Defaulted on a Payment, Is it the Bank's Fault?

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mcompton69
mcompton69 Posts: 49 Forumite
edited 6 November 2010 at 1:54PM in Credit cards
I received a letter this morning saying i had missed my last payment and have been fined for it (as well as my credit rating being affected I presume?).

As soon as my account was opened I completed the direct debit form and returned it. I phoned them on the 8/9/10 and they confirmed that the DD had been setup and was showing on the system and also advised how to make the first manual payment which I did over the counter at my local PO.

Looking at the DD's on my current account I can see that there is no DD for the post office credit card.

My complaint is that they ONLY mechanism for setting up a DD with the Post Office is through the post office, therefore if that setup fails, I feel THEY are responsible for rectifying the problem or at the very least notifying me.

Who is at fault?

Do I have grounds to force them to refund/cancel the default payment?

Any advice before I phone them would be appreciated.

Thanks all.


On checking my PO statement is says the following:

26/10/2010 DIRECT DEBIT PAYMENT 29.00
26/10/2010 PAYMENT RTD- NO INSTRUCTION 29.00
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  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    Did the second and subsequent statements say the payment would be collected by direct debit?
  • mcompton69
    mcompton69 Posts: 49 Forumite
    edited 6 November 2010 at 1:31PM
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    Did the second and subsequent statements say the payment would be collected by direct debit?

    My statement is online, it does not say anywhere whether payments will be taken by DD (i have never seen it mentioned how payments will be taken on any of my online credit card statements)
  • mcompton69
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    bumptencharacters
  • timbstoke
    timbstoke Posts: 987 Forumite
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    If both your bank and credit card are with the post office, they're going to have a hard time saying its your fault really - you set up a DD with them, they can't deny that because they tried to take the money. Call them and see what they say, but I'd expect all charges to be refunded in this case.
  • Hax
    Hax Posts: 890 Forumite
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    Check that the details for the bank account from which the direct debit should be taken are correct.

    EDIT: If you're quick enough to pay the missed payment then there's a good chance that your credit record won't incur a late payment marker.

    Also, if you're nice with the CC company, and explain the issue then I suspect you'd have a better chance at getting the charge refunded than if you approach them with all guns blazing, demanding a refund. It's probably just a genuine mistake...
    My posts are my own opinions based on my experiences and info gathered from sites such as this.
    They are not a substitute for professional financial advice - but you knew that already didn't you? ;)
    VSP 2011 - Member #25 - Started 6th December 2010 - Total As Of 4th May 2011 (21 weeks in!) - £323.67/£500 - So far so good!
  • pqrdef
    pqrdef Posts: 4,552 Forumite
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    The DD mandate will probably appear as Bank of Ireland at the bank end.

    If you haven't removed it, and your bank hasn't refused to accept it, it can't be your responsibility, since there's no satisfactory way to test the system before you rely on it (though you could have checked at the bank end earlier).

    They must get a lot of problems like this.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • Budner
    Budner Posts: 50 Forumite
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    Sounds like it's an error with your bank, not card provider. The DD sounds like it's set up on the originator side (CC) but not the ank side
  • Grant_UK_2
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    I've had two or three occasions over the last few years where I've forgotten to get a payment in on time - each with a different card. I received a charge every time, but when I called up they were happen to recind it because it was the first time I'd missed.

    I get the impression that this is a standard approach and it's only if you miss again that the charges will stand.

    In your case, it sounds as if it's not really your fault anyway, so unless you have missed payments before, you will most likely be treated as I was above, even though my missed payments were down to my own slackness.

    Hope that helps - if they can be lenient when a missed payment is someone's fault, then they should be as much, if not more lenient, when it's not.

    Cheers - Grant
  • mcompton69
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    Phoned up Post Office credit card customer services, after explaining everything the guy I spoke to confirmed that the charge had already been refunded as it was a mistake and that he "did not think" that a single missed payment would have been recorded on my credit file.

    When I asked him about whether the DD was setup correctly (he didn't volunteer this info in the above conversation) he said no - when i queried why I had not been informed he said that they do not receive confirmation from the bank that they draw from that the DD's are setup - the only way they (and I) would know would be that the transaction would fail.

    Direct Debit - what a crap system!!
  • Hax
    Hax Posts: 890 Forumite
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    mcompton69 wrote: »
    the only way they (and I) would know would be that the transaction would fail.

    Direct Debit - what a crap system!!

    Whenever I've set up a new direct debit, I check the list of direct debits set up on my bank account regularly - they almost always appear before the collection date.

    So, in short, you can find out before it is collected ;)
    My posts are my own opinions based on my experiences and info gathered from sites such as this.
    They are not a substitute for professional financial advice - but you knew that already didn't you? ;)
    VSP 2011 - Member #25 - Started 6th December 2010 - Total As Of 4th May 2011 (21 weeks in!) - £323.67/£500 - So far so good!
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