Car loan refund

Samwarren46

Hi, I recently was in an RTC which left my car a total loss. Direct Line gave a good settlement fee which was then paid to ourselves and the finance company. During this time we paid an extra monthly payment to the finance company to keep everything up to date. They are now refunding us the 506.00 overpayment but have said as we already cancelled the direct debit they may not pay out. At no time did they advise to keep it for refund and we had already made an overpayment. Are they obliged to pay in another way such as cheque or BACS? Of course they sent the email last night after they closed and just before a 4 day bank holiday.

[Deleted User]

Samwarren46 said:

Of course they sent the email last night after they closed and just before a 4 day bank holiday.

That's good. It gives you lots of time to go through the figures and contract to check when payments were due to stop before dealing with it next week 

If you paid too much, it will be returned, if not, not.

born_again

Ask them to set up a new DD for the refund.

user1977

born_again said:

Ask them to set up a new DD for the refund.

They don't need to set up a DD, just do a BACS/FP transfer using the account details.

The lack of a DD makes no difference to their obligation to refund to the OP, by one method or another.

born_again

user1977 said:

born_again said:

Ask them to set up a new DD for the refund.

They don't need to set up a DD, just do a BACS/FP transfer using the account details.

The lack of a DD makes no difference to their obligation to refund to the OP, by one method or another.

Providing that they are happy to do a BACS payment. It could be that it is their policy to not make this type of payment.