direct debit administration fee

neilmcl

unholyangel wrote: »

But anyway, direct debits don't cost anywhere near £40 to process. So that is probably why they've acknowledged it was unlawful.

Yes, totally agree.

Nick_C

neilmcl wrote: »

Yes, totally agree.

If an annual fee is being collected in 12 instalments, then as well as bank charges you have the admin cost of checking that all the instalments are received and reconciled. Forty quid could easily be the cost to the business of processing and checking a dozen payments.

Plus there might be a higher cost for providing credit.

I've just had my car insurance quote. It will cost an extra £33.60 if I want to pay by Direct Debit - 12 instalments - instead of making a one off credit card payment.

We just don't know enough about OPs transactions to say whether the charges were unlawful or not.

neilmcl

Nick_C wrote: »

If an annual fee is being collected in 12 instalments, then as well as bank charges you have the admin cost of checking that all the instalments are received and reconciled. Forty quid could easily be the cost to the business of processing and checking a dozen payments.

Plus there might be a higher cost for providing credit.

I've just had my car insurance quote. It will cost an extra £33.60 if I want to pay by Direct Debit - 12 instalments - instead of making a one off credit card payment.

We just don't know enough about OPs transactions to say whether the charges were unlawful or not.

Most of that extra £33.60 will be the cost of credit.