Paid my credit card too early - got late payment charge!!!

foreversummer

Hi

I don't know if anyone else has come across this before, but beware!

I have a Littlewoods Visa credit card (operated by Barclays) and I always pay it off in full each month. The bill is normally generated on the 2nd or 3rd of the month with payment required towards the end of the month.

I went away for three weeks in May, so when I hadn't received said credit card statement on 5th May (day before I went) I worked out how much my April spend on the card had been and paid this amount by internet banking. Great, May payment made, several weeks early, all up to date.

Imagine my shock on Saturday morning just gone to receive my June statement showing that I had received a £12 late payment charge for my May statement.

After phoning the Indian call centre (oh joy), it appears that because the statement was issued a few days later than normal a couple of my early May transactions were included on it therefore I had not paid the full amount. However, this is not a concern as I accept that I would have to pay interest on the outstanding amount. The problem has occurred because my payment was received just before the statement was issued, therefore they did not class this as the May payment even though there was no other balance the card. So in effect, I paid too early - had I paid on the 6th May (the statement was issued on 5th May incidently) all would have been fine!

They immediately said they would refund the charge but the thing I am more concerned about is a late payment on my credit file. Their reply to this is that one late payment will do no harm, but I am not so convinced. I asked them if they can correct my file but they are saying they cannot.

I'm sure I have read somewhere that companies/banks should correct credit files if the wrong information has been given. Not sure where I stand now. Any thoughts greatly appreciated.

Foreversummer

nomoneytoday

They are correct - a single late payment of one month on its own will make almost zero difference to your credit score

foreversummer

nomoneytoday wrote: »

They are correct - a single late payment of one month on its own will make almost zero difference to your credit score

Well, that's sort of reassuring. However, it makes me feel pretty vulnerable - what if another provide/lender makes a similar mistake etc, then it will make a difference. If I had paid late myself then I would accept that I made a mistake, but if it's their error it seems very unfair.

Foreversummer

eschaton

foreversummer wrote: »

Well, that's sort of reassuring. However, it makes me feel pretty vulnerable - what if another provide/lender makes a similar mistake etc, then it will make a difference. If I had paid late myself then I would accept that I made a mistake, but if it's their error it seems very unfair.

Foreversummer

It is not their error - you didn't pay within the payment window. It's all common sense as well as in the t&c's

molerat

Set up a DD for min payment then you will never receive a late charge then you can then pay the remainder, or as you pay in full each month why not set up full payment DD.

foreversummer

eschaton wrote: »

It is not their error - you didn't pay within the payment window. It's all common sense as well as in the t&c's

I don't think you have fully understood my post. Barclays are not disputing that it is their fault hence they have refunded the late payment charge and have apologised. My concern is that now I have a late payment strike on my credit file which should not be there and Barclays do not seem interesting in correcting it.

Foreversummer

williham

No the fee would have been waived out of goodwill - it was not their fault you paid early.

Windscreen_Viper

williham wrote: »

No the fee would have been waived out of goodwill - it was not their fault you paid early.

Quite correct....

Though I agree a single late payment in the life of a card should have no particular effect...... However in these uncertain financial times it is not unknown for CC companies to take that "late" payment as a hint and cut your credit limit to just above what your current balance is

Your CRA file, if you have not had a late payment before, should look a little like this (for the past 24 months)

000000000000000000000001

The Zero's representing that your account has been paid up to date by at least the required minimum, the 1 shows that in the last month you have missed a payment. Now is not the time to apply for new credit - however in 6 month's time and it looks like this...

000000000000000001000000

then it shows that you keep up with your payments every month apart from one blip, which if all your other creditor history is equally up to date, will be seen as you simply forgot and immediately caught up (made a human mistake in other words) and your credit is much better than the first example (now apply for that credit)

Incidentally CC companies CAN amend the record that they send to the CRA - whether they will or not is another matter

eschaton

foreversummer wrote: »

I don't think you have fully understood my post. Barclays are not disputing that it is their fault hence they have refunded the late payment charge and have apologised. My concern is that now I have a late payment strike on my credit file which should not be there and Barclays do not seem interesting in correcting it.

Foreversummer

You will find that you are wrong. Just be grateful to Barclays for waving their fee in respect of your error.

I understood your post fully, you just haven't got used to the fact that you were wrong.

never-in-doubt

eschaton wrote: »

You will find that you are wrong. Just be grateful to Barclays for waving their fee in respect of your error.

I understood your post fully, you just haven't got used to the fact that you were wrong.

I concur, it is always the cardholders responsibility to ensure payment is made within the payment window. However Barclays, like most lenders, do allow one missed payment and write off the cost (at their discretion) for one late payment.

They will not and are under no obligation to amend the credit file because it was in fact not their fault that the OP paid early.

dfh

You will find it mentioned in the T & C;s.Seems a bit unfair but that;s how they run their system.But it was generous of Barclay;s to refund the charge.Usually,they are not that generous !