Definition of 'late payment' - advice needed
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Hi guys
I had a direct debit to Creation Consumer Finance which I may have accidentally cancelled whilst cancelling a load of inactive direct debits earlier this month.
Direct debit is normally taken on 22nd of each month. I understand that direct debits take two or three working days to clear into the recipient's bank account.
They called me today and I paid the 'late' amount by card. Their website confirms that payments by card clear instantly. They've reinstated the direct debit from next month.
They would like to charge me a £30 late payment penalty. However, the way I see it, they would have received the funds today whether payment was made by direct debit or as I did paying with card.
My question is, was my payment late (is it the date of payment or date of receipt which determines whether a payment is late)? If it was not late, are they able to charge the penalty? They were unwilling to waive the penalty when I spoke to them by phone today.
I've asked them to send me a copy of the finance agreement.
Appreciate any advice.
Thanks
Stephan
I had a direct debit to Creation Consumer Finance which I may have accidentally cancelled whilst cancelling a load of inactive direct debits earlier this month.
Direct debit is normally taken on 22nd of each month. I understand that direct debits take two or three working days to clear into the recipient's bank account.
They called me today and I paid the 'late' amount by card. Their website confirms that payments by card clear instantly. They've reinstated the direct debit from next month.
They would like to charge me a £30 late payment penalty. However, the way I see it, they would have received the funds today whether payment was made by direct debit or as I did paying with card.
My question is, was my payment late (is it the date of payment or date of receipt which determines whether a payment is late)? If it was not late, are they able to charge the penalty? They were unwilling to waive the penalty when I spoke to them by phone today.
I've asked them to send me a copy of the finance agreement.
Appreciate any advice.
Thanks
Stephan
0
Comments
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The due date is what matters. It payment wasn't received by that date, a late fee will be payable.
They may also, or instead, want to charge a bounced DD fee.0 -
the date they have cleared funds v's your statement payment due date
when was the payment due?0 -
Unsure when payment was due. I assume that will be in finance agreement? Direct debit has historically been taken on 22nd. That was Friday which means they would have received fund today or tmw - is that right?
This is a furniture interest free loan so no statements received. Any other way to check the 'due date'?0 -
Don't use the DD date as a guide. They can take it after the due date if they want, because that's their problem.
You need to find the precise due date in the agreement.0 -
OK thanks I will wait for that to arrive. Many thanks
Stephan0 -
If you look at the credit agreement for the loan it will state what they class as a late payment.0
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