Why Send This Message?

[chrissa1]

“Mrs *** REMINDER : If you make extra payments to your credit card at any time this will not reduce your Direct Debit.”

Why does my credit card provider send me this message after I have paid substantially more off my credit card balance than is required?

[Zacs-Master]

https://www.moneysavingexpert.com/news/2013/02/beware-the-credit-card-overpayment-that-isnt-an-overpayment/

[TonyV]

No idea

[chrissa1]

I sort of get that, Zacs, but my dd for the minimum payment is only £6. I’m not trying to reduce the dd but just reduce what I owe overall. I’m considerably under my credit limit but just want to keep reducing the debt.

Not get the six quid they will take reduced, if I don’t pay anything.

Seems a bit daft to me.

[ladybirder]

Do they still take your £6 DD amount when you make an extra payment Chrissa?

[Jackdaw33]

You agree to pay a certain amount by DD. If this does not clear the balance then any extra payment will be credited to your account but the DD will be enforced for the remainder.

Example: You have a DD for £100 per month. You owe £500. You make an extra payment of £400. Although this is above the minimum payment it does not clear the balance so the DD will take the residue.

[Mamyalynne]

It's obviously an automated email and looking at the link given, it's telling you that they are one of the providers who don't reduce the DD.

It seems quite hit and miss who does and who doesn't.

[Jackdaw33]

The point is that a DD is a fixed amount. Only if your balance is less than your DD will it be reduced. This is standard practice with all credit cards.

[chrissa1]

No. They don’t take the £6 when the £200 is paid and appears on my statement. It just seems so daft, but as you say, it’s probably automated.

Cheers.

[Jackdaw33]

Another example: I have a DD for £100. I owe £150. I make an extra payment of £80. The remaining £70 will be taken from my DD at the usual time.

[ladybirder]

Chrissa, on a month when you want to pay extra, can you not alter your DD for that month to the total amount you want to pay (as long as it is more than your DD would have been)? Make sure you do it in time though and then go in afterwards and alter it back again.

[Mamyalynne]

I don't think Chrissa needs to go to that trouble, they have stated above that the DD remain as is - so she can pay extra whenever she likes.

May mean another email from them but soon deleted or filed.

[chrissa1]

Yes. I agree mamya. It’s a 0% card for another 10 months. I’m being careful.

[chrissa1]

It’s also very easy to pay the extra from my bank account whenever I want to, bearing in mind to leave the payment until I’ve been provided with my monthly statement.

[fiction-factory]

Maybe we are missing the point but I don't see what the problem is here. They are simply sending this information out to everyone who makes extra payments to prevent any misunderstandings so people are clear that the DD will also be taken. Maybe they should include an extra sentence that acknowledges that some people may already realise this. They don't know who knows and who doesn't so can't tailor the message for each customer.
You DD may stop though if you pay the balance off in full, provided the payment is made early enough