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  • #1

    defaulting on payment by direct debit

    When is payment deemed to be made when payments are taken directly by a credit card company by direct debit? eg like Egg used to demand.

    For example, if a direct debit is returned through lack of funds does that count as failure to pay?
    Egg had a nasty habit of breaking down payments and resubmitting 2or 3 times a month to try and get whatever there may be in the account. The only way to stop payment was to stop the direct debit yourself, if you could wait, until the bank got to its rejection threshold and removed the offending dd. Some creditors try for years after first failure.

    In the spirit of active payment for default or SB, what is the date of last payment? When the dd was stopped, or when " a monthly debit for the outstanding sum" was processed without hiccup?
    Tags: account, bank, card, charges, claim, con, credit, credit card, creditors, customer, date, debit, debtor, default, direct debit, direct debit default, egg, failed, failure, funds, money, monthly, payments, rac, state, stop
  • #2
    Re: defaulting on payment by direct debit

    The date they claim it is usually earlier than the actual due date as it can take a day to arrive. It's usually batch processed by the bank so I'd say you're technically "late" a day after the due date as specified on your statement. This can vary from card company to customer.
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    • #3
      Re: defaulting on payment by direct debit

      So as thought, if dd not covered the payment is late, and they force a Late Payment Charge.

      For curiosity, I expand as it is unclear.

      Going forward, there is not enough money in the account to cover the dd. A week goes by and the dd is presented again, the dd is rejected again. Annoyingly, the bank charges for every dd they reject.

      The credit card company continues to submit the dd on a weekly basis and it is rejected each time.

      Interest accrues and the next months' payments are presented, firstly as the full amount, which remains unpaid. Then the amount of payment is halved, then quartered. This 25% payment sneaks through 3 months after last payment because the dd is still active.

      In theory, this is a payment to the account. However, it is not in line with Ts&Cs which state that the full amount outstanding will be collected through dd on a monthly basis.

      There is nothing to state they will continue to fish on a weekly basis for a different sum to that owing.

      In such cases that no further payment is actively made by the debtor, what is considered to be the last payment?
      a) last full payment by dd as per Ts&Cs
      b) last payment extracted by dd which could be partial after many failed attempts

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