Problem setting up a standing order

Billy_Dandy

Now that I have some defaults, I thought that I may as well start making some payments to my self-managed DMP.

I spoke with Barclaycard, and they said that they would be keeping my account ‘in house’ for the time being.

I told them I would commence making payments. They ‘insisted’ on a budget form being completed – which I ignored. I tried to set up a standing order with the bank account details provided. I was unable to. I spoke with my bank, HSBC and was told that ‘banking rules/policy’
(I can’t remember which) prohibit using standing orders to pay a credit card bill. It must be a Direct Debit.

I ended up making a manual payment. Has anybody else encountered this?

It’ll be a pain having to do manual payments every month.

I am guessing that if the debts are sold on, it may be possible to pay the debt purchaser by SO.

Thank you for your constructive advice.

fatbelly

That's a new one to me. Sounds wrong.

ManyWays

It does sound wrong, but a quick google turned up this which sounds related: https://forums.moneysavingexpert.com/discussion/6293272/have-some-banks-lost-the-ability-to-let-us-manage-our-money/p4

Brie

I'm thinking of a word starting with B.  basically you can pay a bill anyway you want.  they may not like it but they'll be happier getting money by a SO than not at all.  Tell HSBC that you have an alternative way of paying and that's that.  

Rob5342

It sounds wrong to me, I've paid credit cards by standing order before. If HSBC don't allow it you could open a new account and try with that (Monzo for example) 

tigergambit

@Billy_Dandy Has this actually defaulted? Barclaycard are usually very quick to do so and also quick to sell on ( normally to PRA who will accept a SO).

Billy_Dandy

Thank you to all who have replied. Much appreciated.

@tigergambit
Hi, yes, it has defaulted.
Default date (Credit Karma/Transunion) was 27th December. I spoke with Barclaycard representative on the phone who said that the account was on hold for 30 days and it was likely that they would keep it 'in house'. 

Billy_Dandy

Brie said:

I'm thinking of a word starting with B.  basically you can pay a bill anyway you want.  they may not like it but they'll be happier getting money by a SO than not at all.  Tell HSBC that you have an alternative way of paying and that's that.  

@Brie
Thanks Brie. It is HSBC who are the problem. They are preventing me setting up a standing order to pay Barclaycard. I'm going to send a complaint to the relevant department stating precisely what you suggested - I can only pay by standing order. 

tigergambit

@Billy_Dandy Did you try setting up the SO on their App or by phone?

I've never heard of a bank questioning what a SO is for providing you have funds in place. If you did try to do it by App then it's going to be simpler and less hassle to just switch banks as you will probably need to set up a few SOs.

Billy_Dandy

tigergambit said:

@Billy_Dandy Did you try setting up the SO on their App or by phone?

I've never heard of a bank questioning what a SO is for providing you have funds in place. If you did try to do it by App then it's going to be simpler and less hassle to just switch banks as you will probably need to set up a few SOs.

@tigergambit
I tried it initially using the app. There was not the usual little 'switch' that you click to say it is a standing order (as opposed to a one off payment). I then tried using 'online' (PC) banking. Same. I rang them and they initially couldn't fathom it out. They rang me back with this 'discovery' that it is banking policy or banking rules...

I can't change banks unfortunately. It may be that if the debts are bought, I may be able to create the SO's for the new owners.   

Rob5342

You dont have to change banks, you could open another account that you pay the dmp standing orders from and have a standing order from your main account into that. With somewhere like Monxo it only takes 10 minutes to open an account. Personally I have absolutely no time for banks, if they don't do things the way I like I'll just forget about them and use somewhere else that does.