Credit card payments

Dubb_2

Dear Martin Lewis,
I have a current account and credit card account with Santander and remembering an MSE programme some time ago I decided to check my credit card account. Note: Each month I pay off my credit card in full 2 or 3 days before the minimum direct Debit payment due date. In the case I am quoting it says Payment due date 10/09/22 and minimum payment by " Direct Debit " of 11.50 on or immediately after 9/09/22. The full amount was £852.72 and as always, I paid my credit card bill in full on the 05/09/22, 4 x days before the stated due date of the 9/09/22
On checking my current account, I see that the £852.72 was taken from my current account on the 05.09.22 t thus clearing my credit card balance, and then on the 09/09/22 Santander took a further £11.50 from my current account. This made me check back a little and I now see that for the past 4 years the same thing has been happening, every month despite me paying off my credit card in full every month just before the due date? 

In the case above quoted, as always, I always pay off my credit debt in full before the due date, of each month, yet! a couple of days later Santander took out of my current account a Direct debit payment of whatever the minimum payment is requested for that month. In my credit card statement for each transaction, it says "payment received." So where are my additional payments and how do I get these additional payments back.  I feel it goes back further than I have checked having been with Santander since 1981 Abbey National days.

Keep safe

MalMonroe

Hi, 

I'm not sure that Martin will see your post, although stranger things have happened and he is still the Chair, although he sold this site in 2012. 

BUT - if I were in your position, I would make an appointment with a Manager at my local Santander branch without any further delay to discuss this matter. 

It is surprising that the monthly charges have been taken for the last four years without you noticing but whatever, you don't think that they should have been and Santander should have notified you each time if they were taking additional payments. 

If you are not paying by direct debit, and it doesn't seem that you are, I would definitely set up a direct debit arrangement, also as soon as possible. That way, if there are any disputes about payment dates or amounts, you can challenge Santander about them. 

I have a Sainsbury's credit card which I use regularly and the direct debit is set to clear the balance each month. I'm not charged any fees and I don't pay any interest. Also I don't have to worry about which days to pay the bill. It really does make financial life much easier.

If possible, you could also try to get the Santander app on your phone, or at any event, check your online Santander credit card account.

But I'd definitely be wanting to have a discussion with someone at Santander, see if I could recoup some of those charges. It is definitely worth a try.

fatbelly

You've set up a direct debit for the minimum payment. That's good.

But what you need to do is to deduct the minimum payment and pay that sum.

You are starting each month with a credit equal to the minimum payment for the previous month.

At the end of your bill each month you see the net balance and the minimum payment for that particular month.

You haven't lost any money and have never (by the sound of it) missed a minimum payment.

molerat

You are paying manually too late to stop the direct debit, you need to make manual payments at least 5 working days before the DD is to be collected. You have not made "extra payments" to reclaim, each one simply reduced the balance of the next statement. 

If you make an additional payment to your account 5 or more working days before your Direct Debit collection date shown overleaf, the amount collected by Direct Debit will be adjusted to take account of this payment. However, if an additional payment to your account is less
than 5 working days before the Direct Debit collection date shown overleaf the original Direct Debit amount will still be taken.

MorningcoffeeIV

MalMonroe said:

But I'd definitely be wanting to have a discussion with someone at Santander, see if I could recoup some of those charges. It is definitely worth a try.

It's definitely not, as there are no charges to recoup.

The OP has simply made payments that are offset against their balance.

400ixl

If the amount being taken is the minimum payment then as molerat says you are most likely paying the manual payment to close to the DD date and when the DD process kicks off a number of days before the payment is taken you do not have a zero balance, so the minimum payment is requested.

[Deleted User]

MalMonroe said:

Hi, 

I'm not sure that Martin will see your post, although stranger things have happened and he is still the Chair, although he sold this site in 2012. 

BUT - if I were in your position, I would make an appointment with a Manager at my local Santander branch without any further delay to discuss this matter. 

