Post balance transfer

Dorislondon

Hi,

little lost here! I have transferred my credit card balance yesterday. It has cleared onto the new card today and my old card balance is showing as NIL. success! 

My query is what happens with my direct debit on my old card. The next one is due on Friday and is currently showing the full amount. I’m with Halifax for the old card and even when you made extra payments this didn’t reduce the direct debit. I appreciate interest lay accumulate so will my full amount of direct debit be taken on Friday? If so I will then potentially be in credit can this happen? Or do I need to cancel the direct debit? 

Thanks

CliveOfIndia

It depends.  Usually, direct debits are "batched up" ahead of time.  For instance, the computer systems will have a batch run on Monday evening, which will calculate all the DDs that are due on Friday.  Then come Friday, those DDs are activated.  If you had a balance of £1000 on Monday evening then £1000 will be taken on Friday - even if you did the BT on Tuesday.

The problem is, each bank will be different.  Some will have a batch run every evening, some every week, some every other day, whatever.

But it shouldn't be too much of a problem.  If you do end up in credit then you can either give them a call and request a refund to your bank account, or else just spend the credit on the card.  Depending on how much you're in credit by, a lot of banks will automatically issue a refund anyway.

You could leave the DD in place for now (and next month to catch any trailing interest if applicable), let them take the full amount if that turns out to be the case, then request a refund.  Assuming, of course, that you have enough money in your current account to cover the potentially full amount being taken.

Or you could cancel the DD, but then just keep a close eye on your statement next month and make sure you manually pay any trailing interest that may have accumulated.

WillPS

Cancel the DD. 

If you don't want the Halifax card, close it down - either way, pay the next/final statement off manually when it arrives.

daivid

I'd cancel the DD then phone/live chat Halifax to make sure there is nothing further to pay once that is clear close the card if you have no further use - you may need to wait a month from clearing the balance.