Cahoot holding me to pay off full amount on card
arewebeinghad
Posts: 9 Forumite
in Credit cards
I have a Cahoot Credit Card, and I had set it up to pay off the full amount on the card each month. I have just received a statement and I went online to change this to a minimum payment so I could choose how much to pay off this month. Cahoot are telling me that I cannot do this, and I have to pay off the full amount on the card and they wont change anything until the next statement. It is in there t's and c's etc. I asked if anyone had complained about this and they said not to their knowledge but they then gave me a script on it, which seems to me like they were prepared for the conversation!
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PS. The change to the minimum payment was confirmed on 29th October, but on the 13th November they took the full amount. They say that because this is correct as per their t's and c's, the Direct Debit Guarantee does not apply.0
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So what do the T's and C's say?0
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They're correct. The statement would have advised the amount that was to be taken and they would have breached regulations if they had taken a different amount.
The DD guarantee only applies if they take an amount not instructed.0 -
There has to be a notice period on changing a direct debit amount (notice given to you by them, by law), so even if you want to change it you need to be earlier than their notice period.0
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So that means if you ever want to pay less than the full amount (and you are already paying the full amount) then you have to tell them before they issue their statement, otherwise there is no room for flexibility.0
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Correct. And normally a couple of weeks before the statement.
If you're looking for more variable payments, just set up a minimum, or always pay manually.
DDs are suited for regular, consistent payments.0 -
If there is time you could cancel the DD and pay a lower payment. And should in no way be penalised for this. But yes DD payments are set at the statement date these days.
It is easiest for you to set DD to min and pay whatever extra you want on the date you see it come out of your account. Of course this means paying attention to your account.0 -
Thanks for clarifying, but this certainly caught me out, so others may want to take heed.0
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If there is time you could cancel the DD and pay a lower payment. And should in no way be penalised for this. But yes DD payments are set at the statement date these days.
It is easiest for you to set DD to min and pay whatever extra you want on the date you see it come out of your account. Of course this means paying attention to your account.
Yes that is absolutely the best way of doing it and its the way I've done it for years, have cards set up for minimum payment DD and over pay at my leisure, no chance of penalties for missed/late payments, just gotta remember to keep eye on account and don't fall foul of new 'Persistent debt' rules, job done!0 -
There is a problem with their online messaging because there are no up front statements that say that direct debit amount changes cannot take effect until the next statement date, and there is certainly no messaging to say that if you want to reduce your payment before your statement date you would have to cancel your direct debit. There is just a retrospective message to say that the change is confirmed and will also be confirmed and take effect on your next statement.
I did call to suggest that the online messaging could be better and if there was anything they could do to help, but I was told that their online statement is correct and no-one had ever complained about this before. I was therefore very surprised when I was asked not to interrupt whilst a long statement on this was read back to me. (They really don't get calls about this?) The handler did not want to discuss this further.
Seems to me Cahoot don't want to improve their messaging about this.0
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