New Day John Lewis Credit Card Direct Debit query.

Belenus

I held a John Lewis Partnership Credit Card for many years. John Lewis closed the Partnership Card so I now have a John Lewis New Day card.

I have a direct debit set up with New Day to pay off the statement balance in full so I do not incur interest charges.

The New Day terms state:

How do additional payments affect your 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 of the payment.

Do credits for previous purchases count as additional payments?

My statement dated 8 November totalled £1,600 due to be collected by direct debit on 24th November. That £1,600 included a charge of £400 from late October for a purchased item that proved faulty and has been returned.

A few days ago I received a refund of £400. That now shows as a credit on my account.

Will New Day reduce my direct debit payment by £400 to £1,200 or will they debit the full £1,600?

It is next to impossible to communicate with New Day as they have no email and never answer the phone.

It doesn't matter much to me but I would prefer that £400 stayed in my savings account for a month longer.

Thanks

[Deleted User]

They will take the £1600 most likely but the £400 credit will square it off (might put you in credit) but you would need to read the terms and conditions

AlwynP

I agree that it’s difficult to contact anybody at New Day.  I have disputed a payment to what appears to be an either incompetent or dishonest merchant trading as ‘Not in the Dog House’.  Having failed to deliver dog food they promised a refund a month ago.

I raised a dispute online and today I rang 0330 1759829 and was told that I would be contacted via their messaging service.  I had to go through half a dozen hoops to prove my identity and was eventually told that they had ‘contacted the merchant regarding your case, so merchant advise that they would provide the refund unlit 31/05/2023.  I presume that last word should be until and hope it means by the end of the month.  I reluctantly agreed to wait until the end of the month.

Getting refunds from credit card companies in such circumstances used to be straightforward.  On a previous occasion they refunded the money immediately reserving the right to reinstate the payment if the merchant could prove they had fulfilled the contract.

As the credit card company controls both sides of the transaction until the payment due date that seem sensible.  This transaction is now well past that date.

I had always understood that one of the benefits of credit cards is that money can be recovered in such cases.  I now wonder if PayPal may not be a more reliable payment method.

ManyWays

AlwynP said:

I had always understood that one of the benefits of credit cards is that money can be recovered in such cases.  I now wonder if PayPal may not be a more reliable payment method.

You will have much more trouble with exercising Section 75 rights against Paypal, see https://www.moneysavingexpert.com/credit-cards/PayPal-Section75/

And if you think New Day is hard to communicate with, you have probably never had to deal with Paypal.