Why does RBS direct debit my account 10 days before credit card due date?

saskay

I have a direct debit setup for the full balance on my credit card and noticed that they take the money out a full 10 days before the due date. All my other cards debit my account on the due date.
This sounds odd to me. Aren't they effectively reducing the no.of interest free days I get by 10 days?Is this a fair business practice?

ps: because of this I'm going to close my account with them next month

JoseChungsDoomsday

Well, it could be to give you adequate time to pay if the DD fails?

user1168934

This does sound very odd. Direct debit instructions are issued a couple of days in advance (normally 3 days but depends on the bank) but the amount is deducted on the due date.
It might just be an administrative error. Best thing you can do is call RBS and ask them.

SnowTiger

saskay wrote: »

I have a direct debit setup for the full balance on my credit card and noticed that they take the money out a full 10 days before the due date. All my other cards debit my account on the due date.
This sounds odd to me. Aren't they effectively reducing the no.of interest free days I get by 10 days?Is this a fair business practice?

ps: because of this I'm going to close my account with them next month

Natwest does this too, which has been mentioned here before.

Online I can specificity on what day I want the Direct Debit to be taken. Natwest ignores this instruction, despite offering it, and takes payment ten days before it's due.

I think your conclusion that they do this to reduce the number of interest free days is correct.

If you (always) pay the balance in full and you have one of their new fee-based cards you're probably better off elsewhere anyway.

superboobs

Glad someone's bought this up!
My daughter was advised to take out a credit card a year ago because she was saving for a house and this was the only way to get her credit score up. I wasn't pleased at the time because since she was little I've always told her "NEVER have a credit card, save up if you want anything!
She buys petrol with it and pays it off in full every month when she gets paid. She decided to set up a Direct Debit for the 28th of every month and the first payment was due to go out on the that date... except it didn't, it was taken on the 18th, 10 days before it was due and it made her overdrawn! Of course she didn't know she was overdrawn until Natwest text her and told her if she didn't pay money into her account by 2pm that day they would start charging her over-draught fees.
I'm fuming, and I went with her today to ask why they had taken the payment 10 days before it was due, causing her to be overdrawn! They said, they had no idea and she needed to telephone MasterCard and ask them, as it was nothing to do with Natwest! It's a Natwest credit card and surely it was Natwest that authorised the the DD to go out.
Are Natwest passing the buck?

20aday

Whilst I appreciate Tesco Bank is now wholly owned by Tesco themselves they were once partnered with the Royal Bank of Scotland Group.

On the back of my statement is says that for full repayments via Direct Debit that this is taken 5 days before the payment due date.

I don't have a RBS/NatWest statement to hand but does it mention about "Ways to Pay" and more specifically does it refer to Direct Debits?

jonesMUFCforever

OP - daughter previously paid for petrol via debit card/cash from account?

Now she pays by credit card so what happened to the money she was not spending on debit card??

What did her credit card statement say about the date payment woud be taken??

joroshe

If you choose to pay the full amount, josechungsdooms is right - it is to give you time to pay if the direct debit fails.

SnowTiger

joroshe wrote: »

If you choose to pay the full amount, josechungsdooms is right - it is to give you time to pay if the direct debit fails.

Nonsense.

Customers who chose to pay the minimum amount by Direct Debit don't pay ten days before the amount is due. Why do you think that is? Why doesn't RBS/Natwest generously "give [them] time to pay if the direct debit fails"????? :huh:

System

It's card holder's responsibility to ensure they have understand the payment terms and ensure there are funds available for Direct Debit.

Different issuers have different setups.
e.g. Amex usually debit 14 days after the bill date.

I use a future dated bill payment (to pay the working day before the due date) rather than a Direct Debit as I find this more flexible.

planteria

user1168934 wrote: »

This does sound very odd..

unless it is an Amex card? in which case, it is normal.

and it is the card provider that is taking the money 'early', not RBS paying your money to the card provider 'early'.