Credit card company lowered my direct debit - unusual?

db2016

I have a fluid credit card which was a BT card / used for this. Ends in few months and I set up a 200 pm dd to clear it in time and I'm on track for that, as well as with some overpayment I make regularly as n when.

Got email this morning. They've lowered it to 110. No reason given. 

Being a lil cynical, is this normal? It's almost as if they want me to take 2x as long to pay it back, so I get hit with the non promo / free bt rate?? 

Any advice? 

Ebe_Scrooge

Sounds very odd.  Presumably you've got the DD set up for a fixed amount per month, as opposed to minimum payment?

Have you checked the outstanding balance?  I'm just wondering whether, with the ad-hoc additional payments you've been making, is there only £110 left to pay?

db2016

Ebe_Scrooge said:

Sounds very odd.  Presumably you've got the DD set up for a fixed amount per month, as opposed to minimum payment?

Have you checked the outstanding balance?  I'm just wondering whether, with the ad-hoc additional payments you've been making, is there only £110 left to pay?

Nope there's more than that left. And yes fixed at 200 and has been since opening. 

I'm on track to clear it by keeping it at that. With owing them nothing or very minimal. 

Like I say it's as almost as if they realise this and want me to "miss" the promo / free time n go over my plan and thus owe them interest. 

I've been spot on with them, no charges, no missed payments or any red flags from my side. Bt. Transfer in, and it's just been paying that down. Every month. 

Ebe_Scrooge

That does sound very odd.  The two simplest options would seem to be, either phone them up and ask why they've lowered the amount.  Or else just keep an eye on the account, put some money aside and make sure you pay it off via an ad-hoc payment just before the promotional rate expires.

[Deleted User]

Even simpler one would be, if they allow it, to change the DD back up again, I know not all providers do it but Barclays and Santander both do on their BT cards

SuperAllyB

Could it be that a fixed DD expires after a certain period of time, and you've reverted to the contractual minimum payment? No reason, other than it's possible, for this suggestion.

Dobbibill

Does your notification that all future payments are changing or just this month?

Have you made an overpayment 3 or more days before your DD is due? This would reduce the DD amount. 
If other overpayments have been within a few days of the DD then it may not have impacted it previously.

You may need to contact them to get to the bottom of it. 

 

Marchitiello

Dobbibill said:

Does your notification that all future payments are changing or just this month?

Have you made an overpayment 3 or more days before your DD is due? This would reduce the DD amount. 
If other overpayments have been within a few days of the DD then it may not have impacted it previously.

You may need to contact them to get to the bottom of it. 

 

This is likely with all CC that are set to amend DD amount based on pre payments (some CC does not allow that and will charge whatever DD was indicated on the statement).

edit: just checked Fluid T&C (Op’s you should really review them as there is also a Booster Payment option that may suitable for you”:

Q: How do additional payments affect my Direct Debit?

If you make an additional payment, three or more working days before your payment due date your Direct Debit amount will reduce by the amount you have paid. We will send you an alert advising you if your payments have changed your Direct Debit amount through the month.

[Deleted User]

Marchitiello said:

Dobbibill said:

Does your notification that all future payments are changing or just this month?

Have you made an overpayment 3 or more days before your DD is due? This would reduce the DD amount. 
If other overpayments have been within a few days of the DD then it may not have impacted it previously.

You may need to contact them to get to the bottom of it. 

 

This is likely with all CC that are set to amend DD amount based on pre payments (some CC does not allow that and will charge whatever DD was indicated on the statement).

edit: just checked Fluid T&C (Op’s you should really review them as there is also a Booster Payment option that may suitable for you”:

Q: How do additional payments affect my Direct Debit?

If you make an additional payment, three or more working days before your payment due date your Direct Debit amount will reduce by the amount you have paid. We will send you an alert advising you if your payments have changed your Direct Debit amount through the month.

