CLub Lloyds Direct Debit timings

beefturnmail

One of my direct debits on this account to pay out in August has only paid out today (1 September). I am surprised by this as, after having the direct debit for 3 years with Nationwide, although being paid towards the end of the month it has never paid out this 'late' before - I checked back before moving it. This makes me think it may be caused by a delay at Lloyds' end

I wait to see how strict Lloyds will be about the 2 direct debits paying every calendar month in order to attract interest.

If they do not pay interest, what do you reckon my chances of arguing that the late direct debit payment was due to them delaying the processing of it, therefore I should not suffer loss of interest?

YorkshireBoy

What date does the DD normally claim funds?
What date was on your bill/statement/whatever?
How long have you had the Club Lloyds account?


But to answer your question, Lloyds won't/can't interfere with the timings and delay payment because DD is a 3-day process and the originator is in charge of the timings.

beefturnmail

YorkshireBoy wrote: »

What date does the DD normally claim funds?
What date was on your bill/statement/whatever?
How long have you had the Club Lloyds account?


But to answer your question, Lloyds won't/can't interfere with the timings and delay payment because DD is a 3-day process and the originator is in charge of the timings.

DD normally claims funds between 27th and 30th (Once was on 31st December, presumably because of xmas bank holidays)

bill date is 23rd

Had a Club Lloyds account for 2 months - July payment for this dd taken on the 29th

YorkshireBoy

beefturnmail wrote: »

DD normally claims funds between 27th and 30th (Once was on 31st December, presumably because of xmas bank holidays)

DDs don't collect on a non-working day (ie Bank Holidays and weekends), so the problem is going to happen again unless you change the DD date to bring it forward.

bill date is 23rd

I meant what date did the bill say the DD would be collected.

Had a Club Lloyds account for 2 months - July payment for this dd taken on the 29th

Lloyds waive the DD requirement for the first 4-8 weeks after account opening. From then on, 2 DDs must pay out each calendar month.

In short, either bring the DD forward or set up another one (eg Tesco savings account for £1 per month).

beefturnmail

Bill doesn't say any particular date the dd will be collected, but I've always (~3 years) been billed on the 23rd, with the money going out my account between 27th and 30th, but never as late as the 1st of the following month.

The historic variation between 27th and 30th would account for week-ends\bank holidays, but I can't understand why it's so late this month - seems like too much of a coincidence that this happens when I change from Nationwide to Lloyds for this not to have had an effect although I guess it's possible.

As you say, easiest thing moving forward will be to change the date of the dd to earlier in the month

beefturnmail

well they paid interest for August anyway, so looks like they either waived the rule as the account is relatively new, or they include the 1st of the following month as a grace. Think I will still move the dd to earlier in the month though.

Lloyds_Bank

beefturnmail wrote: »

well they paid interest for August anyway, so looks like they either waived the rule as the account is relatively new, or they include the 1st of the following month as a grace. Think I will still move the dd to earlier in the month though.

Hi beefturnmail,

We do give a grace period for the two Direct Debits being set up and paid each month. The grace period lasts until you've completed one full charging cycle on the Club Lloyds account. The charging cycle for the account runs from the second working day of the month until the first working day of the following month. For example, if you opened your account in mid-July, you'd have received credit interest at the start of August and again yesterday regardless of your Direct Debits. This set up on Club Lloyds means all customers have between 4 and 8 weeks to set up Direct Debits on their account.

If you still need info on why the Direct Debit was taken later than you expected, and you can't see the payment being taken and then returned earlier in the month, I'd recommend getting in touch with the company you pay. They'll also be able to help if you wish to move the payment date forward.

Thanks,

Craig

Milarky

The 1st working day of a month counts as part of the interest accrual period (i.e. the balance on that date is also used in the calculation) for the preceding month so a DD taken on that same day will fall under the same monthly period also I would assume - which is what happened in the OPs case (and they did receive their interest)