Warning: Direct Debit Payments

leoleo73

Just to re-iterate, you need to check (or have been told) that the card issuer will actually use the direct debit mandate, not just check with your bank that the direct debit has been set up.

Noz

Fair play to Mint, they send me a further letter explicitly saying that the DD wouldn't collect the first payment but would be in place for the second and that's exactly what happened.

manic

I got a PO credit card.

I sent back the DD mandate with the application. The first statement came with the note saying that the minimum payment will be taken from my bank account on 28/07/2006. I noticed that the money hadn't gone from my bank account, but the credit of the minimum payment had been applied to my CC account.

Next statement dated 02/08/2006 arrived saying that the min payment had been applied, so nothing wrong there, only the payment still hadn't gone from my bank. Then I noticed on my CC account that a late payment fee had been applied because the DD payment had been "returned - no instruction". I phoned up the PO CC to challenge this & they refunded the late payment fee & I had to pay via online banking. I have done so ever since.

So, just because it says that it will be taken from your bank on the statement, doesn't mean that the DD is set up.

MarkyMarkD

gem4 wrote:

I was a bit concerned that both dates are the same since it normally takes a few days for it to transfer. This means that if its taken from A&L on 13th, it wont be in Lloyds until about 17th.......after the due date.

If they are asked to collect the payment by DD, and its all set up and in place, are they obliged to make sure the payment goes to my account on time?

No, your understanding is wrong.

One of the main benefits of DD is that it's same day value - the day the money comes out of your current account, it hits the recipient's current account. There are no lost days in between.

I've never, ever, known a bank to make any charge (for missed payment or late payment) on a credit card account where the statement says "this amount will be collected by DD on xx xxxxx xxxx", except where the customer cancels the DD or their bank rejects it due to lack of funds.

gem4

MarkyMarkD wrote:

I've never, ever, known a bank to make any charge (for missed payment or late payment) on a credit card account where the statement says "this amount will be collected by DD on xx xxxxx xxxx", except where the customer cancels the DD or their bank rejects it due to lack of funds.

Phew....._pale_ ......thats a relief then. There's no prob with the funds not being there so I'll look in on 13th to see exactly whats happening with it. Thanx

anniecave

And if you ever change current accounts and use a bank "switcher service" phone up the credit card company to double check in advance that they do have the direct debit set up on your new account. My new bank told me mine was, but the credit card company hadn't even been told about my change of details. I realised when the DD didn't take, and I phoned them up. With my CC the DD date is a few days earlier than the actual statement date, so i paid by debit card and it was all OK. I just have to pay by BACS until the new DD is set up.

anniecave

MarkyMarkD wrote:

=
I've never, ever, known a bank to make any charge (for missed payment or late payment) on a credit card account where the statement says "this amount will be collected by DD on xx xxxxx xxxx", except where the customer cancels the DD or their bank rejects it due to lack of funds.

I have, but they refunded it immediately as it was their mistake. This was the Halifax and I think they had a mega system error where lots of DD's weren't taken.

It still showed up on my credit report as a missed payment though, but I only realised this recently, and the event happened a couple of years ago.

MarkyMarkD

Good point, annie - it's wise to check your credit report every year or so, just in case this sort of error arises.

Ali-OK

anniecave wrote:

I have, but they refunded it immediately as it was their mistake. This was the Halifax and I think they had a mega system error where lots of DD's weren't taken.

It still showed up on my credit report as a missed payment though, but I only realised this recently, and the event happened a couple of years ago.

Same here - Halifax is the only one where the first DD was not set up on time..and that was 4 years ago!