Capital One and Direct Debits

Martyn_F_2

I have a number of credit cards all paid off by direct debit. I had arranged for a larger than normal Capital One account and arranged for the funds to be in the account two days before the date shown on the statement as the payment due date. All the other cards take the money on the date on the statement - not Capital One. Their customer adviser told me that they take the funds up to five days before the date. Consequently the funds were not in place and they charged £24. ( My bank also charged me for failing to have funds in place but this was refunded when the circumstances were explained - Thank you Smile) After pointing out the difference between Capital One and other card companies they refunded half of it.

Either change credit cards or be very very sure that funds to cover your Direct Debit payment are in place a week before the date on the Statement.

exel1966

There's nothing new in this method of collecting DD's. In fact it's very common. If you look at most DD's carefully you'll see that they can be collected 'within 3/5 days of the due date' and very few will specify an exact date. Some will never collect before the due date even though they have the option to do so if they wish.
This is due to weekends and bank holidays when DD's cannot be colllected as they are not considered bank working days.

Differing examples :

Abbey : will be debited on OR immediately after the due date
CAP 1 : will be taken on OR within 3days of the specified date
JLPC : will be collected on xx/xx/xx OR the nearest working day prior to this

I could give you at least 6 more different exmaples.

Moral -Always read and understand what you're signing prior to accepting. You were lucky to get a refund.

dazza.mk

Not quite usual........

I noticed this on my last statement:

"Minimum payments have to have cleared your account by 6th November"
"Your minimum payment will be taken from your bank account within 3 working days of 3rd November"

Prior statement for me both dates were the same.

Martyn_F_2

Dear Exel 1966 I think you have made my point for me. Two of the cards you quoted give a date and will only take on or after the date. Only JLPC are too lazy to calculate a date not part of a holiday or weekend. I use MBNA cards, Smile, Nationwide, Post Office and Egg. All give a collection date for Direct Debits and do not take money before the collection date. Only, in my experience, Capital One take money before the date that they put on the statement. After all, Direct Debits are supposed to give ease of payment and security. Not giving a firm date for collection seems to go against the benefit of Direct Debit. Capital One actually suggested that if I wanted to have a fixed date then I should pay by Standing Order!!!! It's easier to move to a credit card that plays by majority rules.

exel1966

I think you need to read the eaxmples given again as only ONE will take it ON or AFTER whereas the other two CAN if they so wish take it BEFORE.

You fail to understand that within can mean -3/+3 from the advised date and you shouldn't assume that it will always be after. Just because a payment is usually collected after does not mean it always will be.

The benefit of the DD is that it will arrive at the other end on day of collection and not 3-4 business days later.
There is NO such thing as a DD that gurantees to collect on the same specified date as it's currently impossible.

dazza.mk

Exel1966,

This is the first Capital One statement that stated can take payment +/-3 days from 3rd NOv (for me) when payment due date was 6th Nov., so 'theoretically' they could have taken payment 6 days prior to due date.

Fortunately didn't catch me out, but I bet it did a lot of people.