£10 late payment charge

Just a little disappointed about the email this evening about the £10 late payment charge.

Bills are due on the 1st of each month and need to be paid by the 7th of the same month. You have a week in which to pay the bill. If it isn’t paid, you will now get a £10 charge for being late. I understand the need to make sure bills are paid on time, but this all seems a bit tight! Most companies give you a bit more leeway than this, don’t they?

Just to point out - I have never been late paying my bill in over a year of being a Tymit user - so it’s not something likely to affect me personally. Surely there should be a reminder sent, or something before charges are suddenly added.

If for any reason I was late and was charged, I would cut up my Tymit card and go elsewhere. And Tymit would be the ultimate loser.

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Cutting up the card will not relieve you from paying late payment charges, and interest on top of unpaid instalments. You will get a default on your account which will prevent you getting pay monthly mobile, internet, gas, electric, etc.

It also says in the email the late payment fee will be incurred if the direct debit fails when taken on the 7th. If the direct debit fails then I should have the rest of the 7th to pay the bill manually.

I have never been late in paying either but would also go elsewhere if I end up being charged in the above circumstance.

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I think some people are missing the principle of this.

The £10 charge is common for almost all card providers that I know of, but it shouldn’t be seen as a penalty but more of a motivation to get onboard with Direct Debit, the simpler way to pay.

If your Direct Debit fails, there is a double cost to Tymit (collection attempt and returned payment) so it is only fair that this is recovered. Also, if it fails because of lack of funds, it’s a little pointless having the rest of the day to pay and not to be charged the £10 because Tymit will have still paid for the Direct Debit and it’s return. Better practice would be to contact Tymit to explain you won’t be able to pay and discussing your account, ahead of the payment due date.

If a user wants the rest of the day to pay after a failed Direct Debit then why wouldn’t they just ensure the funds were there in the first place and avoid the hassle?

Lastly, Tymit have investors and a big bulk of these funds were to provide a credit facility to Tymit users. If I was handing over that amount of cash, I’d want to know protections were in place to encourage people to pay on time and to claw back operational costs when they don’t.

Keeping with the ethos and values of Tymit, the fee is very reasonable and lower compared to other card providers.

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But this doesn’t cost £10. It’s a penalty charge, plain and simple. Dressing it up as a “reminder” of some kind is just doublespeak - it’s going to hit those customers that are most vulnerable. The email goes into some nonsense about processes evolving…

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I’ve received the same email, it’s nothing new, this charge has always been there, if you read the T&Cs.

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That’s not really true. If I took the £10 fee where I work, 25% of that is charged to us in fees from the providers before we pass that onto our customers, then the rest will be taken up in someone’s time to contact the account holder, ensure this is followed-up, ensure the credit file is correctly marked.

I’m not suggesting if you have heavily automated systems or are collecting tens of thousands of Direct Debits a month you can’t make money from £10, but it’s unrealistic to think that in startup world and even for entry level card companies.

I agree. They even had it in there all along, it just was waived. I suspect investment is a big rider of the change as it’s wasteful to eat this cost.

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I have to say this is pretty normal on all credit cards that I am aware of.

I bet it was a combination of Startup and systems which is why they did not charge it previously.

Can’t see how it will effect the most vulnerable, it’s a credit card and you have the option before the bill finalises to spread the payment. If you cannot pay then they are prepared to listen and help.

I do agree on having the rest of the day to pay though as sometimes you may be moving money around or just forget.

I may be in the minority but I just assumed they charged a late fee.

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Lol - I spend the best part of £1000 each month on the card and pay it off each month. There would be no defaults.

Most credit card companies give you about 5 weeks to pay once you have received your bill. The whole point of my rant was that with Tymit you get barely 7 days! I still believe that this is a bit tight to slap on a £10 charge after 7 days.

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100%. A company can only absorb costs so much…and Tymit are the same - I remember Monzo, when they first started, they abosrb costs, then started charging for certain things afterwards.

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Agree with this and I think everyone accepts Tymit have to charge a late fee if you actually miss the payment.

I just have an issue with the DD aspect of it. You have until 23:59 to pay the bill so if the direct debit fails at 03:00 then you should not be charged a late fee if you pay it before 23:59. I understand @jase explanation but I still don’t agree with it.

Yes, late payment charge isnt really the problem. However, the payment window needs to be longer, and there needs to be some flexibility. Tymit could also do more within app to remind people re payment etc.

There are no other bills I can think of that I receive which give me 7 days to pay and then slap on a charge if it’s late.

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Pay early, avoid direct debit! - Why the hell they would set that to be paid on the 7th is stupidity. Why not the 1st when it’s due not the deadline… If a payment was late because of Tymit systems or admin/app issues and I got fined that would be the last I’d deal with them!

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Perfectly reasonable. If you don’t like it, pay by direct debit. Have a look at some of the late payment charges offered by other card companies and banks. Sensible move Tymit.

Other credit card companies give you longer than 7 days to pay. This is the issue for me.

And using a direct debit isn’t an answer if you don’t want to use a direct debit which many people don’t. Personally I like to keep more control of my bills/spending where I can.

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You know you have to pay the bill, so why do you need more than 7 days to pay it? If you cannot afford to repay, don’t use the card.

I really don’t see the problem. Hardly worth discussing. End of.

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I can afford to repay it.

You didn’t have to join the discussion- please feel free to leave it.

End of.

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If you don’t like it pay by Direct Debit!! - Yeah, taken on the 7th, then if that fails because of issues at Tymit you get a late charge! - If DD was taken on the 1st it would at least give them opportunities to sort their mess out. As it happens I don’t use DD because of all of the billing issues at Tymit. Get the bill right, get paid. Get the bill wrong, don’t get paid. Fairly simple terms!

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