Credit card full direct debit amount not taken

The_Don_13

MorningcoffeeIV said:

Some do this, so you just need to choose a card provider that doesn't reduce the DD. Job done.

Many people complain about the full DD being taken, so they want the sort of lender you currently use.

I didn't know such cc cos existed, after my two that have used for decades (hasn''t been an issue til this year!) seem to follow same practice. Any ideas which ones operate that don't reduce the DD pls? Not sure what criteria I would need to search for! Tks

Belenus

The_Don_13 said:

Anyone else think this practice is crackers?....the full DD amount from previous months statement should be claimed by the bank etc each month, regardless of any refunds, manual balanc transfers etc.

I don't think it is crackers as I prefer credit cards that do it that way. It means that the cash stays in my account earning interest for longer.

If you want the full statement balance paying every time then you could make a manual payment every time the direct debit is reduced.

The_Don_13

Belenus said:

The_Don_13 said:

Anyone else think this practice is crackers?....the full DD amount from previous months statement should be claimed by the bank etc each month, regardless of any refunds, manual balanc transfers etc.

I don't think it is crackers as I prefer credit cards that do it that way. It means that the cash stays in my account earning interest for longer.

If you want the full statement balance paying every time then you could make a manual payment every time the direct debit is reduced.

I think it is confusing & untransparent that it is done this way. Full balance claimed, if requested, should mean just that. Other factors eg refunds in the same 30 days, after previous months statement, which are not  in fact reducing the previous months statement balance, but just zeroing the same original amount debited in that same current month, should not change/lower the DD amount of the previous month. Any interest earned on money still in current account etc is paltry these days on a few hundred pounds for 3/4 weeks max.

The_Don_13

MorningcoffeeIV said:

Some do this, so you just need to choose a card provider that doesn't reduce the DD. Job done.

Many people complain about the full DD being taken, so they want the sort of lender you currently use.

Re first line, such as pls?

TadleyBaggie

MorningcoffeeIV said:

Some do this, so you just need to choose a card provider that doesn't reduce the DD. Job done.

Sainsburys always take the full statement balance, as I found out a few years ago when I did a balance transfer away of £1400 a full two weeks before the DD was to be taken to only find they still took the statement balance. Left me £1400 in credit I wasn't expecting.

Brie

The only card I've got that will change the DD amount is Santander.  M&S & MBNA don't.  Doesn't matter if I get a refund or make a manual payment the DD as stated on the statement still gets claimed.  Not sure what would happen if it took me into a credit as these are very active cards. 

I do know that with Santander I do end up with a small credit usually as the card gets used just for travel out of the UK.  But that's when I can't be asked to figure out exactly what date I need to pay.  So say I owe them £100 and they're going to take a minimum DD of £5.  I don't want to pay off the £100 too early as I'd rather have the money in my bank account doing me good.  So I pay it close to the date the DD will be taken.  If I am early enough the DD of £5 doesn't get taken.  If I'm not too early I'll pay the £100 & they'll take £5 and the account will be in credit.  So the next month I'll have to contrive to buy something for say £6 which will mean I will have a balance of £1 on my next statement which I know they will take in full as £5 is their minimum DD.  If I don't make a small purchase the credit will linger there for months as they never willingly refund a credit balance unless you ask for it. 

kaMelo

I'm not sure about that @Brie, I've had many credit cards over the years and I cannot think of one who didn't take refunds credited into consideration and reduce the DD accordingly, certainly AmEx operate this way, before that Asda credit card operated the same too. 
I can't think of a good reason why anyone would want it to operate like the OP requires, or at least any good reason why reducing the DD accordingly is a bad idea, still I'm sure the OP is not alone. Personally I'd rather have the money in my bank account for another month.

Brie

kaMelo said:

I'm not sure about that @Brie, I've had many credit cards over the years and I cannot think of one who didn't take refunds credited into consideration and reduce the DD accordingly, certainly AmEx operate this way, before that Asda credit card operated the same too. 
I can't think of a good reason why anyone would want it to operate like the OP requires, or at least any good reason why reducing the DD accordingly is a bad idea, still I'm sure the OP is not alone. Personally I'd rather have the money in my bank account for another month.

I think that it will depend on the timing of the refund as well as how your DD is set up.  If a refund comes in the day before the DD should be paid then it's too late to do an adjustment to the amount being claimed.  But if a refund comes in a couple of week before the DD is due and the DD is set up for the full balance then obviously it would need to be adjusted down.  

What annoys me is that online if I make a payment the expected DD amount is often reduced to zero but as stated in the T&Cs and as I've seen in practice the DD as shown on the actual statement still gets taken in full.  It's confusing.

AmityNeon

The_Don_13 said:

Most people (certainly those who never want to pay interest charges & responsibly budget etc, live within means etc etc) have their DD set up to pay the full DD amount from the previous statement. When that fails to happen, it is almost bound to lead to cashflow issues.

Please explain how someone who responsibly budgets and lives within their means would have any cashflow issues. When spending on a credit card, the cash balance of your bank account does not reflect the amount you have available to spend. If you have two month's worth of purchases to pay in a single month due to an unusually large number of refunds (or it's a new card), your responsible budgeting method whilst living within your means should have no problems with clearing 0% debt whenever it's demanded. Considering you haven't mentioned any longer term promotional 0% periods, your everyday cash covering credit card spending should always be easily accessible.