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  • FIRST POST
    • Mutton Geoff
    • By Mutton Geoff 12th Dec 19, 11:49 AM
    • 1,878Posts
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    Mutton Geoff
    Amex direct debit con
    • #1
    • 12th Dec 19, 11:49 AM
    Amex direct debit con 12th Dec 19 at 11:49 AM
    I've got several cards in my wallet and had Amex cards of one sort or another for the last couple of years. I've just switched to the Avios Amex and set up a direct debit as this wasn't automatically done at card sign up (unlike every other card I have).


    The most important issue I noticed is that my statement date is the 26th and payment date 21st of following month. When I set up the direct debit, it wants to draw the money on the 9th. I took this up with Amex and they said it was a safety feature "in case a member's direct debit failed and they then had the opportunity to pay before the date to avoid charges".


    I think this is a poor excuse and raised a complaint to Amex since they are drawing direct debits 12 days before the due date, unlike every other card I have that takes the direct debit on or very close to the due date.


    The interest free period between purchase and payment is therefore only 13 days, not "at least 25 days after your statement date" as stated in their T&Cs if you choose the safety of a "pay balance in full by DD option".


    I'd never noticed Amex collecting the money so early before, so if you rely on the interest free period for money management, a black mark for Amex in pulling their direct debits so far ahead of the due dates.
    Compensation/Refunds - 4,655 | Stooz Profits - 7,636 | Quidco - 4,365 | Tax Avoidance - 107,000
    All with a big thank you to Martin and MSE.com from Mutton Geoff!
Page 1
    • stevenhp1987
    • By stevenhp1987 12th Dec 19, 12:19 PM
    • 897 Posts
    • 714 Thanks
    stevenhp1987
    • #2
    • 12th Dec 19, 12:19 PM
    • #2
    • 12th Dec 19, 12:19 PM
    If you really care about the 12 day difference then pay it off manually.

    Always been this way with Amex. If you're worried about the cashflow then you shouldn't be spending above your means!
    • Penelopa.Pitstop
    • By Penelopa.Pitstop 12th Dec 19, 12:23 PM
    • 648 Posts
    • 247 Thanks
    Penelopa.Pitstop
    • #3
    • 12th Dec 19, 12:23 PM
    • #3
    • 12th Dec 19, 12:23 PM
    I had issue with it too. I setup DD for minimum payment and that is taken one week before payment due date, instead of 2 weeks before when full payment was taken. I usually pay the card in full just after minimum payment is made, to make sure I don't forget and miss deadline.

    It's not about cash flow, it's about maximising benefit of using credit card and keep your own money in the account as long as possible.

    • Mutton Geoff
    • By Mutton Geoff 12th Dec 19, 12:35 PM
    • 1,878 Posts
    • 2,225 Thanks
    Mutton Geoff
    • #4
    • 12th Dec 19, 12:35 PM
    • #4
    • 12th Dec 19, 12:35 PM
    If you really care about the 12 day difference then pay it off manually.

    Always been this way with Amex. If you're worried about the cashflow then you shouldn't be spending above your means!
    Originally posted by stevenhp1987

    I never spend above my means but as PP says, it's about using OPM (other people's money) wisely. See my sig for track record on stoozing when that was commonly available.


    I just think it's a cheek for Amex to take your money two weeks early when no other card (that I have) does it. Multiply that by the number of cardholders then Amex are not really playing ball with their own T&Cs.
    Compensation/Refunds - 4,655 | Stooz Profits - 7,636 | Quidco - 4,365 | Tax Avoidance - 107,000
    All with a big thank you to Martin and MSE.com from Mutton Geoff!
    • nick74
    • By nick74 12th Dec 19, 1:16 PM
    • 402 Posts
    • 329 Thanks
    nick74
    • #5
    • 12th Dec 19, 1:16 PM
    • #5
    • 12th Dec 19, 1:16 PM
    Yes I found this when I started using an Amex Cashback card. I have a number of different cards set to be paid in full by DD around the first of the following month to maximise use of the interest free period. Amex is the only one I don't have on DD for this reason, and once I receive the Amex statement I manually set up a faster payment for the due date instead.
    Last edited by nick74; 12-12-2019 at 1:24 PM.
    • BoGoF
    • By BoGoF 12th Dec 19, 3:23 PM
    • 5,888 Posts
    • 5,941 Thanks
    BoGoF
    • #6
    • 12th Dec 19, 3:23 PM
    • #6
    • 12th Dec 19, 3:23 PM
    Quite simple really.....don't pay by DD if it's such an issue for you or if it's such a 'con' then why aren't you taking your business elsewhere?.

