BOI Mortgage- direct debit form with "Unspecified Amounts" stipulated.

Coga

Currently in the process of applying for a mortgage and returned the loan offer with the list of documents. However a form was produced in relation to setting up a debit debit in terms of paying the motgage.

However, despite providing the bank account details, the form basically stated that you are authorising the bank to take "unspecified amounts" from your account by direct debit. I have grave concerns in giving the banks such an authoristaion to access an "unspecified amount" from my account. The agreement is a 3 year fixed rate.

I informed the bank offical of our concerns but was advised that this is normal,standard form; trust them that this won't happen - which is completely contradictory to what is written on the form and if its not going to happen, then why is there a requirement to sign a form with such wording? Totally confused and am quite anxious.

Is this standard? Has anyone else signed a debit debit form for a mortgage which outlines that the BOI have authority to take an unspecified amount from their account?

Coga

**debit debit** = direct debit.:o

HeidiHeidi

Direct debit = they deduct the amount that they want at that particular time, according to current interest rate

Standing order = you send a specified amount each time

Given that a mortgage will inevitably end up on a variable rate, even though you're starting on a fixed rate, DD would be standard.

BuffyBot

Doesn't seem unusual to me, otherwise how would they debit amounts as your mortgage balance goes up or down depending on interest rates/repayments etc.

rainbowtrout

It would be normal enough. If you come off the fixed rate in three years time and go onto a new rate your monthly repayment will change and the direct debit payment will reflect that.

You don't want to have to set up a new direct debit every time the interest rate changes. The bank aren't going to start taking random amounts out of your bank account.

Slutmonkey57b

Standard wording on dd forms. I'm not sure what your comeback is if a dd practitioner takes the piss with "unspecified", but you do have some legal protection.

chris85

Coga wrote: »

Currently in the process of applying for a mortgage and returned the loan offer with the list of documents. However a form was produced in relation to setting up a debit debit in terms of paying the motgage.

However, despite providing the bank account details, the form basically stated that you are authorising the bank to take "unspecified amounts" from your account by direct debit. I have grave concerns in giving the banks such an authoristaion to access an "unspecified amount" from my account. The agreement is a 3 year fixed rate.

I informed the bank offical of our concerns but was advised that this is normal,standard form; trust them that this won't happen - which is completely contradictory to what is written on the form and if its not going to happen, then why is there a requirement to sign a form with such wording? Totally confused and am quite anxious.

Is this standard? Has anyone else signed a debit debit form for a mortgage which outlines that the BOI have authority to take an unspecified amount from their account?

This is fairly standard as mortgage payment may change over time due to interest rate changes, TRS changes, etc. This allows them to change the payments. The DD may be unspecified but they are legally bound by the mortgage agreement only to take the payments which are contracted.

Coga

Thanks lads for the replies. If it's the norm then so be it but their wording on the direct debit form is far from desirable in my opinion. Giving the bank authorisation to take unspecified amounts from my bank account does not sit very well with me. I understand that the rate will change following the 3 year fixed rate and that they appear to be covering that eventuality but the wording also suggests that they can take any particular amounts as they see fit.

dotsman

Coga wrote: »

Thanks lads for the replies. If it's the norm then so be it but their wording on the direct debit form is far from desirable in my opinion. Giving the bank authorisation to take unspecified amounts from my bank account does not sit very well with me. I understand that the rate will change following the 3 year fixed rate and that they appear to be covering that eventuality but the wording also suggests that they can take any particular amounts as they see fit.

But this is what a direct debit is! Same as signing a direct debit for ESB/Bord Gais/Telephone or any other bills you may have. The whole concept of a direct debit is that you are granting the company access to debit money directly from you account at their discretion. the wording on all direct debits is pretty much the same.

On the flip side, only reputable companies are authorised for the Direct Debit scheme, and there are various rules protecting you (ie, they must notify you in advance of how much they are taking out and when etc. These guarantees would have all been explained on the direct debit form.

See IPSO for more details...

tony81

Coga wrote: »

Thanks lads for the replies. If it's the norm then so be it but their wording on the direct debit form is far from desirable in my opinion. Giving the bank authorisation to take unspecified amounts from my bank account does not sit very well with me. I understand that the rate will change following the 3 year fixed rate and that they appear to be covering that eventuality but the wording also suggests that they can take any particular amounts as they see fit.

There's always one!

You should research the DD indemnity scheme. The bank must inform you of the exact amount before it's deducted, among other conditions.

Coga

I understand what a direct debit is and feel that a standing order would be more appropriate as our mortgage is going to be fixed for three years - same specified amount each month, not an unspecified amount.

This is all relatively new to me but hanks very much for ther replies and the information.