Mortgage Payment

[{Dakota}]

A few weeks ago, I called my mortgage lender and asked for a payment break this month, which was granted.

I got paid on Wednesday past and then proceeded to pay a few bills and paid for the stair lift to be installed to my Granny's home. I went to take out money from the hole in the wall yesterday morning and discovered the mortgage payment HAD come off, despite the arrangement, leaving me with just �49 in my account to last me until the end of the month.

By the time I got home and called them, their offices had closed for the day and I assume they will be tomorrow. I will be calling them on Tuesday morning to give them what for, but does anyone know if they will, at my insistence, return the money to my account or do I just have to lump their mistake?

[Buenchico]

There's an important piece of information missing from your post. Your reference to 'the mortgage payment' doesn't say whether the payment went out via a standing order or a direct debit.

If the payment was made through a standing order you can only appeal to the lender to try to get the money back. However, if an unauthorised payment was made by direct debit, your bank is obliged to give you an immediate full refund:
http://www.bacs.co.uk/BACS/Consumers/Direct+De bit/Your+rights/

Assuming that your payment was by direct debit (which is the most common arrangement), I recommend that you speak to your bank (rather than the lender) first thing on Tuesday morning. It's their duty to sort things out for you.

Chris

[{Dakota}]

Chris, you are brilliant! Thank you so much!

I spent most of yesterday in tears knowing there's no way on this earth I can live on that amount of money for the rest of the month! I'm going to call my bank first thing on Tuesday and have it rectified.

Does this mean the bank will claim back the money from Northern Rock directly and sort it out between themselves?

[Buenchico]

My understanding of the direct debit system (as backed up by the link I've provided) is that your bank must refund the payment to you (irrespective of whether they can then get the money back into their own accounts). It's then up to them to seek the funds from Northern Rock but they should do so after refunding you. (i.e. they shouldn't make you wait while they contact Northern Rock).

Chris

[{Dakota}]

Thank you very much x

[chappie]

Chris, are you a solicitor in "real life"?

[tiggerblue10]

Chris is good isn't he.

Once you have advised your mortgage lender that you can't make a payment for whatever reason you should then contact your bank to stop the direct debit payment from going through.

Good luck on Tuesday x

[Finance Guy]

Hopefully, you got the payment break agreed in writing, or know the name of who agreed this for you(?)

That being the case, it is likely that the standing order was taken as normal and this should be relatively easy to reverse.

It may take around 3-4 working days to arrive back in your account but I cannot see any barrier to this happening, assuming the break was confirmed of course.

Good luck

[dzug]

When you asked for a payment break did you point out that you paid by direct debit?

If not then yes they agreed you needn't pay but left it to you not to pay. They<should> have asked but if they didn't it's easy to see how the error happened.

[{Dakota}]

Well, after a bank holiday weekend of feeling very sick at how skint I am, I called Northern Rock when I got home from work today and was fully prepared for a fight with them about it.

The woman looked into my account history and agreed that I had called on the 18th April requesting the one month payment break. She put me on hold for a few minutes and then came back and said this:

"Sorry to keep you waiting, Miss ******, the Manager passes on his sincere apologies for the mix up and the full amount will be refunded into your account within 3-5 working days. Furthermoe, if you have had any bank charges as a result of this, then please pass on the paperwork and we'll refund you the money."

I'm absolutely thrilled there was no fight and I'm not skint anymore! (well, I won't be in 3- 5 working days!!)

Thank you so much you guys for answering me - big kiss to you all!! X