Is it a legal requirement for credit card companies to offer direct debit facility?

Satellite_John

Is it a legal requirement that credit card companies must offer the facility to set up a direct debit either paying off the full or minimum balance each month?

Thanks

King_Of_Fools

I would not have thought so - most choose to offer it as it saves them money.

jonesMUFCforever

No it is not but then it is not a legal requirement for you to continue using that card. If it does not suit go somewhere else that does offer D/D.

CLAPTON

i'm curious, which card doesn't allow DD?

Satellite_John

CLAPTON wrote: »

i'm curious, which card doesn't allow DD?

I don't know of any card which does not allow direct debit - that is why I was curious as to why the all offer this - if it was out of concern for customers, fear of regulation, or because of regulation that already exists.

Does anybody know?

Milarky

Satellite_John wrote: »

I don't know of any card which does not allow direct debit - that is why I was curious as to why the all offer this - if it was out of concern for customers, fear of regulation, or because of regulation that already exists.

Does anybody know?

Probably because it is convenient to them too - only a small percentage of automatic payments are liable to be missed because of insufficient funds etc. Remember that they didn't used to advertise DDs very much (hoping to catch customers out!) but it was there. I recall having to ask for a full balance DD as the only one mentioned in the small print was for the minimum payment - implying (inaccurately) that they would not collect the full amount themselves.

Also, as the DD scheme got popular in the 90s for paying for more things (like bills) people would raise this with them.

Finally credit card issuers are often 'banks' themselves - what sort of bank would give the excuse that it didn't want to offer this payment service?

jay78

ejones999 wrote: »

No it is not but then it is not a legal requirement for you to continue using that card. If it does not suit go somewhere else that does offer D/D.

Again making assumptions without know the facts? Do you ever stop, he was just asking a simple question.

jonesMUFCforever

jay78 wrote: »

Again making assumptions without know the facts? Do you ever stop, he was just asking a simple question.

What is your problem?
I ANSWERED THE QUESTION :mad:
Or can you not read?

inmypocketnottheirs

ejones999 wrote: »

What is your problem?
I ANSWERED THE QUESTION :mad:
Or can you not read?

Don't worry folks. Typical Banker mentality.

Take a chill pill.

Stompa

Satellite_John wrote: »

I don't know of any card which does not allow direct debit - that is why I was curious as to why the all offer this - if it was out of concern for customers, fear of regulation, or because of regulation that already exists.

Does anybody know?

There was a time when Barclaycard didn't allow DD payments - which was the main reason I switched to another card. That was quite a few years ago though, and I imagine they must accept DD payments now.

barak

Satellite_John wrote: »

Is it a legal requirement that credit card companies must offer the facility to set up a direct debit either paying off the full or minimum balance each month?
Thanks

In many years, I have never come across a Credit Card issuer that does not offer this facility, but no doubt somebody has!

If you want to pay in full, as Martin says on the main site [it really is worth reading, folks!], some Credit Card issuers, if requested, send a DD authority form saying that it will only pay the minimum each month. As he says, just cross out "minimum" and replace it with "in full".

You must, of course, check when you get your next account that the DD has been set up correctly and it really is going to be paid in full on the date stated.