I have set up Direct Debit repayments on my AmEx, which had worked well until the end of last month. On the due date, I received a message from AmEx indicating the payment was received. However, yesterday I was notified by AmEx that the payment was declined by the bank due to insufficient funds. I was also charged Insufficient Fund Fees and an Interest Charge by AmEx.
The strange thing is, there was more than enough money in my bank account to make the payment. I contacted the bank, and they told me they didn’t see a rejection in my account. Interestingly, my payment to another credit card (a higher amount) was successfully deducted from the same bank account a day earlier, and my health insurance payment was successfully deducted a day later. There is no reason the same bank would accept all transactions except for AmEx.
Will this issue affect my credit score? If so, what should I do?
UPDATES:
According to the bank investigation, there was no request from Amex on the due date. I told Amex about it and they said it doesn't make any sense that Amex forgot to deduct money. The bank details are 100% correct as I manually made the payment with the same bank details and no issues. Now it becomes a Rashomon.
Pay the balance then contact Amex, explain the situation and specifically ask for the fees/insterest to be reversed. A missed payment will only impact your credit score if it is over 14 days overdue.