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Direct Debit Payments

Direct Debit Form

This form is for setting up Direct Debit payment details.

All the normal Direct Debit safeguards and guarantees apply when you set up an instruction online. No changes in the amount, date or frequency of a payment can be made without notifying you at least 7 working days in advance of your account being debited. In the event of any error, you are entitled to an immediate refund from your Bank or Building Society. You have the right to cancel a Direct Debit Instruction at any time simply by writing to your Bank or Building Society, and sending a copy of the letter to us.

In order to set up or amend your Direct Debit on-line you need to be able to confirm the following:

Direct Debit Instruction

I am the named account holder of the bank account to be debited*

No other signature apart from my own is required to authorise the setting up of Direct Debits on this account*

I can confirm that I meet the conditions and am able to set up a direct debit*

I have an existing direct debit and want to make a change to:

Date requested for collection of funds*

* Field is required

Declaration

All the normal Direct Debit safeguards and guarantees apply.

The Direct Debit Guarantee

  • This Guarantee is offered by all banks and building societies that accept instructions to pay Direct Debits.
  • If there are any changes to the amount, date or frequency of your Direct Debit Colchester Borough Homes will notify you 7 working days in advance of your account being debited or as otherwise agreed. If you request Colchester Borough Homes to collect a payment, confirmation of the amount and date will be given to you at the time of the request.
  • If an error is made in the payment of your Direct Debit, by Colchester Borough Homes or your bank or building society you are entitled to a full and immediate refund of the amount paid from your Bank or Building Society. If you receive a refund you are not entitled to, you must pay it back when Colchester Borough Homes asks you to.

How your Direct Debit is calculated

If you would like to know how we work out your direct debit, please look at the calculation set out below.

Tenants

Weekly rent (- less any Housing Benefit if received) x number of weeks left in financial year plus one week for advance payment = Total 1

Total 1 add arrears or subtract credit = Total 2
Total 2 divided by number of months left in financial year = Total 3
Total 3 = monthly payments

For Example:

Weekly rent of £100.95
Weekly Housing Benefit £15.50
33 weeks left in financial year
8 months left in financial year
Arrears of £22.78

£100.95 – £15.50HB = (£85.45) x 34 weeks = £2905.30 (total 1)
£2905.30 + £22.78 = £2928.08 (total 2)
£2928.08 / 8 = £366.01 (total 3)
Monthly rent = £366.01

Garages

Weekly rent x number of weeks left in financial year = total 1
Total 1 divided by the number of monthly collections left in financial year = total 2
Total 2 will be your base rate monthly collection

Please note that we also collect 4 weeks advance payment, along with any arrears or taking off any credit, across the first two monthly collections.

For Example:

Weekly rent £12.02
33 weeks left in financial year
8 months left in financial year
Arrears of £35.00

£12.02 x 33 = 396.66 (total 1)
£396.66 / 8 = £49.58 rounded down (total 2)
Advance payments + arrears
£12.02 x 4 = £48.08 + £35 = £83.08
£83.08 / 2 = £41.54
£49.58 + £41.54 = £91.12

First two collections will be for £91.12 followed by 6 collections of £49.58

Leaseholders

The outstanding service charges are divided by the number of months remaining in the financial year minus 2 as February and March are set to collect zero. The ground rent will be collected in the first monthly payment

Rent arrears

We understand that your circumstances may change, and this can make it difficult to pay your rent on time. If you are having difficulty paying your rent it is important to not ignore your debt – it could save you money and prevent you from losing your home in the long run.

Please contact us immediately for advice. You can also get free advice from independent organisations. Further details can be found in our ‘avoiding rent arrears’ leaflet.

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