Loan not taking payments

Smivvers20

So I took a small loan out in July for a car purchase.

I've just checked my credit file and it doesn't look like any payments have been made. Checked my bank statements and they haven't taken any payments.

Obviously the right thing to do is contact them and alert them but my question is will they expect me to make the payments that they haven't taken?

I will call them but what would happen if I didn't?

Penguin_

What will happen is when they realise they haven't taken payment is they will ask you for it. I assume you haven't spent it so there shouldn't be an issue. Easier to call them & sort now, rather than wait for them to get in touch.

Smivvers20

I'm calling this morning. The money is in my "debt payment" account where all dds come from but I just wondered what they would do.

Ebe_Scrooge

Smivvers20 said:

I'm calling this morning. The money is in my "debt payment" account where all dds come from but I just wondered what they would do.

What do you mean, "what they would do"?  Not sure I understand the question.  Mistakes do, unfortunately, happen sometimes.  It's not common, but not unheard of, for a bank to make a mistake in setting up the repayments.  Such is life.  Could be down to any number of things - human error, an IT glitch, problems in setting up a DD mandate, eddies in the space-time continuum.  The bottom line is that you will need to make the payments you owe.  You can wait for them to contact you, and just trust yourself not to spend the money so that it's ready for when they ask for it.  Far simpler is to call them, sort out what's happened, and just get the correct payment schedule set up.  If you're hoping that they'll write off the missed payments, I'm afraid you're in for a disappointment.

Of course, if it's down to an error on your part - for instance, mis-typing your account number when setting up the DD - then you could reasonably expect to be charged a missed payment fee and have markers placed on your credit file.  But the most likely explanation is that it's just a simple mistake somewhere along the line - phone them up, get it rectified, and carry on with life.

Nofinway

Please understand that the responsibility to make payments lies with you - it's not the lenders responsibility to 'take' payments from you. This even applies if you have set up a DD to make payments. As Ebe mentioned sometimes mistakes happen. 

Call them - make up any missed payments and ask them nicely to amend the credit file as a gesture of good faith (they don't have to). 

Ergates

One thing to bear in mind - interest is calculated on the oustanding balance.   As they've not been taking payments, then your balance is higher than it ought to be, so your interest will be higher.    *IF* it turns out the lack of payments is down to an error on your part, you could ask them to deduct the additional interest your loan has accrued as a good will gesture.

[Deleted User]

Nofinway said:

Please understand that the responsibility to make payments lies with you - it's not the lenders responsibility to 'take' payments from you. This even applies if you have set up a DD to make payments. As Ebe mentioned sometimes mistakes happen. 

Call them - make up any missed payments and ask them nicely to amend the credit file as a gesture of good faith (they don't have to). 

This is incorrect, a direct debit is a "pull" (as opposed to say a standing order which is a "push"). If a DD is setup, the firm have to take it, if they don't take it, that is not the OP's fault, provided they are trying to pay the money. Any negative on the credit report must be removed by the firm if they are reporting not getting the payment as a result of them not taking the money.

Nofinway

Deleted_User said:

Nofinway said:

Please understand that the responsibility to make payments lies with you - it's not the lenders responsibility to 'take' payments from you. This even applies if you have set up a DD to make payments. As Ebe mentioned sometimes mistakes happen. 

Call them - make up any missed payments and ask them nicely to amend the credit file as a gesture of good faith (they don't have to). 

This is incorrect, a direct debit is a "pull" (as opposed to say a standing order which is a "push"). If a DD is setup, the firm have to take it, if they don't take it, that is not the OP's fault, provided they are trying to pay the money. Any negative on the credit report must be removed by the firm if they are reporting not getting the payment as a result of them not taking the money.

You misunderstand my comment. 

I'm not questioning that a DD is a 'pull' as you put it. I'm simply stating that regardless of the method of repayment, be it DD, SO or whatever, the responsibility to ensure the payment is made lies with the borrower.

[Deleted User]

Nofinway said:

Deleted_User said:

Nofinway said:

Please understand that the responsibility to make payments lies with you - it's not the lenders responsibility to 'take' payments from you. This even applies if you have set up a DD to make payments. As Ebe mentioned sometimes mistakes happen. 

