Fixing Credit Card Payments

lamberd1

Does anyone know if credit card companies are obliged to let you fix your direct debit amount?

loopy.magic

It varies by company.

For example I found that Egg let me specifiy the amount for the direct debit, which I then set to approx £50 more then the minimum amount. I was then able to vary this up or down via the website.

But Virgin/MBNA said I couldn't do this, they only accept the minimum amount or the full statement amount.

lamberd1

That is what I found as well, barclaycard had no issue with fixing but Citicard did. I just wondered why there would be a difference, and if there were any rules governing these companies around this topic

CLAPTON

why not set up a standing order if it's that important to you.

lamberd1

Thanks for you response, but that does not really work does it??

I want to pay £50 every month

Say my minimum payment is £25 in month 1 but i want to pay £50, i would set up a SO for £25

in month 2 my minimum payment would be slightly less than £25 (because the balance would have been reduced with month 1's payment) therefore in order to maintain my £50 payment the SO would need to be increased!!

Seems a bit of a hassle really...

are you saying i should cancel my dd in its entireity and setup a SO as a replacement??

jonesMUFCforever

I think you are over complicating things.
If you want to pay £50 per month you can do so either by standing order, using the paper statement or internet/phone banking.

I would be worried if I was only able to make the minimum payment every month.

Cancel the direct debit if you wish but don't blame anyone else if something goes wrong and your payments are late.

NickX

lamberd1 wrote: »

are you saying i should cancel my dd in its entireity and setup a SO as a replacement??

I think this is what CLAPTON is saying, but you need to take care with this.

You must make sure the fixed level Standing Order at least covers the Minimum Payment otherwise you will incur charges.

This was the reason that MBNA gave for removing fixed level Direct Debits although the more cynical customers suspect it may to keep people paying the Minimum only so they can earn more interest.