forgot about direct debit

jlo

I am trying to sort my finances so recently took advantage of a low interest rate offer on an old card which had a zero balance.

I transferred and all was well, paid my first payment as soon as the statement issued.

stupidly forgot that there was a direct debit set up on the credit card account, to come out of a bank account I no longer use, so there is no money in it. Imagine my surprise when I got word that I was being charged a default fee from the credit card and an unpaid d/d charge from the bank! So frustrating as I was feeling confident that everything was paid and up to date.

anyway, my main worry - will this affect my credit score?

grumbler

I think a late payment to a CC gets reported (not the worst offense), a bounced DD - doesn't - assuming that you top the bank account up before the fee is debited making you overdrawn.

It's worth calling to both CC and the bank and asking to waive the fees as a goodwill.

jlo

Oh that is good.

the bank account the dd came out of has no od facility.

thanks, will try calling.

reclusive46

Also you may have to try and get the bank to give you the low rate again. Many will forfeit the promotional rate if you miss or are late with a payment.

jlo

It's not a promotional rate thankfully

planteria

agree with above.
in this situation i would make the payment to the card by Faster Payments and then call the card provider to explain.
do your best to get bank and card provider to 'let you off' this time.
if you dont use the bank account any more, perhaps worth resurrecting it, or transferring it for a transfer incentive, such as Yorkshire Bank, Co-op Bank or M&S Bank (see the Bank Account forum)

andyuk01

Some banks (HSBC) report bounced direct debits as late payments

Shows as a 1 on your credit report

chattychappy

Yep, I believe failed DDs can get reported by the current account provider - eg if they put you overdrawn or beyond an overdraft limit. Not if they are for technical reasons (eg they have "expired" through non-use for a long time).