Credit card minimum payment direct debit help !

AppleDap

Hi
If you set up a direct debit to pay the minimum payment on a credit card, if the card is not used. should this in effect be enough to keep the current balance from increasing as long as your not over your limit and the payments are received by the due date ?

grumbler

Normally, the minimum payment is the highest of several amounts one of which is at least "any interest, account fees and default charges that have been added to your account since your last statement". If so, the balance cannot increase.

Check your card's Summary Box to make sure.

planteria

yes, that should be fine.

if you can, move the debt to a 0% deal, then the minimum payments are all paying back capital.

AppleDap

Hi
Thanks for your response. That is what I thought as well. It's just that a family member has been doing just that, has been abroad for a year so hasn't looked at his statements until he came home last week.
The statements show that his minimum payments that they requested each month have been paid and arrived on time but his balance has kept on increasing. The card has clearly not been used. The minimum payment they have been taking has not been enough. This then caused him to go over his balance and incur £12 over limit fees.
Is this right ? or should the minimum payment always be enough to stop the balance from increasing ?
The over limit fees are a direct result of them not taking enough in minimum payment.

Tixy

On some older accounts the minimum payment could be less than the interest being charged each month. The credit agreement will detail how the minimum payment is calculated on that account, if one option is x% of the balance and the interest rate is higher than that % then the balance will increase.

If that is the case (which would be clear from the monthly statements) then the account holder would need to ensure they paid extra off to keep it under the credit limit.

AppleDap

Thank you for your reply Tixy, that must be the case then. Something has changed as the minimum payment used to cover it. Might be the interest rate has increased.
I wonder if it would be worth his while asking for the charges back and how likely are they to do this ?

Cycrow

if its the first time its happened, its likely the bank will refund it.

but its worth a try just explaining the situation and see what they offer

AppleDap

Hi cycrow
Thanks for your reply. He has has around 8 of them, one a month for the last 6 months.

AppleDap

Should have said one a month for the last 8 months sorry

Tixy

Probably unlikely they will refund it all as a goodwill gesture then. Has he not been checking his statements or online account at all?

Worth a shot him contacting them though.

AppleDap

Hi Tixy
No, he doesn't use online banking. It always has covered it in the past so didn't even consider it wouldn't when he was away.