QLD Bank Account - Finance Company Refusing Other Forms of Payment?

[patrik6]

I have a final notice from a finance company threatening enforcement. However I asked for a bank account I could pay the funds into. This is what they saidL

"The system does not accept any direct credit payments for arrears, as such can you please advise what alternative bank account number (Account Name, BSB, Account Number) or credit card (Card Name, Number, Expiry date) we can debit the arrears payments from?"

I then offered to send them a money order and this is their reply:

"As advised previously, our system does not accept direct credits for the payments. Does someone in your family have a credit card/bank account that can be used to debit the arrears as a one-off payment?"

So the only way they want payment is to take it out of an account. My question is, is this actually legal? Might be interesting if I turn up at court with a money order/bank cheque and tell the magistrate they refused the payment.

 

[Rob Legat - SBPL]

This is dodgy. None of the card schemes I know of allow for the making of loan payments from a credit card account, and the finance company should know that. It’s a big no no, and a red flag.

The next question is why their system doesn’t accept direct credit. Sounds to me like they’re either trying to hide something, or possibly operating from outside Australia.

If it’s a consumer purpose loan, check that they’re actually licensed with ASIC (Australian Credit Licence) and that they have External Dispute Resolution (through cio.org.au or fos.org.au - they’d have to belong to one of these).

Contact the lender and say that a direct debit is not available, and invite them to suggest another payment method.

 

[patrik6]

thought id write to let u all know the outcome
after many emails this ASX listed company has agreed to accept a one time manual payment with a warning it make take over a week to process as its a manual payment (banks on their doorstep)
they will accept a bank cheque but will not accept a money order(where do they get their staff from) so I am sending them a money order