Method of paying mortgage

A client of mine has had a problem with her bank appearing to set unreasonable conditions on the method of paying her monthly mortgage payments. My client has a very poor credit rating (through no fault of her own as far as i can see) and seems unable to open any sort of bank account yet her mortgage lender is insisting that payments can only be made by DD, Standing order or Postal Order. They have apparently refused to provide any sort of paying in slip that would enable her to make cash payments at a bank and she tells me the cost of the postal orders would ad another £20.00each month to the money she has to pay out.

I’m afraid I have little current experience of debt work - is this something that the lender can lawfully do? - surely by setting a method of payment that the client has told them she cannot use they are effectively creating a situation where she goes into debt.

Any thoughts or experiences gratefully recieved!

As long as your client knows the account number etc. they can use any blank paying in slip from the counter.

Has she really exhausted all the possibilities of opening a bank account?  A lot of banks do basic accounts & these are supposed to be done without a credit check - although I think some banks do do one.

Co-op Bank and Barclays do such accounts for people who are in bankruptcy (assuming no money is owed to the bank).  Co-op are generally very good with this.  A visit or call to them, explaining she just wants a basic account (called Cashminder) & saying she has a bad credit record but understands they do provide this account for people in her situation might be fruitful.

Hi Pete
what about cornish community banking -they offer a current account with direct debit /standing order facility

thanks
Alan

I’d refer her to see a money adviser in her local CAB for further advice.  They also have info’ on banks/building societies who operate certain types of account for people with bad credit ratings (or they used to when I worked for one).

Thinking further, the courts do not look sympathetically on creditors who refuse payments offered by debtors just because they are not made in a certain way due to no fault of the debtor.  However, as this is her home we are talking about no one wants it to get anywhere near any stage of proceedings.  I mention it because she may have rights over the mortgagee in this type of situation and she should avail herself of specialist advice.