If I'm posting in the wrong forum maybe one of the mods can advise - apologies in advance.
My mortgage has been taken over by Pepper. They have admitted that they failed to call the direct debit on a number of occasions. They have said the fault was theirs.
They told me that they used a regular standing order over-payment that I make monthly to off-set the missed DDs. Only when they exhausted that did it trigger them to contact me. My queries are:
1. I had presumed that over-payments would be applied to the mortgage immediately on receipt and thus reduce the capital balance and interest. I have queried this on the phone and they have told me that what I understand is correct. But, how can the money then be used to offset a later untaken direct debit? Maybe a banker here can explain this system?
2. Off-setting is provided for in the mortgage contract in respect of accounts that I held with Danske, but I don't hold any separate accounts with Pepper, so how can they off-set as there is just one account?
3. Pepper now want me to make a lump sum payment of all the untaken DDs. What would be a suitable response to this given that the mortgage contract is predicated on a specific term length and the failure by Pepper to take the payments in accordance with the agreed schedule would mean that the term has been elongated unless I pay all in one go.
Thank you for your advice and opinions.
My mortgage has been taken over by Pepper. They have admitted that they failed to call the direct debit on a number of occasions. They have said the fault was theirs.
They told me that they used a regular standing order over-payment that I make monthly to off-set the missed DDs. Only when they exhausted that did it trigger them to contact me. My queries are:
1. I had presumed that over-payments would be applied to the mortgage immediately on receipt and thus reduce the capital balance and interest. I have queried this on the phone and they have told me that what I understand is correct. But, how can the money then be used to offset a later untaken direct debit? Maybe a banker here can explain this system?
2. Off-setting is provided for in the mortgage contract in respect of accounts that I held with Danske, but I don't hold any separate accounts with Pepper, so how can they off-set as there is just one account?
3. Pepper now want me to make a lump sum payment of all the untaken DDs. What would be a suitable response to this given that the mortgage contract is predicated on a specific term length and the failure by Pepper to take the payments in accordance with the agreed schedule would mean that the term has been elongated unless I pay all in one go.
Thank you for your advice and opinions.