Accidentally paid this month's payment last month

Chef1980uk

I like to pay my credit card bill as soon as I get paid and as this is monthly it works out well and I don't miss a payment. Unfortunately I made two payments within the same statement (2nd payment made 1 day early) meaning I would have to pay twice out of my last pay packet to meet the minimum payment. I rang HSBC up and explained the error was on my part but could they sort it out as they would be able to see I pay the same amount each and every month (as I have done for the last 4 years) but they said they couldn't. I explained I couldn't afford to pay twice (which is what I would effectively be doing) and they still said nothing could be done and that a £12 missed payment fee would be applied come the end of the month's statement.

I took that on the chin as it was my mistake for not checking dates and have now just paid this month's payment last week only to get a letter today saying because I didn't pay last month's minimum, it would be added on to this month's minimum meaning I will have to effectively pay twice again!

Is there anything I can do to get them to remove it? Over the course of 12 months the balance will show 12 payments that all met the minimum amount. I just think it's a bit mean for them to not help me out with this even though I am a loyal customer who hasn't missed a payment in over 4 years.

Thoughts and advice please.

MadProf

Hello Chef,

I doubt you'll get any joy trying to get out of this. If you cannot afford even the minimum payment on your CC that indicates that you have a lack of liquidity and may need to assess your spending habits instead.

Do you budget?

Some suggestions:

1. Set up a direct debit with the lender for the minimum payment. This will ensure that it is collected for the correct billing cycle and will avoid the issue you have now. You may just need to get used to not making adhoc payments when your salary gets paid into your bank account. Ensure that the DD shows as in place before you stop making manual payments
2. If your credit file is relatively clean (low debt-to-income ratio, low utilisation) apply for a 0% balance transfer card and move your CC debts there in order to eliminate interest payments and dig into the principal instead, clearing it much faster. You have to be super disciplined though as you'll incur interest if you cannot pay off the card before the BT offer expires
3. Post up a SOA on the DFW board so that the people there can assess whether you can make any cuts to expenditure

callum9999

I personally think if you try them again they'll likely waive the £12 fee. Most banks have a policy of refunding one bank fee a year as a goodwill gesture, and they should be able to see this was an innocent mistake.

I doubt they'll be able to do anything about the minimum payment being doubled though. That will be done automatically and presumably isn't something they can normally change (what with minimum payments being bound by strict industry regulations).

YorkshireBoy

callum9999 wrote: »

I personally think if you try them again they'll likely waive the £12 fee.

I agree.

I doubt they'll be able to do anything about the minimum payment being doubled though. That will be done automatically and presumably isn't something they can normally change (what with minimum payments being bound by strict industry regulations).

The worry would be if they did agree to do something about it, ie waive it, they could mark your credit file with an 'arrangement' marker. In my opinion that's far worse than a missed payment.


OP, if you really are strapped for cash you could offer to make purchases (of shopping, fuel, etc) to the value of the minimum payment required for family. Get the cash equivalent off them and use this to pay HSBC.


Alternatively, and as a last resort, you could make a cash withdrawal on the card and use this to make the payment. Yes it will cost, but the long term benefits may outweigh the cost?

K0SS

Chef1980uk wrote: »

I like to pay my credit card bill as soon as I get paid and as this is monthly it works out well and I don't miss a payment. Unfortunately I made two payments within the same statement (2nd payment made 1 day early) meaning I would have to pay twice out of my last pay packet to meet the minimum payment. I rang HSBC up and explained the error was on my part but could they sort it out as they would be able to see I pay the same amount each and every month (as I have done for the last 4 years) but they said they couldn't. I explained I couldn't afford to pay twice (which is what I would effectively be doing) and they still said nothing could be done and that a £12 missed payment fee would be applied come the end of the month's statement.

I took that on the chin as it was my mistake for not checking dates and have now just paid this month's payment last week only to get a letter today saying because I didn't pay last month's minimum, it would be added on to this month's minimum meaning I will have to effectively pay twice again!

Is there anything I can do to get them to remove it? Over the course of 12 months the balance will show 12 payments that all met the minimum amount. I just think it's a bit mean for them to not help me out with this even though I am a loyal customer who hasn't missed a payment in over 4 years.

Thoughts and advice please.

I would call them up, and explain to them that you'll be put into financial hardship if they put any fees on your account, which will push you into debt any you'll be unable to make any payments to them. That usually gets them to fix their act up.

Supplementary: http://www.financial-ombudsman.org.uk/publications/technical_notes/financial-hardship-unaffordable-lending.htm

chattychappy

Agree with YB. I wouldn't be asking them to adjust the minimum payment based on your financial circumstances. It really could make things worse. The cash advance idea is a rough and ready solution if all else fails.

Chef1980uk wrote: »

I explained I couldn't afford to pay twice (which is what I would effectively be doing) .... I will have to effectively pay twice again! ... I just think it's a bit mean for them to not help me out with this even though I am a loyal customer who hasn't missed a payment in over 4 years.

I hope you don't mind if I sound a bit harsh, but I think you need to change your thinking. You're not really "paying twice". The payments are being applied to the debt - just you paying it off faster than intended. I'm sure you know this, but the money has to be paid back one day anyway. The arrangement is commercial - neither side should be in the business of helping each other out. But as above, it's quite common for CCs to refund the £12 fee for a one-off such as this. If you're running things so tight, perhaps you do need to review things. Good luck.

Chef1980uk

Thanks for the replies all. I'm not in financial hardship but I run my finances down to the nearest pound and know exactly what I pay for and expect to see. All my debt repayments are above their minimum and continue to increase. I think most people would notice the difference between £80 and £150.

Hadn't thought about spending on it instead of using the debit card for fuel though. That solution works for me

Thesingularity

Why not set up a direct debit for the minimum, and then pay in as much extra each month as you want?

You're going to need to pay the minimum anyway, so why leave it to chance?

chattychappy

Thesingularity wrote: »

Why not set up a direct debit for the minimum, and then pay in as much extra each month as you want?

You're going to need to pay the minimum anyway, so why leave it to chance?

Only a matter of time before somebody suggests a DD! Here it's not a good idea unless the OP is on a 0% deal. NB:

Chef1980uk wrote: »

I like to pay my credit card bill as soon as I get paid and as this is monthly it works out well

The OP is minimising interest by paying ASAP. With DD, the OP would be unnecessarily paying CC interest between pay day and DD day.

redpete

chattychappy wrote: »

Only a matter of time before somebody suggests a DD! Here it's not a good idea unless the OP is on a 0% deal. NB:



The OP is minimising interest by paying ASAP. With DD, the OP would be unnecessarily paying CC interest between pay day and DD day.

Whereas now they are needlessly paying £12 for 'missing' a monthly payment by not using DD. In their position I would be asking the CC company to change the payment date so that an associated DD would be taken from their account just after the date they get paid.

Thesingularity

chattychappy wrote: »

The OP is minimising interest by paying ASAP. With DD, the OP would be unnecessarily paying CC interest between pay day and DD day.

Right but aren't purchases interest free until the next statement?

So you would only pay interest if you were taking out cash.