Loan not taking payments

Nofinway

Ebe_Scrooge said:

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.

Yes to paragraph 1.

Yes to the first sentence in paragraph 2 but no to the rest. 

Potentially the lender can do everything correctly to get the DD set up and it can still fail. That's why I keep emphasising that it is the borrowers responsibility to ensure (absolutely ensure) that the payment has been made. It is particularly important if it is the first payment of an agreement as in the OP. The DD guarantee specifically does not cover contractual issues such as this. https://www.directdebit.co.uk/DirectDebitExplained/pages/directdebitguarantee.aspx

Also the borrower does not 'set up everything correctly on their side' with a direct debit. 

Ebe_Scrooge

Nofinway said:

Ebe_Scrooge said:

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.

Also the borrower does not 'set up everything correctly on their side' with a direct debit. 

Perhaps I didn't phrase that very well - all I meant was that the borrower needs to provide the correct details in order to allow the DD to be set up - Name, Account Number, Sort Code, etc.  If you supply incorrect bank details, meaning the DD can't be collected (because the account number is invalid, for instance), then yes that's your fault.

Nofinway

Ebe_Scrooge said:

Nofinway said:

Ebe_Scrooge said:

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.

Also the borrower does not 'set up everything correctly on their side' with a direct debit. 

Perhaps I didn't phrase that very well - all I meant was that the borrower needs to provide the correct details in order to allow the DD to be set up - Name, Account Number, Sort Code, etc.  If you supply incorrect bank details, meaning the DD can't be collected (because the account number is invalid, for instance), then yes that's your fault.

Fair enough but let's avoid the use of the word 'fault'. 

It's simply about who is responsible for non payment and in cases like the one above it is the borrower. 

[Deleted User]

Nofinway said:

Ebe_Scrooge said:

Nofinway said:

Ebe_Scrooge said:

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.

Also the borrower does not 'set up everything correctly on their side' with a direct debit. 

Perhaps I didn't phrase that very well - all I meant was that the borrower needs to provide the correct details in order to allow the DD to be set up - Name, Account Number, Sort Code, etc.  If you supply incorrect bank details, meaning the DD can't be collected (because the account number is invalid, for instance), then yes that's your fault.

Fair enough but let's avoid the use of the word 'fault'. 

It's simply about who is responsible for non payment and in cases like the one above it is the borrower. 

Again, this is causing confusion of matters. The whole point of the DD guarantee is that the borrower is not at fault if the payment is not taken. You can dance around and move the goal posts all you like - the fact is, if a DD is correctly setup and the lender doesn't take the funds as agreed, it is not the OP's fault. End of story. That is the whole point. It's no different from say sending them a cheque and them not cashing it.

Nofinway

Deleted_User said:

Nofinway said:

Ebe_Scrooge said:

Nofinway said:

Ebe_Scrooge said:

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.

Also the borrower does not 'set up everything correctly on their side' with a direct debit. 

Perhaps I didn't phrase that very well - all I meant was that the borrower needs to provide the correct details in order to allow the DD to be set up - Name, Account Number, Sort Code, etc.  If you supply incorrect bank details, meaning the DD can't be collected (because the account number is invalid, for instance), then yes that's your fault.

Fair enough but let's avoid the use of the word 'fault'. 

It's simply about who is responsible for non payment and in cases like the one above it is the borrower. 

Again, this is causing confusion of matters. The whole point of the DD guarantee is that the borrower is not at fault if the payment is not taken. You can dance around and move the goal posts all you like - the fact is, if a DD is correctly setup and the lender doesn't take the funds as agreed, it is not the OP's fault. End of story. That is the whole point. It's no different from say sending them a cheque and them not cashing it.

It simply isn't - read the link to the DD guarantee I posted above. Here is a copy and paste:
'The Direct Debit Guarantee applies to all Direct Debits. It protects you in the rare event that there is an error in the payment of your Direct Debit, for instance if a payment is taken on the incorrect date, or the wrong amount is collected. It cannot be used to address contractual disputes between you and the billing organisation.'
It says absolutely nothing about the payment not being taken​ - it's there to protect you if the incorrect amount is taken or taken on the incorrect date.
Your assuming that the DD is always et up correctly - it isn't as I've mentioned. Your cheque analogy is also way off the mark. How do you know the lender received the cheque? Way too simplistic and the principle reason why it is always enshrined in the contract (see emboldened bit) about ensuring the payments are made. You can't simply 'hope' that a DD has been set up and abdicate all responsibility to ensure the payments are made.
There's a post in the credit file section right now where the individual managed to get £3,000 in arrears with EON because, in his words, of a '!!!!!! up with the DD'. Do you think that is reasonable? The Ombudsman didn't and sided with EON. 

Pixie5740

I agree with @Nofinway, even if there is some issue with the DD the OP still has a contractual obligation to ensure the loan is being repaid. The DD guarantee protects you if an incorrect payment is made but not if no payments are made. 

I’d expect that when the OP contacts the lender the lender will want the account brought up to date. 

TripleH

My interpretation is that if the DD is setup correctly but that the money is not taken, it is upto the borrower to chase why it hasn't been taken.

If it is the first payment, the details are correct, no money is taken then any late payment fees charged are challengable on the lender at fault.

If its 6 months after the stated start date (per the contract, for example) then the question would be why the borrower hadn't challenged non-collection of debt sooner.

cx6

The first port of call is the loan agreement, where I am certain it will say that repayments have to be made on time otherwise ....

There will be nothing about failure to take direct debits.

It is the borrower's responsibility to check that payments are made each month and take remedial action if they are not (eg a DD wasn't taken or a cheque was lost in the post or whatever)