Payments and interest charges

Katheross

Has anyone come across this one - specifically from Barclaycard: Statement in June reads - 'we will take your direct debit of £40 from you on or around 16 June'. Nothing else. no small print, no unless.
The statement was for over £1000 so husband did calculation and paid £960 in to the account (amounts rounded for easiness) assuming £40 to be taken off on or around 16 July.
July statement - £960 paid (thank you) but not the £40 direct debit. And therefore interest on entire amount charged. Balance on July's statement is therefore £40 plus the interest on entire amount. Barclaycard have refunded the interest after some objection - their explanation - if you make a payment early that is more than the direct debit - we won't take the dd off you.
This strikes me as the banks in a win win situation - we'll not do this so that means we'll get the interest from the unsuspecting. I have done this before with other accounts and not had this issue - the balance has been cleared. I have also had the standing order issue where I end up in credit with a credit card - and believe it or not been charge for the privilege! That was Virgin - but they don't seem to do that any more....

bengal-stripe

Different CC work differently, some cancel a DD others (like MBNA) take the payment regardless of previous payments (you could be in credit). If you don't know how your card operates, contact them and ask.

Whichever way they work, it will be wrong for some.

CLAPTON

it would take two pennyworth of thought to think of another scenerio where taking the DD would be the 'wrong' thing to do

so you need to understand exactly how things work for each CC you have.

Katheross

Indeed - but then again - the statement read 'we will take the sum of £40 by Direct Debit on or around 16 July' - with no proviso of 'unless you pay us some more money prior' - not a lot of dubiety there.

Katheross

But thanks for the advice - it remains to be seen whether Barcalycard although having refunded the interest on last month - will charge next....

tomsco

Katheross wrote: »

But thanks for the advice - it remains to be seen whether Barcalycard although having refunded the interest on last month - will charge next....

Possibly, unless they specified they would waive it for you, chance are there will be trailing interest.

And in your earlier post, you state it's a good method to make money off the unsuspecting... When the DD was setup the letter sent would say the way it works, so if by unsuspecting, you mean people that don't take time to read this, then yeah...