Direct debit not being taken

markandchloe · 21 July 2019 at 11:18PM

Hi,
We took delivery last month of a new bed, from a smallish local furniture retailer. We bought the bed on 12 months interest free credit to be paid by direct debit.

The direct debit payee appeared on our bank account soon after we placed the order, and we received the bed on the 8th June with the first payment due to leave our bank on the 17th June, and then on the 17th of every month (so by now 2 payments should have left our bank).

However upon checking our account today we notice no payments have yet been taken.

I can contact the retailer to let them know about the mistake they've made, and make the payment to them no problem.

But it got me thinking what would happen theoretically if I did nothing? (Obviously keeping the money safe in an interest-earning account). I guess eventually they would realise their mistake and ask for the payment. But what if they never realised - would it get become unenforcable after 6 years? I'm almost tempted to hold onto the money and earn a bit of interest on it just to see what happens!

LawAbiding · 21 July 2019 at 11:23PM

Small local furniture retailer and you considering swindling them out of money cause a DD is not being collected?

Morally, I wouldn't, give them a call and let them know.

Remember Karma can be a b****

twhitehousescat · 22 July 2019 at 12:06AM

I would imagine that the interest free loam was set up and is administered by "A N Other" cred Company , the retailer has probably been paid by them for the item

normanna · 22 July 2019 at 8:03AM

I can contact the retailer to let them know about the mistake they've made, and make the payment to them no problem.

That's your answer

[Deleted User] · 22 July 2019 at 9:34AM

markandchloe wrote: »

Hi,
We took delivery last month of a new bed, from a smallish local furniture retailer. We bought the bed on 12 months interest free credit to be paid by direct debit.

The direct debit payee appeared on our bank account soon after we placed the order, and we received the bed on the 8th June with the first payment due to leave our bank on the 17th June, and then on the 17th of every month (so by now 2 payments should have left our bank).

However upon checking our account today we notice no payments have yet been taken.

I can contact the retailer to let them know about the mistake they've made, and make the payment to them no problem.

But it got me thinking what would happen theoretically if I did nothing? (Obviously keeping the money safe in an interest-earning account). I guess eventually they would realise their mistake and ask for the payment. But what if they never realised - would it get become unenforcable after 6 years? I'm almost tempted to hold onto the money and earn a bit of interest on it just to see what happens!

How much interest do you realistically expect to make? £1 given current interest rates? Regardless of how the loan repayments are made you still have a responsibility to make them. The account could end up in arrears which would then be reported to the credit reference agencies. You could then make a complaint via the ombudsman but given some of their published case studies I don't think they would rule in your favour. After several months you would reasonably have been expected to notice you hadn't made the payments and contact the lender.

Is a paltry amount of interest worth the risk? Only you can decide.

DCFC79 · 22 July 2019 at 6:49PM

Are you sure you need to phone the retailer, is a finance firm not the 1 you need to make payments too ?

It should be detailed on your paperwork who the finance firm is but call them and offer to make a payment.

markandchloe · 23 July 2019 at 8:00AM

Thanks for your replies.. I'll give them a call and resolve it.

The retailer doesn't use third party finance companies.. they manage their credit facilities fully in house so the error was on their part. I'll resolve it with them.

badmemory · 23 July 2019 at 1:14PM

Of course they may already know they haven't taken the payment. Then once it gets to a year & a day it is no longer interest free. What is the default interest on the loan?

Direct debit not being taken

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