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

zagfles

dalesrider wrote: »

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.

Yes, Nationwide made a right mess of this with me a few years ago. They make it crystal clear the DD will be reduced if you make additional payments, on the statement it says "Your statement balance, less any interim payments, will collect by Direct Debit on xxxx".

I made an interim payment which was credited a week before my payment date, but they still took the full amount by DD leaving me overdrawn at the bank and a big credit on the NW card. Phoned to complain, they suggested phoning my bank to reverse the DD. So I did, and they then hit me with a £12 charge for a bounced DD!! All got sorted in the end, but ever since I make a point never to make interim payments on CCs with a DD!

Consumerist

Pincher wrote: »

. . . does it count as a payment or not?

I seem to remember that Ts&Cs generally specify that refunds do not count towards the minimum repayment. But it is a payment which reduces your outstanding balance.

Gordon_the_Moron

It makes making an overpayment extremely difficult.

Absolute balls!
Simply make a payment of minimum + the amount you want to overpay. The minimum covers what the direct debit would take, the extra makes the overpayment. No direct debit is collected. Abracadabra you've made a simple overpayment.

Genius stuff guys!

Gordon_the_Moron

Also unless you have a 0% deal you should never make the minimum payment, if you have you should never make an overpayment until it runs out.

Consumerist

Gordon_the_Moron wrote: »

It makes making an overpayment extremely difficult. . . Simply make a payment of minimum + the amount you want to overpay. The minimum covers what the direct debit would take, the extra makes the overpayment. No direct debit is collected. Abracadabra you've made a simple overpayment.

Then the direct is taken on the due date and your overpayment is rather more than you expected.

Brilliant.

zagfles

Consumerist wrote: »

Then the direct is taken on the due date and your overpayment is rather more than you expected.

Brilliant.

Alternatively, make the overpayment after the DD has gone out but before the next statement date.

Consumerist

zagfles wrote: »

Alternatively, make the overpayment after the DD has gone out but before the next statement date.

That's fine if you don't intend to pay off the entire balance every month (i.e. so that you don't pay any interest charges).

GentleGiant_2

Halifax does not lower the direct debit, as the article suggests. it is wrong.

However I wish all credit card companies would lower the payment, by any payments made.

So for me, the fact that some do this is good, not bad!

Consumerist

GentleGiant wrote: »

Halifax does not lower the direct debit, as the article suggests. it is wrong.

From the bottom of the table in the article :-

"(i) For cards opened in September 2011 or later. For earlier cards, overpayments will NOT reduce the direct debit amount"

So it will depend on how long you have had your card.

chattychappy

"If you're affected (see the table below to be sure) and want to pay extra"

Oh I think I might be a victim. Can I get compensation please for being missold DDs?