Late Payment Fees - is this fair?

Yodacsmith_2

Hi All,

New to this site but I have come here because I think I am being ripped off by G E Money.

I took out a credit card with them some time ago and they took Direct Debits every 1st of the month.

Then I lost my job but happily was able to get a new one. My salary though is now paid on the 15th and as it's a smaller salary, I cannot pay ahead. Every other creditor I have agreed to change the payment date except G E Money. Despite numerous letters and phoning them, they still phone me every month to tell me I am in arrears, they charge me £12.00 and put a late stamp on my credit record. They refuse to change the payment date by 2 weeks saying their systems won't allow it.

Is there anything I can do about this?

Thanks fo any advice.

Tozer

Not a lot. £12 has been deemed to be acceptable. Ultimately you have been late paying so the record they have submitted is factually correct.

vet8

Are you not paying at all? Have you stopped the payments? Can't you send them a cheque or pay by some other method when you have the money?

It does seem unreasonable that they cannot change the payment date.

thriftymomma

Has anyone else got a GE card that you could check and see if they too are forced to have dd taken out on the 1st? Seems a little inflexible.

yodacsmith

I am making regular payments, but only the minimum at the moment. But I can't do anything until the 15th of each month as things are quite tight and I am working on a strict budget.

Everyone else seems only too willing to help out and change payment dates but GE Money don't want to.

DOn't know anyone else with a GE card.

It is so frustrating - I'm not trying to default or not pay!

never-in-doubt

yodacsmith wrote: »

I am making regular payments, but only the minimum at the moment. But I can't do anything until the 15th of each month as things are quite tight and I am working on a strict budget.

Everyone else seems only too willing to help out and change payment dates but GE Money don't want to.

DOn't know anyone else with a GE card.

It is so frustrating - I'm not trying to default or not pay!

Ok, so you get paid on the 15th right? So you have just been paid? Then make a payment after your statement has been produced and that will cover you until the 1st July. So works like this:

May 15th - keep £XX in your bank for two weeks and then pay via DD or card
June 1st - DD paid with kept money
June 15th - Keep £XX in your bank for two weeks and then pay via DD or card
July 1st - DD paid with kep money

See what I mean, there is no way you'd ever have to pay twice in one month or pay in advance! Lets assume the other scenario:

You paid last paid 1st May, you would have used Aprils salary (april 15th) to pay this right? So do the same and use Mays salary to pay the premium on 1st june!

Its easy - not rocket science!

yodacsmith

never-in-doubt wrote: »

Ok, so you get paid on the 15th right? So you have just been paid? Then make a payment after your statement has been produced and that will cover you until the 1st July. So works like this:

May 15th - keep £XX in your bank for two weeks and then pay via DD or card
June 1st - DD paid with kept money
June 15th - Keep £XX in your bank for two weeks and then pay via DD or card
July 1st - DD paid with kep money

See what I mean, there is no way you'd ever have to pay twice in one month or pay in advance! Lets assume the other scenario:

You paid last paid 1st May, you would have used Aprils salary (april 15th) to pay this right? So do the same and use Mays salary to pay the premium on 1st june!

Its easy - not rocket science!

Thanks for your comments - sadly it hasn't quite worked out like that. When I first got paid on the 15th, I was effictively in arrears because I hadn't been able to pay them the first of that that month (18 months ago roughly) - I am therefore always behind. Every other creditor I deal with has accepted this and causes no problem. These people refuse to assist in anyway.

It is the 6th today and they have rang me twice a day since the 2nd. On my home phone then sometimes on my mobile. I have rang back twice, they tell me it's been recorded on thir system, but still they ring, still they charge me and I cannot get out of this viscious circle. I have written and had a letter in reply which said they can't change the system.

The operator I spoke to yesterday admitted that it was company policy not to change a due date. The cycnical side of me sees this as a blantant attempt to extract £12 per month plus any extra interest out of people like me.

Their automated systenm has just rang again. Wish I could get rid of them!

NickX

I think I would write to them requesting a change to your statement cycle for the reasons that you have outlined here.

You can state that if they do not comply with the request then you will not be able to pay them and will have to put the account into dispute for these reasons.

y2k

I'm no expert, but I agree with never-in-doubt. As far as I know, you are only in arrears for one month. A credit card isn't like a loan where you pay off £x over y months. It's an ongoing thing and as long as you're making the minimum payment every month I don't see how GE Credit could have any problem with this.

Even if you were "in arrears" (I presume you mean made a late payment) in Jan 08, so long as you made the minimum payment in Feb '08 (and thereafter) there shouldn't be a problem (to the best of my knowledge)

Have you been charged £12 for the last 18 months then ? That's alot of money ontop of interest and the actual purchases. Have you got another credit card you could shift the debt to?

CLAPTON

how much is the minimum charge?

Moggles_2

yodacsmith wrote: »

I am making regular payments, but only the minimum at the moment. But I can't do anything until the 15th of each month as things are quite tight and I am working on a strict budget.

I would stop using the card, if you haven't already done so.
If you're struggling to meet even the minimum payments due, you may want to post a statement of affairs on the *Debt-Free Wannabe* board.

You'll get lots of advice and support there from users, who have faced similar situations

http://forums.moneysavingexpert.com/forumdisplay.html?f=76