Santander 123: change from minimum to full repayment DD skips a cycle

intalex

Hi,

I recently came to near the end of an 18-month interest free purchase period on a Santander 123 Credit Card, repaid all the "historical" debt in full, then changed the DD instruction from minimum repayment to full repayment at least 2 weeks prior to generation of the next statement (so I can continue using it for non-GBP spend due to "clean" FX conversion).

However, to my surprise the next statement has failed to take into account the change I had made (online with OTP via SMS) and is still showing that only the minimum payment will be taken by DD.

When I called them, their advisor told me this is the correct process and that the instruction to change DD takes effect in the next statement cycle, effectively skipping a cycle. Clearly, for someone who doesn't check their statements in detail and doesn't know about this process of skipping a cycle, there would be a hit in the form of interest charges, and therefore commercially convenient for Santander.

Just thought I'll reach out and ask if other credit card providers follow a similar process, or whether the advisor I spoke to tried to pull a fast one on me?

As a minimum, just thought I'll increase awareness of this, if indeed this is normal practice, given the potential to catch people out.

Just wondering, what if I had changed the DD bank account to pay from, would that also skip a cycle before taking effect? That would be too dangerous.

grumbler

None provider can do this instantly, but I think most take less time than 2 weeks.

What's "clean" FX conversion?

intalex

Thanks, I think over 2 weeks' notice when it's an electronic change should be more than adequate.

"clean" FX conversion means at the inter-bank rate and free of FX rate loading or transaction charges.

Ballard

I will need to pay mine in December and will pay it manually so that there's no chance of missing it. I strongly suspect that you would have been advised when it would take effect when you input the change.

intalex

Ballard wrote: »

I strongly suspect that you would have been advised when it would take effect when you input the change.

The process involves changing from "Minimum" option to "Full" option on the CC repayment options screen, then click "Save", receive (by SMS) and enter One-Time Passcode (OTP), and that's it. Can't recall any indication of timelines or effective date of the change in the final confirmation - does anyone know for sure if there is?

It was after all the same DD, with just the repayment option changing. Can't see how it needs more than 2 weeks to take effect.

Definitely worth watching out for!

No_6

Had this when I changed from min to full payment but the nice Santy guy
told me it wouldn't happen b4 the next DD payment.
So made a manual payment to cover.