Direct debit cancelled by bank. Now I get missed payment on credit card

born_again

Funqi said:

kempiejon said:

Yup, I found this some years ago. Really annoying not much you can do. My CC has text alerts so I got a reminder the DD hadn't paid and made a debit card payment keeping me out of default.

In fact today I checked my current saved payees with first direct and I see I have lost details to a few mates and only have one of my nieces' payment details so I'll have to se those up again next month for her birthday.

I did get a text message to inform me that the payment failed. I checked my app and called them straight away and paid the whole balance, but they still charged me £12 and told me that they still have to report the missed payment to the credit agency.

If it's the 1st time it's happened & you explained why, then usually they will refund charge & not make the error.
Maybe ring back again & ask nicely given this is the 1st time will they refund the fee. Would be a heartless rep that would not.

VXman

who runs the credit card? in my experience cc companies are quite good at refunding charges and interest as a gesture of good will if it is an unusual one off event and you ask them nicely.

EarthBoy

I am actually surprised the CC company didn't close the account after 13 months of not using it.

I'm not surprised; I've got credit cards which haven't been used for a lot longer than 13 months. I've never known them to get closed without notice. What typically happens is that the bank writes to you asking if you still want the card. If you do, you need to ring them up or use the card by a certain date and the account will stay open. If you don't ring them, or you don't use the card by the given date, then it gets cancelled.

Hoenir

CliveOfIndia said:

Hoenir said:

Originators of direct debits will automatically cancel their held mandates if it's not used for 13 months. 

That's true - kind of.  It always used to be the case that a DD was removed if unused for 13 months, standard practice across the board.  During Covid, the dormancy period was increased to 24 months.  When things got back to normal, some banks kept it at 24 months, some reverted to 13 months.

As a business practice many originators will cancel the direct debits from their own records after 13 months.  Nothing to do with the bank. 

Chris_in_Ashtead

I had something similar happen with Nationwide. I used my Nationwide credit card for the first time in a couple of years and although my card account showed that it was due to be paid by DD I was aware of the dormancy policy and called Nationwide to be sure it would go through. They confirmed it would be paid by DD from my Nationwide current account.

So come the due date the DD gets rejected and they charge me a penalty fee and interest. I call them again telling them that I had called before and been given an assurance it would go through. Fortunately, they saw things my way and were very helpful, refunded all the charges and reinstated the DD.

In my case it was both a Nationwide credit card and bank account, so maybe that helped in my favour. It might have been a different story had there been different banks involved.