EU Law changes direct debits???

zippytiff

HI

I was surprised today to find AMEX had taken their direct debit a much earlier than payment as due, it used to be 3 or 4 days before.

I phoned them, they said EU law required them to take payment 14days after the statement was created.

So for example

Statement created 29th Sept, DD collects 13th, but payment date is actually 24th !

Previous to this DD would have been taken around 20-22nd

I would rather money in my bank than theirs !

When i said i wanted to cancel my full DD and just do the minimum, they said the minimum DD had different rules and would be collected 16days after..... i dont mind this to much given it stops me getting late payement fee's

AMEX said they had received other people querying this as well

Anybody else think this is crackers !

izools

Hmm... but I have a direct debit set up with Vanquis, the statement is produced on the 8th of the month, and the full DD amount is taken on the 3rd or 4th of the month.

I just called to confirm - my next payment will be taken on the 3rd of November and no changes are happening.

Hmm.

Paul_Herring

I phoned them, they said EU law required them to take payment 14days after the statement was created.

They're lying.

And the DD used to be 7 (actual) days before the date.

See http://forums.moneysavingexpert.com/showthread.html?p=23956249

property.advert

Sky lie to you as well, coupled with their ineptitude.

Sky tell you what day they will take money out of your account or from your card but that is just rubbish. What they do is apply to your bank or card in sufficient time for them to receive the money in their account on the date they say they will debit you.

oscar52

property.advert wrote: »

Sky lie to you as well, coupled with their ineptitude.

Sky tell you what day they will take money out of your account or from your card but that is just rubbish. What they do is apply to your bank or card in sufficient time for them to receive the money in their account on the date they say they will debit you.

But thats how Direct Debits work - The company applies for them (as Paul states above) around seven (working??) days before they are due - the bank then pays them on the due date, for example 22nd - however the company would have applied in advance of this. Direct Debit payments also assume that payment has been made (and not refused by your bank)

I have had some DDs paid early, usually due to weekends, but always dated the next working day, However, any credits to my account have also been paid early (However, this can depend on your bank)

Paul_Herring

oscar52 wrote: »

But thats how Direct Debits work

No it's not.

The company applies for them (as Paul states above) around seven (working??) days before they are due - the bank then pays them on the due date, for example 22nd - however the company would have applied in advance of this. Direct Debit payments also assume that payment has been made (and not refused by your bank)

What happens is they make the request around 3 working days before the date it is to happen. Then on the date the transaction occurs, with the money 'leaving' the account on the same date as it arrives in the other account.

What Amex do is tell you what date the payment is due by then request the DD payment for 7 days (or whatever it is now) before that date, rather than requesting it for that date. Amex are unusual in doing this.