Retailer failed to set direct debit up

gvw12187

Hi all,

I wanted to ask for some advice if anyone has been through this before.

My wife and I approached a carpet store to fit a new carpet in our home.

In May 2021 we paid half of the amount up front as a deposit and agreed to pay the rest by a direct debit installments for a one year agreement. I signed an electronic direct debit mandate at the carpet store and received the pre contract by Hitachi via email 25 May 2021. 

Hitachi are the finance company who collect the direct debits.

We were told by the carpet company salesman the installments would commence one month after the carpet had been fitted. The carpet was fitted 7th July 2021. 

We then received a further email in November 2021 from Hitachi confirming they are taking the first payment on 25 December 2021. 

Obviously I am quite angry because the one year agreement starts from December 2021 and not August 2021 which is an inconvenience to me because I like to plan my finances ahead. The direct debit payments has been delayed by 5 months. I believed if I had missed a payment I believe Hitachi would have aggressively pursued the money.

My belief is that the onus is on the retailer and finance company to collect the payments and to collect it on time.

I have disputed this issue with Hitachi already and they claim the error was made by the carpet company but bizarrely they have given me £50 as a gesture of goodwill. 

I contacted the carpet company and received apologies that this was a new payment system etc and they had failed to push a button to make the payments go live which notifies Hitachi to take the payments.

The carpet company have simply now said this was a genuine mistake and there is nothing else they can do.

Anyways, I would like to ask other people on this forum what are your opinions on this?

Has anyone experienced something like this before?

Will my credit rating be affected?

Do I have a legal stance as the retailer has broken the agreement?

Which ombudman/body can I report this to to seek possible compensation?

I personally think direct debit payments after one year (August 2022) should be written off as a gesture of goodwill. My last payment should technically be August 2022 not December 2022.

Any advice greatly appreciated.







 

DB1904

gvw12187 said:

Hi all,

I wanted to ask for some advice if anyone has been through this before.

My wife and I approached a carpet store to fit a new carpet in our home.

In May 2021 we paid half of the amount up front as a deposit and agreed to pay the rest by a direct debit installments for a one year agreement. I signed an electronic direct debit mandate at the carpet store and received the pre contract by Hitachi via email 25 May 2021. 

Hitachi are the finance company who collect the direct debits.

We were told by the carpet company salesman the installments would commence one month after the carpet had been fitted. The carpet was fitted 7th July 2021. 

We then received a further email in November 2021 from Hitachi confirming they are taking the first payment on 25 December 2021. 

Obviously I am quite angry because the one year agreement starts from December 2021 and not August 2021 which is an inconvenience to me because I like to plan my finances ahead. The direct debit payments has been delayed by 5 months. I believed if I had missed a payment I believe Hitachi would have aggressively pursued the money.

My belief is that the onus is on the retailer and finance company to collect the payments and to collect it on time.

I have disputed this issue with Hitachi already and they claim the error was made by the carpet company but bizarrely they have given me £50 as a gesture of goodwill. 

I contacted the carpet company and received apologies that this was a new payment system etc and they had failed to push a button to make the payments go live which notifies Hitachi to take the payments.

The carpet company have simply now said this was a genuine mistake and there is nothing else they can do.

Anyways, I would like to ask other people on this forum what are your opinions on this?

Has anyone experienced something like this before?

Will my credit rating be affected?

Do I have a legal stance as the retailer has broken the agreement?

Which ombudman/body can I report this to to seek possible compensation?

I personally think direct debit payments after one year (August 2022) should be written off as a gesture of goodwill. My last payment should technically be August 2022 not December 2022.

Any advice greatly appreciated.







 

Compensation for what? You have no loss, either stick with the payments or pay it off five months early with the money you've not been debited. 

[Deleted User]

Yes, people have experienced it.

No, it won't affect your credit files.

No. You simply owe the agreed amount.

None.


You can put yourself in the position you want by making up the payments you expected to make. You'll them clear the debt as you wanted, but with the benefit of interest earned in the last few months.

On top of the £50, you've done extremely well out of this.

emmajones1976

If you like to "plan your finances ahead" and were expecting this money to start coming out in August, why did you do nothing yourself to chase it up between the date the first payment was meant to be taken (7th August), and November when they contacted you?

Everything else has been covered: you havent lost anything, you have actually gained £50, and check your credit file if you really want to check its had no impact on you.

theonlywayisup

gvw12187 said:

I personally think direct debit payments after one year (August 2022) should be written off as a gesture of goodwill. My last payment should technically be August 2022 not December 2022.

Interesting perspective.  Your last payment is governed by when your first payment was made.  

Merlin139

If you like to plan your Finances so well then why did you not notice the lack of DD coming from your account?

You have been given £50 as a goodwill gesture and you still the 4 extra payments worth of money in your bank. You have not lost anything.If you want it to end in August 2022 then request Hitachi take another 4 payments in Jan or make a payment through your online account to bring it up to date.

gvw12187

Sorry but I disagree with some comments as the onus is on the retailer/finance company to collect the payments, I shouldn't have to check the payments after signing the direct debit agreement.

I signed a one year agreement.

emmajones1976

gvw12187 said:

Sorry but I disagree with some comments as the onus is on the retailer/finance company to collect the payments, I shouldn't have to check the payments after signing the direct debit agreement.

I signed a one year agreement.

Yes, a one year agreement to make payments in a one year period (presumably 12 equal-ish amounts).  If you are looking for a get-out from making the last four or five, you are on a hiding to nothing.

Can you answer the points raised about why you did nothing to chase this up yourself, as you state you like to "plan your finances ahead" so surely you noticed.

theonlywayisup

gvw12187 said:

Sorry but I disagree with some comments as the onus is on the retailer/finance company to collect the payments, I shouldn't have to check the payments after signing the direct debit agreement.

I signed a one year agreement.

You signed an agreement to pay £x back.  

Penguin_

gvw12187 said:

Sorry but I disagree with some comments as the onus is on the retailer/finance company to collect the payments, I shouldn't have to check the payments after signing the direct debit agreement.

I signed a one year agreement.

If you disagree why did you ask for comments?

You signed up to pay back £xxx & this is what you have to repay.

You've done well to be offered £50, take it & move on.

[Deleted User]

gvw12187 said:

Sorry but I disagree with some comments as the onus is on the retailer/finance company to collect the payments, I shouldn't have to check the payments after signing the direct debit agreement.

Correct. That's why you're not being charged fees for the missed payments, even if you don't ever check your bank statements.

But of course, you still owe the money.