seemingly led the mortgage company to ask for an explanation.