Natwest Student Account/Credit Card

kat1311

As I am a student about to start university (on Sunday) I recently set up a student account with Natwest, with the railcard option. I visited my local branch back in July where a 'student advisor' took me through all the paperwork and seemed fairly helpful. At the time I was offered both a credit and debit card for the account. Although I was reluctant to take the credit card, the 'student advisor' suggested it would allow me to gain a credit rating and may be useful for the future. She also informed me she would set up a direct debit on the credit card to pay the full amount off each month so "there is no way you can get into debt" (her exact words). I received a letter confirming a direct debit had been set up on the account a few days later.

I did not use the credit card until August when I bought a laptop online and decided I would be better protected using my credit card, rather than the debit card. I thought I was being a savvy consumer....
At the end of the month a received my credit card statement and thought nothing of it, after all the direct debit was set up to pay the full amount.

Today I checked my account online, only to discover the direct debit was set up to make only the minimum payment, and so only £5 has been paid. The due date for payment was today so I have quickly paid the remaining balance (over £200) using my student account. I don't know however if I've made the payment in time and whether I will now be charged interest on the credit card.

As the direct debit was set up in branch I could not view the details through my online account. The letter I received in July made no reference to the amount the direct debit was for. Needless to say I am furious with Natwest, :mad: their reassurance that I "couldn't get into debt" is untrue at best and at worst a deliberate ploy to get Students' into debt.

mrcol1000

Well let it be a lesson in life. Always check the small print and always make sure your credit card bill is paid off before the cut off date.
As soon as you used your credit card to buy something you were in debt so if you don't want to be in debt cut up your credit card. Also as a student I am not sure how you hope to finish your course without getting into debt?! Unless you have very rich parents.

kat1311

mrcol1000 wrote: »

Well let it be a lesson in life. Always check the small print and always make sure your credit card bill is paid off before the cut off date.
As soon as you used your credit card to buy something you were in debt so if you don't want to be in debt cut up your credit card. Also as a student I am not sure how you hope to finish your course without getting into debt?! Unless you have very rich parents.

I don't normally reply to posts but with this one I feel I must.
Firstly there was no small print to be checked. All I received about the direct debit was a letter stating it had been set up and listing the account number... that was it. I didn't receive a copy of the direct debit form I signed, which was filled in after I signed. As for checking the credit card was paid off before the cut off date I have been checking my account reguarly, waiting for the direct debit to occur. This happened only today, the very last day of payment, and therefore I was not aware the direct debit was only for the minimum payment until today.

Secondly, my parents are not very rich and so I will have to accquire debt by going to University. However that debt is planned debt at very low interest rates covered by student loans. The Credit Card debt, that I mentioned was unplanned and at bank level interest rates, ie very high. Of course I recognise I was in debt as soon as I spent on my credit card, however I thought, incorrectly as it turns out, that I had set up a payment system to prevent interest charges.

mrcol1000

kat1311 wrote: »

I don't normally reply to posts but with this one I feel I must.
Firstly there was no small print to be checked. All I received about the direct debit was a letter stating it had been set up and listing the account number... that was it. I didn't receive a copy of the direct debit form I signed, which was filled in after I signed. As for checking the credit card was paid off before the cut off date I have been checking my account reguarly, waiting for the direct debit to occur. This happened only today, the very last day of payment, and therefore I was not aware the direct debit was only for the minimum payment until today.

Secondly, my parents are not very rich and so I will have to accquire debt by going to University. However that debt is planned debt at very low interest rates covered by student loans. The Credit Card debt, that I mentioned was unplanned and at bank level interest rates, ie very high. Of course I recognise I was in debt as soon as I spent on my credit card, however I thought, incorrectly as it turns out, that I had set up a payment system to prevent interest charges.

I am sorry to tell you this but your be lucky to get through university without unplanned debt.
If you didn't recieve the T&C of your account then you should have chased it up. Nearly all credit cards will take the min payment then expect you to pay the rest off. Did you not get a credit card statement telling you what your balance was and how much the payment which would be taken was? If you didn't, why didn't you check?

RadoJo

Well, hopefully you will have made the payment in time, but if not, I would consider the interest the cost of learning the lesson that banks are not there to benefit you, but are structured to make money for themselves.
If you can't see the benefit to them, it means that they are putting positive spin on - e.g there would be no benefit to them to have you pay off your entire balance without incurring interest, so why would they set it up like that? Once you start thinking like that it makes it a lot easier to predict the outcome of this kind of situation.

Also, I would recommend NEVER signing anything with the details to be filled out afterwards, for a bank or anyone else - had there been either an accidental error or deliberate attempt to hoodwink you, you wouldn't have much of a case against them if you admitted that you signed something knowing it was going to be filled in at a later date with details you woudn't see.

I would be concerned that you cannot see the direct debit on your online banking though - everything should be available there, regardless of whether it was set up in the branch.

But I hope you do manage to resolve this without incurrnig costs, and good luck making it through uni without any debt!

23rdspiral

i'm not a student anymore but the same sort of thing happened to me.

I got a barclays credit card for safety abroad and to Improve my credit rating. when i applied for it in branch i asked for it to be direct debit from my current account, paid off IN FULL each month. The lady said of course and off I went. The paperwork was simply about the card ect, not the DD, so there was nothing to check.

After the card came, when i called to register it, i asked to be 'reminded' of the DD terms - and was told it was for the minimum amount!! so i asked the man to change it to full payment, and he did so albeit begrudgingly - because they wont be making a profit out of me using the card. i was honest when i applied and they still gave it to me, so they can't complain at no profict.

however, they disreguarded a verbal instruction, with both me and Kat1311, so i do think that is underhand.

jd87

Let this be a lesson that all Natwest staff are LIARS.

Tweetinat

kat1311 wrote: »

... therefore I was not aware the direct debit was only for the minimum payment until today.

Actually, in your very first post you mentioned having received a statement which 'you thought nothing of'. This statement would have told you whether the DD was set up to clear the full or minimum amount, so you had ample opportunity to realise that the DD instruction had not been set up as you hoped and to make alternative arrangements to pay. I'm afraid I agree with the others who say it's a lesson learned - ALWAYS check your statements.

frivolous_fay

I don't have direct debits set up for CCs unless they're obligatory (egg)
I don't trust them not to mess it up.

DCFC79

jd87 wrote: »

Let this be a lesson that all Natwest staff are LIARS.

i dont rate natwest after my own experience with 1 member of staff