Practically Classics Forum

I had quite a shock on Friday, so I'll give you the background and just wanted re-assurance on what I'm proposing to do is fair.

Basically I moved into my new (rented) house on the 1st Feb and paid a months rent in advance. I filled out all the direct debit forms etc in their office the day I got the keys, and then a week later the letting agent posted me some more forms to fill in regarding the standing order etc. Luckily I photocopied them before sending them back so I had copies showing I signed them and posted them on or around 15th Feb 2014.

Anyway, going through my bank statements online last week, it looked like no direct debits had gone out at all for rent, even though I checked online AND called the bank to confirm the DD instruction was set up, and all the numbers were correct. They say it was. Ok, so I rang the woman in the letting agent and explained that no rent appears to have been paid, and I was surprised to not hear from them on the 1st March if the first installment hadn't been paid. She said she'd get back to me.

An hour later I get a very formal email, CC'd to the landlord saying that I hadn't paid any rent since the first month and that I was in breach of my tenant agreement, and if the outstanding rent wasn't paid they would start a section 8 something against me. So to cover my back I rang the bank again, and checked everything had been set up and they said yes. Tellingly, in the email the lady said "It was an oversight on my part, I should have picked it up sooner". I rang her back then to say that I had done everything my end, had all the correct documentation and that she should have picked it up but I would sort it out after the weekend.

So this morning I paid my June rent, and cancelled the existing Standing Order and set it up myself online to start from 1st July. I emailed the lady to say I'd done this, and that I will be calling her on the 1st July to make sure the new standing order is working. YES I should have spetted this myself sooner and I'm angry I didn't, but I've never had any issues with SO's before, and the one time I did, the company it was for emailed me instantly. I heard nothing from the agency or the landlord so had no reason to believe anything was a miss.

In my email this morning I told her I would contact her during the week regarding the outstanding 3 months rent and paying it back. After my payment for June, the outstanding 3 months rent is £1725. I have the money obviously as it didnt get paid into rent. But I used a chunk to pay my car insurance this month and obviously now with the standard rent payment I'm planning on paying it back in chunks over two/three months.

So here's my question: Seeing as they didn't even spot this until I called them and told them, and then in the email the agent admits she "Should have spotted it sooner" I am going to propose paying it back in 3 monthly (or possibly less) installments for £500, giving a total of £1500. I am then going to say that given this is their mistake that is their job to avoid, then its only fair and I expect them to swallow the remaining £225 themselves. Reasonable?

The way I see it is..
Yes, Its their oversight that they did not take the rent due but it is your responsibility to pay it, therefore I would expect them to demand full payment, unless of course they are reasonable in which case they will accept your offer of paying over installments.
Have you rung citizens advice for some guidance?

Kev

what he said!

So is this a standing order or a direct debit? If the latter, then the landlord is responsible for taking the money from you, if the former then you're responsible for making sure that they receive it. Your bank is at least partly responsible in that case as long as you can prove that the mandate was set up, but one question; why is the money that wasn't paid to the landlord not still available to him/her? Suppose for a wee moment that you had been paying your rent, would you have gone without insurance in that case?
I had a couple of tenants in exactly this situation last term but they didn't cause any problems as they'd budgeted and so had the money sitting there, the result of a housing department error in that case.
So as long as you haven't been overspending why is this a problem?

I knew someone would say that, and no I wouldnt have gone without insurance thats a silly thing to say. I won't get into details about my finances but its more the principle. Though i expect from the outside everyone will just see it as me in the wrong and the agency in the right.

Have you got written proof that the DD was set up by the bank and I assume you have copies of all the documents you filled in. You have an e mail that states that they are in the wrong by not spotting it sooner I would have thought you had not deliberatly

Welshie wrote:I knew someone would say that, and no I wouldnt have gone without insurance thats a silly thing to say. I won't get into details about my finances but its more the principle. Though i expect from the outside everyone will just see it as me in the wrong and the agency in the right.

I dont see you in the wrong at all, you set up the payments in good faith, oversights do happen.
I personally would wait and see what the landlord comes up with before deciding what do do.

Kev

Have you got written proof that the DD was set up by the bank and I assume you have copies of all the documents you filled in? You have an e mail that states that they are in the wrong by not spotting it sooner I would have thought you had not deliberately set out to defraud them of payment but it is a failure of the agents acting on your behalf.

I would speak to the CAB for their thoughts.

We still don't know whether the o/p uses a DD or standing order as both terms are used in his opening post. This makes all the difference in the world regarding the extent of the bank's (or the o/p's) culpability here.

You want to get caught up as quickly as possible as the landlord probably has outbound payments that relies on this money. See if you can talk directly to the landlord and get an agreement as the agent my be trying to cover her butt by shifting the blame onto you.