Penalties for not paying by direct debit - Page 4

Milo19 · 18th July 2007, 22:56

I would challenged it. Its a penalty charge.

un1boy · 24th July 2007, 22:53

Guys I have written a strongly worded letter re charging for non-direct debit payers.

I will let you know what they say!

jezza72 · 28th July 2007, 10:54

A family member has had their £4.50 refunded by BT - on the grounds that he hasn't been notified, in writing, of the change in Terms & Conditions.

I however, have tried the same approach & had the reply:
"With regards to your e-mail, I do apologise for the inconvenience that unfortunately we would not be able to refund £4.50. However, if you set up direct debit on your account, this amount would be credited on your next bill."

Also, I have noticed that my business bill from BT doesn't include an additional charge for paying by cheque... why is this??

Janet-M · 28th July 2007, 16:30

After email back and forth to BT this is their latest one .

FWI I pay by Standing Order and am never late paying .

Quote:

Thank you for your e-mail dated xxxxx regarding payment processing fees.

Please accept my apologies for the delay in replying to you.

With regards to your e-mail, I am writing in response to your recent approach to BT about concerns relating to payment processing fees. I am also very sorry that you have had to make repeated contacts to have your concern resolved.

In response to your e-mail, I would like to inform you that from May 1st, we have reduced the price of monthly line rental by £1.00 and, broadband by £1.00 if you don’t pay by Direct Debit. At the same time, a separate payment processing fee of £1.50 a month is introduced. This is not a penalty charge but a separate fee for methods of payment which cost us more to process. So the net effect is only 50p a month more for anyone who just has a phone line with us, but anyone who takes broadband as well will be 50p a month better off.

BT's fee for non-Direct Debit payments is amongst the lowest around. For example, Virgin Media charge £5 a month. Many companies, such as Car phone Warehouse, will only accept customers who agree to pay by Direct Debit.

I also want to reassure you that the fee will not apply to customers on BT’s special rates for low income and vulnerable customers, such as In Contact Plus, the Light User Scheme, and Pay & Call.

The payment processing fee has been introduced because some methods of payment are costly to process. But it’s not just about the cost of taking the payments; following up when customers forget to pay on time does involve spending time and money.

By calculating the cost we apply a general policy for all payment methods that are not automated, i.e. other then Direct Debit or Monthly Payment Plan to reflect the higher risk of non-payment as well as the higher costs involved.

At BT, we are committed to offering our customers a wide choice of ways to pay their bills. Whilst we encourage choice of payment, it is worth pointing out that Direct Debit has benefits for customers. It saves time and is convenient. It means that your BT bill is one less thing to worry about.

If you choose to pay by Direct Debit, we try to give you up to ten days from the time of receiving the bill before processing the Direct Debit payment giving you plenty of time to ask questions, and we tell you on the bill when the amount will be taken from your
account. There is also a Direct Debit Guarantee which protects you and your money. If any error is made by BT or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid.

We will waive the non-Direct Debit fee if you choose to switch to Direct Debit or Monthly Payment Plan after receiving your first bill after May 1st.

Further, the fee is not transaction-based, as this would unfairly disadvantage those who need to pay in several small instalments. Instead the costs are averaged on a monthly/quarterly basis across all customers using non-automated methods of payment.

If you still decide not to pay the payment processing fee, we will apply our standard debt collection process. BT will not be changing its policy.

Please be assured whatever means you use to contact me, you can be confident that your concerns will be dealt with sensitively and professionally and in accordance with approved procedures

I trust, therefore, that the contents of this letter will go a long way in providing you with the reassurance that you understandably seek and provide you with the clarification needed. If you should have any further queries please do not hesitate to contact us again via e-mail.

Thank you for contacting BT, we value your association with us.

Yours Sincerely,

(name)
eContact Customer Service

buzby · 28th July 2007, 19:28

Quote:

Originally Posted by jezza72

Also, I have noticed that my business bill from BT doesn't include an additional charge for paying by cheque... why is this??