All this is moot as it doesn't apply to the OP

OP has a balance of say £2400 over 1 year BT 0%
He sets a DD to take £200 a month for 12 months
Fluid themselves have changed the DD to £110 for no reason, leaving him £90 a month short of payments that would clear the balance in time to pay £0 interest

I doubt there is a conspiracy to try and make him pay interest by not clearing the balance in time but a mistake, but they should not be overriding his pre-set DD limit

Marchitiello

Deleted_User said:

Marchitiello said:

Dobbibill said:

Does your notification that all future payments are changing or just this month?

Have you made an overpayment 3 or more days before your DD is due? This would reduce the DD amount. 
If other overpayments have been within a few days of the DD then it may not have impacted it previously.

You may need to contact them to get to the bottom of it. 

 

This is likely with all CC that are set to amend DD amount based on pre payments (some CC does not allow that and will charge whatever DD was indicated on the statement).

edit: just checked Fluid T&C (Op’s you should really review them as there is also a Booster Payment option that may suitable for you”:

Q: How do additional payments affect my Direct Debit?

If you make an additional payment, three or more working days before your payment due date your Direct Debit amount will reduce by the amount you have paid. We will send you an alert advising you if your payments have changed your Direct Debit amount through the month.

All this is moot as it doesn't apply to the OP

OP has a balance of say £2400 over 1 year BT 0%
He sets a DD to take £200 a month for 12 months
Fluid themselves have changed the DD to £110 for no reason, leaving him £90 a month short of payments that would clear the balance in time to pay £0 interest

I doubt there is a conspiracy to try and make him pay interest by not clearing the balance in time but a mistake, but they should not be overriding his pre-set DD limit

How it is moot? OP stated that they make regular top up payments in addition to the DD. The key may be that they usually top up within 3 days of DD collection or immediately after but before next statement is produced.

According to their T&C if OP made a payment 3 days or more before the DD was collected they would send an alert (the email OP received) telling him about the reduced DD.

DD amount could week be minimum, fix or full balance, above T&C would equally apply.

[Deleted User]

Marchitiello said:

Deleted_User said:

Marchitiello said:

Dobbibill said:

Does your notification that all future payments are changing or just this month?

Have you made an overpayment 3 or more days before your DD is due? This would reduce the DD amount. 
If other overpayments have been within a few days of the DD then it may not have impacted it previously.

You may need to contact them to get to the bottom of it. 

 

This is likely with all CC that are set to amend DD amount based on pre payments (some CC does not allow that and will charge whatever DD was indicated on the statement).

edit: just checked Fluid T&C (Op’s you should really review them as there is also a Booster Payment option that may suitable for you”:

Q: How do additional payments affect my Direct Debit?

If you make an additional payment, three or more working days before your payment due date your Direct Debit amount will reduce by the amount you have paid. We will send you an alert advising you if your payments have changed your Direct Debit amount through the month.

All this is moot as it doesn't apply to the OP

OP has a balance of say £2400 over 1 year BT 0%
He sets a DD to take £200 a month for 12 months
Fluid themselves have changed the DD to £110 for no reason, leaving him £90 a month short of payments that would clear the balance in time to pay £0 interest

I doubt there is a conspiracy to try and make him pay interest by not clearing the balance in time but a mistake, but they should not be overriding his pre-set DD limit

How it is moot? OP stated that they make regular top up payments in addition to the DD. The key may be that they usually top up within 3 days of DD collection or immediately after but before next statement is produced.

According to their T&C if OP made a payment 3 days or more before the DD was collected they would send an alert (the email OP received) telling him about the reduced DD.

DD amount could week be minimum, fix or full balance, above T&C would equally apply.

It's moot because the DD being lower will no longer clear the balance in time to avoid interest. If OP set a specific amount on the DD themselves, Fluid should not take it upon themselves to change it when doing so will result in the balance no longer being cleared - why has it suddenly happened when OP was regularly making extra payments? They should leave the DD alone