Change direct debit date.

nameless121

Hi. So on the 30th of may, I applied for a loan. I was accepted and received the funds on the 3rd of June. The loan company has an online site which I registered on with the intension of changing the direct debit date to the 2nd of each month. It said I need to wait for the direct debit to be setup before I can change it. 

So a week and a half later, I log in to change the date. But find out they will only let me change the direct debit date if I have a direct debit go out on the 30th 

of June and then also on the 2nd of July. I phone them, and they say they can do nothing about this. 

They say there is an alternative that I pay extra over 6 months to cover 1 payment. Which means I am playing catch up as if I was in arrears before the loan has had the first payment. Would this not be a 59-month loan and not 60 months like in the agreement? This would leave me skint. Or at risk of a direct debit going unpaid. I have never had a problem with any company trying to change direct debit.

Phoenix72

Fairly normal I would say. Were you expecting to not make a payment in June and the next one on 2nd July? The loan would not have been cleared by the agreed term if you did that?

Would have thought that the reason for changing date was to sync with pay dates so the May payment would come of your beginning of May pay and the 2nd June payment from beginning of June pay.

nameless121

I received the funds on the 3rd of June. So why would the first payment being the 2nd of July be a problem? If my direct debit went on the 2nd of July, it would be almost 1 month after I got the loan. So I wouldn't have seen a problem. Every other loan I have had, there has never been an issue with changing the date.

retiredbanker1

Looks like they used BACS to send you the money - you received funds on 3rd June so loan was actually opened on 30th May?
As you need to make a repayment within 31 days of this (or calendar month if you prefer) the last day you can pay this month is the 30th June.
If you did not start paying until 2nd July each and every payment would technically be in arrears.