Will bounced Direct Debit affect my credit rating?

Crap_with_money.com

I have an MBNA credit card. They were offering me a 0% bal trans offer. As my fiance owed a wee bit on a C card which he was paying interest on, we transferred it over to my card.

He set the payment up as a direct debit (I also had him manually pay the minimum payment on top of that as soon as the bill was issued just in case the DD wasn't set up on time), however, by the time the DD came out of his account, he forgot that it had been set up - thought it was fraudulent activity when he saw the payment on his account, so phoned and cancelled the DD and had it returned unpaid. (:mad::mad::mad: at his stupidity!!!) - I've been charged (or rather he has) £12 for the returned DD, but I'm worried that it'll have a negative effect on my credit rating?

There is obviously no out standing payment due as I had already made sure the minimum payment had been met weeks before - but will the returned DD still show up? How badly will that reflect on me if it does?

I was quite scatty with money when I was younger, and had a couple of payments (maybe 5 at the most in total) which were upto a week late between the period of Jan-May '04, I got myself sorted after that - so since then this would be the only blemish on my credit history.

jonesMUFCforever

Yes it will be marked as a late or missed payment.

NickX

jonesMUFCforever wrote: »

Yes it will be marked as a late or missed payment.

A single trangression such as this wouldn't have too much of a negative effect on the Credit File though.

AbbeyDhabi

In fact, with some banks your rating will actually go up.

chattychappy

jonesMUFCforever wrote: »

Yes it will be marked as a late or missed payment.

Er... but the OP said that she had also manually made the payment?

My reading is that as far as the credit card account is concerned, the minimum repayment was made. So despite an unsuccessful DD, there is no late or missed payment so nothing to be reported to a CRA. This assumes that we're in the same statement cycle.

Crap_with_money.com

Thanks guys - it was def in the same payment cycle! In fact, there were 2 payments made manually in the same cycle, as well as the DD that didn't go through (OH made a faster payment to the account the day he cancelled the DD when he realised what he'd done).

Thanks for the replies, I phoned the CC company last night, and they said that as long as there's a payment made within 5 days of the DD not going through (which there was), that there would be nothing to report! So everything should be ok.

Thanks again for the replies

xx