Standing Orders/Direct Debits/Faster Payments Scheme

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    Standing Orders/Direct Debits/Faster Payments Scheme

    Hi,
    It has just come to my notice that the previously working stranding order, has stopped ..... lack of funds in the tenants account.
    He has paid the back month payment by cheque! Guess what .... it was made of rubber (suprise, suprise).
    A tenancy agreement is in place, as is insurance for the rent (not the 1st month), so, questions.
    1. When do my requests for payment become harassment?
    2. I can give him notice now, but how can I recer my cash?
    3. What about court orders and eviction, if it comes to that.

    I have rented out props. for a while, this is the first real problem.
    Any help much appreciated.

    steve

    #2
    It's ok to set up a standing order with your tenants but by doing it this way you are letting them have access to your 'sort code' and 'account number' and 'branch address'. I would recommend collecting the rent for the first 6-12mths as (a) you will get to know them a bit better (b) it gives you chance to inspect the condition of your property while collecting it. Then after that if you feel you can trust them, fine.

    Comment


      #3
      Originally posted by morgans1
      It's ok to set up a standing order with your tenants but by doing it this way you are letting them have access to your 'sort code' and 'account number' and 'branch address'. I would recommend collecting the rent for the first 6-12mths as (a) you will get to know them a bit better (b) it gives you chance to inspect the condition of your property while collecting it. Then after that if you feel you can trust them, fine.
      But don't you realise that every time you write a cheque to somebody, you are also providing them with all that information anyway? I can't say I've ever heard the advice "never give a cheque to someone unless you really trust them"!

      In any case, presumably the tenants have been properly "vetted" before moving in, so they should be far more of a known quantity than many persons who you probably write cheques to. I consider giving a stranger the keys of my £100K house to be far more potentially risky than giving them my bank account details!

      (Personally I always insist on rent being paid by standing order; I wouldn't have it any other way. Somebody else made a very valid point about ensuring the s/o is actioned very shortly after the tenant's salary is paid; that way it hits when their account is at 'fullest'; so least likely for the s/o to be 'bounced'.)

      Comment


        #4
        Fair point, each to their own I suppose, I happen to use a combination of both, but with new tenants I always collect manually, I like to see the property is been looked after over a period of time. And with reference to bank details etc. ID theft is a nightmare!

        Comment


          #5
          Standing Order Creation

          My tenants rent is being paid for by one of the tenants parents who live in Dubai. How would it be best to set up a standing order?

          Should I just give them my bank account details for them to set up the standing order themselves, or should I send them a standing order mandate that they can complete and send to their bank?

          I've never seen the point of a paper standing order mandate. Is its purpose just to instruct their bank, or does it serve any other purpose? In reality the same process can be carried out by online banking? Just wondered if it was a purely administational procedure and if I would be missing out if I didnt use one.

          Comment


            #6
            1. Obviously, be careful about providing your Bank details to anyone else. Are you fairly sure that they are trustworthy people and not fraudsters?
            2. Best not to e-mail details, as the details could be intercepted.
            3. Why not ask your own Bank for guidance? Perhaps it could send details on a Bank-to-Bank basis.
            4. Remember that the payer can always revoke a Standing Order mandate. For benefit of any novices:
            a. STANDING ORDER: payer is in charge; instructs own Bank to send to payee's Bank; whereas
            b. DIRECT DEBIT: recipient is in charge (so has to comply with Bank of England indemnity rules- only major companies can use service as payees); instructs own Bank to collect from payer's Bank.
            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
            4. *- Contact info: click on my name (blue-highlight link).

            Comment


              #7
              Thanks for that. Yeah I'm sure they're not fraudsters. Although my details could equally be intercepted by post, I'll talk to my bank.

              My main concern was the international use of standing order mandates, is this likely to be recognised abroad? I'd assume so...

              Comment


                #8
                Originally posted by TWR View Post
                Thanks for that. Yeah I'm sure they're not fraudsters. Although my details could equally be intercepted by post, I'll talk to my bank.

                My main concern was the international use of standing order mandates, is this likely to be recognised abroad? I'd assume so...
                I suppose that a Standing Order can operate for a non-UK person. That seems to be one benfit of the IBAN numbering scheme; see a previous thread (on FINANCE forum) which I started about this topic.
                JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                4. *- Contact info: click on my name (blue-highlight link).

                Comment


                  #9
                  I spoke to Halifax and they said there wasnt any other way of doing it, so I'll probably create a standing order mandate and email it to them. They said it wouldnt be a problem setting up one from abroad, although the payers bank may charge them if they are not international such as HSBC.

                  Comment


                    #10
                    One of my former tenants was a student from Portugal, and his parents paid his rent from there, regular as clockwork, direct into my bank.

                    Clearly you are going to have to give a tenant your bank details if you want them to pay that way, so apart from the possibility of your details being intercepted in the post or e-mail, I don't see there's a problem. Saves on having to muck about with non-sterling cheques where you'd have to pay it in and meet bank charges too.

                    Comment


                      #11
                      TWR: will remittances from Dubai be in:
                      a. £sterling; or
                      b. other (e.g. Dubaian) currency, in which case extra bank fees might be levied as Surrey mentions?
                      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                      4. *- Contact info: click on my name (blue-highlight link).

                      Comment


                        #12
                        Doesn't really matter, I would say, as it is usually stated that "the sum of £XX must be paid into the nominated bank account", not "the sum of £XX minus bank charges". Check the wording of the agreement.

                        Comment


                          #13
                          Delays in receiving rent by standing order from tenant

                          I always have a bank standing order arranged from my tenants. I cannot understand why they take so long to transfer particularly if the date for payment falls on a Saturday. I am checking my internet bank account sometimes as long as 10 days after and they are not paid in. i have spoken to my own bank about this and they say they should be in my bank within 3/4 days .How long should they take and how long are other landlords experiencing.

                          Comment


                            #14
                            About 3 days is the norm... however I think it may be a lot longer if the originating account is not with a conventional clearing back, eg with a building society... could that be the case here? #

                            If not is your tenant simply actioning a manual bank transfer each time, at a date to suit him - can your bank confirm whether it's definitely a standing order?

                            Comment


                              #15
                              Yes. A standing order payment takes no longer than clearing a cheque; really, it ought to be much quicker. Do the tenants pay the s/o from a non-standard Bank (or from a Building Society)? If they and you are using "high-street" major Banks, the delays are incomprehensible.
                              JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                              1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                              2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                              3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                              4. *- Contact info: click on my name (blue-highlight link).

                              Comment

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