Credit cards direct debit payments

BrianMcCann

I have all my direct debits set to come out of my bank account at the beginning of each month. After a holiday and new computer I am paying £200 off my Santander card and want to pay it off quick. So I thought that each month if I could afford to pay a bit more off then I would. So last month I paid an extra £50 :A However this month Santander only took £150 from my account hmmm. So I emailed them and got a message back saying that I can't pay extra off. It went on to read that if I paid an additional payment of £200 then the bank would not lift the direct debit at all. This is a joke right?? Can not be right? I would have thought that if a wanted to pay a bit extra off my card as and when I could afford it, the bank would be happy with me! I don't get it. Does anyone know or heard of this before and what did you do about it?

CLAPTON

yes it has been discussed on several occasions; I believe it is included on the T&Cs of the a/c

if you want to pay 250 in total just pay the 250 and they won't take the 200 on the DD; don't do it too close to the DD date in case the payment isn't registered in time and the DD goes out too

jackieblack

Or make the extra payment after the direct debit has been taken (same/next day)

dealer_wins

jackieblack wrote: »

Or make the extra payment after the direct debit has been taken (same/next day)

Way too sensible for this forum

fozmcfc

It doesn't really help, that depending on card company, it differs from..

1/ Still take the full DD.

2/ Take the DD minus the extra payment.

3/ Take the extra payment and not the DD at all, if payment covers minimum payment.

Plus of course if the extra payment is too near the DD date, they still will take the DD, but again it varies between card companies, on how many days before.

I appreciate that normally it is covered in the T&C's, but it's a shame, that card companies, seem to have different rules on so many things.

thenudeone

You can always pay anything up the the full balance at any time.

But different people will have different ideas of what they want the bank to do with the direct debit if they make a payment.

For example - tomorrow there could be a post saying: "I paid the minimum by bank transfer but the credit card company took it by direct debit again. HELP!!!!"

Just understand what your card's terms are, and then make your own payments accordingly.

bengal-stripe

From Santander CC statements:

Important information if you pay by Direct Debit and make additional payments to your account:

If you make an additional payment and this is credited to your account more than 5 days before your payment due date, the amount collected by Direct Debit will be adjusted to take account of this payment.

The original Direct Debit amount will still be taken if an additional payment is credited to your account less than 5 days before the payment due day.

It's all a question of timing.

I set up additional Faster Payment transfer days or weeks ahead to leave the same day the DD is collected. When I log into my account in the morning, both payments have gone, the FP has already been credited to the card and the DD will be credited with next morning's update.

BrianMcCann

Ok so I didn't read the T&C's about paying by direct debit. Naive of me to think I could pay extra off the card as and when I could afford to. I get paid 27th each month and my DD's all leave on the 3rd - 5th Each month. It's around the 15th of the month that I might have some surplus cash that I can use to pay the bit extra. Why can't it just be that simple <tut> Thanks for the advice on paying the bit extra a couple of days before the DD due date. I will do that (If I can remeber)!

chattychappy

Just keep reminding yourself... DDs are there to make life simpler.. !:D:D:D

bengal-stripe

BrianMcCann wrote: »

Why can't it just be that simple <tut>

There are other cards (like MBNA) who take the DD regardless of any previous payments. The number of people complaining about their card, adjusting or not adjusting the DD is pretty even. Yes, the best solution would be if all cards were to operate the same system (whichever one).

But than, presumably, life might be too simple.

Anthorn

I'm not too sure about the legalities of this: You should be able to make a payment off any debt any time you want and if the lender stops you doing that they are forcing you to pay interest you would not otherwise have had to pay. Or to put another way they are preventing you from paying off the debt quicker. Personally, I would threaten them with arbitration regardless of their T&Cs because any agreement which invalidates the law of the land is itself invalid.