NatWest: Direct debit takes payment 10 days before due date

Aquamania

freeganneist wrote: »

I pay the full amount on my NatWest credit card by direct debit every month. Natwest take the money from my current account ten days before the payment due date, and despite speaking to several members of NatWest staff I haven't received an explanation of why they do this, other than a) they've always done it and b) it was in the small print when I agreed to it over 20 years ago. I'm told that if I wish to pay manually (e.g. transferring it as an electronic transaction) I can do it on the payment due date without incurring any penalty or interest. I'd prefer not to do that in case I accidentally miss a payment and mess up my credit rating.

I know it doesn't take ten days for a direct debit to reach NatWest, so I know they have the use of that money much earlier than they would if I transferred the money to them on the real payment date. Their complaints department deny this and say it makes no difference to them financially if they receive it by direct debit or if it's paid ten days later - even if this is happening with tens of thousands of customers. I truly don't believe that.

Have there been any previous discussion on this, or any consumer action that anyone's aware of? It strikes me that it's similar to the PPI scandal, if tens of thousands (or more) customers have been debited earlier than necessary, over a long period of time - even if it did say so in the small print. I had a quick look back at this forum but it's hard to find older threads without knowing what to search for.

What date are you given in the advance notice?

They must provide you advance notice specifying the date and amount to be collected.

They can then only collect that amount specified and no earlier than the date specified.

If they are in breach, you are fully protected by the terms of the DD Guarantee, claims against which are made direct to your bank