Late payment marker Premium Credit

Question:

Why is your son's insurance coming out of your bank account and not his own? If the direct debit was coming out of his own account this wouldn't happen. If its coming out of your account because you took the policy out in your name with you as the main driver and him as a named driver in order to bring the price down even though its his car and he drives it the most then that is breaking the law, its known as fronting and is insurance fraud of the proper can end up in court facing a judge and getting a criminal record kind. It would also mean in the event of a claim that the claim was refused and if he hit someone and the insurance paid them out they'd come after YOU for the amount they paid to the other party.

bbmack wrote: »

Good morning

Quick question here regarding when a late payment becomes a late payment in the eyes of the credit referencing agency.

When the company you owe money to decide it is a late payment and notify the credit agency you've made a late payment so it could be one day, one week, one month....all depends on the policies of the individual companies, not the credit reference agencies. The CRAs merely record what they're told.

I always believed that if a payment was made within 30 days of a missed payment it wouldn't end up on your credit report, though would incur a late payment charge.

You believed wrong. It depends on that company's policy.

My question is do companies have the right to add a late marker after the return of a direct debit, even if the payment is made within that month?

Yes. Even if it is made the very next day although that would be harsh but it is an accurate representation of the facts. The payment is due on X day, you paid on X+1 or later therefore it is late.

Surely if a payment to a company is made within the month it isn't late (January's payment must be made in January - if it is then all is good) - after all a direct debit date is simply a loose agreement between a client and company and therefore shouldn't be a legal timeline.

A direct debit is NOT a loose agreement between a client and a company. A direct debit is merely a method of payment. What is on the terms and conditions of the agreement is what matters and if that says it must be paid by the X of each month then anything after that is a late payment.

I may be grasping at straws but this seems overly strict from Premium Credit.

Lets put the shoe on the other foot. If it were your wages or your benefits and it was 1, 2, 5, 7, 14, 30 days late would you be happy to accept being paid that late "because its in the same month"? I bet the answer would be no so why should someone you owe money to be any different?

I fully intend to appeal the decision against my original appeal so any help would be great!

Thanks

By all means appeal but don't be surprised when you get told it was paid late so is factually correct.

If you want some help I suggest going to the Debt Free Wannabe board, posting a statement of affairs and seeing if you can sort your finances out. Your finances shouldn't be so tight that your son not transferring over a month's insurance premium causes a direct debit to bounce so you need to address your finances so you're not living hand to mouth every month. That is the biggest problem you have.

Unfortunately it is down to the individual companies own policy about the charge, but you are correct about the billing cycle.

If you pay the same day as the DD was due, some companies allow that, others do not, and you will get a late payment charge, their appears to be little consistency.

One late payment marker is not the end of the world, in the grand scheme of things it will have little or no impact on you, but i would certainly make a complaint with regard to this, Experion sum it up nicely what is expected.