Direct Debit cancelled - Return Payment Late Default Sum’

nedian21

I decided to close my credit card account with MBNA. I called them after paying everything in full using my debit card and they happily responded to close that.

I then cancelled their direct debit using online banking on my personal account. For the upcoming month they requested direct debit from my bank (although I didn’t owe them anything) and obviously bank rejected their direct debit request. Now they have issued a new statement with 2 ‘Return Payment Late Default Sum’. I called them but they aren’t willing to even listen. They are saying you should have told us also that you are cancelling direct debit. I told them if I paid everything and I don’t owe you anything then whats the point in having direct debit.

Can someone suggest me. Did I make a mistake not informing them that I am cancelling DD specially when I called them to close the account. Whether these charges are fair? Should I make a complain to financial ombudsman. Please help.
In any case I would suggest all money super market users to avoid MBNA at all cost. Really arrogant customer service and no courtesy at all.

normanmark

I've never known of informing them about a cancelled direct debit, although i would of kept the direct debit there just in case there was any trailing interest.

Your best bet is to write a letter of complaint as the ombudsman will not entertain your complaint until you've exhausted MBNA's complaints procedure.

rb10

What were they trying to take in the DD? They surely wouldn't request a DD of '£0.00'?!?

Eydon

A lot of card companies operate this way (see http://forums.moneysavingexpert.com/showthread.html?t=1440327 for another example).

As YorkshireBoy says in the other thread, some companies always take the amount shown on your statement come payment date, regardless of any other payments in the meantime.

Check your T&Cs for confirmation as to how MBNA operate.

nedian21

rb10 wrote: »

What were they trying to take in the DD? They surely wouldn't request a DD of '£0.00'?!?

Thats what baffled me. They told me that their stupid procedure of taking out DD is to first credit customer's account with the nominated DD amount and then request the bank. In this case they already had credited my account with £25 even before I closed my account. When I closed the account the customer service rep didnt tell me that DD request has already been gone out to my bank. I even talked to their manager and told in that case I would have overpaid you but she was even more !!!!!!!! than her subordinates.

Anyway as I said beware of MBNA. Shittest cust service and always try to slash you unnecessary charges.

YorkshireBoy

See the following post...

http://forums.moneysavingexpert.com/showpost.html?p=14306307&postcount=10

If you rang to close the account more than 5 (or 7, depending on your DDI letter) days before your payment due date use this in your complaint letter.

monkeyx

I am in a similar position. I cancelled my direct debit via my bank as I wanted to start making payments myself using internet banking. And made a large payment well within the payment due date.

Yet they have charged me £25 because my Direct Debit failed. Did I need to tell MBNA, apparently it was in my terms and conditions. Can they get away with doing this? This seems like sharp practise to me! No other credit card I ever had has charged me in this way for cancelling a DD!

Tim

CLAPTON

I've never seen a DD set up that doesn't ask you to tell them when cancelling your DD.

monkeyx

Does that mean that they can take £25 for not telling them? I still made a payment via other means?

modcons

nedian21 wrote: »

I decided to close my credit card account with MBNA. I called them after paying everything in full using my debit card and they happily responded to close that.

I then cancelled their direct debit using online banking on my personal account. For the upcoming month they requested direct debit from my bank (although I didn’t owe them anything) and obviously bank rejected their direct debit request. Now they have issued a new statement with 2 ‘Return Payment Late Default Sum’. I called them but they aren’t willing to even listen. They are saying you should have told us also that you are cancelling direct debit. I told them if I paid everything and I don’t owe you anything then whats the point in having direct debit.

Can someone suggest me. Did I make a mistake not informing them that I am cancelling DD specially when I called them to close the account. Whether these charges are fair? Should I make a complain to financial ombudsman. Please help.
In any case I would suggest all money super market users to avoid MBNA at all cost. Really arrogant customer service and no courtesy at all.

I have encountered the very same problem. I recently settled my balance online then cancelled my direct debit through my bank.

This week, to my suprise I received a statement for £21.24 for an unpaid direct debit and additional interest charged on this!!

I think this is totally unacceptable and will be writing a letter of complaint and requesting a refund.

Does anyone have any templates I could use and also will my account be "Frozen" whilst I am going through this process i.e no additional fees / interest will be charged untill the matter is resolved?


Thanks

Meterman_2

I have had the same issue with MBNA (via a Virgin credit card). I paid off my remaining balance in full 22 days before the due date and cancelled my DD - through my own bank, who said that was fine. My Virgin statement later came with a default payment plus interest. When I phoned to enquire, I was given pretty short shrift and was told that it wasn't acceptable to cancel a DD through my own bank, it had to be through Virgin (MBNA). Regardless of any payments, or the zero balance, I hadn't followed 'proper procedure' in cancelling my DD and therefore the default sum is a 'valid charge'.

In reply to Modcons: your account won't be frozen - MBNA also told me if I went past my payment due date for paying the default sum, I'd be charged another default sum plus interest....etc.

Effectively, I've been charged a default sum on an account for a payment that had already been made, and whilst I sort this out they're going to charge me another default sum for not paying the default sum in time.

I can only assume either MBNA refuse to apply common sense, or quite deliberately use this technique to rake in cash from their custoemrs. I suspect the latter, but either way I'm cancelling my card asap and I'll never touch MBNA again.