Lloyds sharp practice?: Inactive credit card/direct debit

hartmjs

We got our Lloyds Duo Avios credit card bill today and were surprised to see it had not been paid off in full by an existing direct debit and we had a late payment fee and interest to pay.
According to a rep, if a credit card is inactive/dormant for longer than 3 months or maybe 2 (he changed his mind when we said the inactivity was 2 months 1 week), Lloyds cancel the direct debit and are not required to inform anyone.
W managed to get the late payment fee refunded (with 3 days hopefully) but not the interest.
From a quick Net search it seems the more usual period for this action is 13 months and the area is a bit grey.
Sending complaint to the Ombudsman but not very hopeful.
Does anyone have an idea what our chances are of the complaint being upheld?
It may be just random but phoned Lloyds again just to check some details and after punching in the account number the line goes dead!

Candyapple

How can your account be inactive/dormant if you had a balance to pay?

I have never heard of a bank cancelling a DD due to inactivity, and certainly not the 'we're not required to inform anyone' line either.

Sounds like the CS rep was telling porkies. I would put in a formal complaint with Lloyds, you are owed an explanation and apology and also they will offer you compensation too.

hartmjs

Beats me!
Its not a new thing apparently:
telegraph.co.uk/finance/personalfinance/bank-accounts/11722826/The-direct-debit-rule-that-could-leave-you-with-bank-fees.html
telegraph.co.uk/finance/personalfinance/2804961/Letters-to-Liz.html
thisismoney.co.uk/money/saving/article-1690010/Bank-axed-direct-debit-without-telling-me.html

bengal-stripe

hartmjs wrote: »

From a quick Net search it seems the more usual period for this action is 13 months and the area is a bit grey.

After 13 months of inactivity the DD is cancelled by your bank (not the recipient) to prevent fraud.

You said the account had not been paid "in full". Did you make a manual payment earlier, which in connection with a minimum DD would have cleared the account? Some cards will cancel the DD if the receive a payment that is higher than the DD due. Other cards will take the DD regardless.

Lloyds might belong to the first group. Check the way your card operates.

hartmjs

Result.
Been painful but after talking to 2 reps and a customer service bod, we have got the late payment fee, 2 set of interest back plus £15 compensation.
The final straw for them I think was having a right go at rep no. 2 so that customer service got involved plus a promise that we'd be complaining to the Ombudsman.
Whatever, its done now and when the monies are in we'll be dropping the Lloyds cards immediately.
For any other Lloyds customers out there, you may have to check your DD is in place every month to ensure you are not hit because if you are affected, when you find out, it'll be too late and you'll have to harass, haggle and threaten to get your hard earned cash back.

hartmjs

bengal-stripe wrote: »

After 13 months of inactivity the DD is cancelled by your bank (not the recipient) to prevent fraud.

Our credit card inactivity period was 2 months 1 week which caused the DD to be cancelled.

Consumerist

I've been aware of the 13-month rule for some time and often use cards just once per year to maintain their activity.

If you haven't cancelled the DD yourself then I think Lloyds have dropped off and the rep you spoke to is giving you a load of bull.

Start their formal (written) complaints procedure - which you must complete anyway before the Ombudsman will consider the case. If not resolved after 8 weeks or their final response is unacceptable then you can refer the matter to the Ombudsman.

I would suggest you submit your complaint through <Resolver>. That should get their attention.

tomtontom

hartmjs wrote: »

Result.
Been painful but after talking to 2 reps and a customer service bod, we have got the late payment fee, 2 set of interest back plus £15 compensation.
The final straw for them I think was having a right go at rep no. 2 so that customer service got involved plus a promise that we'd be complaining to the Ombudsman.
Whatever, its done now and when the monies are in we'll be dropping the Lloyds cards immediately.
For any other Lloyds customers out there, you may have to check your DD is in place every month to ensure you are not hit because if you are affected, when you find out, it'll be too late and you'll have to harass, haggle and threaten to get your hard earned cash back.

Not nice, not nice at all. I doubt they'll miss your custom.

bengal-stripe

hartmjs wrote: »

2 set of interest back plus £15 compensation.

hartmjs wrote: »

Our credit card inactivity period was 2 months 1 week which caused the DD to be cancelled.

Why are there two lots of interest if the account was inactive for over two months? Did you have interest outstanding from the previous balance?

That might explain the second lot of interest charged.