MSE News: Beware the credit card overpayment that isn't an overpayment

in Credit Cards
48 replies 6.2K views
"Customers who try to overpay on their credit card could find their attempt to clear more of their balance doesn't work ..."
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Beware the credit card overpayment that isn't an overpayment

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  • Is this really an article, again the sensational one sided shocking commentary has made it past the editors office.

    Is it me or is the solution simple, send another cheque after the dd has been taken out to the tune of the reduced amount.

    Another crazy idea, living on the edge, is to use online banking and avoid the antiquated cheque system.
  • moleratmolerat Forumite
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    Or even read and understand what the text on the statement says about the effect payments received between statement and payment dates will have on DDs.
  • CRISPIANNE3CRISPIANNE3 Forumite
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    Well it suits me that the dd is not activated for the month when I make a manual payment. I only have the direct debit in place just in case I ever forget to pay the account manually.

    However I never do!
  • And many customers complain when card providers DO NOT TAKE INTO ACCOUNT payments they have made as they want to reduce the amount of the DD.
    Never ASSUME anything its makes a
    >>> A55 of U & ME <<<
  • sharpy2010sharpy2010
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    Good god, this is NOT a story.

    The person in the article says "it makes overpayments EXTREMELY difficult.". No, it doesn't!!! Its easy to work out how much more you need to send!
  • purple.sarahpurple.sarah Forumite
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    My CC provider, Capital One was listed as not reducing your direct debit when you make an overpayment but IME they do. However this doesn't affect me negatively as I only have the direct debit set up to pay the minimum so I don't forget. If I overpay I take it into account.
  • B19JONB19JON Forumite
    164 Posts
    I set up the minimum payment just incase I forget to pay.
    I always overpay. I work out what i've spent that month & add whatever extra I need.
  • ConsumeristConsumerist Forumite
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    Why have any editorial comment at all. All the wise-guy smarty-pants on MSE already know it all.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • sfaxsfax Forumite
    1.2K Posts
    I would much prefer they always reduced the DD (Halifax and Amex both don't). I often have a DD setup to pay in full and then I pay the full amount with a BT a few weeks before and they still take a DD for the full amount as well so I end up £2,000 in credit and have to call and get the DD payment refunded

    People who are shocked to see their DD payment reduced should pay more attention to their statement balance and if they're looking to pay off the card then change the DD for a constant amount or use a standing order for an amount above the minimum payment. Paying only the minimum is bad for your credit rating
  • zerogzerog Forumite
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    HSBC should be Yes as well.

    Anyway, I don't get it. For a DD you need the money in your current account. So if you pay more during the month, and expect the DD to be taken but it isn't, then just pay the amount of the DD yourself!! And learn from the experience to pay the DD amount + any extra payment the next month!


    BTW does anyone know the situation with Tesco? If I want to pay £1 more than the minimum, do I pay £1 and wait for the DD, or £1+min and no DD?
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