Loan Payment DD Date Change

earthsoul00

My cousin has a personal loan he is repaying over a period of 4 years. He has just finished paying the first year and has noticed overdraft charges on his bank account - this has occurred because the bank has changed the date of the DD payment from 15th of the month to 1st of the month! 

He chose 15th as that is when he has the most available and can easily cover the payment and the bank has changed it to when he can't cover it hence making him overdrawn each month. Can a bank change the DD date like that without notifying him or getting his agreement? Can find no information on this within the details or on the bank's website! Any info. would be extremely helpful.

Thanks

Hoenir

What does the contractual agreement say? 

JadedAngel88

Could he not just leave the loan payment in his account, after he's paid his wage/salary, so that there isn't an overdraft charge.

retiredbanker1

I fear your cousin has not been 100% honest with you here.

You could ask whether he received funds on the 15th or 1st of whatever month the loan was opened.
His payments must be made within 31 days of drawdown.

Please ask him for more information and get him to send you a copy of the CCA agreement signed by him and the bank.

earthsoul00

I'll have to check with him re. the funds received date, but the payment date was agreed with the bank before the funds were transferred. It just seems odd that the bank can then just change things without contacting the customer! I've had a couple of loans in the past and never once was the DD date changed with regard to either of them! 

Hoenir

earthsoul00 said:

I'll have to check with him re. the funds received date, but the payment date was agreed with the bank before the funds were transferred. It just seems odd that the bank can then just change things without contacting the customer!

The contract determines the due date. It's not normally a negotiable option.