DD to pay in full - 10 days early?

GabbaGabbaHey

I have a Direct Debit set up to pay off my Royal Bank of Scotland Platinum card in full every month. I have just found out today that they will only take "payment in full" on a payment date TEN DAYS before the payment is due (e.g., if the statement date says that payment is due by 25th of the month, they will take the DD on the 15th of the month).

Is this standard practice for credit cards?

(Normally it wouldn't matter as I'd have enough money in my current account to cover it. I was hit badly this month, and went overdrawn by £1,600 for 3 days until I noticed and transferred money from another account. Now I am going to be hit with £50 bank charges.)

tuggy12

I have a Barclaycard Cashback Mastercard and a Halifax Platinum Mastercard which I pay off in full every month and the cash is always taken by DD on the day due.

Also, I've never had a payment taken early with several other cards I have used in the past.

Looks like that practice is peculiar to RBS

CLAPTON

surely your statement says.... this will be paid by DD on or after datexxx ?

dzug1

Not standard practice, but not unique either. I'm sure I used to have such a card - Morgan Stanley perhaps?

GabbaGabbaHey

CLAPTON wrote: »

surely your statement says.... this will be paid by DD on or after datexxx ?

No - I tend to look at my statements on screen through Digital Banking rather than on paper, and it only quotes the due date, not the date that my DD will be paid.

exel1966

All credit cards differ in this respect. ALL statements will tell you when the monies will be collected.
My Capital One statement states DD will be collected 5 business days before the due date, however most say 'within 3 days of xx/xx/xx' or first business day after the due date, but one says the business day before the due date if the due date falls over a weekend/bank holiday.

I fail to see how you'll be charged £50. Simply cancel the DD now and then make a BACS payment when you want to ensuring that payment reaches the account by the 25th !

GabbaGabbaHey

exel1966 wrote: »

I fail to see how you'll be charged £50. Simply cancel the DD now and then make a BACS payment when you want to ensuring that payment reaches the account by the 25th !

The money was taken out of my current account to pay the full balance of the credit card - as I wasn't expecting this to happen for another 10 days, I did not have the funds in my current account, so it went overdrawn by £1,600 for 3 days (until I realised what had happened and transferred money into my current account). Hence the £50 charges on my current account (not my CC account) for running an unauthorised overdraft.

withnell

Well at least you've learnt the lesson that while online is great, paper is the only thing you can easily rely on!

wife-spent-it-all

GabbaGabbaHey wrote: »

The money was taken out of my current account to pay the full balance of the credit card - as I wasn't expecting this to happen for another 10 days, I did not have the funds in my current account, so it went overdrawn by £1,600 for 3 days...

As others have said, your statement should have specified a date on which RBS intended to debit the money. If RBS have then taken then money 10 days earlier than they originally stated then they have broken the Direct Debit rules and you should contact your bank and tell them and they should refund or cancel the charges as a result.

If however RBS took the money on the day they specified on your statement, then i'm afraid they have acted within the rules. You may still find your bank will cancel the charges if this is a one-off event - it depends on how generous they are feeling at the time.

LuSiVe

My smile credit card statement has a 'full payment by' date that is 10 days before a 'part payment by' date. I don't actually have a direct debit set up for the account so I don't know how this would be worded, but there definitely isn't anything like that on your statement?

heloid

This is why I have a DD to pay the minimum and pay the rest in manually.