HSBC DD Date for credit cards - When is it?!!

jimmyboy1980

Hi there

I'm hoping somebody will be able to help. Just to put you in the picture as to where I am, I was made redundant last year from my family business that was to be my nest-egg. Before this I was a little (to put it mildly) casual with my cash and it didn't really concern me when I had to pay bank charges for going over my overdraft etc. However the start of the recession forced my company into administration and things have gotten tough. The fact that I had a reduction in wages for the best part of last year(a reduction of over half my salary before the start of the recession) means I have had to think twice about my spending habits. However the fact I have maxed my overdraft since I was 16 and the fact that no credit referencing agencies can match my address to the electoral role (ex mod house) means my credit rating stinks. I was advised to take a credit card out 5 years ago instead of taking out a loan, and that has been maxed out ever since as my credit rating wasn't high enough to shop around. My new employer pays on the last day of the month and this is where your advice will help me.

HSBC took a payment today on the 30th August (a day before the last day of the month). I have looked back through 5 years worth of statements and NEVER have they taken a payment prior to the 1st of the month. It has been 6 months since I last went over my OD, and I am desperate to increase my rating. I have called HSBC and expressed my anger at them taking payment early, putting me over my overdraft, and I was advised that although it is rare, it is possible for them to take early as payments get taken 25 days after the statement is issued. I have been told they will honour my payment as they can see a pending payment for tomorrow from my employer (thanks for your generosity, HSBC). However they cannot account for either the black marks on my credit rating or for any charges incurred for going overdrawn.

So I guess my question is this - Is this legal? Can they take a payment this early when in 5 years not a single payment (out of 60, mind) has been taken prior to the 1st of the month. This means I have paid twice by direct debit this month for my HSBC credit card, once on the 1st, and once on the 30th.

I just get the feeling they are exploiting me because they know the chances of me getting another bank account is slim and that I havent paid them enough in charges this year. God help them, how will HSBC survive if I was to increase my rating and go elsewhere?

Please can anybody offer me any sensible advice?

Many thanks

James

balmk

It is perfectly legal for them to change the payment date provided that they give you due notice.

The direct debit payment date is always noted on your statement. This is classed as due notice.

What date does it state the direct debit will be taken on your statement?

If the date that they have taken payment is not the date that they stated, you may be able to reverse the DD under the DD Guarantee. If your bank do refund the payment, the amount will become due again and you will need to pay it via other means.

YorkshireBoy

jimmyboy1980 wrote: »

Please can anybody offer me any sensible advice?

First of all, it is "legal".

Statement dates do vary a little, due to weekends, Bank Holidays, processing problems, etc, so I'm surprised you've never, or rarely, experienced it before.

However, the DD date is clearly shown on your statement, so you should have/could have seen this problem coming 3 weeks ago and taken the necessary steps then.

The preventive measure going forward?...Call HSBC and ask them to move your statement date so that the payment due date is 'mid-month', thereby creating a better fit with your salary payment.

jimmyboy1980

Yes it was on the statement, however because it is always maxed out the payment amount and date has never changed. Therefore I have never had the need to check my statement for my CC. This has nothing to do with a weekend or bank holiday. The bank hol and weekend have just gone and yet they have still taken it 2 days earlier than normal. I guess they have just exploited another loophole to ensure there bonus's this year then . . .

jimmyboy1980

YorkshireBoy wrote: »

Statement dates do vary a little, due to weekends, Bank Holidays, processing problems, etc

Just reread this and thought I'd just say - I am aware of the impact of non-working days, but just thought I'd mention, my 60 ish payments are all between the 1st of the month and the 6th. Todays was not only 1 but 2 days earlier than that. It seems a little odd that it has happened now!

YorkshireBoy

jimmyboy1980 wrote: »

Therefore I have never had the need to check my statement for my CC.

The "need" is detailed in your T&Cs, where they tell you to check it each month. How else would you know if any fraudulent transactions had been put on the account for example?

This has nothing to do with a weekend or bank holiday.

Those were examples of why the statement date (and hence the payment due date) may change.

The bank hol and weekend have just gone and yet they have still taken it 2 days earlier than normal.

There is no "normal", at least not in my experience with credit cards. My DD dates can have a 4-5 day swing. But, crucially, mine are set to 5-7 working days after I get paid so I have chance to take the necessary steps should my salary be late for whatever reason.

I guess they have just exploited another loophole to ensure there bonus's this year then . . .

Ah the paranoia theory!

You got bit, but the good news is that you now know how to avoid it in future.

jimmyboy1980

yeah tis true, thanks for your help fellas

chexum

I had something similar, but I was prepared for it - this August started on a Monday, so if the statement date is on the 5th working day, that allows for a 25-26 day statement cycle to complete in the same month. But the same should have happened in November and the March before that. Actually every year has at least one such month Though this August has seen the payment going out the day before the last day, where November was a shorter month, or perhaps HSBC recently reduced/changed the payment cycle? (I saw earlier that co-op was planning to switch to 46 days interest free period from 59 on some cards, but can't find it now.)

smartiedriver_2

DDs are normally taken 'on or around' so taking it a few days early is perfectly legal.

And as has previously said, it was on your statement, so up to you to cover it.

CLAPTON

smartiedriver wrote: »

DDs are normally taken 'on or around' so taking it a few days early is perfectly legal.

And as has previously said, it was on your statement, so up to you to cover it.

I have never seen a DD that says 'on or around' and would be outraged if one of mine said that.

all mine say 'on or after' ; as it should be

YorkshireBoy

CLAPTON wrote: »

I have never seen a DD that says 'on or around' and would be outraged if one of mine said that.

all mine say 'on or after' ; as it should be

The one mentioned most on here seems to be Capital One (although my old JL Partnership card operated similarly), which says "on or within 3 days of..." (which translates as 3 days before in practice!).