r/glasgow • u/letterzNsodaz • 12h ago

Factor payment methods

Can anyone say if it is legal for factors to charge different rates for different payment methods?

My newish build estate changed to Newton last year and residents paying by DD seem to be paying half the amount of those choosing SO.

I know factors make it up as they go along, I just can't get my head round the difference in payment when the costs are supposed to be evenly split amongst residents.

2 Upvotes

75% Upvoted

4 comments sorted by

5

u/QuickTemperature7014 12h ago

People making direct debit payments are often underpaying and will need to make a top up payment.

2

u/bawjaws2000 12h ago

There shouldn't be a difference between paying via Standing Order or Direct Debit - but if they need to pay for some things on credit and it costs more; I've known my factor to give people the option of paying less up front or paying more spread out over monthly payments. That usually only applies to the insurance, but realistically it will always cost more to pay things off than to pay for them up front - so thats probably the reason.

1

u/DadOfAragorn 12h ago

No, they are not charging you different amounts. You may be PAYING different amounts, but you are being charges the same.

*assuming your Deeds split costs evenly. It could be that your Deeds dictate that X flat pays more than Y flat, etc.

1

u/Visual-Concert-9904 11h ago

We have Newton as factor. There’s a small reduction for paying by DD, but the main charges are the same. As others have said, some people pay more monthly to stay on top of the charges. Others pay less, but have to pay lump sums to catch up and balance the account.