NewDay Amazon Overlimit Experience

T-G-C

• Amazon Mastercard (NewDay) statement is generated at 23:59 on the 19th October.

• I was not paid until 19th and had to wait until then to credit my Amazon Mastercard. This payment would cover the interest following the end of a 0% period. Contractual minimum was made earlier in the month - no problems there.

• I know how each of my credit cards work in terms of payment processing. Normally when I send funds to NewDay Amazon it is credited instantly. It has been this way since I opened the account - never taken 24hrs.

• Sent funds to my card directly from my bank via Faster Payments on the 19th to cover the interest. I had no concerns about paying last minute because I was expecting it to be credited instantly to my balance, like it always has been in the past like clockwork.

• Checked the app after 00:00 on the 20th to see that I am now overlimit from interest + £12 overlimit fee. The payment I had sent earlier on the 19th had not been credited. Had this been credited, the interest would have been charged, credit funds covered it and would be fine.

• It is a mixed self-argument on whether I am in the wrong. On the one hand, I "should" have sent it at-least 24 hours before midnight 20th for payment crediting but on the other hand, when something works a particular way and has never delayed before, you would not think twice about sending the funds on the 19th.

• I will put up a good fight on the phone with them about this, merely because that money was in their bank account instantly from my bank, not a card payment going through the VISA network as an excuse, so their system being slow at crediting the funds electronically, when it has never done so in 13 months of using them, is not my responsibility.

Even if I was in the wrong for not making the payment 24 hours before the statement date, I will still escalate it as a complaint because those funds were sent instantly to their bank and at the time that I made the payment, my balance was still positive and the statement had not been generated, so that with a system that normally credits it within minutes, gives enough grounds to at-least attempt to get that bad node wiped and refunded.

I never usually credit my balance last minute, it was due to a delayed salary payment, but as explained above, had no worries about being penalized, because the interest was not due to be charged until midnight Saturday and had made the payment earlier on Friday, which is normally instantly credited.

For someone who has a clean credit file with no overlimit, missed or late payment markers, this is a real knock in the teeth. I do accept an element of responsibility, I am not someone who denies part blame, but I had my reasons as explained above for not thinking anything of it not being credited before midnight at the time.

Craig1981

morning
in my experience, payments are only "paid" once cleared onto your account. So i understand what you mean, however when i make payments to any of my master cards or visa, i can see almost immediately the payment showing, however will still be in a pending status for at least 24 hours, so will not list as cleared.

this is the same as if making a purchase on the day your statement is created, as it shows pending, it wont be on that statement....

as you have said, call and try and argue the fact, but it my fall on deaf ears, unless it states in their t&cs that faster payment is cleared immediately to your account?

good luck

[Deleted User]

I'm currently with the FOS over a similar issue.

They claim my payment wasn't "cleared" so I was £1k over the limit (which happened to be the date the CRA report was produced).

They then reported me as 1k over limit to CRAs. They refunded £12 fee and £50 for "my experience with the fraud team" (which wasn't even that bad) but are trying to claim they never accepted liability for their payment antics.

My argument is I couldn't have spent the £1k extra (was a realtime auth) unless funds were available. My balance showed "available to spend", therefore I'm entitled to spend it. They've dragged it out but FOS say they are nearing a decision.

Even if FOS rule against me, I've cost the !!!!!!s £550. Their system is appalling. I'd escalate the complaint. I had several emails with the director of customer services (allegedly) although she was just as unhelpful as the rest of them

T-G-C

Craig1981 wrote: »

morning
in my experience, payments are only "paid" once cleared onto your account. So i understand what you mean, however when i make payments to any of my master cards or visa, i can see almost immediately the payment showing, however will still be in a pending status for at least 24 hours, so will not list as cleared.

this is the same as if making a purchase on the day your statement is created, as it shows pending, it wont be on that statement....

as you have said, call and try and argue the fact, but it my fall on deaf ears, unless it states in their t&cs that faster payment is cleared immediately to your account?

good luck

Thanks for your response.

