Won't allow fixed monthly direct debit - Santander - advice

stressfreedan

Hey everyone - new here so good to meet you all.

I got a new 0% balance transfer card from Santander through today, to clear the last of my transfer from my old Egg card before the 0% ends - yes, I'm a tart.

I had a fixed £250 / month payment on the Egg card.

As per advice on this site I added a new box to the Direct Debit form and ticked £150 instead of minimum or full payment. However after speaking to two advisors today, neither will let me do this - they insist on full or minimum repayment.

So - am I entitled to push them to do what I want, or are they not legally obliged to offer it?

I have registered for online access so I can do the £150 manually, but would prefer not to have to remember!

Thanks for your advice,

Dan

nzseries1

I have had 9 different credit cards in the last 4-ish years, and not one has offered me a fixed monthly direct debit payment - every single one was either full or minimum only.

I have a feeling this option may have been available in the past, but not anymore that I know of.

CannyJock

Keep the DD for the minimum and then standing order for £37.5 per week? Reason for doing weekly is incase statement or due dates changes and you end up with a "missed" payment. Alternative is monthly and keep an eye on the statements

stressfreedan

Ah ok I'd completely forgotton about good old standing orders! I'll give them a ring and ask for the account numbers Thanks

Fairzo

Why pay more than the minimum during the 0% period? Put the rest in an account to earn some interest and then pay it off this time next year.

stressfreedan

Very good point Fairzo

Main reason is that I'll be applying for a re-mortgage at some point in the next six-nine months, so paying £150 would reduce my credit card debt by about 25-30% by then? Am I right in thinking this would look better on the credit record?

In which case, for the sake of £20 interest, I'm happy to just stick with the regular payments so I don't forget and allow for any delays in updating my credit reports. If it's not that case though, I'll ditch that plan and go with yours!

Thanks,

Dan

Fairzo

In those circumstances then I agree it might be best to demonstrate reduced borrowings. Depends if you think outstanding debt might prejudice remortgage deal.

stephane_2

nzseries1 wrote: »

I have had 9 different credit cards in the last 4-ish years, and not one has offered me a fixed monthly direct debit payment - every single one was either full or minimum only.

I have a feeling this option may have been available in the past, but not anymore that I know of.

With Barclaycard however you can set any amount between the minimum & full payment and you can change that amount every months if the needs take you...

stressfreedan

Fairzo: I'm not sure if it would effect the re-mortgage, but I'll err on the side of caution since being self employed already makes mortgage finding more challenging than it need be Otherwise though, right with you, would pocket the interest earned for sure

Stephane: Yup, I had the same with Egg, and the article on this site about minimum repayments said they should honour whatever you want, hence why I wondered if it was a legal requirement that they did or not.

I'll sort it with a standing order. I think they just want to try to cause people to fall into the minimum repayment track really...guess they gotta make their $$$

Thanks guys

stephane_2

Personally I've never ever heard, have or have had a credit card which only allow to pay the minimum or full balance and nothing in between..sounds a bit odd to me, is it legal..that I don't know.

stressfreedan

Ah sorry, I may have created some confusion - I *can* pay whatever I want off...just can't set it up automatically with their direct debit system, that's the annoying part

I'm going to do a standing order though as suggested earlier - fingers crossed their system will allow that