Paying correct amount by DD

Mr_Singleton

My normal credit card bill is between £500-£800 per month. I use a DD to pay it off in full each month.

In early December with Christmas expenses and some foreign travel my bill showed as just over £5200. As I was going to be out of the country I decided to pay the bill in full over the counter as I was in the bank doing other things. Fair enough.

Thing is the credit card company on the next billing cycle still debited £5200 from my linked bank account despite the amount for that bill having already been paid in full i.e. the amount owed was actually £0.

Yes, they refunded me but it was still a palaver. Surely on the day the amount is due they should check the outstanding balance due and DD that amount rather than a figure that could be weeks out of date.

My CC company said they were right and I was wrong...... strange as it never used to be like this.

[Deleted User]

Many cards will still take the DD, regardless of interim payments.

Always worth checking statements to understand how your payments work.

agrinnall

As zx81 says, some do it this way and others reduce the DD by any payments already made (Nationwide for instance), you need to know which method is employed by the particular card issuer rather than make a guess.

I was a bit surprised to find it's not TfL's fault though

TadleyBaggie

Sainsburys do this too, I balance transferred off it two weeks before the DD was due and they still took £1400. I just used as normal and used up the credit balance in a couple of months.

Mr_Singleton

Yes, I do check but apparently it changed in October from we’ll take what you owe to we’ll take your statement balance/min payment regardless of what’s actually owed.

Wonder what the rationale behind the change is.

Mr_Singleton

agrinnall wrote: »

I was a bit surprised to find it's not TfL's fault though

Well, now that you mention it part of the reason the bill was so large.....

Mr_Singleton

TadleyBaggie wrote: »

I just used as normal and used up the credit balance in a couple of months.

No point in asking if Sainsbury’s bank paid you 18.9% for the privilege of borrowing your money! :beer:

[Deleted User]

A lot of CC company’s do this now as standard

YorkshireBoy

Mr_Singleton wrote: »

Yes, I do check but apparently it changed in October from we’ll take what you owe to we’ll take your statement balance/min payment regardless of what’s actually owed.

Wonder what the rationale behind the change is.

I believe it's been introduced to try and ensure problem debt is repaid sooner, and was pushed by the regulator(s)?

No point in asking if Sainsbury’s bank paid you 18.9% for the privilege of borrowing your money!

They can't, as the credit card arm of Sainsbury's Bank are not licenced deposit takers. Worse than that, for TadleyBaggie, is that I don't think they'd enjoy section 75 protection if spending, in effect, their own money?

Mr_Singleton

Interesting.... but surely it would have the opposite effect i.e no point in paying at the start of the billing cycle to reduce daily interest if it gets taken out at the end of the month again

Anyway it matters not I’m now aware for future reference.

As for the bit on Section 75, thanks for the heads up, never thought of that but sometimes find my CC in the black.

No_6

@ Mr S
It's a bit like looking at
' In The Night Garden' on Cbeebies

now which one are YOU ?