DD - minimum payment

AlecEiffel

Hi all,


My bank & CC provider (same bank) is confusing me with the minimum payment DD.


Previously, even if I have made a manual payment during the month, my bank has taken the minimum payment by DD as advised on my statement for the amount and on the date the statement advises.


This month, I put a large purchase on my card and then paid it off the next day. This occurred after my statement date, and there have been other purchases made since. However they didn't call for the minimum payment on DD. I spoke to the bank and they advised that as I had already made a payment there was no minimum to pay this month.


There seems to be no pattern. Can anyone shed a light on it?

brendon

Any payments you make in the currenct statement month are used to pay off your balance in the last payment month, essentially. So, if you are paying off mid-month, that is actually going towards satisfying the previous minimum payment, not the one of the next statement.

AlecEiffel

Thanks for your reply, that seems very clear to me. I'm going to double check previous statements as I'm sure that even in identical circumstances they have still taken the DD. But then that wouldn't make sense in light of what you just said. Will double check! Cheers.

SuperAllyB

Is it possible that this time the manual payment more than cleared the previous statement balance, whereas this wasn't the case in the past?

eskbanker

This recent thread also discussed the issue of CC direct debits being adjusted to take account of other payments being made between statement and DD payment dates, do the Ts & Cs for your card clarify how your provider handles this?

Mozette

It depends on the card. Some adjust the DD, some take the DD regardless. You need to check the T&C of the particular card to see what they do. I've various cards and they do different things.

Nebulous2

It also depends on the timing. If they have already initiated the DD they wont stop it.

AlecEiffel

Thanks all. T&Cs say that any payment will be applied first to the minimum payment and then to the remaining balance. So that explains the no minimum payment DD taken (my manual payment exceeded the minimum by a lot). In the past I must have either paid the additional payment close to the DD date as mentioned above, or the T&Cs changed. Thanks for the input everyone.

Gromitt

Some cards have recently changed. For example, Aqua used to take the minimum amount on the statement regardless of whether or not you make a manual payment after the statement. Now they can adjust the DD (or cancel it entirely) if you make a payment after the statement, unless you make the manual payment too close to the "due" date.