BEWARE!! - Nationwide credit card direct debit

~Chameleon~

I am absolutely fuming with Nationwide's policy regarding changing direct debit details :mad:

My DD was due to be paid today and as my 0% BT period is also due to end this statement period I changed my DD from minimum to full payment after last month's payment so the balance would clear today.

Checked the accounts this morning and discovered payment hasn't been made so called Nationwide CS to be told that because I changed the direct debit last month it won't be paid this month and will restart again next month!!!! WTH??????? :eek:

So now I've had to make today's payment via debit card and I'll be slapped with a late payment fee plus interest on next month's statement as a result :mad: :mad: :mad:

Nowhere does it state on the website that if you change your direct debit it will not be paid the following month. I am so angry with them and thought I should warn everyone else about this too as I've never come across such stupid policy on any other account!

queen_of_leon

that's really unfair...no wonder you're fuming! i just cleared my egg card but phoned them first, they advised me to make a debit card payment well in advance of the direct debit date then allow the normal dd to come out to cover any accrued interest. i will end up with a credit balance but i think it's always worth over paying a little just incase.

~Chameleon~

queen_of_leon wrote: »

that's really unfair...no wonder you're fuming! i just cleared my egg card but phoned them first, they advised me to make a debit card payment well in advance of the direct debit date then allow the normal dd to come out to cover any accrued interest. i will end up with a credit balance but i think it's always worth over paying a little just incase.

With Egg as long as you allow at least 5 clear working days before your DD is due to be paid you can change it no problem, and as many times as you like!

I've just trawled through Nationwide's T&C and can find nothing regarding this stupid policy. I've also just logged into my account to see what it says on the page where you change DD details, in case I missed some minute print somewhere, and it states:

If you are making changes to your Direct Debit instruction within 7 working days of your payment due date, we cannot guarantee that this change will be reflected in the next payment due.

This is a completely misleading statement and totally contradicts what CS told me earlier. I changed the DD payment amount a whole month before payment was due, therefore there should be no reason whatsover it wasn't paid.

Any cynical person might think they'd done this on purpose to prevent me clearing the balance at the end of 0% in an attempt to fraudulently take money from me :mad: :mad: :mad:

queen_of_leon

i agree wholeheartedly!

it may be worth writing to them, pointing out that you stayed within the t&cs yet still were penalised. it's unfair that you now have this default on your file and you want it removed.

Rafter

Understandable if you only gave them a few days notice, but you would think in a whole month their systems could deal with it.

I'd write a letter of complaint asking for all fees and interest to be waived since their 'policy' would be deemed totally unfair and unreasonable to most consumers and therefore the ombudsman would be likely to rule against nationwide if it went that far!

R.

~Chameleon~

I called them back and spoke to a different CS advisor. I quoted their own T&C and stated that nowhere can I find anything to state the DD would be suspended for a month following a change of detail and she was most sympathetic and said she deals withthis query several times a week, yet management still fail to do anything about it :mad:

She has made a note to refund any charges and interest that appear on next statement and also mentioned that if you use phone banking to change DD they will advise you to make a manual payment for your next payment, but it's when you do it online you get caught out like I did :rolleyes:

I wonder whether this might be something Martin would be interested in taking up with Nationwide to demand they change their policy, or at least make people aware this will happen if you use online banking

YorkshireBoy

~Chameleon~ wrote: »

She has made a note to refund any charges and interest that appear on next statement...

What about the (possible) late payment marker on your credit file? Can they also prevent that being reported/remove it if it is?

I wonder if the problems arise due to the DD guarantee, and their interpretation/adoption of it? They must give you at least 10 days notice of the date and amount to be taken, and the normal mechanism for this is your statement. If your statement was produced BEFORE you made the change request (highly likely with a 56 day interest free period) then that would explain it. However, I agree adequate warning should be given if they are to cancel the DD for one month.

Have you checked your "Important: Confirmation of direct debit instruction" letter? Maybe their policy is explained in there?

We were discussing this change of DD recently on the stoozing site, and I stated I'd never mess with a DDI for the very reason you've posted about here. IMO, it's far better to ascertain the providers treatment of additional payments (ie will they still collect the minimum?) and leave the minimum payment DD in place.

I also NEVER cancel a DD until the card is marked as settled with the CRA's.

Good luck.