Direct Debits

Phoned to extend a guarantee today should have cost £84
When I said I want to make a 'one off' payment instead of direct debit instalments they said that will be £10 more
WHY ? Is direct debit cheaper ...........

Re: Direct Debits

That just doesn't make sense Patsy.

Re: Direct Debits

How strange, who knows how they work..

Re: Direct Debits

You would think they prefer to get their money in 'one' go

Re: Direct Debits

Asked my banking friend and he says direct debits are very much cheaper to process than one off payments by card, the card network charges quite a lot compared to direct debits from one account to another.

Re: Direct Debits

Usually this is to do with the small print of the deal in question. Often that small print states that you will pay extra should you fail to make a payment or fail to pay everything within a given time frame.

For example, a classic "Buy Sofa Now - Pay Later" deal works on the basis that you pay later and in small instalments and they hope that you will forget to pay one month or, forget to clear the whole debt by the final date so they will then make more money in penalties, admin charges etc.

Paying a one-off payment, upfront, stops them ripping people off in this way so they don't tend to like it.

Re: Direct Debits

Thought the idea of direct debit was to ensure they got payment
I used a debit card, so straight from the bank

Re: Direct Debits

But they would be charged for that card payment that's why they charge you more.

We use dds where possible then cancel them when the payments have been made. Set it up you can then pay in two payments and take advantage of the discount.

Re: Direct Debits

Yes thanks Julie - its done now - time to forget about it