American Express - Notice of default sums

Dorset_Guy

It's a personal card so the late payment will be on my personal credit file. Amex have advised that they have already registered the late payment so I have no reason to think it's not going to show.

I'm also going to investigate the possibility of having a visa debit card linked to my business account (HSBC) - I don't need credit, I just need to be able to easily access money to pay business expenses.

MoneyMagic01273

American Express do give you the ability to set up regular "Account balance" and "payment due reminder" alerts on their website which can come via email and SMS (I believe) if you set these up in your preferences. However these are provided as a service and you have to opt in to them.

To be fair though, would sending you a "reminder" for you payment due have changed anything in this circumstance? Its really not that you "forgot" to pay on time. It does kind of seem like you made a concious choice in this case...

Thought I would let you know these services are available though, in case you still feel Amex were somehow remiss in not warning you in addition to your statement.

Dorset_Guy

"To be fair though, would sending you a "reminder" for you payment due have changed anything in this circumstance?"

If i had known that there would be such adverse consequences I would have gone out of my way to make sure the bill had been paid on time, so yes, it would have changed things.

chexum

Dorset_Guy wrote: »

My gripe is basically that they could have forewarned me (though I accept it is my responsibility to make the payment in time).

The trouble with this logic is, that the day your payment doesn't reach them, they are allowed to put this mark on your credit file. The few days grace period is really just a convenience for them, not for us. It's not required from any lenders. I don't think it should be common practice to make the payment due date a soft deadline. Think of it as their way of ensuring that people who even *very rarely* miss deadlines can be identified as such from the credit records.

While you can submit a formal complaint, and take it to the FOS, I don't think you would have a case - it seems you have been aware of the deadline, and you have been aware of the potential consequences, and did nothing for almost three weeks (not just a couple days).

As has been said above, one late payment is not the end of the world, probably the only effect is that your applications might be scrutinised much more than usual in the next 6 months, if you do any. Just don't close the account, it will matter for almost nothing in 12 months for scoring purposes, and then completely fall off in 2 or 3 years, depending on the CRA.

Ben8282

I understand your problem very well as a number of years ago I was in a similar situation to yourself incurring very substantial bils for employment expenses every month.

I'm sorry to say this and please don't take offence but what has happened is your fault and I think that if all that has happened is one late payment marker and a £12 charge you have got off quite lightly.

Your payment was due on a certain date.
You failed to make payment by that date.
The reason for non-payment is not relevent.
You have therefore correctly received 1 late payment marker.

Amex chargecards don't charge interest. If it was a credit card and you failed to pay the full balance by the due date, you would be charged interest. Your charge card agreement only provides for interest free credit so long as you pay in full by the date due. If you don't, you get charged a fee (in lieu of interest). This fee is not £12; from memory I believe it is 3 or 4%. If all you have been charged is £12, then you are very very lucky and stop making a fuss before they realise.

Cancelling the Amex card would be probably inconvenient for you.

MoneyMagic01273

Dorset_Guy wrote: »

If i had known that there would be such adverse consequences I would have gone out of my way to make sure the bill had been paid on time, so yes, it would have changed things.

Maybe its me but.... exactly what did you expect the consequences of paying a credit or charge card late? Not just Amex...any card.

Its widely and publicly understood that lenders report the payment history of your account to agencies.

I'm not really understanding how any of this is a) a surprise or b) anyone elses fault but your own.