Santander - failure to collect direct debit

JW89_2

Hi - I don't know if this has been raised before (I couldn't find anything) but maybe someone can shed some light?

I have a Santander credit card and pay off the minimum payment every month by direct debit. When I have extra funds available, I make a cash payment into the account. However, for the second time running, if I make a cash payment in, Santander do not take the direct debit... which rather defeats the point of trying to pay off the debt early.

I have spoken with Santander to find out why they have not taken the direct debit. (I rang them after the first incident too, and got fobbed off with nonsense, but gave up trying to get a proper answer.) I cannot find anything in the T&Cs to say that direct debits will only be taken if no other payment is made. Sure a DD is a set agreement and is not subject to x or y happening or not happening? I have asked Santander to send me a copy of the T&Cs which shows a clause that stipulates when a direct debit will be taken - or, rather, why it will not be taken... such as if a cash payment is made into the account. They have failed to provide such evidence and, in fact, wrote to me after the first incident apologising for problems in setting up a direct debit and saying how happy they were to confirm it was now set up.... ie missing the point entirely... the DD HAD been set up, just not collected!

I'm going around in circles and wonder if anyone has any advice or experience of this kind of situation and what I should do next. It just seems like sharp practice on Santander's part in preventing customers from paying off their debts earlier.

JW

Lovelyjoolz

I used to do the same years back when I was paying off student debts and it's not just Santander - it's all credit cards.

The system expects one payment a month between the statement date and the 'due by' date, so if you don't send a cash payment in during that time, the DD will go out. Sending a cash payment between the statement date and the 'due by' date overrides the DD and it isn't claimed. I had two credit cards and neither company could stop this from happening. The only way to do it is to send your cash payment AFTER the DD has gone out.

JW89_2

Hmmm... that's crossed my mind re timing of cash payments, but surely this is something that should be in the T&Cs to stipulate that if a cash payment is received before the due date then the DD will either not be collected or the amount will be reduced. It would be interesting to know what would happen if, say, the minimum payment was £100 and £50 was paid in by cash. Would a DD of £50 be taken or £100... or nil? Not interesting enough for me to run the test though! I can understand it's all about the computer programming, which can be changed, but it also down to credit card providers making things clear in T&Cs.

I've just got off the phone from Santander again. I've escalated the complaint and they are looking into it... again. Hopefully the guy I spoke to will be true to his word and look into this properly and I won't just receive another generic letter apologising the problems in setting up a DD.

badger_

If you still want the DD to come out make the extra payment 1 or 2 days before or on the DD date. If you do it too far in advance it will count that as the payment and cancel out the DD.

omas

JW89 wrote: »

Hi - I don't know if this has been raised before (I couldn't find anything) but maybe someone can shed some light?

I have a Santander credit card and pay off the minimum payment every month by direct debit. When I have extra funds available, I make a cash payment into the account. However, for the second time running, if I make a cash payment in, Santander do not take the direct debit... which rather defeats the point of trying to pay off the debt early.

I have spoken with Santander to find out why they have not taken the direct debit. (I rang them after the first incident too, and got fobbed off with nonsense, but gave up trying to get a proper answer.) I cannot find anything in the T&Cs to say that direct debits will only be taken if no other payment is made. Sure a DD is a set agreement and is not subject to x or y happening or not happening? I have asked Santander to send me a copy of the T&Cs which shows a clause that stipulates when a direct debit will be taken - or, rather, why it will not be taken... such as if a cash payment is made into the account. They have failed to provide such evidence and, in fact, wrote to me after the first incident apologising for problems in setting up a direct debit and saying how happy they were to confirm it was now set up.... ie missing the point entirely... the DD HAD been set up, just not collected!

I'm going around in circles and wonder if anyone has any advice or experience of this kind of situation and what I should do next. It just seems like sharp practice on Santander's part in preventing customers from paying off their debts earlier.

JW

Direct Debit is going to becollected only if other payment of minimum or higher amount is not received by due date (or 3 days before due date). I think every credit card do this. Standing Order is always collected, but you need to set it up with the amount you want to pay every month.

molerat

MBNA

Please remember your regular Direct Debit payment will be taken, regardless of any additional payments you choose to make.

Cap1

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

I thought the above was the norm.

omas

molerat wrote: »

MBNA
Cap1
I thought the above was the norm.

I'm always paying my balance in full and they never takes anything via DD

SnowTiger

JW89 wrote: »

I have spoken with Santander to find out why they have not taken the direct debit. (I rang them after the first incident too, and got fobbed off with nonsense, but gave up trying to get a proper answer.) I cannot find anything in the T&Cs to say that direct debits will only be taken if no other payment is made. Sure a DD is a set agreement and is not subject to x or y happening or not happening? I have asked Santander to send me a copy of the T&Cs which shows a clause that stipulates when a direct debit will be taken - or, rather, why it will not be taken... such as if a cash payment is made into the account. They have failed to provide such evidence and, in fact, wrote to me after the first incident apologising for problems in setting up a direct debit and saying how happy they were to confirm it was now set up.... ie missing the point entirely... the DD HAD been set up, just not collected!

Several credit card providers will automatically amend a DD if a payment is made and there's sufficient time to do so. However, this usually only happens when the statement balance is paid in full.

Do your CC statements say payment will be collected by DD?

You don't mention any specific dates, however you do mention the DD failing on two occasions. The first may have been a genuine mistake, some sort of system error; perhaps they couldn't take the second because they hadn't informed you on your statement they would, meaning if they did take an amount by DD they would have been in breach of the DD guarantee.

sicker

Do you have to pay by direct debit? Why not set up a standing order to pay enough to cover the minimum payment each month then you can still pay any extra amount you wish at any time you choose :-)

NickX

This is whay I would never set up a Direct Debit on a Credit Card Account.

It takes the control away from you, basically you are giving the Creditor your bank account details to take what they want when they want. I much rather control my payments myself - that way I can pay how much I decide from the account I decide on the date I decide. There are so many stories of Direct Debit nightmares on this site I avoid them like the plague now.

tomsco

It would've been mentioned in the letter they first sent you when you setup a DD.