Payment holiday agreed but they still took money

tick1986

Hi all, So sorry if this has been asked, I have tried to search but cant find the same topic. Both myself and DH have been furloughed which means a large chunk of money has gone currently. We decided to put a payment holiday on our car finance as it worked out as the lowest interest and increase in payment. 
We requested the car finance holiday and agreed with the company it would be fine to do. Unfortunately they still took the finance which meant it has now impacted on paying our mortgage, doing our shopping etc. The company said that they feel that we can afford it and will not be refunding the money. 

My question is whether a financing company has the authority to take the money having agreed a payment holiday? 

Any advice greatly received. Thanks in advance. 

Jeremy535897

If you have their agreement in writing to suspend payment, in law they cannot now go back on that. I assume this is a direct debit that has continued to be taken? Are they suggesting that they continue to take the other payments you agreed would be suspended?

dunstonh

Did you agree this more than 10 working days before the direct debit was due?  Some companies submit their DDs even more in advance than that.  So, it may have already been in the system.

Have they gone back on their agreement to allow you to go into authorised arrears?   Or are they applying it from the next payment?