Paying statement balance early

Doorstop1

Hello! I have had a bit of an issue with my credit card and am hoping that someone may be able to explain if what has happened should have or not!
I have a credit card which I pay off the statement balance every month by diect debit. Last month it was helpful to me to pay the statement balance early so that by the time my direct debit was due, the statement balance was zero. I was therefore surprised when a direct debit was presented to my bank for the current balance for recent purchses on my account, that is, the total remaining balance, money that is not due to be paid back until the next statement.
I have been in touch with my credit card company and they tell me that this is their policy. I don't understand how they have been able to do this as my understanding is that the direct debit is set up to pay the last statement balance.
All help gratefully received!

molerat

You need to read the statement to check what happens if you pay early when a DD is set up.  Some clearly state that the DD will still be taken - once the statement is generated that is what will be taken irrespective, others will reduce / stop the DD.  It may also be that you left it too late to change what had been set in motion.  Which card is it ?

Asda (JaJa), TSB, Tesco & Santander may change the DD provided there is a clear 4 working days after payment.  LLoyds, Halifax, Virgin & MBNA will take the DD irrespective of payments.

Phoenix72

Different cards have different rules. Some will always take the DD even if a manual payment is made some will adjust it. Yours seems like it will take it regardless - a case of you not realising what you signed up for.

NanookOfTheNorth

Hi Doorstop1

The direct debit charged to your bank account is unlikely to be anything to do with 'recent purchases'.  It will either be your last statement balance, or the difference to what you paid early and the statement balance.

I've paid some balances early in full or in part, and if it's done in sufficient time before the credit card company can amend the direct debit then either a reduced amount or no direct debit takes place.  Thats with Barclaycard.

But some other credit cards I think I've seen comments like paying a statement balance early does not always reduce the direct debit amount.

I would have thought that the extra credit (where your credit card balance is in credit) can be returned to your bank account if you requested it to the credit card company.

LinLui

LLoyds, Halifax, Virgin & MBNA will take the DD irrespective of payments

Halifax say that they do,  but they never have with me. I pay my Clarity Card off after the statement arrives,  but have a direct debit in place in case I ever forget. They've never used the direct debit. So there must be some mechanism that stops the direct debit if its paid early enough. 

la531983

The OP doesnt actually tell us how many days before the DD was taken they paid it on, it may have been too late to stop the DD being presented.

etienneg

I never understand why people complicate matters by paying early rather than just leaving the DD to do its work.

Maybe I'm completely missing something, so I'm asking. You say: "Last month it was helpful to me to pay the statement balance early so that by the time my direct debit was due, the statement balance was zero." Why not just leave the money in the bank, or move it there if necessary, rather than paying it off early? That way there's no possibility of complication.

If I am genuinely missing something essential, please do explain!

la531983

etienneg said:

I never understand why people complicate matters by paying early rather than just leaving the DD to do its work.

Maybe I'm completely missing something, so I'm asking. You say: "Last month it was helpful to me to pay the statement balance early so that by the time my direct debit was due, the statement balance was zero." Why not just leave the money in the bank, or move it there if necessary, rather than paying it off early? That way there's no possibility of complication.

If I am genuinely missing something essential, please do explain!

Maybe they wanted the balance clearing early to increase the available credit limit for a large purchase, doesnt seem unreasonable.

Brie

Maybe they were concerned about the money being spent on something else by another account holder?

LinLui

For me it's an old-fashioned habit - at nearly 67 I think I'm entitled to one old-fashioned trait. You pay your bills when they come in and don't keep debt (poor, working class upbringing). I could leave it, but I don't. As far as I am concerned the direct debit is a safety mechanism for me going doo-lally and forgetting to pay.

born_again

LinLui said:

For me it's an old-fashioned habit - at nearly 67 I think I'm entitled to one old-fashioned trait. You pay your bills when they come in and don't keep debt (poor, working class upbringing). I could leave it, but I don't. As far as I am concerned the direct debit is a safety mechanism for me going doo-lally and forgetting to pay.

While I get the point.
Why have a CC. Just use a Debit card, which negates the need to keep paying bills, as spent money is taken straight from the account.