Late payment scam again

Moggles_2

This wheeze has been mentioned before, but cannot be stressed too often.

Particular care is needed with all cards run by MBNA (e.g. Alliance & Leicester, MBNA itself, Sony, Virgin). One of MBNA's favourite tricks is to bring the payment due date forward 6-7 days. IME, notice of this change is usually embedded somewhere in a small-print leaflet which accompanies your previous statement.

It's happened to me on three occasions now (Different cards, btw, but all underwritten by MBNA) and, judging from the complaints to this forum, hundreds of customers are caught out.

Let's face it, for every MSE that complains to MBNA and gets a refund, there will be many more who simply pay up. So whether or not this is the intention, it's a nice little earner :rolleyes:

arealbasketcase

I was daft enough to arrange for a DD to pay off the minimum payment on a new MBNA card, so as not to mess up on the interest free offer, paid off the balance in full at the end of the offer period and cancelled the original DD.

Why was that daft, because MBNA's computer system isn't sophisticated enough to cope and merrily tried to claim a minimum payment of £25 anyway, which was of course rejected by my bank. Statement arrived showing a charge for the DD and interest. A phonecall to them sorted it out but no apology for having inadequate systems just a "our system needs more than the 7 days you gave us to react".

Yeah right! more likely their systems could cope if they wanted them to but prefer to catch out the unwary. Sorry, is that TOO scynical?

oldagetraveller

I'm not trying to be clever, awkward, critical etc. and not taking sides! Just curious.
Not being familiar with MBNA operated cards I wondered if when the payment date has been brought forward do they send out/produce the statements early in tandem?
Surely the payment due date is on the statement anyway and surely cardholders check their statements too?
Therefore whether a letter is sent out or not the payment due date should appear on the statement. From past and present experience with various organisatios the statement is sent out/generated long before the due date and the payment due date is not hidden away somewhere.

arealbasketcase

oldagetraveller:

the problems arise if you get used to a date being, for instance, just after pay day and then suddenly it is just before pay day. Particularly the first month this happens as you end up having to make two payments in a month rather than just one.

MABLE

arealbasketcase wrote: »

I was daft enough to arrange for a DD to pay off the minimum payment on a new MBNA card, so as not to mess up on the interest free offer, paid off the balance in full at the end of the offer period and cancelled the original DD.

Why was that daft, because MBNA's computer system isn't sophisticated enough to cope and merrily tried to claim a minimum payment of £25 anyway, which was of course rejected by my bank. Statement arrived showing a charge for the DD and interest. A phonecall to them sorted it out but no apology for having inadequate systems just a "our system needs more than the 7 days you gave us to react".

Yeah right! more likely their systems could cope if they wanted them to but prefer to catch out the unwary. Sorry, is that TOO scynical?

You certainly were daft. All you had to do was ring MBNA and they would have stopped the DD being activated for that month. I was in the same position but instead of sitting back I was proactive.

YorkshireBoy

MABLE wrote: »

Exactly. All you had to do was ring MBNA and they would have stopped the DD being activated for that month.

When you set up a DD with MBNA, they write to you including the following information...

MBNA_correspondence wrote:

Important: Confirmation of the set-up of your Direct Debit Instruction

If you make manual payments to your account once the direct debit has been activated, these will not reduce the amount that we will collect by Direct Debit, unless you advise us at least seven working days prior to the Direct Debit being collected.

In my opinion, it's always best NOT to cancel a direct debit instruction until you have received notification that the account has been closed.

Furthermore, and as recommended/requested/stated/instructed(?) on your DD guarantee, you should inform the originator AS WELL AS the bank.

Milarky

Originally_Posted_by_MBNA_correspondence wrote:

Important: Confirmation of the set-up of your Direct Debit Instruction

If you make manual payments to your account once the direct debit has been activated, these will not reduce the amount that we will collect by Direct Debit, unless you advise us at least seven working days prior to the Direct Debit being collected.

If you ask them, early enough in the month, you can pay an amended amount by DD for one month only and then go back to the standard amount (minimum or full) set up on the account. This allows you to split the amount in the knowledge that MBNA will definitely collect - and you can then pay the balance (or other amount you wish to) This is not the case with other cards which try to help by adjusting the the amount collected under certain circumstances when other payments are recieved, but you never really know for sure until the due date!

Anyway, with my A&L card there seems to be 'upto 60' days interest free (in contrast to other A&L cards?) as the due date is currently just one day before the next statement

Moggles_2

Milarky wrote: »

This is not the case with other cards which try to help by adjusting the the amount collected under certain circumstances when other payments are recieved, but you never really know for sure until the due date!

Well, some providers (eg. Capital One, Egg, Bank of Ireland) do this. The direct debit is recalculated if a payment is made at least x days before the DD is due.

That said, the effect of a manual payment, when a direct debit is active on your account, varies between lenders. Given that providers differ in this respect - as with everything else - it would help if others followed the Co-op's example and included a brief reference to their DD policy on monthly statements.

MABLE

Its all in the terms and conditions but the majority of us are too lazy to read them. We then blame the credit card or bank when things do not go our way.

Moggles_2

MABLE wrote: »

It's all in the terms and conditions but the majority of us are too lazy to read them.

It's not always mentioned in the Ts & Cs. I took out an HSBC card last month (0% on purchases for 12 months) but could find nothing in the paperwork about it's DD policy.

The effect of a manual payment, when a direct debit is active on your account, varies between lenders, so I can understand why some get confused.

The variations I have encountered are:
1) The direct debit is recalculated if a payment is made at least x days before the DD is due (eg. Capital One, Egg, Bank of Ireland)

2) No account is taken of any payment made. The amount specified on your statement is automatically collected by DD unless instructed otherwise in good time (eg. Co-Op, all MBNA cards, RBS).

3) If a payment is made, regardless of the amount, no money is taken by DD that month (eg. formerly Bank of Ireland, but BoI now recalculate.