Finance/DD Instruction Issues? Advice?

Sorry if this is long - but I’m trying to get my head around what is going on with my mine and my wife’s car finance.

So we got a new car at the end of May, the finance is in my wife’s name as it was advised that it’d be easier to get approved. It’s not extravagant, it does the job we needed it for.

So we set up a direct debit on our Monzo joint account. The pay date came around and no direct debit was set up. They told us it had been set up but it had been returned. This was not the case, unless they got someone else’s account. We had just opened a Nationwide joint account to ring-fence all of our bills but weren’t utilising it yet, so we paid manually and told them to attempt setting up there instead.

The pay date came around again - nothing. She rang again, told them it still hadn’t been set up and paid manually again. They told us it had been set up and returned again. It hadn’t - it felt like this was a default answer because they offered no resistance when we offered proof. The money is sat in the account waiting to be taken. By this point, we were becoming a little annoyed. It was nearly August, how hard could it be to set one up?

Late August, still no instruction on our Nationwide account - so I ring Nationwide and tell them about the issue - they’d never received an instruction, and couldn’t offer any explanation either.

My wife went back to the finance company and yet again, manually paid them. They said no-one had sent the DD instruction - weird, but OK. They told us to keep checking the bank, 2 weeks go by and still nothing, my wife calls them back and they still haven’t sent anything. They told us they’d send us the instruction to sign. It never arrived.

September ends up being another manual payment. My wife rings them and tells them we never received anything, they tell us they never sent anything. At this point we want to set up a standing order instead. My wife gets their details and I set it up from our Nationwide account. After the first pay date in October I have her ring to check they received the payment, they confirm they have.

My wife has now had a call, two days after the payment date (would have been 3, but it was a Sunday) asking to call them. She hasn’t called them yet as she’s working, but I’ve checked online banking and the payment went successfully on Monday, but we’re anticipating being told they haven’t received a payment.

I won’t name the company (just yet) but it’s not like this is a small company.

I’m beyond frustrated with them at this point, it’s seems staggeringly incompetent. I’ve swapped over a DD recently, from Natwest to Nationwide and that only took 3 days to show up on the Nationwide account.

We’re very worried because we’re finally turning our credit files around after some poor choices when we were a bit younger, and really don’t want this to end up trashing it.

Can anyone advise what our next steps would be if this turns out to be the reason for their call? We cannot afford to manually pay again this month if they demand it because that money has already gone to them.


While not exactly the same, I had a similar issue with an insurance D/D which was manually moved from a legacy account to our Monzo joint account. The D/D would show up as an entry in Monzo, then would disappear 3 days later. Then I’d get a letter from the company asking why I’d cancelled the D/D and that I could get into trouble by doing so. I contacted them - they said it was Monzo. I contacted Monzo, they said it was the company. I got absolutely nowhere in 3 months other than plenty of ‘warning letters’

In the end I cancelled the insurance, manually paid it in full and took out another policy, with the same company, which was laughably less expensive. A new D/D was set-up and I never had a problem from that point.

In my case, it wasn’t Monzo’s fault, it was the company not dealing with a manual D/D switch properly and once there’s some sort of error on the D/D - it didn’t go away. Only starting from scratch with a new D/D reference sorted it.

Going off your circumstances, this may be a little harder. I’d contact the finance company and ask if they can set-up a brand new D/D with your preferred account. Good luck :crossed_fingers:

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My wife’s just text me to say that the branch she needs has closed for the day, but it looks like the reason might be for a £40 “late” Direct Debit charge from last month, but the branch she spoke to cannot confirm that. Given that we’d changed it to a standing order, and given the direct debit has never been set up, i’m not entirely sure how they can justify charging anything.

I’m not convinced that is the reason though.

Looks like I’m perpetually anxious until tomorrow lunch time now.

edit: just to add, my wife sent me a screenshot (part of it below). Looks like this time they’ve not bothered to update our preferred payment method to a standing order (which they told her explicitly that they would need to do) and are likely charging us late direct debit payments fees yet are happily taking our standing orders on time.

I think as financial company you may be able log a complaint and then go to an ombudsman, this is beyond reasonable.

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I think its going this way.

My wife just got home and has had a letter for notice of default for a “returned DD” and a charge for sending the letter. This now explains the call she got earlier.

I checked the date they sent her the email with the details of their companies bank details for setting up a standing order, which was the 10th October (14 days before the due date). This amount was paid on the day it was due via. standing order.

So we now fear she has a default on her credit file.

Hilariously, the letter states something along the lines of us failing to observe the terms of the credit agreement.

They can remove defaults if the ombudsman rules they do, so I wouldn’t be too stressed,

I would start getting letters off the banks confirming that no DD were set as it could take some time.

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