Santander - failure to collect direct debit

bengal-stripe

JW89 wrote: »

I cannot find anything in the T&Cs to say that direct debits will only be taken if no other payment is made.

You'll find it on the payment slip:

If you make an additional payment and this is credited to your account more than 5 days before your payment due date. the amount collected by Direct Debit will be adjusted to take account of this payment.

The original Direct Debit will still be taken if an additional payment is credited to your account less than 5 days before the payment due date.

Just time your additional payment accordingly.

Set it up in advance as Faster Payment. than you don't have to remember the date any more. It will leave in the early morning hours of the specified day and be credited to your account within minutes.

My additional payments go out the same day the DD hits the account. When I check in the morning, DD and FP have both gone out.

chattychappy

NickX wrote: »

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.

Yep, my thoughts exactly. Plus anybody paying interest should be making payments as soon as they have the cashflow rather than waiting for DD day, thus incurring unnecessary interest.

cos_2

NickX wrote: »

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.

I've used Direct Debit for donkeys' years and have never, ever, given a creditor access to take what they want, when they want. I my view, DDs go wrong because people don't check what they are signing up for.

NickX

cos wrote: »

I've used Direct Debit for donkeys' years and have never, ever, given a creditor access to take what they want, when they want. I my view, DDs go wrong because people don't check what they are signing up for.

Well if they work for you then Happy Days, but this thread alone (which is basically pointing out the completely inconsistent way the card providers handle additional payments in respect of direct debits) is enough for me to stay clear of them. I would rather choose to make a payment of my choice - no arguments, if a mistake is made it would be on my part but I am confident enough that I won't make a mistake.

Roland_Sausage

Capital One have also failed to collect a direct debit from me this month.

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

I paid off £400 leaving a balance of £195. They then should have took a further direct debit of £12. I have made similar large payments like this recently and they have always taken the DD so not sure why they decided not to this month.

Have also just had my monthly statement and it shows no interest on it which is odd. Never mind, should clear it at the end of this month anyway.

SnowTiger

Roland_Sausage wrote: »

I paid off £400 leaving a balance of £195. They then should have took a further direct debit of £12. I have made similar large payments like this recently and they have always taken the DD so not sure why they decided not to this month.

So, your last statement was for £595 and the minimum payment was £12?

Yes, that is odd.

Roland_Sausage

SnowTiger wrote: »

So, your last statement was for £595 and the minimum payment was £12?

Yes, that is odd.

Well, it's not quite as strightforward as that.

Statement 14th May balance was £418 with minimum payment of £12 to be collected on 5th June

A few days after the statement I made a purchase of £207 (I make a purchase around this size every month)

At end of May I made payment of £431 bringing balance to £195. The £12 DD was never collected.

I think I have worked out what happened.

Because I made a payment of more than the statement balance, their system must have seen the account as being paid in full, despite me having made a purchase in the interim which brought the balance up.

They must only take into account the statement balance and not the actual real time account balance when calculating whether to take the DD or not.

Buzby

The method each company uses in collecting a DD for a card account depends on their own policies. Advice is often given that to prevent a late payment mark on your credit file, you should always have a DD available for them to take the minimum, then, if the main payment fails you have still made the minimum and your account is in order.

Since Santander operate this policy (which to my mind is responsible banking) to expect them to do anything different is a mystery. One of my cards gives the option of either clearing the balance or paying the minimum by DD. I don't use either, as irrespective f whether the DD is taken or not, the consumer remains liable for non-payment EVEN if the card company failed to collect. Unfair? Absolutely - but the law states that the onus remains with the customer to pay, the responsibility does not end just because there's a DD somewhere.

As others have noted, I have no wish to let others manage my finances, and as DDs have evolved into this pernicious 'variable amounts on various dates' meaning there is no vestige of control available to the consumer, there is absolutely to way I'll agree to this.

It may cost me a little more, but I'm safe in the knowledge I'm in control and don't have any surprises when I look at my statement. Martin's ongoing enthusiasm on here and on telly to pay by DD wherever possible is simply ludicrous. If you HAVE money, then why give others access to it? If you haven't (like the rest of us) you have to beg to get it back when it all goes wrong.

molerat

Roland_Sausage wrote: »

Well, it's not quite as strightforward as that.

Statement 14th May balance was £418 with minimum payment of £12 to be collected on 5th June

A few days after the statement I made a purchase of £207 (I make a purchase around this size every month)

At end of May I made payment of £431 bringing balance to £195. The £12 DD was never collected.

I think I have worked out what happened.

Because I made a payment of more than the statement balance, their system must have seen the account as being paid in full, despite me having made a purchase in the interim which brought the balance up.

They must only take into account the statement balance and not the actual real time account balance when calculating whether to take the DD or not.

You paid the statement balance in full (and more) so in accordance with the t&cs there is no further payment due this month. Anything purchased after the statement is due next month.

Fragnetofootball

This happens to me every month and the only way to resolve it is to call them and moan. I will be doing this again as Santander have yet again failed to take the DD after being set up for months. Their first excuse was the fact that I didnt allow enough time for the DD to go through (28 days or something rubbish). Dont know what the excuse is this time but yet again I will have to call them from abroad to sort it out. Completely useless.