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

joroshe

sorry snow tiger you are incorrect. Full payers do not pay interest therefore if the direct debit fails they will be charged interest if the payment does not reach the a/c by the due date. That is why the d/d is taken early to allow the payer to make a payment to avoid interest charges if the d/d fails. If you phone RBS/Tesco Bank this is the answer they will give you. If you pay the minimum payment and the d/d fails you would have been paying interest anyway.

agrinnall

planteria wrote: »

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'.

I read it as being a RBS issued card, so it would be them taking the DD - we have no idea what bank the OP has their payment account with.

SnowTiger

joroshe wrote: »

sorry snow tiger you are incorrect.

What did I write that's "incorrect"?

joroshe wrote: »

Full payers do not pay interest therefore if the direct debit fails they will be charged interest if the payment does not reach the a/c by the due date. That is why the d/d is taken early to allow the payer to make a payment to avoid interest charges if the d/d fails. If you phone RBS/Tesco Bank this is the answer they will give you. If you pay the minimum payment and the d/d fails you would have been paying interest anyway.

That's a nonsense answer.

Why would the Direct Debit fail?

Superscrooge

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

It might be worth asking RBS why they take the direct debit 10 days in advance of the due date and then letting us know what their explanation is?

I've never had an RBS credit card, but I've just had a look at my old credit card statements and noticed all my credit cards either collect the DD on the statement due date or the working day before. eg. If payment due date is on a Monday they might collect the DD on the Friday before.

The date they will collect the DD is always shown on the statement.

planteria

maybe you're right agrinnall. hopefully saskay can clarify for us by telling us who the current account and card account providers are.

Superscrooge wrote: »

I've never had an RBS credit card, but I've just had a look at my old credit card statements and noticed all my credit cards either collect the DD on the statement due date or the working day before. eg. If payment due date is on a Monday they might collect the DD on the Friday before.

that's my experience too. other than with Amex, as above.

joroshe

snow tiger - if there was no funds in the a/c to pay the direct debit ...........................

SnowTiger

joroshe wrote: »

snow tiger - if there was no funds in the a/c to pay the direct debit ...........................

LOL.

Why wouldn't there be funds in the account?

This excuse of yours is extremely poor.

joroshe

I didn't actually provide an excuse. if you contact any of the banks that is the answer you will get. And sorry cant answer your question as to why people dont have money in their accounts to pay their direct debits. I'm not saying what the banks do is correct but that is why they take the funds early

Thrugelmir

The T&C's are very clear.

If you set up a Direct Debit for the minimum or a fixed amount, the payment is claimed 25 calendar days from the statement date or shortly afterwards.

If you set up a Direct Debit for the full amount, the payment is claimed 15 calendar days from the statement date or shortly afterwards.

patanne

I've only got 2 credit cards but they both say on the monthly bill that the amount will be taken by direct debit on a stated date. Whilst the date moves around a day or so each way the money is always taken on the date they say.