Credit cards and direct debits

Blackstar_solar

Blackstar_solar

Blackstar_solar

Associate
Joined
7 Nov 2005
Posts
746
Location
Southampton, UK
I get my credit card statement on 15th of every month (assuming that I've spent in that month, which I don't always do).
I (nearly) always pay off the balance in full (it's normally as soon as I get my statement). If I don't pay it off in full I pay off way more than the minimum amount.
I have a direct debit set up for the minimum payment (£25) which goes out on the 1st of the month, just in case I forgot to pay it off one month (I'd be charged stupid amounts if I missed a payment).

What I don't understand is why when I've paid off my balance in full or at least paid more than the minimum, on say 15th/16th, do the credit card company still take the £25 direct debit on the 1st? This means I end up in credit on my card. This is actually not really allowed as the credit card companies don't insure credit amount, only debit amounts. I then have to phone them up and get the £25 returned which takes a few days, day they get the interest on (I know it's only fractions of pennies but its the principle, and fractions of pennies from hundreds of thousands of customers adds up).

I normally phone them up once I've made the manual payment and tell them to cancel the dd for this month, but they keep not doing so.

Why can't they check, maybe a week before the direct debit is due, whether there is still money owing on the card or if I've already made a payment?

I'm wondering if other credit card companies do this? If not I'll be changing card sharpish!
 
There is not much point paying off anything other than either than the minimum or the balance - paying in between will not benefit you in 99% of cases. Certainly with my citi & amex cards if the entire balance is not paid, then interest is chargeable on the entire balance.
 
Have just spoken to Barclaycard, who have a good alternative card in terms of interest etc. They do what I'm looking for, check at the time of requesting the funds if you've already made a payment >= min amount.

Be going with them then :)
 
What does the card offer? You may as well go with either egg money world, capital one world mastercard, or Amex platinum cashback. The three best redemption cards on the market. There is no point in going for a regardless barclaycard unless you feel that you have no other option.
 
Jez said:
What does the card offer?
Click to expand...
7.8% APR, that's pretty much it.
Jez said:
egg money world, capital one world mastercard, or Amex platinum cashback.
Click to expand...
The problem is I probably won't spend more than £100 a month, so I won't make more than the £1 in cash back; hence it'll actually cost me money, rather than saving it.
Defcon5 said:
Dont Barcalycard have really high interest rates?
Click to expand...
See above.
 
Blackstar_solar said:
7.8% APR, that's pretty much it.

The problem is I probably won't spend more than £100 a month, so I won't make more than the £1 in cash back; hence it'll actually cost me money, rather than saving it.

See above.
Click to expand...

On such a low spend i guess it wont make any difference between any of the cards. Personally i would therefore stick to whatever your bank issues, as it will likely appear nicely in your standard online banking and credit immediately etc.
 
What I meant is why do they still take the direct debit when I've already paid at least the minimum amount.

As I said later, others (Barclaycard) don't do this. It's just stupid.
 
AMEX send me a bill saying please pay min or fulll, so I pay the full. But I always end up paying too soon - then on the due date they want 10% of balance or £50 - whichever is greater :(.
 
meghatronic said:
AMEX send me a bill saying please pay min or fulll, so I pay the full. But I always end up paying too soon - then on the due date they want 10% of balance or £50 - whichever is greater :(.
Click to expand...

Never ever had that issue, although i pay online. The moment my payment credits the account my "next payment due" amount drops to £0 :confused:
 
So you have a DD setup to take £25 a month incase you forget / cant be assed, then when you pay it off in full you complain because they didnt check too see if it had been paid off.... How about you leave the DD alone and any time you want to pay it off in full you do so -£25, problem solved.
 
Perfect solution, except that I've had situations where they haven't taken the DD either :(

LloydsTSB also just confirmed that in the situation outlined in the OP they'd only take one payment.
 
You must log in or register to reply here.
Back
Top Bottom