Direct debit keeps failing and both banks blame each other. What to do? (Amex > Chase)

492800

I signed up for an AmEx Gold (UK) card in April and set up a direct debit (DD) with my Chase account. The first payment went through, but all subsequent DDs have failed. I've been manually paying since then.

Here’s what happened:

1. Both AmEx and Chase blame each other for the issue.
2. Last month, I set up a new DD and contacted AmEx a week before the payment was due to confirm it was active. They assured me it was.
3. Despite this, the DD failed again. AmEx shows: "Payment received," followed by "Returned Payment" soonafter and "Payment could not be processed, contact your bank."
4. Nothing appears on my Chase account, as if no attempt was made.

Neither bank will take responsibility or explain what went wrong.

Questions:

• How can I figure out why these DDs keep failing?
• Is it possible that banks don’t know the reason for DD failures?
• Any advice on how to escalate this or resolve it would be appreciated.

PloughmansLunch

Chase has never worked for me with Amex, so instead I schedule payments from my credit card/stooze savings in Chase into a current account the day before they are due, and have the Amex DD collected from the current account. 

492800

Hmm, odd that. Thing is that Chase is a current account, and they managed to take a single payment many months ago. All others have failed.

Vortigern

Amex always takes DD payments too early. I pay Amex on the due date with a scheduled payment from my Chase Saver.

born_again

492800 said:

I signed up for an AmEx Gold (UK) card in April and set up a direct debit (DD) with my Chase account. The first payment went through, but all subsequent DDs have failed. I've been manually paying since then.

Here’s what happened:

1. Both AmEx and Chase blame each other for the issue.
2. Last month, I set up a new DD and contacted AmEx a week before the payment was due to confirm it was active. They assured me it was.
3. Despite this, the DD failed again. AmEx shows: "Payment received," followed by "Returned Payment" soonafter and "Payment could not be processed, contact your bank."
4. Nothing appears on my Chase account, as if no attempt was made.

Neither bank will take responsibility or explain what went wrong.

Questions:

• How can I figure out why these DDs keep failing?
• Is it possible that banks don’t know the reason for DD failures?
• Any advice on how to escalate this or resolve it would be appreciated.

It may have been active at Amex end, but not set up in time to take payment from Chase. 
Some CC provider when set up in the way you have  will only take payment in the next statement period. As system can not feed in amount required to be taken if a statement has already been produced.

492800

Thanks for replying.
But, I am not so sure.. my 1st DD was set up on 3rd April, and a DD was taken on the 25th April.
All DDs failed after then
A new DD was set up on 25th October and failed on the 1st December

born_again said:

It may have been active at Amex end, but not set up in time to take payment from Chase. 
Some CC provider when set up in the way you have  will only take payment in the next statement period. As system can not feed in amount required to be taken if a statement has already been produced.

born_again

If the DD failed, does it show as debit & crediting at Chase end, or simply no amount shown to be taken.

If you have another bank account, set DD from there & see if it takes OK. Could be a issue in communication between the 2 parties.

A DD Amex request the funds from Chase (be aware as others said it is taken several days before due date) so do make sure you have the funds in the Chase account to pay.
All Chase do is send the amount Amex have requested (subject to balance being sufficient to pay)

492800

born_again said:

If the DD failed, does it show as debit & crediting at Chase end, or simply no amount shown to be taken.

If you have another bank account, set DD from there & see if it takes OK. Could be a issue in communication between the 2 parties.

A DD Amex request the funds from Chase (be aware as others said it is taken several days before due date) so do make sure you have the funds in the Chase account to pay.
All Chase do is send the amount Amex have requested (subject to balance being sufficient to pay)

Chase say they have no sign at all of requests being made, so yes i feel it is an AMEX issue, yet they just blame Chase. 

born_again

I would raise a complaint against Amex citing that Chase say no payment requested.

Bedan1988

I believe many of the problems relate to the fact that Amex no longer accept new DDs from a joint account. (I had this info in a letter from them)
This wasn’t even known to the first chat agent I spoke to but was later acknowledged after he checked. 

I feel this should be made clear in MSE’s product description as a negative..

sausage_time

Bedan1988 said:

I believe many of the problems relate to the fact that Amex no longer accept new DDs from a joint account. (I had this info in a letter from them)
This wasn’t even known to the first chat agent I spoke to but was later acknowledged after he checked. 

I feel this should be made clear in MSE’s product description as a negative..

I don't understand that comment for a couple of reasons.

• This link on Amex UK site makes it clear that joint accounts are OK for Direct Debits.  "If you are not the only person authorised to make payments from the account, we will require a Direct Debit mandate form with a signature from any other authorised parties.", but for most joint current accounts either party can authorise (unless you have set up a joint account differently)
• Chase UK do not currently issue joint accounts anyway.