Paid off balance in full but direct debit still went through

Munz

Hi guys,

I have a direct debit paying off full amount of my AMEX credit card. Last month the credit card amount was quite large so i manually paid it off about 2.5 weeks before the direct debit date (in case I didn't have the money there on the date it was to be taken out). But today I found out they tried to take it out anyway, and failed because my bank didnt have the money in it.

My bank charged me £30 and, since I have no overdraft facility, the credit card company charged me £12 for an unpaid payment. The funny thing is, there was nothing to pay, so I don't know why the credit card company tried to get the money, or charged me £12.

Should I complain to the credit card company to reclaim the £42?

Thanks

YorkshireBoy

Several providers operate like this (MBNA seems to be the one most complained about on here), ie once the statement has been produced, the amount to be collected by DD is 'set in stone' and will not be affected by any additional payments you make.

Your T&C's and/or the DDI confirmation letter will no doubt detail this.

As to getting anything back I'm not so sure? Amex may refund the £12 charge, but they almost certainly won't refund the £30 unpaid item fee your bank charged you.

TFD_2

There is no consistency between lenders, so I always check if it may cause a problem. For example Next will always take a DD even if you have overpaid, Cahoot and Barclaycard don't. It's not safe to assume because you've made a payment that the DD you have already been notified about will be cancelled.

No_6

There is a thread on here somewhere,
which lists those who still take the DD's after full payment
but I can't find it, does anyone else have it bookmarked.

6

bengal-stripe

With MBNA (and probably American Express as well) the DD gets established with the invoice and has to be manually removed or altered. Customer Service has to be contacted either five or seven working days before the DD is due. Their computer system is set up in a way, that it will not check for payments before the DD is sent out. So, If you don’t advise them, nobody will know and the DD will be collected regardless.

I’ll take it, you did not contact AX with the request to cancel this month’s DD.

Swans1912

We had a similar issue with AMEX last year! We paid off £1.5K off manually and then they took the same amount out as a DD 2 weeks later. The OH even asked AMEX if they would take out the DD!

It took us over our overdraft on our current account and we were then messed about by both Abbey and AMEX!

In the end Abbey gave us £50 as an apology for messing us about and AMEX gave us just under £75!

*informer*

Hi, as already suggested, you will need to check your terms and conditions to check how their payments via direct debit works. It may bear thinking about cancelling the direct debit is your contract allows this and making the payment manually if direct debit doesnt suit.

However, it wouldnt hurt to complain. My best advice and prob your best chance of resolution would be write to Kenneth I. Chenault, Chairman and Chief Executive office, Belgrave House, 76 Buckingham Palace Road, London, SW1W 9AX.

With your letter, include a copy of your statement/letter from the bank that shows charge was due to AMEX claiming for the payment. The minimum you should accept would be their charge refunded. The maximum you should expect is their charge and the bank charge back.

It is also important to remember. If they claimed and direct debit in error and it is taken from your bank, then you can claim this back directly with your bank by filling in an Indeminity form. Your bank they pays back any payment taken and claims back from the company.

Hope this helps. Keep me informed.

treb1971

Normally if you opt for Direct Debit, when the statement is issued the DD process is already set in place, so if you make a manual payment it will be additional to your DD amount, not instead of.
For instance, I know that if I want to reduce my DD amount on my phone bill (DD is taken 27th of the month) I need to make a payment by 9th of the month.
In the past I have cancelled my DD with the bank and made a manual payment, and not been charged by Amex - perhaps with the reduction in charge amounts, they've increased the number of things they charge for?