Time for payment to be credited ?

portsmonth

I have two credit cards, one from my bank and the other a BT card.
I pay each every month, albeit the minimum or sometimes a bit more.
When I pay my bank credit card I can leave it up to the day before the payment date and it credited to my account immediately.
On the other hand when I pay my BT card they maintain that the payment will be credited to my account within several working days (3-4). This has caught me out on occasion, especially if there is a weekend in between. Hence I have been charged a late payment fee (twice I think or may be three, certainly no more) even though it is only a day late. They seem to be very clever at making sure that a weekend falls close.
Sometimes I think I have several days to pay before their payment due date only to realise it is only two or three.
My question is this:- Is this legal ?

Somewhere recently I came across the following:-
If you miss it, you may have to pay a late payment charge and your interest rate may also increase. The credit card company must credit your account on the day they receive your payment if you pay by cash over the counter at a branch, or if you make an electronic payment (for example over the internet or by Direct Debit).
I pay over the Internet - Thank you

apt

Some credit cards accept faster payments, some do not. If they do not they will only receive the payment on the third working days if it goes via BACS. You can avoid the danger of a late payment fee by setting up a direct debit for the minimum monthly payment.

lisyloo

Somewhere

Where did you see it?
You can find anything you like on the internet. It doesn't mean it's true.

The credit card company must credit your account on the day they receive your payment

What makes you think they receive your payment straight away???

BACS payments have taken 3-4 days for decades. I would be gobsmacked if it was illegal.
Some banks/methods use faster payments but not always.

If this has happened to you before then why aren't you paying 3/4 WORKING days in advance.
Banks don't work on weekends so you can't include those (or bank holidays).
If you are the sort of person that can't or doesn't want to manage this then set up a direct debit.

m00m00

of my 4 ccs, only 1 (capital one) will accept faster payments, RBS, Lloyds and Halifax won't. Halifax won't, even from a Halifax current account

YorkshireBoy

m00m00 wrote: »

of my 4 ccs, only 1 (capital one) will accept faster payments, RBS, Lloyds and Halifax won't. Halifax won't, even from a Halifax current account

According to this, RBS went live with credit card FPs in November 2008. They talk of a phased rollout, but surely that's complete by now!?

Halifax to Halifax card payments showed next day on my Halifax credit card account, but were backdated to the day before. That's as good as FP isn't it?

With LTSB if you want an immediate credit then the only option appears to be a branch payment before 4pm.

Diaaaz

RBS definatly take faster payments. The PSD only guarantees that the bank won't sit on payments for days waiting for them to "clear". BACS still takes the same 3-4w/days.

SnowTiger

portsmonth wrote: »

Sometimes I think I have several days to pay before their payment due date only to realise it is only two or three.
My question is this:- Is this legal ?

I doubt there's a specific law which covers not being about to count days. :rotfl:

But seriously: buy yourself a calendar. There are still places selling ones that cover 2011, and they're very cheap.

Then, when a bill arrives you work out when it needs to be paid and mark it on the calendar.

All the credit card bills I received have a pay by date and suggest how many days before that date you should pay it.

If you set up a direct debit to cover the minimum payment you won't have to worry about it.

None of this is rocket science.

portsmonth

Thank you all for you replies.
I hasten to add, I do not deliberately pay my BT card at the last minute and I do pay it 3-4 days at least before the due date. It is just convenient some times to leave it as long as possible until my pension is paid and my funds are somewhat healthier. Yes I am a pensioner and like many people these days I am being crucified by rising prices.
Re where did I find the article, unfortunately I can’t remember it was some months ago.I should have saved it but I just cut a pasted the relevant bit - and yes I am aware that not all on the Net is fact.
How do I know the payment has been accepted ? It is confirmed that the payment is good, it is only after this they go through their "Spiel" re taking several days to be credited. In this day and age of IT, there is absolutely no reason why this payment cannot go through instantly. Pure profiteering on there part. If I were paying by cheque this would be understandable.

Oh yes, I do know what a calendar is !
Also I have come across the following on several financial sites :-
"Law requires that credit card billing statements be sent at least 21 days before the due date so you have time to make your credit card payment on time and avoid finance charges".
Mine usually arrives 14 – 16 days before the due date.
Also I am given to understand that billing dates should be the same each month, unless prior notice has been given. Mine varies each month.
Admittedly it is sometimes difficult to tell whether these are USA regulations or UK even though I search UK sites.
It will be clear to you all that I am no financial wizard. Times have changed since honesty meant something, Now it is just "Greed and Profiteering". I may add that I am not in debt as such but keeping on top of things the last few months is an increasing struggle. And the future looks bleak.
Thanks again.

YorkshireBoy

portsmonth wrote: »

It is just convenient some times to leave it as long as possible until my pension is paid and my funds are somewhat healthier.

Then a direct debit set up for the minimum payment would seem an ideal option, being as this will maximise the time to payment.

Also I have come across the following on several financial sites :-
"Law requires that credit card billing statements be sent at least 21 days before the due date so you have time to make your credit card payment on time and avoid finance charges".

I've googled that sentence and the only other hit (apart from this one of course) is an American website...the "A part of the New York Times Company" and reference to 'Federal laws' gives it away.

There is no such law in the UK, otherwise lenders wouldn't be able to openly advertise "up to 46 days interest free".

portsmonth

Yorkshireboy, Thank you
For some reason I have problems sometimes logging onto this site and when I try to reply it logs off ??
However here we are – Thanks again to you and all.
I am a Yorkshire boy too by the way !
Regards.

chattychappy

The starting point for "the law" is that parties are free to enter into a contract on whatever terms that they can both agree on. Specific statutes (eg Consumer Credit Act 1974) impose certain terms or otherwise modify the contract, or even prevent certain contracts being enforced at all (eg where there is no license). Case law (ie previously decided cases) provides authority for what the law is in particular situations. Then you get something like the Lending Code - which provides a set of rules that lenders have usually opted into. If they have, then the terms are binding. If they haven't but don't follow the Code, then there may be a claim anyway (eg under OFT/FSA fairness initiatives) as the Lending Code is really a reflection of what is believed to be best practice under existing regulation.

So I would look at the Lending Code and your own T+Cs first to determine if something is "legal". The Code is easy to read (google to find it).

As for payments reaching the account, if the lender says "allow X days for payment to reach us", this is just advisory. If it arrives sooner, then it should be credited sooner. They should credit the day they receive the payment (for value, ie cleared funds). On the other hand, if they say something like "if you pay by debit card on our website, then we will credit your account the next working day", then they are entitled to do that.