Halifax DD System - Bunkers!

Venusflytrap

I have a Halifax clarity CC which I pay off by DD. Last month while on holiday I withdrew some cash as well as made some purchases. Knowing that interest is charged from day 1 for cash advances, I paid off the amount I withdrew + interest already charged when I returned to the UK. However before this time my statement had been generated showing the amount owed as (purchases+cash advance&interest).

The DD has just been taken today and the amount wasn't readjusted to reflect the manual payments I already made! Lucky for me that I had sufficient cash in my bank account as I normally sweep any excess into my savings and only leave exactly what I owe. I was £2.35 away from the DD bouncing though! My CC account will also be in credit but isn't this against the Ts&Cs?

I rang Halifax to complain and the agent I spoke with said that the DD doesn't readjust when manual payments are made and I will have to wait till next wed for the difference to be refunded. How can this be though? DDs are meant to be reliable in that only what is owed is taken from one's account. Or isn't it?

Degenerate

Venusflytrap wrote: »

DDs are meant to be reliable in that only what is owed is taken from one's account. Or isn't it?

You're supposed to be given notice of what is to be taken and when (as you were in your credit card statement), you have the ability to cancel at any time, and the DD guarantee means that your bank should immediately refund any payment you dispute. There is no promise that the amount taken is exactly what you owe at that point in time. Policy on how DDs react to interim payments varies between providers.

YorkshireBoy

Venusflytrap wrote: »

The DD has just been taken today and the amount wasn't readjusted to reflect the manual payments I already made!

What does it say in your DDI confirmation letter? Probably something along the lines of what it says in their FAQ...

What Direct Debit options are available to me?

There are three Direct Debit options:

Full payment - this will collect the total balance shown in your monthly statement.

.....

http://www.halifax.co.uk/creditcards/help-guidance/faqs/#Can_I_pay_

My CC account will also be in credit but isn't this against the Ts&Cs?

No. The T&Cs state that YOU must not make payments that place the account in credit. You didn't...they did. That's the distinction.

Biggles

Every bank has a certain lead-in time, after which their DD can't be altered no matter how much you pay. I doubt if many of them would be able to change it after issuing the statement.

Venusflytrap

Thanks for your comments.

Yes, I requested that my DD take the full amount owing, and in this case it should have been what my CC account balance was showing on the day which was less the amount showing on my generated statement a month ago.

Also it doesn't seem reasonable that customers who use the clarity for cash advances when abroad, and choose to pay the full balance by DD, are unable to pay off amounts that accrue interest just once before the payment due date. So this means that if I withdraw £500 I will either have to accept at least 30 days interest before it is cleared by DD or, to avoid mounting interest, have ~£1000 at my disposal to cover an interim payment and full DD payment - either option is far from ideal.

I think that the system should be flexible enough to accommodate manual payments made in between DDs.

opinions4u

This does open up a handy loophole to get in to credit before you go on holiday, thus avoiding interest for withdrawing cash overseas.

As with most things the banks do, you can turn them to your advantage, or choose not to use them.

Venusflytrap

opinions4u wrote: »

This does open up a handy loophole to get in to credit before you go on holiday, thus avoiding interest for withdrawing cash overseas.

Genius you are! :kisses:

I am on holiday in 3 weeks and of course I could leave the credit on there and withdraw it when abroad. Why didn't I think of that!

So, just to make doubly sure: No interest is payable if I only withdraw the credit amount?

KathysBoy

Venusflytrap wrote: »

Thanks for your comments.

Also it doesn't seem reasonable that customers who use the clarity for cash advances when abroad, and choose to pay the full balance by DD, are unable to pay off amounts that accrue interest just once before the payment due date.

You can pay it off, but instead of the payment due date, you need to focus on the statement date. As long as you aware of this, then it's not a problem.

opinions4u

Venusflytrap wrote: »

Genius you are! :kisses:

<blush>

So, just to make doubly sure: No interest is payable if I only withdraw the credit amount?

Correct.

Venusflytrap

KathysBoy wrote: »

You can pay it off, but instead of the payment due date, you need to focus on the statement date.

Quite right. In my case I made the payment on 23 May but my statement date was 22 May, so just missed out.

Venusflytrap

opinions4u wrote: »

Correct.

Absolutely brill!

I better call them asap and ask to disregard my request for a refund then. Hopefully they won't ask why!