Payment due dates at weekends

saxmund

I thought I'd let off steam about this one.

Why do credit card companies now give you a payment due date at the weekend? They know it's impossible for you to pay on a weekend date.

For example, my next Abbey MBNA payment is due on 3 June, which is a Sunday. So I am going to have to target the payment to reach them on Friday, and in practice Thursday as I always allow an extra day.

The only thing I can think of is it's a sneaky way to get more late payment charges. people think they have an extra couple of days... oops, it's the weekend, payment is late.

It's not just MBNA, I've noticed Amex doing it as well.

The selective way in which banks use the "banking days" thing is beginning to annoy me as well. They happily debit you with debit card payments or cashpoint withdrawals at the weekend, allow electronic transfers to take place and will deduct overdraft interest at the weekend... but for some reason, clearing isn't allowed to take place, despite the fact that it's done by computer. Isn't it about time they sorted it out?

YorkshireBoy

saxmund wrote: »

The only thing I can think of is it's a sneaky way to get more late payment charges. people think they have an extra couple of days... oops, it's the weekend, payment is late.

Nonsense! The payment due date is x days after your statement date.

The payment due date therefore has a 5 in 7 chance of falling on a weekday. Or, to put it another way, there is a 28% (nearly 1 in 3) chance of it falling on a weekend. Obviously when you have Bank Holidays the odds are stacked still further against you.

A direct debit will solve your problem and eliminate any late payment charges. In your scenario above, the payment would be taken on Monday (although you'd probably need the funds available by close of business Friday) - or even Tuesday if Monday is a bank holiday.

dzug

Yes, DD is the answer.

My CC was due on Saturday (26th). It's coming out of my bank account today (Tuesday 29th). On previous experience it will be counted as paid on time.

Though some cards schedule the DD to be paid a week in advance.....

emma396

i paid my marks and sparks bill late this month (it was late coz of bank holiday monday), i called up to ask if i would be charged and they said no. YAY!! :j

Mozette

A lot of card providers let you change the date of your statement, though you'll still get the payment falling due on a weeked 2/7 of the time I guess...

Dronegc_2

You have two options. Either set up a DD, or just pay the bill allowing plenty of time.
For example, I know my MBNA credit card clearing times are 2 working days for a debit card payment (before 4pm, I think). 3 working days for a bank payment and 7 days for a cheque. If you're not sure how long it is with your credit card provider, just phone them and ask.

saxmund

If the payment date is x days after the statement date, wouldn't it be better for that to be measured in working days rather than calendar days? And credit card companies do mess around with statement dates when they fall at a weekend, so I don't see why they can't with payment due dates.

I've always fought shy about setting up DDs as they're not necessarily forthcoming about the date that payment will be taken and I always assumed it would be earlier than I would do it - not necessarily a problem, but it might be with my Abbey due date falling so close to the beginning of the month. And you never know when you might not want to pay a card off in full... However, that attitude was taken in the days where you paid by cheque (which delayed the payment coming out of your account compared with DD), and when I did often let credit cards run over - maybe I need to think again about setting up DDs.

lisyloo

I don't think this is a con.

If you want to spend someone else's money then you have to abide by their terms and conditions.
If you don't like DD then it's not that hard to use a calendar and count backwards.

If you can't manage this, then perhaps you are not suited to credit and should save up before buying things.

Not aimed at anyone in particular just general comment.

Credit is a privilege not a right.
If you can't manage it then don't use it and use your own money.

Paul_Herring

saxmund wrote: »

I've always fought shy about setting up DDs as they're not necessarily forthcoming about the date that payment will be taken and I always assumed it would be earlier than I would do it

The complete opposite is the case. DD takes the money at the latest possible opportunity - either on the date, or the following Monday.

You bill is due on Friday 13/4/7.

Direct Debit: Your account must have the money in the account on the 12th, ready to be withdrawn by DD on the 13th.

Standing Order: The money needs to be in your account latest Tuesday 10th (because of the easter weekend, it should have been sent there if necessary Thursday 5th.) It needs to be sent to your CC the latest Wednesday 11th.

Cheque: Money needs to be in your account by the time your cheque reaches them - which needs to be, what, 5 days before? That means the money should be in your account.... around the 5th at the very latest. Assuming of course your cheque arrives at the CC company on the last possible day - you may send it earlier, just in case.

And you never know when you might not want to pay a card off in full...

Presumably you'd know more than a week in advance and change the payment amount by phone/internet. Egg for example allow you a choice of fixed amount, minimum amount or balance.