Finio/Oakbrook Loans making it difficult to change Direct Debit details

jasonwatkins

Now firstly I accept that I could well be missing the point here.  I'm autistic and I find it hard to deal with something I assume should be simple and is then suddenly made complicated.

I have a small loan with Finio that I took out in April and the payments have been made from my current account on time ever since with no issues.

I'm in the process of changing that account to Monzo so I got in touch with someone at Finio and gave them the new sort code and account number and I was subsequently told that they "couldn't verify the bank".   This is after I'd successfully changed all of my other direct debits with the likes of Sky, BT e.t.c..

They asked for further proof of the account and bank so Monzo provided me with a proof of account ownership letter that contained my name, full address and all the bank details they'd need - even down to the IBAN number.

They still weren't happy and asked for a bank statement, even though the account is, at the time of posting this, only 4 days old.

At that point I refused to comply any further.  I told them that once my UC and PIP payments were transferred over to my new account, I would close the account associated with the direct debit and make manual payments instead.   I said that if they subsequently issued a default or missed payment then I'd challenge it in court.

Now as I said, I accept this could be on me but I'd be interested to know if they're allowed to do this ?.  

The_Unready

Was your account change via the bank's Switch service? If so, then DD transfers should be managed directly by the bank's in question, with no specific involvement from you....

jasonwatkins

The_Unready said:

Was your account change via the bank's Switch service? If so, then DD transfers should be managed directly by the bank's in question, with no specific involvement from you....

Unfortunately I wasn't aware that Monzo did any kind of account switching service so everything has been done manually.   Everyone else has the ability to change direct debit details on their website.

jasonwatkins

I've just been on live chat with them again and they've again demanded a bank statement before changing the direct debit details.

They've basically said that if I don't send them a bank statement to confirm the account's existence then they will require me to make manual payments for the remainder of the loan term, which would be until May 2025.

Voyager2002

jasonwatkins said:

I've just been on live chat with them again and they've again demanded a bank statement before changing the direct debit details.

They've basically said that if I don't send them a bank statement to confirm the account's existence then they will require me to make manual payments for the remainder of the loan term, which would be until May 2025.

Personally I would do this for a month, then send them a new direct debit instruction. I would imagine that it would be applied automatically.

I do suggest that when you switch bank accounts, you use the account switching service.

jasonwatkins

Voyager2002 said:

jasonwatkins said:

I've just been on live chat with them again and they've again demanded a bank statement before changing the direct debit details.

They've basically said that if I don't send them a bank statement to confirm the account's existence then they will require me to make manual payments for the remainder of the loan term, which would be until May 2025.

Personally I would do this for a month, then send them a new direct debit instruction. I would imagine that it would be applied automatically.

I do suggest that when you switch bank accounts, you use the account switching service.

The live chat person indicated that even if I did provide them with new direct debit details they would still require a bank statement.

I don’t make a habit of switching banks but then I’ve never come up against something like this before either.  Usually I’ll just go to each account’s website, find the “change direct debit details” and do what I need to do.  Doesn’t take long at all.

MEM62

I can understand your frustration and, frankly, I cannot understand their hesitation.  They can set up the new DD and if it fails, which it should not, they can contact you to address the matter.  Can you set up a standing order instead?    

jasonwatkins

MEM62 said:

I can understand your frustration and, frankly, I cannot understand their hesitation.  They can set up the new DD and if it fails, which it should not, they can contact you to address the matter.  Can you set up a standing order instead?    

Hi,

So sorry for the late reply as this had completely slipped my mind.  I caved in the end and ended up sending them the statement they wanted and the DD is now changed.  It was stressing me out too much in the end but I did submit a formal complaint beforehand though which I will certainly follow through.