Direct debit - set up fixed amount, but took more

SnowTiger

Buzby wrote: »

The DD contract is standard, it gives the merchant unlimited access to the account holder's account. This has been the case since (a) dates and amounts could be specified by the account holder, only opting for unspecified if either were genuinely required to facilitate the debit. (b) the period for informing the customer was (from a rusty memory) reduced from 21 days to 10 and very recently to 7 (although I have yet to see this in writing). The issue is customers do not get even this level of notice, and in any event the instructions to process the debits are usually in place 3 days before the billing run and cannot be changed or altered as it is a bulk process.

Does it really routinely take three weeks for a Tesco credit card statement to arrive? All of my credit card statements arrive well before the payment is due.

And does it really matter, anyway? I view my statements online. I still receive the paper versions, but I'm aware of their content several days before they arrive.

Buzby wrote: »

If they advise a customer by (say) a letter on Monday, which is not delivered until Wed/Thursday there is no chance of preventing any debt timed for Friday or Monday, yet notice has correctly been given.

Which credit card company routinely sends out statements three weeks after the statement date?

Using your example, a customer may not even have enough time to pay the bill before the 'to be received by' date, especially if they have to visit a bank to do so.

Buzby wrote: »

It is no surprise the consumer is left to sort out a mess not of their own making.

There are advantages and disadvantages to using Direct Debit. I think the advantages outweigh the disadvantages.

On the flipside of the coin, how many times have we seen customers complain because they haven't read their credit card statements for months and didn't realise there was a small amount outstanding, which has mushroomed to hundreds of pounds thanks to charges and fees... and their credit files have been wrecked?

Most of the horror stories on both sides of the argument occur because punters don't read their statements.