It is vital to understand the implications of paying service charges to Peverel via Premium Credit.
According to a survey carried out by Premium Credit 94% of leaseholders pay service charges by Direct Debit. Whilst About Peverel cannot verify this figure, we do believe that such is the high percentage of leaseholders paying by Direct Debit, the point being made by Premium Credit is valid.
Normally, those paying service charges by Direct Debit to the management company who would allocate those payments into the service charge account.
However, in order for the management company to be able to collect Direct Debits, they must a Direct Debit Originators Licence.
Only companies with a good financial record are afforded a Direct Debit Originators Licence. This is because of the Direct Debit Guarantee. If anything goes wrong with the Direct Debit, the bank guarantees the Direct Debit.
Since the bank stands to lose a great amount of money, they have to ensure they have full confidence in a company before allowing them a Direct Debit Originators Licence.
Thus far, despite repeated attempts to find out, Peverel have declined to say if they hold a Direct Debit Originators Licence.
It should be noted that it does appear that according to guidelines for issuing a Direct Debit Originators Licence, Peverel would not meet the criteria to qualify for such a licence.
For those wishing to pay service charges by Direct Debit, they are encouraged to use Premium Credit (please see the advert for Premium Credit in the latest Life & Style)
As it is in very small print and thus very easy to miss, in large print About Peverel draw everyone's attention to the following.
DIRECT DEBIT PAYMENTS ARE USED TO PROVIDE FINANCE PROVIDED BY PREMIUM CREDIT.
Take note of the word FINANCE!
By simply doing something that according to Premium Credit 94% of service charge payers do,unlike the vast majority of leaseholders you will be forced to take out a loan.
It could well be, that apart from a mortgage you have never taken out a loan in your life. Now you are being asked to, and you might not even realise you have.
Please be very aware, that taking a loan can be very risky, and should for any reason you miss a payment, you leave yourself open to any action a loan company sees fit.
You must not use Premium Credit, unless you are very sure of the risks you are taking.
