What to do if…
your landlord or lender says your last payment bounced and late fees are starting

What to do now

1. Do a fast scam check before you share details or send money.
   Contact them using a number from your tenancy agreement, lender statement, or the official website/portal you’ve used before (not the number/link in the message) and ask them to confirm the notice is genuine.

2. Confirm the payment status with your bank (get specifics).
   Check your app and, if it’s unclear, call/chat your bank and ask:

   • Was it rejected/returned, reversed after leaving, or is it pending?
   • What date/time did it fail, and what reason/description is recorded?
   • If it was a Direct Debit/standing order/card payment, was it insufficient funds, details mismatch, a security hold, or system error?

3. Save proof before you reply.
   Keep screenshots/PDFs showing the payment attempt, any “returned/reversed” entry, the amount, date/time, and any reference/confirmation. Write down the method used (bank transfer, card portal, Direct Debit, standing order).

4. Ask for a written breakdown and a short hold on additional charges while you trace.
   Message (email/letter/portal) asking for:

   • The exact payment they say is missing (amount + due date)
   • A current statement/ledger (what they show as received vs due)
   • The late fee/interest calculation and the clause/term they rely on
     Ask them to pause adding further fees while you confirm the bank status.

5. If the bank confirms the payment failed or was returned, make one replacement payment (traceable) to verified details.
   Pay the core amount promptly using a method you can prove (bank transfer to already-known details, card via official portal). Use a clear reference like “Rent Jan 2026” / “Mortgage Jan 2026” and keep the confirmation.

6. If you paid by bank transfer, ask your bank about a trace and provide the reference.
   If it was sent to the wrong account details, you usually need to act quickly. Ask your bank what they can do to trace/recall and what evidence they need.

7. If this is rent, sanity-check whether the “late fee” being charged is allowed where you live.
   Ask them to point to the exact clause and calculation. As a practical check:

   • England (most private tenancies): a landlord/agent generally can’t add a flat “admin/chasing fee” for late rent. If a late payment charge is permitted at all, it’s typically interest only, and usually only once rent is 14 days late, capped at 3% APR above the Bank of England base rate, and only if the tenancy agreement allows it.
   • Wales (private renting): default payments are restricted. A late-rent charge is typically interest only, capped at 3% APR above the base rate, and is commonly only allowed once rent is more than 7 days overdue, and only if the contract/tenancy terms allow it. Also, some rules depend on when the agreement started.
   • Scotland and Northern Ireland: rules and tenancy types differ. Don’t assume England/Wales limits apply. Still ask for the clause and a written calculation, and challenge any vague “standard admin fee” that isn’t clearly supported by your agreement.
     If you’re unsure, get fast help from a housing adviser (for example Shelter/Shelter Cymru/Citizens Advice/Housing Rights NI).

8. If it’s a mortgage/loan, complain in writing early if fees are being added due to error.
   Ask for a written statement of any charges and make a formal complaint if you have evidence the payment was made/attempted correctly or the problem appears to be their processing issue.
   If the lender doesn’t resolve it, you can usually take it to the Financial Ombudsman Service once you’ve had a final response or if it’s been 8 weeks since you complained.