The use and implications of paying service charges by direct debit to Premium Credit rather than to Peverel remains unanswered by Peverel.
Virtually every property management company is happy to accept direct debit payments for service charges.
Why is it that Peverel have to use Premium Credit?
Because of guarantees offered by banks concerning direct debit payments, any group wishing to collect money by direct debit are subjected to a high level of scrutiny. If they are accepted the banks issue them with a direct debit originators licence. They then are able to offer direct debit payments.
The most common reasons for a refusal of a direct debit originators licence, are any financial problems, unclear accounts and late filing of returns.
Have Peverel got a direct debit originators licence?
Did Peverel apply for a direct debit originators licence and were declined?
Did Peverel not apply, knowing they would not meet the strict criteria for a licence?
If Premium Credit pay the whole service charge in full, whilst accepting monthly payments from the leaseholder, do Peverel pay the whole amount received from Premium Credit in full into the service charge account as soon as they receive it?
Do Peverel instead receive the full amount and transfer the funds on a monthly basis?
If this is the case, where is the money held prior to transfer and would that money be beyond the service charge protection scheme?
Accounts seen by About Peverel do not make this clear.
If payments are not made to Premium Credit, would the leaseholder be in breech of lease, as the payment for the service charge would have been made?
Would the leaseholder be in breech of lease if Premium Credit failed to send funds to Peverel?
