We propose a new collocation multi-configuration time-dependent Hartree (MCTDH) method. It reduces point-set error by using more points than basis functions. Collocation makes it possible to use MCTDH with a general PES without computing any integrals. The collocation points are associated with a basis larger than the basis used to represent wavefunctions. Both bases are obtained from a direct product basis built from single-particle functions by imposing a pruning condition. The collocation points are those on a sparse grid. Heretofore, collocation MCTDH calculations with more points than basis functions have only been possible if both the collocation grid and the basis set are direct products. In this paper, we exploit a new pseudo-inverse to use both more points than basis functions and a pruned basis and grid. We demonstrate that, for a calculation of the the lowest 50 vibrational states (energy levels and wavefunctions) of CH$_2$NH, errors can be reduced by two orders of magnitude by increasing the number of points, without increasing the basis size. This is true also when unrefined time-independent points are used.