    Amex don't really care what other cards do or don't do. And yes I do have an Amex that I pay off in full every month.
    • Gary_Dexter
    • By Gary_Dexter 12th Dec 19, 3:37 PM
    • 7,282 Posts
    • 4,844 Thanks
    Gary_Dexter
    • #7
    • 12th Dec 19, 3:37 PM
    • #7
    • 12th Dec 19, 3:37 PM
    Amex have ALWAYS done this.

    Don't like it - make a manual payment yourself on or before the payment due date.

    It's really not much of an issue as you're making it out to be.

    You say "other people's money" - it is Amex's money you're borrowing...
    • Ben8282
    • By Ben8282 12th Dec 19, 4:13 PM
    • 4,766 Posts
    • 2,625 Thanks
    Ben8282
    • #8
    • 12th Dec 19, 4:13 PM
    • #8
    • 12th Dec 19, 4:13 PM
    I took this up with Amex and they said it was a safety feature "in case a member's direct debit failed and they then had the opportunity to pay before the date to avoid charges".

    Yes I was told this when they first introduced the practice of reducing the period between the statement date and the direct debit date on the charge cards in the 1990's.

    I understand the principal of not spending if you don't have the money to pay. However you do expect a reasonable period of notice before a large direct debit is to be taken. Having the money to pay and having the money sitting there in the current account from which the direct debit is to be taken are two different things.

    What happened with me, all those years ago pre-online banking, was that over the years they progressively reduced the period between the statement date and the direct debit date for the charge card until it was reduced to I think 7 days. They then stopped posting the statements in Brighton and started posting them in Fort Lauderdale. Of course the inevitable happened ….

    I appreciate that these days it is now possible to check online as soon as the statement is produced and know the direct debit amount at that point.

    With regard to the credit cards, I do think that the entitlement to maximum 56 days interest free credit should be respected, which it is not if the direct debit is taken in advance of the actual payment due date. The reason stated is not really valid as there is the implication that the direct debit may be returned unpaid which some people may find a bit insulting. The direct debit is to their benefit as it is an added reassurance for them that they will get the money and I don't think that cardholders should be penalised for setting up full balance direct debits.
    Last edited by Ben8282; 12-12-2019 at 4:31 PM.
    • LobsterMemory
    • By LobsterMemory 15th Dec 19, 11:06 AM
    • 302 Posts
    • 217 Thanks
    LobsterMemory
    • #9
    • 15th Dec 19, 11:06 AM
    • #9
    • 15th Dec 19, 11:06 AM
    I was thinking, oh for goodness sake, this must work out about 6p / month, then calculated for me it was getting on for 60p. That's 7 pa!

    What's the threshold for Martin to start a campaign?
    • Penelopa.Pitstop
    • By Penelopa.Pitstop 16th Dec 19, 7:16 AM
    • 648 Posts
    • 247 Thanks
    Penelopa.Pitstop
    For me, it would be around 25 per annum, per 1000 on statement every month. That's why I'm paying manually now, to keep the cash in interest earning account as long as possible.

    • RG2015
    • By RG2015 16th Dec 19, 8:42 AM
    • 1,779 Posts
    • 1,143 Thanks
    RG2015
    NatWest also do this so I set up a future payment for the due date. I posted on this a couple of years ago and was generally told that the banks can choose their own terms.

    For me, it would be around 25 per annum, per 1000 on statement every month. That's why I'm paying manually now, to keep the cash in interest earning account as long as possible.
    Originally posted by Penelopa.Pitstop
    Penelopa, 25 per annum per 1,000 for 144 days (12 days per month for 12 months) is an interest rate of 6.33% pa. Where are you getting 6.33%?
    Last edited by RG2015; 16-12-2019 at 8:45 AM.
    • Penelopa.Pitstop
    • By Penelopa.Pitstop 17th Dec 19, 7:20 AM
    • 648 Posts
    • 247 Thanks
    Penelopa.Pitstop
    I assumed 2 weeks, and rounded it to half a year of interest on 5% account.

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