Unauthorised mortgage payment and date change!

[jfindlay29]

Another question from me!! A few months ago, I enquired with my mortgage company how to go about changing my monthly mortgage payment date, as I have a new job with a new pay date. They told me we'd have to pay 2 mortgage payments together and as we are still totally skint, we declined! I received forms in the post to sign and I phoned them up to say we would leave it as it was , and I was told to bin them. We paid our mortgage payment as usual on the 29th, and today, they took an extra 338 pounds off our bank account as a mortgage payment. Bear in mind, I did not sign any form to allow them to change the date or debit our account again! Luckily we have an authorised overdraft so we won't be getting charged, but the fact that they have nothing in writing from myself or my husband to change the pay date, and then they blatantly debit our account, and make us even more overdrawn is a joke! If I phoned up the company and asked for a copy of the signed form to be sent, what would they send me?? I phoned them immediately today, and they said they would refund our money asap, when that is I don't know! Apart from writing a complaint letter to the company, can I do anything else? It really upsets me that they can illegally authorise a large amount of money to be taken from our account when we need it most.

 

Thanks

[Oneeyedvic]

I am afraid that Diect Debit means that they can take whatever amount they want whenever they want - they do however need to give you notice. (10 days I beleive). The sisgned form they would give you would be your original direct debit mandate!

As it sounds like they didn't give you the required notice, you would be covered by the Direct Debit Guarantee. Your money would need to be refunded immeadiately (this would be by your own bank as it was an unauthorised withdrawel) and your bank would reclaim from the mortgage company.

Apart from writing the complaint letter, there is not really a lot you can do about it. If you went overdrawn or suffered any charges you could obviously reclaim those, but since you haven't really suffered any loss, not a lot to do (other than to name and shame if you want).

You could try writing a letter of complaint and charging them for the letter (around �25 should do it - after all they would charge you if it were your mess up).

You can also complain to your bank and get a refund from them for your dd payment. The only trouble is that if the amount was taken in one go, they would have to refund the full amount which could make it look like you are one month in arrears with your mortgage!

Hope that helps.

[stevie21]

Just to give the other side of the coin to what you're entitled to. If I was responsible for this mistake and it was due to me that the extra payment went out then I'd offer to cover any costs that you'd incurred.
If you wanted "compensation" for emotional distress or something similar I'd tell you to sling your hook as I have a particular dislike of this "compensation culture". It was an honest mistake and unless you have something in black and white saying that "if we make a mistake with your payments then we'll pay you �25" then I'd offer what you are legally entitled to (nothing) and fully expect you to accept it and be miserable about it.

It'd be cheaper and friendlier to send you some flowers or chocolates.
Actually, if you phone them and get through to a git like me, really stick to your guns and calmly outline what you want from them (�10-20 gesture of goodwill). If the git refuses then ask for an outline of their formal complaints procedure. When that procedure is exhausted, where do you *then* take your complaint? (FSA? Ombudsman?) and then inform the mortgage co. that you are prepared to take your complaint to the ends of the earth and that it will be so costly for them that they'd be cheaper just paying you the �25. This would work with me : I'd just give you the money to shut you up as long as you were spekaing calmly and logically. None of this hysterical nonsense, thanks.

With the DD scheme, in theory they can take what they like when they like. In reality, they are required to give you 14 days notice in writing of any changes to the date/amount. They have broken the contract that they have with you - how much would they charge you if did the same (missed a payment) ?

Seems I changed my tune a bit, mid rant there :(

[Loosehead]

Get their account details and cancel the dd, pay by standing order when it suits you. They don't like it they may even say you can't do it but you can just do it yourself all they really care about is that you pay.

[Didwot]

If a bank or building soiciety make a genuine mistake, and you complain about it they will usually make a compensation payment of �25 or �50 if pressed, on top of any financial losses that you have suffered.