Credit card problem - help!

Lakeland · 12 Sep 2009 at 20:44

Ill try and explain..

I took a new credit card out about a month ago to make a large online purchase. While I did this I setup the card so that it would take the balance at the end of the month from my current account by direct debit.

I decided to pay off the balance early as I had the funds available, around 1k.

So to sum up, credit card activated and used within the first week, paid off in full in the second week, now I am in the 4th week with a £0 balance.

I went to use my debit card today and it was declined. I came online to check my balance to find I am nearly 1k overdrawn, with a £750 overdraft, so now my account is locked out and I have no money. The credit card company had charged me twice...

I phoned them up and explained the situation and they say I have to let the direct debit clear for 3 to 4 days, then they will refund the money in full within 5 working days, and they won't refund my bank charges for going over my overdraft!

Can anyone shed any light on where I stand and what I can do?

Gimpymoo · 12 Sep 2009 at 20:51

Direct Debit Guarantee:

If an error is made by the organisation or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid.

Go into your bank and kick some ***.

Ive had a similiar issue. Quoted the guarantee, they still insisted I had to wait? I was like "What the ****". Got rather flustered with them and they refunded there and then.

Essentially, they dont want the hassle of chasing the other company for the money.

Lakeland · 12 Sep 2009 at 20:56

They told me that no error has been made by my bank or on their part as it is their procedure to commence a DD of an amount specified by their statement

As I see it the statement should have read £0 as the balance was paid off two weeks before the necessary date?

Burnsy2023 · 12 Sep 2009 at 20:56

This is standard practice, it's your mistakes rather than the banks.

Rainmaker · 12 Sep 2009 at 20:57

lol directdebitguarantee

The last three times companies have screwed my mum over (it hasn't happened to me) by taking DDs early (weeks earlier than agreed in writing), or else have taken two payments or similar, the bank have said "Tough." and charged her anyway.

Apparently the DD 'guarantee' is a voluntary scheme and the bank (Natwest) don't care to adhere to it even though they give it to you in writing as part of your account T&Cs. Basically it's not worth the paper it's written on.

My mum was charged for the bounced DD, then charged a second time instantly for the first charge having taken her over her overdraft limit! Head office didn't care to help either. She switched to Yorkshire Bank.

Rainmaker · 12 Sep 2009 at 20:58

Burnsy2023 said:
This is standard practice, it's your mistakes rather than the banks.

Unless I've misread, how is it the OP's mistake when the CC company erroneously duplicated the DD?

Glaucus · 12 Sep 2009 at 21:04

Burnsy2023 said:
This is standard practice, it's your mistakes rather than the banks.

This. On my credit card website it even warns you before you make a payment that your normal payment will be taken as well.

Rainmaker said:
Unless I've misread, how is it the OP's mistake when the CC company erroneously duplicated the DD?

They didn't, they took the normal DD, he then paid it off as well.

OP fault from lack of knowledge and ignoring warnings and/or not reading contracts.

Lakeland · 12 Sep 2009 at 21:06

I was told by the CC company when I took the card out that I would have to manually pay the first statement because my DD would not be setup in time, hense why I paid it manually and 2 weeks early.

I have a letter from the CC company advising that my DD has been setup and they will start collecting my monthly direct debit payments after my next statement

Surely that means they should only take a DD payment from my second statement?

Glaucus · 12 Sep 2009 at 21:08

Without seeing the letter, it sounds like they are saying your DD is set-up and it will be taken after the statement. You always get the statement a week before the DD comes out. So no it would be from the first statement.

Burnsy2023 · 12 Sep 2009 at 21:09

jaxon said:
I was told by the CC company when I took the card out that I would have to manually pay the first statement because my DD would not be setup in time, hense why I paid it manually and 2 weeks early.

I have a letter from the CC company advising that my DD has been setup and they will start collecting my monthly direct debit payments after my next statement

Surely that means they should only take a DD payment from my second statement?

So what date does the letter say the first DD supposed to be debited?

Rainmaker · 12 Sep 2009 at 21:09

AcidHell2 said:
They didn't, they took the normal DD, he then paid it off as well.

In that case, it would be the OP's fault yes.

jaxon said:
I was told by the CC company when I took the card out that I would have to manually pay the first statement because my DD would not be setup in time, hense why I paid it manually and 2 weeks early.

I have a letter from the CC company advising that my DD has been setup and they will start collecting my monthly direct debit payments after my next statement

Surely that means they should only take a DD payment from my second statement?

When was/is your statement though? If your first statement hasn't been issued yet then you should be able to claim the funds back from your CC provider. If nothing else, the CC company will have breached the contract between you, causing you a financial loss by taking funds earlier than agreed. You could technically sue in the county courts for renumeration, but of course a well placed (polite) phone call should avert any need for this.

Lakeland · 12 Sep 2009 at 21:13

There is no mention of dates :/

We will start collecting your monthly direct debit payments after your next statement, if a payment is due in the meantime please pay by alternative means until your statement advises the next payment will be collected by direct debit. once your direct debit is in place, any extra payments you make will not affect the amount we collect unless you contact us at least five working days before the payment date.

Lakeland · 12 Sep 2009 at 21:16

Rainmaker said:
In that case, it would be the OP's fault yes.

When was/is your statement though? If your first statement hasn't been issued yet then you should be able to claim the funds back from your CC provider. If nothing else, the CC company will have breached the contract between you, causing you a financial loss by taking funds earlier than agreed. You could technically sue in the county courts for renumeration, but of course a well placed (polite) phone call should avert any need for this.

I have had the card for 1 month and this is the first statement I have received

If it is my own fault ill happily take the blame and pay the fee but I don't understand what I could have done differently with the information I was given

Glaucus · 12 Sep 2009 at 21:18

jaxon said:
There is no mention of dates :/

So as it says after your next treatment.

Ashamedly you recieved this letter before your first statement.

Lakeland · 12 Sep 2009 at 21:19

surely "after my next statement" means the second statement

Glaucus · 12 Sep 2009 at 21:22

jaxon said:
surely "after my next statement" means the second statement

You get a statement and your DD is taken about a week later. So after your next statement is the first statement to come through the door.

Lakeland · 12 Sep 2009 at 21:25

Well it was nice to learn that fact via someone on a forum and not via the CC company! If that is the case it doesn't look like I have a leg to stand on, lesson learnt

mattheman · 12 Sep 2009 at 21:28

your bank can stop the DD.
" It also protects customers should an incorrect amount be debited" it is the incorrect amount as the amount should be 0.

You paid them 2 weeks before the direct debt was meant to be taken out. if i were you i'll complain and refer you case to the http://www.financialombudsman.org.uk/consumer/complaints.htm#1

Burnsy2023 · 12 Sep 2009 at 21:29

AcidHell2 said:
You get a statement and your DD is taken about a week later. So after your next statement is the first statement to come through the door.

I would argue that it is confusing enough to warrant a written complaint if they refuse to refund bank charges. You might not get anywhere, but I would at least try.

Burnsy2023 · 12 Sep 2009 at 21:29

mattheman said:
your bank can stop the DD.
" It also protects customers should an incorrect amount be debited" it is the incorrect amount as the amount should be 0.

No. The amount it the total of the purchases before the end of the month, regardless of other transfers.