DD cancelled by Nationwide

antuk

chattychappy wrote: »

I feel that's a bit harsh. If Nationwide hasn't published what it will do in the event someone makes a manual payment...

It tells you on your statement....

"Your statement balance, less any interim payments, will collect by Direct Debit on xxx"

lisyloo

The onus is on them to tell you if they're going to deviate from collecting the minimum by DD

and the onus is on the account holder to READ it :-)

chattychappy

antuk wrote: »

It tells you on your statement....

"Your statement balance, less any interim payments, will collect by Direct Debit on xxx"

The OP did say her arrangement was to pay the minimum, not the statement balance. I wonder what her statements say...

jkmum

It tells you on your statement....

"Your statement balance, less any interim payments, will collect by Direct Debit on xxx"

Probably if you have the full amount collected by DD and that makes sense to me in English.

I have had a look at my statements. I bank online with Nationwide and therefore don't generally see the full PDF of my statement which is the only place it is written - usually the statement summary and transaction details for each month are all I need to check. However, I have had a look at the statement I would have received in the post if Nationwide hadn't been so keen for me not to receive them and mine says

"Your Direct Debit of £5.00, less any interim payments, will be collected on xxx"

Perhaps because over the last 8 or so years I've had the card and paid it this way the minimum amount has always been taken in addition to my interim payments and I so rarely see a paper statement, this message has passed me by until today.

But on reading it, it only makes sense if the interim payment is less than the minimum amount. If my statement balance is £30 and I calculate I need to pay £25, that would mean my DD of £5 less the interim payment of £25 will be collected - £5, less £25 is -£20 - does that mean they will pay me £20? Of course not, but the English is not very clear and certainly does not mention the 3 day period before the DD date. (Perhaps something like "we will take your DD of £5 on xxx unless an interim payment is received 3 days before this date when we call the DD to be processed")

ANYWAY - I admit the explanation was there on the statement - I probably did see it, but did not pay much attention until I was caught out last month - lesson learned.

However I go back to my previous point, in that having now understood everything there is to know about credit card direct debits and minimum payments, I still don't think it makes it easy to manage your account because different payments are required either side of this 3 days rule and because it is impossible to gauge how long it will take to process you payment, which is why I have reluctantly gone to full payment by DD now.

jkmum

If I do make a payment where a DD is in place, I try to make it AWAY from the DD dates, so that I know it's included.

I understand this will avoid all the problems, however, especially if it's been a heavy month and the balance is quite large, I like to think my money is in my savings a/c for as long as possible before I have to hand it over!!;)

lisyloo

especially if it's been a heavy month and the balance is quite large, I like to think my money is in my savings a/c for as long as possible before I have to hand it over!!

In these days of low interest a few days shouldn't be a huge concern.
So let's say you earn 4% which is 3.6% after tax and that's very generous.
If you paid £1K, 3 days early then you'd lose
1000 * 0.036 *3/365 which is about 30p

I know every little counts, but clearly there is a trade-off between maximising interest and getting charged if you miss the dates. One set of charges will be many many months additional interest.

I still don't think it makes it easy to manage your account

I agree it's not easy, but we don't get to dictate to Nationwide or any other business how they do things.
You are already getting interest free days and possible other benefits e.g. low charges abroad, extended warranty, protection, amd maybe cashback etc.
So overall whilst I agree with you it isn't ideal, I think we have to just put up with it.
If they were unusal in the industy I'd proabbly encourage you to complain about their strange practices but this is widespread and therefore I don't think we can get them to change that easily because it's probaly connected to the way the banks work and not just Nationwide.
So I think we jsut have to be grateful for the benefits we do get and put up with the other things that aren't ideal.

But FWIW I do agree that it's strange in this day and age that they can't sent their instructions instantly and they have to do it in a batch processing system.
I work in IT and this is ancient.

jkmum

The interest is just a historic mentality of mine! I agree it's not worth it at the moment!