Paying rent by direct debit

M

maebee

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46
Hi,

My son and friend have just moved into an apartment. Between them, they've agreed that the rent should come out of my son's a/c on the 1st of every month as he gets paid monthly, on the 31st. This sounded ideal to them but the property agency have said that the rent for Jan 1st HAS to be in the account by Dec 23rd (Christmas hols etc) and if the DD fails, the property co. will charge €20 for the first failure and €50 for each subsequent failure. There's no way that the €475 needed to cover the rent, will be in my lad's acc on Dec 23rd (He's lucky if he has 4.75 at month's end!) but it will be there on Jan 1st, which is the agreed DD date.

Can anybody advise please?

Thanks.
 
Why is it coming out of you son's account? I would have advised my son to open a joint a/c with the other party.. just in case there was any fallout, he will be soley responsible to pay any arrears.. money owed.. late fees etc. and could run in to bad credit with his bank.

Can the property agency take funds from his a/c other than the agreed date?
Have you phoned his bank to ask? Seems to me that they are breaking the agreement here not your son.
 
First this needs to be moved to Property investment.

Second if the rent is due on the 1 of the month how can they expect it 8 days before.

If it was me I would tell them to get stuffed and threaten to give notice, plenty of places for let out there.
 
Hi cat,
They figured this is the best way for them to do it. €475 comes out of my son's acc on the 1st and his roomate has a dd of €54 set up to go into son's acc every Friday.

The Property Co. also said that whenever the 1st falls on a Sunday, they'll take the dd on the previous Friday. They said to me, make sure to have the money in 2/3 days before the due date. That's impossibe as he always gets paid on the last day of the month.

I'll phone the bank on Monday
 
I would just say no.
I have tenants who pay by dd individually.
You son's weekly paid flatmate should just paddle his own canoe and pay weekly by dd if necessary.
 
The Property Co. said it has to come out of one acc only. The flatmate is paying my son by weekly dd.
 
There are plenty of other properties and a rental company acting in this was is utterly unreasonable.

Tell them that you will vacate the property as you have found a more reasonable landlord that will accept payment on the 1st of each month.
 
mcaul said:
There are plenty of other properties and a rental company acting in this was is utterly unreasonable.

Tell them that you will vacate the property as you have found a more reasonable landlord that will accept payment on the 1st of each month.
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Thanks mcaul. We're going to contact Threshold next week and ask for their advice.
 
It looks as if the Property Co is abusing the direct debit scheme () & there is absolutely no reason why your son should be forced to pay his rent before it is due to be paid. It’s up to them (Property Co) to calculate when to instigate the direct debit process & to adjust this to allow for bank holidays if they feel that they must. Seeing as Jan 1st is a bank holiday (a Friday) the earliest the direct debit should be deducted from your son’s account is Jan 4th which is a Monday.

I would advise your son to contact his bank in writing (& keep a copy) & instruct them that on no account is this direct debit to be deducted from his account before the agreed date, which is Jan 1st.

Your son’s bank has a responsibility to your son:

''Paying Banks Must:
-Only pay Direct Debits in accordance with its customer’s instruction.
-Ensure that unauthorised and/or cancelled Direct Debits are intercepted and returned immediately on presentation.
-Promptly refund its customer for indemnity claims and present the Indemnity to the Originator.
-Assist its customer in the resolving disputes with Originators.
-Inform the Sponsoring Bank if an Originator is not adhering to the Rules of the Scheme.''

He should also write to the Property Co (& keep a copy) & instruct them that he will not authorise the payment until the rent is due, & that he has contacted his bank regarding the matter.

If it’s the case that his salary will actually be paid early by his employer & the funds will be in his bank account on Dec 31st, he could allow them to collect one day early as a gesture of goodwill, but only if he is sure that he will be paid early, & only if he feels like it, & should alter the letters & instructions to Dec 31st.
 
Thanks for the excellent advice Papercut. I'll be showing this to my son today and he'll write to the bank immediately.
 
Maebee, sounds like they are being very unreasonable. Just one thing, you will need to clarify if the rent is a direct debit payment or a standing order. For example, your son's flatmate making the payment, that would be a standing order, an instruction he has given directly to his bank. The only reason I mention it is that unless it is a direct debit which the property company originates to your son's account the property company will not be bound by the originator scheme mentioned above.
 
AgathaC said:
Maebee, sounds like they are being very unreasonable. Just one thing, you will need to clarify if the rent is a direct debit payment or a standing order. For example, your son's flatmate making the payment, that would be a standing order, an instruction he has given directly to his bank. The only reason I mention it is that unless it is a direct debit which the property company originates to your son's account the property company will not be bound by the originator scheme mentioned above.
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Hi Agatha,

The rent to the property Co. is definitely a Direct Debit, being taken from my son's a/c monthly and the flatmate has set up a direct debit from his a/c to my son's, weekly.
 
That's good, Maebee, as this then means the company have to be bound by the originator scheme. I consider that they are being very unreasonable. I do hope everything gets sorted for you.
 
maebee said:
Hi Agatha,

The rent to the property Co. is definitely a Direct Debit, being taken from my son's a/c monthly and the flatmate has set up a direct debit from his a/c to my son's, weekly.
Click to expand...
Unless the flatmate is a business, he can't set up a direct debit. Do you mean standing order?
 
Complainer said:
Unless the flatmate is a business, he can't set up a direct debit. Do you mean standing order?
Click to expand...

It probably is a Standing order from flatmate to son. I haven't seen that doc but the one from the Property Co. is definitely a DD. I have scanned the agreement, just trying to post it here.
 
Just had a quick read through this.. it is completely unfair of the PA on your son and friend. I understand the PA and banks may be closed some days over Christmas but why not call for the money on 30th of Dec or the 4th of Jan.
 
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