Will they not take direct debit?

bigbeff

I made an overpayment on my loan of a similar amount to my direct debit. This was made before the direct debit amount, but Virgin have not taken my direct debit today (bank says it was due today). Is this due to the overpayment? I had budgeted for both payments, I'm just trying to work out what is going on. Thanks in advance!

Nebulous2

I fell out with Clydesdale (now Virgin) several years ago about the difficulty I had overpaying on a loan. On one occasion I sent money to the sort code and account number and they sent it back. Eventually I went to the ombudsman and got given some compensation.

Unless it has changed I think you have to phone them and agree an overpayment. You might find they want to reduce the monthly payment, rather than the term, so be clear about what you expect. 

Nearlyold

Nebulous2 said:

I fell out with Clydesdale (now Virgin) several years ago about the difficulty I had overpaying on a loan. On one occasion I sent money to the sort code and account number and they sent it back. Eventually I went to the ombudsman and got given some compensation.

Unless it has changed I think you have to phone them and agree an overpayment. You might find they want to reduce the monthly payment, rather than the term, so be clear about what you expect. 

Just to clarify, when you make an overpayment, the legislation specifies Lenders only have to offer one option, a reduced monthly payment or a reduced term  :-  there is no obligation for the Lender to offer a choice of options - though some do of course. 

bigbeff

Thank you. I'll ring and see what they say. I tried online chat and all they said was next payment was due in February. 

sourcrates

I assume you told them you wanted to overpay?

Otherwise they would be none the wiser, and treat the overpayment as though it was the regular payment.

Which appears to be what has happened in your case.