Late payment due to bank holiday?

YorkshireBoy

redux wrote: »

Remember that a direct debit takes a few days to set up - they are legal obliged to give some notice of when it starts - so make sure you're two weeks or more in advance of the payment date when applying, or else still do the first payment manually.

Often (always?) you need to leave longer. If the statement doesn't say the DD will be called then it won't/can't be...because that's the mechanism for the 10 working day notice required by the DD guarantee.

phillw

Pop1089 wrote: »

I'm new to credit cards and thought that as long as you paid on the day it would be ok, so was surpised to see the charge. Thanks for all your advice, will have a proper read of the t&cs and set up a dd.

Depending on how you pay it can take 4 working days. With three or four non working days over the easter holiday then this adds up.

My advice would be to phone the credit card company and query the charge and say you thought you'd paid in time and ask them if they could reverse it. Say you'll make sure it never happens again by setting up a direct debit to pay in full. When issues like this have happened before to me then the credit card company has usually done to avoid it escalating to a complaint but they told me they won't do it a second time.

Make sure you check that once you set up the DD that they say they are going to take it & then check to make sure they do take it.

YorkshireBoy

phillw wrote: »

Depending on how you pay it can take 4 working days.

Your example is payment by cheque? In this day and age that would be a rarity.

For all other payment methods, my understanding is that the PSRs require payments to credit the destination account by close of business next working day. Depending on what time you initiate the payment this could be either the following working day or the one after. That's a maximum of 2 working days.

Ben8282

isasmurf wrote: »

Is it not unusual for a due by date to fall on a non working day for this very reason? I've never had a due by date fall on a weekend; it has always been on the first working day after the required number of days from the statement in the T&C.

Exactly.
Unless I have misunderstood his meaning, I also disagree with YorkshireBoy's statement about the payment being due by rather than on the due date. If the due date is, for example, 10th May then payment on 10th May is fine; the payment does not have to be made on 9th May in order to be on time.
But as others have said, there is another problem in the length of time taken for the payment to reach the credit card account. This was obviously not a faster payment ....

PeacefulWaters

Ben8282 wrote: »

This was obviously not a faster payment ....

Faster Payments at weekends and bank holidays don't have to be initiated by the bank until the next working day.

It's extremely likely that it was a FP requested by the OP on a bank holiday and initiated the following day, after the due date.

phillw

YorkshireBoy wrote: »

Your example is payment by cheque? In this day and age that would be a rarity.

The last time I phoned credit card company and manually paid with a debit card I'm sure they said you had to allow 4 days. I know that if the payment was due on the tuesday after a bank holiday then if you hadn't paid by the friday then you got caught out.

I don't know if it's quicker now, I switched to exclusively pay with DD a good few years ago.

Council tax is another one where they used to quote four days when you paid by debit card. If you were late twice, because you phoned up on the due date to pay it, then they decided you could no longer be trusted and asked for the entire year up front. I know someone this happened to, they never once told him that paying on the due date with a debit card would be a bad idea.

Direct Debit gets rid of all the issues, if the payment is late then it's not your fault. You can often even get charges refunded if the direct debit bounced due to insufficient funds, if you're persuasive enough.

Ben8282

phillw wrote: »

The last time I phoned credit card company and manually paid with a debit card I'm sure they said you had to allow 4 days. I know that if the payment was due on the tuesday after a bank holiday then if you hadn't paid by the friday then you got caught out.

I don't know if it's quicker now, I switched to exclusively pay with DD a good few years ago.

Council tax is another one where they used to quote four days when you paid by debit card. If you were late twice, because you phoned up on the due date to pay it, then they decided you could no longer be trusted and asked for the entire year up front. I know someone this happened to, they never once told him that paying on the due date with a debit card would be a bad idea.

Direct Debit gets rid of all the issues, if the payment is late then it's not your fault. You can often even get charges refunded if the direct debit bounced due to insufficient funds, if you're persuasive enough.

I agree with what you say about direct debit. But I don't pay a credit cards on the phone by debit card. If I want to pay early before the direct debit is taken I make a faster payment and it always gets there within the 2 hours.