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Rent Arrears - They setup the wrong direct debit amount

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  • Modcore
    Modcore Posts: 4 Newbie
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    OK thanks everyone.

    I will let them know that i accept and wait the payment terms (lump sum or over time) will see what the timescale is.

    Thank you
  • ToasterScheme
    ToasterScheme Posts: 116 Forumite
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    I'm still not totally convinced that you do owe any extra money.

    Seems like they said (at the start) "the DD is reduced because there was a (credit) balance on your account when you completed". And now they are saying that there was an error an no reduction was due.

    So was there a credit balance at the start? If there was, this should be the same sum as the supposed arrears.

    Were you surprised when they said you started off in credit?
  • ReadingTim
    ReadingTim Posts: 3,970 Forumite
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    ToasterScheme wrote: »
    I'm still not totally convinced that you do owe any extra money.

    Seems like they said (at the start) "the DD is reduced because there was a (credit) balance on your account when you completed". And now they are saying that there was an error an no reduction was due.

    So was there a credit balance at the start? If there was, this should be the same sum as the supposed arrears.

    Were you surprised when they said you started off in credit?

    Surely any credit should be refunded to the person to (over)paid it? You wouldn't want to inherit someone else's debts, so I don't think you can inherit any of their credit either....

    I wonder if the person setting up the DD saw that there was a credit but didn't realise it would be refunded, leading to the debt balance now...

    Anyway, hope it gets sorted. Also, given the mistake's been made once, careful they don't make it again, so if your DDs are temporarily increased to pay off the debt, make sure they're decreased once it's been paid off, otherwise you'll be in a similar situation...!
  • pinklady21
    pinklady21 Posts: 870 Forumite
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    Small point - there is a difference between a Direct Debit and a Standing Order. With a Direct Debit, the person receiving the money decides how much to take each time, and can vary it under the terms of the DD agreement you signed.
    A Standing order is for a fixed amount that is determined by the person making the payment.

    If this was indeed a Direct Debit, it could have been varied by the organisation taking the money. assuming they knew the amount wa wrong of course!
  • ThePants999
    ThePants999 Posts: 1,748 Forumite
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    The fair resolution seems obvious to me. At the beginning of the year, they owed you a bunch of money, and they thought that the fair way of refunding it was to split it over your year's worth of rent payments. Now, you apparently owe them a bunch of money, so the fair way of repaying it is to split it over a year's worth of rent payments. So, assuming the rent hasn't changed, you should be paying £430.37 per month for the next year.
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