Cancelling Direct Debit on Amex card?

Vancat

Hi
I paid off my AMEX card and closed account today by phone even though it still had a LOB 2.9% amount outstanding. It was only a few hundred, and I wanted rid of the “available credit” limit of £7K.I’d never used the CC since the original BT of £5k in 2002.
I asked CSA about residue interest, (less than £1, she thought) and paid that too, so hopefully that will clear everything.
So, is it safe to cancel the Direct Debit now? I don’t want them taking the minimum payment in March, as it will put me in credit, and I also don’t want them trying to take a few pence, and whacking a bounced DD charge/late payment on me if it’s cancelled!

Also, as I’ve got a OneAccount, it would make sense to get the Virgin card 15 months 0%, and BT into the OneAccount, even after a BT fee. Any idea how long should I wait to apply; I want the Amex to show as settled first.
Thanks
VC

Tirian

Yes, cancel the direct debit. If there is anything to pay on the card they will have to send you a bill for it, even if it's only a few pence (although, if the new T&C that I got through the post today from Amex is effective immediately, they will now charge a minimum of £1 even if the interest amount is less than that).

If it turns out there is a few pence to pay, you can then just do a one off payment and that will be the end of it.

jonesMUFCforever

I would advise caution and say no until the next statement has been produced.
If you cancel the direct debit but they try and collect the £1 or whatever is outstanding you will be hit with an unpaid D/D by Amex - which in turn will accrue interest and it will get messy.

Voyager2002

The magic words that you needed were "settlement figure". If you ask them for a settlement figure, they calculate a sum of money that, if you pay it that day or within a time limit they give you, will exactly clear what you owe them, including accrued interest.

I suggest you contact Amex again and ask them to work out a settlement figure, which is likely to be a few pence. Then pay it immediately. At that point you can safely cancel your direct debit.

Vancat

Thanks for the replies....I've never had an unpaid DD or a bank charge/cc charge in my life....and I'd be really hacked off to get one now! I think I'll take ejones999's advice, and leave the DD until I get a completely nil statement...just hope they don't take the normal minimum payment of approx £18, seeing as I've paid the lot off already, plus an extra pound!
I really should have asked them when I closed the account...I may call them again tomorrow and see what they say. The CSA did say "Make sure you cancel any DD's or standing orders, but I assumed she meant things which were paid out of the Amex card (there were none), not payments in.
BTW, I was offered "A good deal" to stay...I didn't ask what it was, as I wasn't interested in keeping it.
VC

Tirian

Vancat wrote: »

Thanks for the replies....I've never had an unpaid DD or a bank charge/cc charge in my life....and I'd be really hacked off to get one now! I think I'll take ejones999's advice, and leave the DD until I get a completely nil statement...just hope they don't take the normal minimum payment of approx £18, seeing as I've paid the lot off already, plus an extra pound!
I really should have asked them when I closed the account...I may call them again tomorrow and see what they say. The CSA did say "Make sure you cancel any DD's or standing orders, but I assumed she meant things which were paid out of the Amex card (there were none), not payments in.
BTW, I was offered "A good deal" to stay...I didn't ask what it was, as I wasn't interested in keeping it.
VC

You are entirely correct. The only way you could get hit with an unpaid direct debit charge for a DD to pay off a credit card is if your bank tries to make the payment requested through the direct debit and there are not enough funds in the account to cover it. Amex cannot and will not charge you simply because you decide to pay off a bill by another means.

The CSA was probably trying to ensure that you didn't accidentally put the card into credit by leaving a fixed DD or a standing order that would pay money onto the card after it had been cleared.

It is not actually possible to create a direct debit or a standing order from a credit card. The only regular payment arrangement that can be set up to pay out from a credit card is a 'continuous payment authority' (and that would have to be cancelled by the organisation that you have given the CPA to, not by the credit card company themselves.

If you leave the DD open, then you are more likely, not less likely to encounter the problem you are trying to avoid! The direct debit instruction is administered by your bank - if you cancel it, then it will not pay out. Nobody can charge you for that, nor can Amex "attempt to take the payment" if you have instructed your bank to cancel the direct debit. All it means is that it is then your responsibility to settle any bill that Amex send you via some other means.

ejones999 is trying to be cautious and helpful, but is wrong! Amex cannot charge you for an unpaid direct debit, only your bank can do that. Amex can only charge you if they send you a bill and it goes unpaid.