CC Direct Debit taken on zero balance.

DavidB

Hi All!

I have a Virgin (MBNA) credit card. On the 4th August I bought something for £200. A few days later, I paid £200 by BACS transfer to reset the balance to zero.

However, I also have a Direct Debit set up to clear the balance. Using the direct debit, they withdrew a further £200. So- I'm £200 in credit, but I don't want to be in credit at all!I aim to borrow money from them, not the other way around!

Can they do that? I phoned and they said that the "day the statement was printed (22nd), I still owed £200, so the direct debit went ahead." Firstly, I paid by BACS on the 9th, so there was plenty of time before the 22nd for it to clear. Secondly, why don't they look at how much I owe when the DD is taken?

I'm less than pleased. Is this normal practice?

Thanks,
David.

flashg67

I got caught in the same way by Santander. The frustrating thing was when I asked them to refund the DD, they said we can't, contact your bank to get them to request it back. So I did, and my bank got the money back with 2 days. It was called an 'indemnity request' or similar.

Short answer is, it appears they can do this, but you can get it back!

stclair

Yes it would be common practice if you have a DD in place.

You will need to ask them to issue you a cheque for the credit balance or claim an indemnity on the DD.

hawkster

This happened to me a few weeks back with Virgin, I rang them and they refunded it back into my bank within three days

Auntie-Dolly

iIve got to ask - why pay it by BACS if you have a DD set up?

DavidB

Thanks all for your super fast replies.

He said he would refund it, but would have to wait until Tuesday in case the bank withdrew the DD. It will reach my account on Friday (8 days from now).

Would it be quicker to ask my bank to not allow the DD to complete?

David.

aimingforadebtfreelife

My card (Cap 1) says in payment details that if set up on DD it will take the min pyt / balance of what is printed on the statement regardless if a payment is made in the meantime.

DavidB

Hi Auntie Dolly,
The DD was set up so that I didn't forget to pay (had to pay some interest a few months ago). I was hoping it would act as a safety net.

I presumed they would check the CURRENT balance before withdrawing an amount.

David.

fozmcfc

In the terms and conditions it states that the DD amount will be taken regardless of any other payments being made.I have seen this mentioned on statements and when the DD was set up.However it does seem strange that your 22nd August statement still had the £200 owing when you paid it on the 9th August.

SnowTiger

aimingforadebtfreelife wrote: »

My card (Cap 1) says in payment details that if set up on DD it will take the min pyt / balance of what is printed on the statement regardless if a payment is made in the meantime.

Mine doesn't. It says:

"If you make additional payments your Direct Debit will still be taken unless your balance is cleared in full."

marywooyeah

Direct debits still get taken whether there is a balance or not until the are cancelled. On the plus side your card is in credit!