Will one unpaid direct debit keep affecting my credit rating?

6
Found 31st May 2017
I cancelled my gym membership at Nuffield Health at the start of this month and was told that I would not need to pay for the next month as I had cancelled in time (I think before the 16th). I went in yesterday to use the gym one final time and checked with them and they have said that they did not receive it in time and that i would have to pay one final month.

I have got a very good credit rating, no bad credit at all, but would love to cancel my direct debit and not pay them as I feel they have done me out of paying one final month!

If i cancel my direct debit, will it have a big impact on my credit score, and will they keep trying to take it which will keep giving me a bad score?

Thanks

Andy

6 Comments

regardless of whether you cancel the DD or not, they will chase you for the money. just pay it and put it down to experience. do you have proof they will not charge you for the 2nd month or a contract that states the notice period?
Edited by: "jackvdbuk" 31st May 2017

Are they offering you some form of credit to buy the gym membership monthly? It would be unusual for an organisaton to report a consumer's payment performance to credit reference agencies on an agreement that did not involve credit. If no credit is involved, there would likely be no immediate detriment to your credit file by stopping the DD unless the gym chose legal redress and were successful.
Check the contract / agreement you have with the gym to see the requirements for cancellation and compare those requirements to the date you gave notice of cancellation (NH generally accept same-month cancellation if notified on first day of that month, otherwise the agreement terminates at end of the following month).
Consider the timing of your first use of the gym compared to your first payment as the DD you are considering cancelling may well be the legitimate final payment e.g if you had 6 months use of gym including your notice period, it is reasonable to make total payments to the value 6 months charges. Factor any "free"/incentive periods, if applicable

Original Poster

Thanks for the replies. They gave me proof yesterday that I don't pay for the following month. I'm guessing that it's an employees fault for not doing their job properly but I'm having to pay for it. Like you said, I'll put it down to experience

Original Poster

AndyRoyd

Are they offering you some form of credit to buy the gym membership … Are they offering you some form of credit to buy the gym membership monthly? It would be unusual for an organisaton to report a consumer's payment performance to credit reference agencies on an agreement that did not involve credit. If no credit is involved, there would likely be no immediate detriment to your credit file by stopping the DD unless the gym chose legal redress and were successful.Check the contract / agreement you have with the gym to see the requirements for cancellation and compare those requirements to the date you gave notice of cancellation (NH generally accept same-month cancellation if notified on first day of that month, otherwise the agreement terminates at end of the following month).Consider the timing of your first use of the gym compared to your first payment as the DD you are considering cancelling may well be the legitimate final payment e.g if you had 6 months use of gym including your notice period, it is reasonable to make total payments to the value 6 months charges. Factor any "free"/incentive periods, if applicable



​No. Just normal direct debit each month. No credit! Apparently I have to cancel before the 16th (ish) which I did. They don't have any record of this though...
Thanks

aandyr123

No. Just normal direct debit each month. No credit! Apparently I have to … No. Just normal direct debit each month. No credit! Apparently I have to cancel before the 16th (ish) which I did. They don't have any record of this though... :(Thanks


Maybe you have an old agreement with old terms? The current cancellation notification requriement is as previously stated: first day of month to terminate same month, otherwise termination is at end of following month, as stated in para 11.2.1 at nuffieldhealth.com/ter…ons and if you met this "first day = same month cancellation" I would consider not paying for any suggested "additional" month and informing NH in writing why you will not be paying for any additional month, otherwise a cancellation notice received on 02-16 of month (or any day until end of same month) still requires payment for the following month, as correctly stated by the employee.

If they told you when you cancelled u would not be charged then you can contact credit reference agencies and dispute it or have an ammendment on it
Post a comment
Avatar
@
    Text

    Top Discussions

    Top Merchants