Watch out for minimum payment deduction

jnray

I’m someone who pays off my credit card balance every month or so I thought. A late review of a backlog of monthly statement details has shown I was still paying interest on each month’s balance due. This is with Barclaycard Platinum visa. Now at the top of each statement, it clearly states “We will collect your direct debit payment on “date stated” or immediately after.

I have a direct debit to pay the minimum sum and I always paid the whole monthly credit balance MINUS the minimum sum as soon as I received the statement. Big mistake. They then do not make the direct debit deduction if I pay any amount greater than the minimum sum before that due date. This is despite the affirmative statement that they will deduct the money. I have complained and they are refunding all my interest payments and I will in future make the full payment on receipt of statement. My Tesco credit card takes the minimum payment by direct debit regardless of what or when I pay in before the due date. They used to have the same system as Barclaycard until I complained many years ago and to my surprise Tesco altered their whole payment system as a result of my complaint. I have asked Barclaycard to at least amend the wording on their statement so as not to confuse others. So do check your statements for this potential anomaly. So different cards use different criteria when deducting minimum payment via direct debit.

stevenhp1987

This is generally the case with most cards that they deduct whatever you've paid from the Direct Debit amount. So if you ask for minimum, then pay the minimum, no Direct Debit will be taken.

I must note that when you check your balance online for your Barclaycard after paying it will say "You've paid £123.45. Your Direct Debit won't be collected this month." under the heading "Pay your bill" which is pretty central. - so you know the Direct Debit won't be coming out!

Lorian

set up the direct debit to pay the full amount.

Carrot007

stevenhp1987 wrote: »

This is generally the case with most cards that they deduct whatever you've paid from the Direct Debit amount.

I have had a number over the years that say the DD will still be taken or reduced unless the balance has been paid off.


Still not taking it does seem more common.


If I don't intend to pay in full (yes evil I know!) but want to make an extra payment I just wait untill the DD is taken and pay it that day! (You can do it a couple before too as it is requested a few days in advance but I looking online is easier).

[Deleted User]

Just setup a DD to make the full payment.

Problem solved

cjv

Did you set your DD up over the phone? When you do it online it states:

"If you make any extra payments, your Direct Debit will only collect the difference to your minimum payment amount. If your extra payment is made within three working days of your payment due date, then we won't update your Direct Debit amount."

chattychappy

Or don't use DDs at all.

Just pay what you like, when you like, without anything being "taken" (or not).

bengal-stripe

jnray wrote: »

So different cards use different criteria when deducting minimum payment via direct debit.

Yes, some cards adjust or cancel the DD if you have made a payment earlier, others take the notified DD regardless. Whichever way they operate, will be clearly shown on the statement.

Santander: If you make an additional payment or a refund is credited to your account more than 5 working days before your payment due date, the amount collected by Direct Debit will be adjusted to take account of this payment. The original Direct Debit amount will still be taken if an additional payment or refund is credited to your account less than 5 working days before the payment due date.

MBNA: Your regular Direct Debit payment will always be taken, regardless of any additional payment you choose to make.

That's pretty clear, isn't it?

PixelPound

It is always clear which is why you should always check your statement. I suppose the problem is with e-statements and online banking people may not actually download heir statement but look at online summaries that often just state what the DD will be and when taken without the caveat that is on the full statement.

Shakin_Steve

I pay the full statement balance on my Barclaycard. On Friday I received a refund of £16 from PayPal and this amount immediately came off next months payment.
I made a payment to my MBNA card, which I do not pay in full, earlier today and received a confirmation email thanking me and informing me that they would still take the agreed dd amount next month.
KYC. For banks that's know your customer. For us it's know your cards.