I’ve just paid off a loan with a third party finance company. Their loan finalization documentation states that I need to contact my bank to cancel any Automatic Payment set up for the loan, or contact them if we’re paying by Direct Debit.
I can’t recall whether we’re using an AP or Direct Debit for this, so it’d be handy to be able to glean this information from online banking somehow.
Its worthwhile noting that you should obtain a copy of the credit reports that the reporting companies hold against you. In my case when payments have been made in full the finance companies won’t always update your credit file to show an amount paid. They may even leave the account open. So this may affect you negatively when you want to obtain further lending and affect your credit score.
There is also another register called the Personal Properties Securites register that shows securities owed to creditors. Some finance companies will list debt there if there is an asset that it is secured over the money. This may not apply with the case of unsecured lending but its worth knowing that some banks and finance companies will put blanket clauses in the personal properties securities register which will give them priority over all other creditors. Entries on the PPSR stay on there for 5 years or until paid.
In another case regarding a loan I had with the bank (earthquake relief loan), it wasn’t listed on the PPSR but the contract did contain a blanket security clause which I didn’t know about until 3 months after I borrowed the money because the contract didn’t need to be signed until then. That security clause means the bank would be able to take any security for debt repayment at any point in time forever. I expect there were a few people who got stung like this after the earthquakes because the contract wasn’t provided until 3 months after the money had been given out.
This probably doesn’t resolve your issue, but worth noting anyway.
You can check if it’s an AP by looking at “upcoming payments” in Internet banking. If you can see it in the list, it’s an AP which you can cancel yourself.
If you phone the call centre they are happy to check for you also.
Thanks. I don’t have any upcoming payments listed for that account, so I guess it’s a direct debit.
delphijunkie not sure if you are using PC or Mobile. If on mobile you can locate the last amount paid and then tap on the item to expand, you then get more details and at the bottom, it has Type and their it will say Direct Debit or Automatic Payment. In PCIB I am sure the details are on the transaction or the Type might just show as DD or AP. Hope this helps.
Thanks, that does the trick nicely.
Keep in mind these are the views of fellow BNZ Community users, and not BNZ.