Because it doesn't apply to Business Lines - only Residential. Why? Because firms would tall them to take a hike and go elsewhere....

jezza72 · 28th July 2007, 22:34

Janet-M - I've had exactly the same email from them. I also pay on-time and found the line "If you still decide not to pay the payment processing fee, we will apply our standard debt collection process." threatening!

buzby - I wonder how much the line rental would be for a business line would be to my home address? I might make a few enquiries....

buzby · 29th July 2007, 11:18

All the details are on their website. The main difference is that you get a free Classified Directory entry, and a higher priority in fault repairs - usually same day, or next-day.

elliesnan · 29th July 2007, 14:55

well as l didn't pay the £4.50 l await their Standard Debt Collection Process with baited breath!!! Or then again l may just get on with my life lol

elliesnan · 29th July 2007, 14:57

by the way paid my bill on 12th July have not heard a peep yet maybe Debt Collector gonna turn up on my doorstep wanting to know how l'm gonna pay this £4.50 l owe!!

coz · 29th July 2007, 20:19

I sent numerous e mails and got the standard stuff as posted elsewhere on here. I counteracted by saying i dont care what virgin etc charge I just say it is unfair when I pay as soon as bill arrives. I then paid the bill minus the additional charge and eventually got a call from BT to discuss the charge etc and they said the £4.50 would not be added etc and this would be for ever but I expect that I may have to do the same process every 13 weeks. I just e mail and e mail as it is totally free and doesnt take time getting through call centres etc.

Sidewinder · 31st July 2007, 10:57

Apologies - hit enter in error

Sidewinder · 31st July 2007, 11:01

Having just received my phone bill I am angry about the £4.50 non DD charge. Interestingly though I have also received a letter from my local council trying to get me to pay my Council Tax by DD rather than online as I do at present. The letter says that it is more cost efficient for the council as DD payments only cost them 8p to collect but cash or cheque payments cost 45p (surely online debit card payments are almost as cheap as DD?).

How do BT equate the cost to £4.50?

buzby · 31st July 2007, 12:21

Quote:

Originally Posted by elliesnan

by the way paid my bill on 12th July have not heard a peep yet maybe Debt Collector gonna turn up on my doorstep wanting to know how l'm gonna pay this £4.50 l owe!!

That's because it'll be shown as an underpayment oin your next bill. Since the bill wasn't paid in full, the Late Payment Charge will also be applied.

kennyparkroad · 31st July 2007, 12:32

but hten you can reclaim the late payment charges as they are penalty charges.

buzby · 31st July 2007, 12:40

Maybe, maybe not. However service will be disrupted - and if BB access is part of this, service removal is almost guaranteed, irrespective of whatever the underlying problem is.

elliesnan · 1st August 2007, 10:57

well we will have to wait and see l won't pay their late payment charge either so should be an interesting fight!

jezza72 · 1st September 2007, 00:07

I've written directly to Ben Verwaayen, Chief Executive of BT Group plc.

I wonder if I get a response - anyone want a side bet??

I've also written to my MP. She has also written to Ben Verwaayen on my befalf!

I recently found the following article on a website (www.telecoms.com):

'UK incumbent British Telecom has been accused of "financial blackmail" by Members of Parliament (MPs) for charges on customers who do not pay their telephone bills by direct debit. 35 MPs have signed a Commons motion regarding the levy which David Hamilton, Labour MP for Midlothian, is leading."

I suggest writing to your local MP - asking them to sign the Commons motion, and asking their advice about what steps to take next...

And finally - on tonight's One Show (31/08/07), the worst company for getting hold of a real person to talk to on the phone was.... (can you guess).... yep, BT! It took 16 minutes of automated menu's & being on hold before the researcher got a real person to talk to....

CAG Products - We think that these will help you to make your claim or Reclaim your Right These sales also help us to keep helping YOU and keeps this site free of third party adverts!

Small Claims Kit	Small Claims Court Guide New Edition	CallBurner - Skype CallRecorder Review	Last Will & Testament Kit	Fight a Motoring Ticket

Alternatively you could purchase a CAG email address here, or maybe you'd prefer our address labels here
UPDATE: Consumer Forums ConsumerWiki is now LIVE - click here: ConsumerWiki N.B. Please note - due to postage costs these products are only available in the U.K.