You are correct that a payment is held in pending for around 24 hours until posted, however, the gimmick here and has never been an issue until now is that although the payment is still marked as pending, it increases your available to spend and thereby would prevent you going overlimit from interest. If it were your minimum payment due and you made a last minute payment, that would be a gamble, but this was only interest and as I said, I was in no doubt or concern since all previous bank transfers were credited to my available to spend instantly.

Just like pending purchases won't put you overlimit, even if your available to spend falls under 0.00, until it is posted, your actual balance is not technically in breach. As interest is instantly posted, another convenient factor for them, there was no grace period to correct anything. It is so interesting how interest can bypass their pending system and be posted straight away yet an instant Faster Payments transfer into their bank account is held in pending. And the worst thing of all... the payment was not even in pending on my transaction list, it was not appearing at all.

Willing2Learn

If it were me, I would contact NewDay, acknowledging the fault was mine alone, as I did not understand that there are sometimes delays with Faster Payments clearing (especially at weekends). I would apologise for the error and request that the fee is waived and that my credit file is not negatively marked. I would be ultra polite and just be looking for these things as a 'goodwill gesture', seeing how this is a 'one off' problem that will never happen again.


Just my thoughts

T-G-C

Willing2Learn wrote: »

If it were me, I would contact NewDay, acknowledging the fault was mine alone, as I did not understand that there are sometimes delays with Faster Payments clearing (especially at weekends). I would apologise for the error and request that the fee is waived and that my credit file is not negatively marked. I would be ultra polite and just be looking for these things as a 'goodwill gesture', seeing how this is a 'one off' problem that will never happen again.


Just my thoughts

Minds think alike. I am going to be the politest of the polite to them on the phone until they refuse to remove it, which I know they will.

Then I’ll have a fiery exchange with them and make myself feel better about it at-least.

I’ve also made Faster Payments on the weekend to NewDay and have gon through instantly this wasn’t the reason for the delay. It has gone through now but too little too late I’m still overdrawn from the fee and are leaving it that way until resolution.

[Deleted User]

There’s no guarantee that payments are received the same day they are sent.

The Faster Payments website even quotes the below:

As a minimum, all financial institutions in the UK must abide by the Payment Services Directive (PSD) - this states that any payments made by mobile, internet or phone banking (including standing orders) must arrive by the end of the following business day at the latest.

A4445

I understand that this doesn’t really help your current situation. it’s never a good idea to spend right up your limit. It’s always a good idea to leave a bit of credit for interest and charges

T-G-C

!!! wrote: »

There’s no guarantee that payments are received the same day they are sent.

The Faster Payments website even quotes the below:

As a minimum, all financial institutions in the UK must abide by the Payment Services Directive (PSD) - this states that any payments made by mobile, internet or phone banking (including standing orders) must arrive by the end of the following business day at the latest.

Yes I understand that and did take my side of responsibility however when you’re used to something working instantly each time you use it, like bank payments being credited instantly, you would not concern over it because you’d naturally feel confident from previous experience. It is known that companies always stretch out the processing time to cover their back.

NewDay apologised for the mixup and removed the charge. They said the system will decide whether to show it on my credit but file but he said as it’s been corrected on the same day it may not publish.

adindas

I got this card a month ago after looking into their ad that I could buy an item I need on Amazon with about £25 less for the first time. Bu it seem wonder What is the advantages of having Amazon CC.

Now I got the card it does not seem to be the case anyone could briefly name the benefit of having Amazon CC ??

radoslaff

adindas wrote: »

I got this card a month ago after looking into their ad that I could buy an item I need on Amazon with about £25 less for the first time. Bu it seem wonder What is the advantages of having Amazon CC.

Now I got the card it does not seem to be the case anyone could briefly name the benefit of having Amazon CC ??

Well, obviously if you spend £100s monthly on Amazon, you can have some cash back in vouchers. Otherwise no real benefit. Just like you I took one about a month ago purely for the benefit of the one off discount. The only reason I haven't cancelled it yet is that I'm too lazy to bother.