Call them - make up any missed payments and ask them nicely to amend the credit file as a gesture of good faith (they don't have to). 

This is incorrect, a direct debit is a "pull" (as opposed to say a standing order which is a "push"). If a DD is setup, the firm have to take it, if they don't take it, that is not the OP's fault, provided they are trying to pay the money. Any negative on the credit report must be removed by the firm if they are reporting not getting the payment as a result of them not taking the money.

You misunderstand my comment. 

I'm not questioning that a DD is a 'pull' as you put it. I'm simply stating that regardless of the method of repayment, be it DD, SO or whatever, the responsibility to ensure the payment is made lies with the borrower.

If a DD is correctly setup and there is money in the account to cover it, and the loan company simply doesn't take it, that is not the same as you not making a manual payment. Your original post is incorrect - a direct debit IS the responsibility of the bank to take it

Nofinway

Deleted_User said:

Nofinway said:

Deleted_User said:

Nofinway said:

Please understand that the responsibility to make payments lies with you - it's not the lenders responsibility to 'take' payments from you. This even applies if you have set up a DD to make payments. As Ebe mentioned sometimes mistakes happen. 

Call them - make up any missed payments and ask them nicely to amend the credit file as a gesture of good faith (they don't have to). 

This is incorrect, a direct debit is a "pull" (as opposed to say a standing order which is a "push"). If a DD is setup, the firm have to take it, if they don't take it, that is not the OP's fault, provided they are trying to pay the money. Any negative on the credit report must be removed by the firm if they are reporting not getting the payment as a result of them not taking the money.

You misunderstand my comment. 

I'm not questioning that a DD is a 'pull' as you put it. I'm simply stating that regardless of the method of repayment, be it DD, SO or whatever, the responsibility to ensure the payment is made lies with the borrower.

If a DD is correctly setup and there is money in the account to cover it, and the loan company simply doesn't take it, that is not the same as you not making a manual payment. Your original post is incorrect - a direct debit IS the responsibility of the bank to take it

You still misunderstand - whatever the payment method is, it is irrelevant. The responsibility to ensure the payment is made (by whatever means) lies with the borrower. 

Ebe_Scrooge

Nofinway said:

Deleted_User said:

Nofinway said:

Deleted_User said:

Nofinway said:

Please understand that the responsibility to make payments lies with you - it's not the lenders responsibility to 'take' payments from you. This even applies if you have set up a DD to make payments. As Ebe mentioned sometimes mistakes happen. 

Call them - make up any missed payments and ask them nicely to amend the credit file as a gesture of good faith (they don't have to). 

This is incorrect, a direct debit is a "pull" (as opposed to say a standing order which is a "push"). If a DD is setup, the firm have to take it, if they don't take it, that is not the OP's fault, provided they are trying to pay the money. Any negative on the credit report must be removed by the firm if they are reporting not getting the payment as a result of them not taking the money.

You misunderstand my comment. 

I'm not questioning that a DD is a 'pull' as you put it. I'm simply stating that regardless of the method of repayment, be it DD, SO or whatever, the responsibility to ensure the payment is made lies with the borrower.

If a DD is correctly setup and there is money in the account to cover it, and the loan company simply doesn't take it, that is not the same as you not making a manual payment. Your original post is incorrect - a direct debit IS the responsibility of the bank to take it

You still misunderstand - whatever the payment method is, it is irrelevant. The responsibility to ensure the payment is made (by whatever means) lies with the borrower. 

I suspect wires may be getting crossed with terminology here.  Yes, of course it's the borrower's responsibility to make sure that payments are made.  However, with a Direct Debit, the onus is on the lender to take the money.  So the borrower must make sure the correct details are supplied to enable the DD to be put in place (the correct name, sort code, account number, etc.).  And they must make sure there is enough money in the account to cover the DD when it's called for.

But once it's in place, it's the lender's responsibility (as Farfetch says) to "call for" the DD.  If they fail to do that - assuming the borrower has set everything up correctly from their side - then the fault lies with the lender.  That's one reason why DD's are a good idea - if anything goes wrong, you're covered by the DD guarantee.