MBNA/Virgin Direct debit cancelled

LEWKI

Hi
I did a balance transfer of £3000 to Virgin last month. I had previously had a balance with them and had transferred it to another card when the 0% ran out. This was 15 months ago.

I had not cancelled the card and was offered the opportunity to go back them with a 0% balance transfer rate.

This all went through smoothly, BUT, I had a letter last Friday telling me that I was overdue and that the DD had been returned/declined.

I phoned them immediately and was told that the DD had been declined as I had not used it for 15 months. MBNA blamed the bank for this.

What makes me cross is that when I did the transfer, I specifically asked if I had a direct debit in place and I was told that it was there. I had to do nothing.

My question is, will this now show that I have missed a payment and ruin my credit score etc?

This is the only unsecured debt I have and have always been very careful about payments etc

Is there anything I can do?
Thanks

boots_babe

Someone with more knowledge that me will probably be along shortly, but I believe that a dormant DD is often cancelled after a certain time period by the bank (14 months I think?).

LEWKI

Thanks Boots, yes that is what they told me when I phoned on Friday. But, when I did the transfer over the phone, I was told I had a DD in place so did not need to worry.
when I pointed this out to the "collection" department on Friday, all they said was sorry and that the sales team didn't realise that it would have been cancled GRRRRRRRRR!!

boots_babe

That is poor service really. I think it's your bank and not the card company that cancel dormant DDs so the card company would not have any notification of the cancellation.

BUT they should teach their staff basic info like this, so that they could easily see if your last DD payment to them had been over 14 months ago, and if so, to advise you that your DD may need setting up again. It's not fair that you then get caught out like this.

nomoneytoday

Maybe ask them to reinstate the offer and you'll reinstate the DD?

noh

boots_babe wrote: »

That is poor service really. I think it's your bank and not the card company that cancel dormant DDs so the card company would not have any notification of the cancellation.

BUT they should teach their staff basic info like this, so that they could easily see if your last DD payment to them had been over 14 months ago, and if so, to advise you that your DD may need setting up again. It's not fair that you then get caught out like this.

I believe they (MBNA) do have notification of the cancellation via AUDDIS. Someone who knows more about how the system works will be able to confirm this.