How could they screw this up?

Tyler Durden · 27 December 2011

I have had nothing but bad experience with my car dealership (happy to name them if anyone wants), and even on my last ever dealing with them, they have managed to screw me up.

I bought a car from them 3 years ago, and the agreement was that I'd pay $500 per month for 3 years. So every month, they would direct debit my bank account $500. Once I made an additional payment of $40, so with 2 months remaining in the agreement, I asked what my outstanding balance was, and naturally and correctly, they said it was $960.

So in that second last month, they direct debited $500, which would've left a balance of $460. This month was my last month, so I figured they would direct debit $460, but instead they direct debited $500!!!

Don't they check the balance of an account before direct debiting? Or do they just have some mono-automated instruction to their computer system to direct debit $500 every month without caring what the balance is?

McLovin · 27 December 2011

Tyler Durden said:
they just have some mono-automated instruction to their computer system to direct debit $500 every month without caring what the balance is?

Yes, yes they do.

Lantern · 27 December 2011

Watch out for it next month also.
They hope you won't notice!

Tyler Durden · 27 December 2011

Lantern said:
Watch out for it next month also.
They hope you won't notice!

Has anyone had an experience where they kept direct debiting even though there was no outstanding amount??

I know $40 isn't much, but I am ready for a fight tomorrow...

So_Cynical · 27 December 2011

Tyler Durden said:
Has anyone had an experience where they kept direct debiting even though there was no outstanding amount??

I know $40 isn't much, but I am ready for a fight tomorrow...

Yep happened to me once...my ex wife once and ive heard of it happening to others.

Its the main reason i don't do DD any more for regular payments.

Smurf1976 · 27 December 2011

Something I learned long ago is that if you're going to borrow money, borrow it from a bank, credit union or building society.

Be very careful about borrowing from furniture shops or car dealers - there's usually a catch buried somewhere in the fine print whereas at least the banks are reasonably up front as to what the terms and conditions are.

And never, ever borrow money from anyone who also makes toasters. Been there, done that and I won't even consider it again.

DocK · 27 December 2011

Ring your bank and have the direct debit on your account cancelled. I'd suggest when you ring them you start out politely requesting they post you a cheque or credit your account for $40 once their system realises your loan is in credit - you catch more flies with honey than vinegar. Save the aggro unless it's needed - everything is done automatically these days and I doubt there's any real intention to rip you off.

Tyler Durden · 27 December 2011

Smurf1976 said:
Something I learned long ago is that if you're going to borrow money, borrow it from a bank, credit union or building society.

Be very careful about borrowing from furniture shops or car dealers - there's usually a catch buried somewhere in the fine print whereas at least the banks are reasonably up front as to what the terms and conditions are.

And never, ever borrow money from anyone who also makes toasters. Been there, done that and I won't even consider it again.

Yes, lesson definitely learnt from this experience.

DocK said:
Ring your bank and have the direct debit on your account cancelled. I'd suggest when you ring them you start out politely requesting they post you a cheque or credit your account for $40 once their system realises your loan is in credit - you catch more flies with honey than vinegar. Save the aggro unless it's needed - everything is done automatically these days and I doubt there's any real intention to rip you off.

Yeah I doubt they intended to rip me off, it's just this incident plus the incidents with them before put together have really p*ssed me off. I remember when I called up after making that $40 payment to make sure it had been received, the guy mumbled something like "wow, $40..."

Garpal Gumnut · 27 December 2011

Tyler Durden said:
I have had nothing but bad experience with my car dealership (happy to name them if anyone wants), and even on my last ever dealing with them, they have managed to screw me up.

I bought a car from them 3 years ago, and the agreement was that I'd pay $500 per month for 3 years. So every month, they would direct debit my bank account $500. Once I made an additional payment of $40, so with 2 months remaining in the agreement, I asked what my outstanding balance was, and naturally and correctly, they said it was $960.

So in that second last month, they direct debited $500, which would've left a balance of $460. This month was my last month, so I figured they would direct debit $460, but instead they direct debited $500!!!

Don't they check the balance of an account before direct debiting? Or do they just have some mono-automated instruction to their computer system to direct debit $500 every month without caring what the balance is?

You need a key.

gg

waimate01 · 28 December 2011

Tyler Durden said:
Has anyone had an experience where they kept direct debiting even though there was no outstanding amount??

Never let anyone direct debit. It means the argument starts *after* they have your money, and thus you argue from a point of weakness. If you must, set up a regular payment from your end, but not do let them take your money whenever it takes their fancy. If they insist, do it through a credit card, and do not let the CC company take your money on direct debit. If no escape, then set up a fresh bank account at a financial institution with which you have *no other* relationship, and make your deposits just ahead of their debits. But most preferably, permit no direct debits, and send your money when you choose to, not when they choose to take it.

pixel · 28 December 2011

What I don't quite understand: Why did you pay them $40 in the first place?
Messing with an automatic DD, that's just asking for trouble!

I've never had a problem with Direct Debit, but I must admit, I only allow whom I consider "reputable" business partners to help themselves. Used car salesmen wouldn't normally fall into that category.
I wouldn't even allow Telstra access to my account; which isn't a problem because they're not my ISP. It's AAPT, and they haven't missed a beat in what must by now be close to a decade. Neither have my online brokers.

Julia · 28 December 2011

pixel said:
What I don't quite understand: Why did you pay them $40 in the first place?
Messing with an automatic DD, that's just asking for trouble!

I've never had a problem with Direct Debit, but I must admit, I only allow whom I consider "reputable" business partners to help themselves. Used car salesmen wouldn't normally fall into that category.
I wouldn't even allow Telstra access to my account; which isn't a problem because they're not my ISP. It's AAPT, and they haven't missed a beat in what must by now be close to a decade. Neither have my online brokers.

+1.
The only direct debits I have are for Westnet for internet access, works like clockwork, never any problem, plus the bank automatically pays my credit card balance each month from my everyday a/c.
I, too, can't understand why you'd mess about with paying an additional $40.

sptrawler · 28 December 2011

pixel said:
What I don't quite understand: Why did you pay them $40 in the first place?
Messing with an automatic DD, that's just asking for trouble!

I've never had a problem with Direct Debit, but I must admit, I only allow whom I consider "reputable" business partners to help themselves. Used car salesmen wouldn't normally fall into that category.
I wouldn't even allow Telstra access to my account; which isn't a problem because they're not my ISP. It's AAPT, and they haven't missed a beat in what must by now be close to a decade. Neither have my online brokers.

+1, direct debit is the same as annualised salaries and several other systems put in place to remove the manual handling of variable payments.
To make an out of synch payment would cause lots of problems.
But I do agree when coming to the end of an automatic deduction, one really needs to be on your toes, they don't seem to be quick to stop taking your money, funny that.

How could they screw this up?

Tyler Durden

McLovin

Lantern

Tyler Durden

So_Cynical

The Contrarian Averager

Smurf1976

DocK

Tyler Durden

Garpal Gumnut

Ross Island Hotel

waimate01

pixel

DIY Trader

Julia

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sptrawler

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