Virgin MBNA Sharks again!!

jmh

I just paid off my Virgin credit card balance in full a couple of weeks ago, and actually ended up in the positive on the card. I then decided to cancel my direct debit to them with my bank so that they would not take any more money from me.

Today i checked my account and found that they have fined me £12 for cancelling the direct debit as below:

12/01/200912/01/2009RETURN PYMT DEFAULT SU £12.00
I called them and they said that this was because they tried to process it and it was rejected and i should have told them about it.

Can they do this? Surely this is not right considering I had covered the minimum payment for the month and infact was in credit!?

They really are a disgusting company.

latecomer

The direct debit payment is automatically taken so unless you've told them that you've cancelled it why wouldn't they try and take it.

If you phone them up and explain that you thought it wouldn't be taken then they might refund it. I would speak to them nicely though as they dont have to.....

lcharm

You shouldn't cancel a DD without the prior concent of the company involved because it costs them money to try and process it regardless of whether you have money in there or not. If i'm cancelling it I always call and ask if it's ok 1st

jmh

Why the fine though? Why not a letter or phone call to explain? Where's the customer services? I have a right to cancel a direct debit whenever i want according to The Direct Debit Guarantee.

It seems they will fine you for anything, that is their strategy of course. But when in credit i don't think this is a fair charge.

TFD_2

Had they notified you on a statement that they were going to take a direct debit payment?

jmh

TFD wrote: »

Had they notified you on a statement that they were going to take a direct debit payment?

I just get online statements.

Total Mimumum Payment was £0.00 for this month as i'd already paid the balance.

The direct debit they wanted to take would have put me in the positive even more.

exel1966

Next time you'll know it's YOUR responsibility to cancel a DD with the recipient as well as your bank if you no longer want it. I think if you read your t&c's it will also warn you that you'll be charged £12 for an unpaid DD.

You could ask them (nicely) to waive the fee, they may reconsider, they may not. If they don't and you don't pay it, interest will be continually added, it will be continually registered as a late payment against you and it will screw your credit history.

YorkshireBoy

Depending on how long your direct debit has been set up, the "Important: Confirmation of your Direct Debit Instruction" letter MBNA sent you will state one of the following...


"Important: Confirmation 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."



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

Once your Direct Debit is in place, any extra payments you make will not affect the amount we collect unless you contact us at least five working days before the payment due date. Please note that working days do not include Saturdays, Sundays or Bank Holidays."


You didn't ask them to cancel it so they didn't.

The good news is that many people have had this fee refunded (if they ask politely) under similar circumstances to your own.

TFD_2

jmh wrote: »

I just get online statements.

Total Mimumum Payment was £0.00 for this month as i'd already paid the balance.

The direct debit they wanted to take would have put me in the positive even more.

This doesn't add up - the minimum payment was £0. So why were they trying to take payment?

overlander

TFD wrote: »

This doesn't add up - the minimum payment was £0. So why were they trying to take payment?

Exactly why were they trying to take a payment? If they informed you that the minimum payment was £0.00 its their fault.

exel1966

But they wouldn't have informed the OP that the payment was £0.00. Between the statement being issued (with the due amount on) and the payment date the OP cleared the balance.
MBNA are still entitled to attempt to collect the DD for the amount on the statement regardless of whether it has been cleared manually. This is why the OP should have advised them.