Credit Card company quietly cancelled direct debit
Space_Cadet_Smith
Posts: 15 Forumite
in Credit cards
Reviewed my online statement yesterday and found a £12 charge, contacted them by email, and they told it's a late payment fee.
Problem is, I pay in full, by direct debit every month, there should never be any late payment fees.
I haven't cancelled any direct debit, so they must have, but they still say I am liable for this charge.
Are they right?
Problem is, I pay in full, by direct debit every month, there should never be any late payment fees.
I haven't cancelled any direct debit, so they must have, but they still say I am liable for this charge.
Are they right?
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Comments
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Ask them to explain how the DD was cancelled (submit a SAR if necessary).0
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Have you been using the card? After a year or so DD's will stop working.
Also unless you have a really bad card or bad history I'm sure they will refund you this time. Do you not check your bank to ensure the DD leaves on the day it should? Regardless of having a DD it is ultimately still your responsibility to ensure payment0 -
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Space_Cadet_Smith wrote: »Reviewed my online statement yesterday and found a £12 charge, contacted them by email, and they told it's a late payment fee.
Problem is, I pay in full, by direct debit every month, there should never be any late payment fees.
I haven't cancelled any direct debit, so they must have, but they still say I am liable for this charge.
Are they right?
Did your previous statement say that payment would be collected by direct debit?
If it didn't then you need to make a phone call during office hours, and grovel for the charge to be cancelled as a "one off"/"just this once".
If it did say that payment was going to be taken by direct debit, and the direct debit got cancelled due to lack of use then the credit card company's system should have handled the "bounce" as per reason code H at https://www.smartdebit.co.uk/direct-debit-guides-and-resources/auddis-reason-codes/ which seems to hint that they should actually reactivate the DD, and try again.
PochiSoldi0 -
This happened to me. DD in place and current. Mysteriously not paid-with them blaming me or the paying bank. Neither TSB and Paying in bank can explain how or what happened. Nor would they refund the interest charges.0
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What credit card?
What bank was it supposed to come from
Have you gone online and checked the direct debit is active with your bank
When was the direct debit last collected from that bank account.0 -
You need to investigate further to find out why the DD wasn't paid.
The Credit Card company should have received an ARUDD Reason Code, when the DD was not paid. (ARUDD = Automated Return of Unpaid Direct Debit). Ask the for this.
Here's a list: https://www.smartdebit.co.uk/direct-debit-guides-and-resources/arudd-reason-codes/
For example, Reason Code 0 'Refer to Payer' - might be because you had insufficient funds in your account.
So if it was a Reason Code 0, but you did have funds in the account, you should then ask your bank why they returned the DD unpaid.
Reason Code 1 - would be because the DD was cancelled. (So ask your bank who cancelled it.)0 -
What credit card?
TSB
What bank was it supposed to come from
Santander
Have you gone online and checked the direct debit is active with your bank
Well, it was showing under "method of payment" on the. TSB page. The TSB customer advisor I spoke to said it did not matter as it had been cancelled, but could not tell me by whom. I spoke to Santander who confirmed that it had been cancelled, but that there was no way of telling who had cancelled it- me or TSB
When was the direct debit last collected from that bank account.
The previous payment was taken at the end of May. The DD was cancelled at the beginning of June, thus missing the end of June payment. I had not checked the payment section of the bill as I had no reason to suspect the DD was not in place.0 -
Ok, so from what you are telling me, payment end of May, DD cancelled in June, meaning its not a case of the DD expiring. So either not enough money for Santander to pay, cancelled by you, cancelled by Santander as not enough money, or possibly cancelled by TSB because of their IT problems.
This is how I would pay it. I would ask TSB for the reason for the failure. They will know because of the reason code. If they cant explain, I would assume initially its to do with their IT problem and would therefore raise a complaint. In the meantime your credit record will now possibly be showing a late payment. Regardless of whos fault I would be asking TSB to correct. In the meantime, if you have not done so already, pay any missed payments and catch up on where you should be. If you are on a promo rate check that, that has not been cancelled.
You are not liable for the charge if their statement said it was going to be collected by direct debit and their system did not collect.0 -
Thanks
There was enough money to pay for it; thats why I did not check the statement payment method. This was the month they were supposed to take two payments (June and their failed April collection) So, the interest for not paying the DD they charged me was very high.
Strangely, no late payment fee was applied.
As soon as I noticed I paid it in full, including charges on the card not yet billed.
I have already raised a complaint and asked them to rectify my credit record and repay the interest.
Of course, they have not replied.0
This discussion has been closed.
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