It is surprising that the monthly charges have been taken for the last four years without you noticing but whatever, you don't think that they should have been and Santander should have notified you each time if they were taking additional payments. 

If you are not paying by direct debit, and it doesn't seem that you are, I would definitely set up a direct debit arrangement, also as soon as possible. That way, if there are any disputes about payment dates or amounts, you can challenge Santander about them. 

I have a Sainsbury's credit card which I use regularly and the direct debit is set to clear the balance each month. I'm not charged any fees and I don't pay any interest. Also I don't have to worry about which days to pay the bill. It really does make financial life much easier.

If possible, you could also try to get the Santander app on your phone, or at any event, check your online Santander credit card account.

But I'd definitely be wanting to have a discussion with someone at Santander, see if I could recoup some of those charges. It is definitely worth a try.

1) They are not charges, it's taking the DD as instructed 
2) Why on earth would you want to make an appointment at a bank physically let alone to speak to a manager? There is no reason at all (and most people don't have time to take a day off work to go during the bank hours) - you can email, ring, use online chat etc

You really should read posts properly before replying and giving advice which is completely incorrect 

DullGreyGuy

Different companies have different approaches to DDs and other payments

1) Stop the DD no matter what you've paid
2) Reduce the DD by the amount you've paid
3) Take the DD anyway

DD is a multiday process too so depending on when and how you pay it may or may not trigger their response anyway.

For me, 2 and 3 are acceptable approaches, you can adjust for 3 by paying the balance less the DD. Only item 1 I think is really questionable as your minimum payment could be £100 and you decide to pay off £25 early but then the DD doest take any you get a non-payment mark against your record and a charge.

Dont waste your time with an appointment, you now know how it works and can react. 

born_again

Dubb_2 said:

Dear Martin Lewis,
I have a current account and credit card account with Santander and remembering an MSE programme some time ago I decided to check my credit card account. Note: Each month I pay off my credit card in full 2 or 3 days before the minimum direct Debit payment due date. In the case I am quoting it says Payment due date 10/09/22 and minimum payment by " Direct Debit " of 11.50 on or immediately after 9/09/22. The full amount was £852.72 and as always, I paid my credit card bill in full on the 05/09/22, 4 x days before the stated due date of the 9/09/22
On checking my current account, I see that the £852.72 was taken from my current account on the 05.09.22 t thus clearing my credit card balance, and then on the 09/09/22 Santander took a further £11.50 from my current account. This made me check back a little and I now see that for the past 4 years the same thing has been happening, every month despite me paying off my credit card in full every month just before the due date? 

In the case above quoted, as always, I always pay off my credit debt in full before the due date, of each month, yet! a couple of days later Santander took out of my current account a Direct debit payment of whatever the minimum payment is requested for that month. In my credit card statement for each transaction, it says "payment received." So where are my additional payments and how do I get these additional payments back.  I feel it goes back further than I have checked having been with Santander since 1981 Abbey National days.

Keep safe

1st thing go back through the statements & balance up the monthly balance & payments. Odds on that £11.50 is either min DD being taken (but odd that it is same amount each month) & is deducted from next balance. Or this is some form of insurance protection to cover sickness etc. So in that case there should be a £11.50 debit on statement, rather than credit.

MrFrugalFever

The way I interpret your post is that you are paying your statement in full by bank transfer then overpaying by the minimum payment amount via DD, which simply comes off the live balance.

I do not believe you have any reason to complain and certainly haven’t been ‘charged’ so nothing to claim back. Bank transfer your statement in full 6 working days prior in future.

phillw

MrFrugalFever said:

I do not believe you have any reason to complain and certainly haven’t been ‘charged’ so nothing to claim back. Bank transfer your statement in full 6 working days prior in future.

Or set up a full balance direct debit.
Or cancel the minimum balance direct debit.
Or reduce the payment by the minimum payment.

But no money should have been lost, they don't just take a direct debit and then say "right the balance is now zero", they add all the debits and credits up.