Declined Direct Debit

r2015 · 6 December 2017 at 2:43PM

I have a Capital One credit card that I had displaced so it had not been used for over a year, I had been using my Nationwide card.

I was sent a new Capital One card because the old displaced one had expired and decided to use it as my Nationwide card was near it's credit limit as I have just booked a cruise.

My payment date for the Capital One card was 3rd December and I had thought that it would be paid by direct debit as I had one set up.

I just got an email today 6th Dec saying the direct debit had been declined and on contacting my bank I was told that it was cancelled because it had not been used in over 13 months.

I have now paid the credit card using a debit card but will I incur any charges from Capital One for this and should I contact them now or wait until my next statement?

YorkshireBoy · 6 December 2017 at 2:46PM

At least one, and possibly two, £12 fees...one for the late payment, and another for a returned direct debit.

You may be able to ask for some leniency, depending on whether the statement said they would collect by DD and also the date the bank cancelled it. Did the statement say they'd collect by DD? And when was the last time you used the card prior to this?

[Deleted User] · 6 December 2017 at 2:46PM

You may get a returned payment or late fee. Contact them now to see if you can nip it in the bud.

It's a known issue with DDs, but not one that is very well communicated to customers, so they may cut you some slack.

molerat · 6 December 2017 at 3:01PM

If you had not used the card / had a DD taken in the past 12 months then likely the DD expired. Have you checked with your bank account ?

Did the statement state that the payment would be collected by DD ?

r2015 · 6 December 2017 at 5:46PM

Did the statement state that the payment would be collected by DD ?

Yes.

If you had not used the card / had a DD taken in the past 12 months then likely the DD expired. Have you checked with your bank account ?

I did and it had.

YorkshireBoy · 6 December 2017 at 6:13PM

When the bank cancels a DD under the dormancy rules they notify the DD originator via an ADDACS report.

So your bank should have notified Capital One. Further, Capital One should have then done* one or both of the following:

1. Written to you telling you the DD was cancelled.
2. Not put the message on your statement saying that the DD would be collected.

File complaints with both institutions, copying each other in, asking them to put you back in the position you'd have been in had the matter not occurred. This should include both financial position, and also your credit file status report.

Or, sit back, pay the fine, and take it on the chin.

What will you do?

* See the 4th bullet under 'Automatic Updates' in the link above.

chattychappy · 7 December 2017 at 12:12PM

Really this is all a nonsense.

DDs are sold as making your life easier. No missed payment charges if you "forget" to pay. But if you sign up to them, there are other things you mustn't forget including situations such as this where you can end up with double charges.

DDs date back to an "offline" era when the alternative was cheques in envelopes which took time and could get lost. Personally I use faster payments (or occasionally pay by debit card). I can choose how much to pay and when to pay it.

northwalesd · 7 December 2017 at 7:58PM

I had a DD pay out in November that hadn't been used since March 2016, so they don't always lapse. As YorkshireBoy says, you really ought to get notified if it's cancelled.

phillw · 8 December 2017 at 12:25AM

r2015 wrote: »

I have now paid the credit card using a debit card but will I incur any charges from Capital One for this and should I contact them now or wait until my next statement?

I would have phoned to make the payment and handled this at the same time. Most credit card companies will accept cancelling any charges and interest the first time you miss a payment as long as you setup a DD to pay the balance in full and pay off the debt.

The sooner you do it the better, tell them you're worried about the charges and the effect on your credit file. I'd apologise for not noticing the DD had been cancelled & you will look out for it more carefully in the future.

Then complain to your bank that they cancelled it and you want them to confirm there won't be any bank charges due to them cancelling the DD.

chattychappy · 8 December 2017 at 9:15AM

phillw wrote: »

Most credit card companies will accept cancelling any charges and interest the first time you miss a payment as long as you setup a DD to pay the balance in full and pay off the debt.

My experience is that for a first, even second offence, they will cancel charges and don't really care how you will pay in the future.

Declined Direct Debit

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