Are you entitled to refuse to increase a DD payment?

[RichardM]

Here's a quick question.

While I was with Powergen, my account fell into debit over a two year period to the grand sum of £77. I was, at the time, paying £22 per month for gas only.

They contacted me a told me that I must increase my direct debit to £45 for the next nine months to cover the outstanding amount. I refused and paid the debt there and then using credit card but the caller stated catagorically that she had to increase the direct debit amount "because the computer tells me I have to" (I love that phrase. It's normally followed by a rant by me about how we tell computers what to do, not the other way 'round."

Was I within my rights to refuse point blank to increase my payments?

[bottomburp]

deleted

[damjef]

RichardM,
Regardless of whether people owe the providers money or not they always try and put your DD up.
You are lucky that they actually tried to do this over the phone as they normally send you a letter stating that they are increasing your DD, by the time you get round to dealing with it its already in place.
Normally they state that there will be no price rises but they still send the letters advising DD increases, Basically for all the people who do not contest they pay the money, at the end of the year they may well be in credit and the provider will send a cheque to the customer. Sounds ok but its a good money making scheme! Imagine all the interest accumilating over the twelve month charge period!
Sorry Drifting away from what you were originally posting...
Without complicating the issue your'e well within your rights not to accept the DD increase...

[Sirensinger]

This is similar to my situation maybe - I owe £172 to Southern Electric, made up of 2 bills, the 2nd of which was added while I was making payments - which I am making more or less weekly, at about £5 - £10 a go, at the Post Office. They want me to pay more, as they say the amount doesn't cover the outstanding bit plus my usage. My argument is that 1) the first bill was run up by a lodger whoser consumption I couldn't monitor, and 2) that I am gradually reducing my consumption, and that by the time my next bill is due the amount outstanding will be less - I've said if it's still owing then, I'll clear it. I'm not clear on my rights here, but how can they possibly tell me I'm not covering my usage when this varies according to who's in the house at the time and how many appliances I'm using - and at present I have actually got rid of everything I can think of that isn't absolutely essential.

Sirensinger

[ozzywizard]

Its up to you to manage your own finances not them to do it for you. If you get in debt fair enough contact you so your aware of this but to go dipping into your account without full discussion with you is not right. DD is evil lol. Oh btw there computer database on DD can be adjusted it works as a guideline quote based on previous consumption. The person you spoke with has to manually input the amount.

[younganfree]

No way am I standing up for the utility companies (especially not those asses at BG who are (EDIT) round with my poor old granddad at the mo!), but I don't think the amount you pay on your dd's is voluntary. OK whether you go dd route or not IS voluntary but not the AMOUNT you pay.

Although RichardM paid the shortfall, the way the company looks at it is that the current dd is obviously not enough to cover the amount of fuel being used and therefore needs to be increased to cover the projected use. (If you see what I mean!)

[RichardM]

What annoyed me most was the suggestion that I had to increase my direct debit to make sure that I had a credit in the summer to cover the increased usage in the winter.

At what point did the utility companies decide that they were no longer going to bill us AFTER seeing our usage, and insist that we paid IN ADVANCE for our expected usage.

I know, from my monitoring of my utilities, that my gas account is about £30 in debt for this month, and that will be paid off when I get my bill at the end of March. It was set up last summer (I reduced it from £22 per month to £10), and until January was always in credit. No way will I increase my direct debit as my monthly usage during the summer wil be negligable, meaning that my account will always be in credit.

I also know precisely how much gas/electric I use month on month because when I read the meter, I take a digital photo of the reading and keep them in a folder on my computer. I also do this when the meter is read. There can never be any dispute about readings, because the properties shows the time and date taken, the reading and the meter serial number.

[younganfree]

Hi RichardM.

I like your idea of keeping a photo of the readings. It is something I have considered doing for my granddad, as a result of the bother we're having with BG and his electricity bills.

You are sensible in keeping an eye on your usage and therefore know where you stand.

Problems arise when the meter is incorrectly read. My g's was misread by a 'thousand' would you believe (the clock type), they claimed this made him vastly in debit as you can imagine, and more than doubled his dd to cover it. Mind you, the increase in dd was preferable to having to pay the deficit all in one and the kerfuffle we might have had to get that back. We've had enough of a problem trying to sort things as it is!

[RichardM]

Younganfree.

That's exactly why I started photgraphing the meter to avoid situations like that. I don't doubt you have probably taken a hell of a time to sort it out because they won't admit they make mistakes. If they had done that to me, I would have emailed them a copy of the photo with a message that the next one goes to the regulator with a complaint and copy of the bill if it's not sorted in 24 hours.

When I switched over to Southern from Powergen to supply my gas, I set up my standing order at £22, which was what I had been paying Powergen but after 3 months, contacted them and told them I wanted to drop my DD to £10 per month, mainly due to having changed how I set my timer for heating and hot water (I turned it off!). They were very reluctant, but couldn't win the arguement because I could give them chapter and verse on my last years usage.

I firmly believe in this day and age, that if you don't take the initiative when dealing with companies such as these, they will walk all over you.

In business there is only one person who cares about your well being, and that's yourself.

[missm]

Originally Posted by younganfree

Hi RichardM.

I like your idea of keeping a photo of the readings. It is something I have considered doing for my granddad, as a result of the bother we're having with BG and his electricity bills.

You are sensible in keeping an eye on your usage and therefore know where you stand.

Problems arise when the meter is incorrectly read. My g's was misread by a 'thousand' would you believe (the clock type), they claimed this made him vastly in debit as you can imagine, and more than doubled his dd to cover it. Mind you, the increase in dd was preferable to having to pay the deficit all in one and the kerfuffle we might have had to get that back. We've had enough of a problem trying to sort things as it is!

EXACTLY the same thing happened to me. I can not COUNT how many times I phoned them up and tried to correct this.
See my post regarding the contact details for Centrica PLC (owns BG), write a well versed letter and make sure you let them know you will switch as soon as the matter is settled.

[missm]

British Gas Ceo Contact Details-complaints

[bally35]

is it a standing ordr or direct debit.
These are two very different things.
A direct debit is applied for by the company and the amounts can vary which for something like utility bills is very useful.
The only way that you can prevent more money being taken out on this system is to cancel the direct debit.
A standing order is an amount paid by your bank at regulated intervals, which you authorise and set up.
You are in charge and you wil have tonbe the person who varies the amount on this.
I t offers less flexibilty than a direct debit, but is good for set amounts such as loan repayments etc.
You need to clarify which of these two it is in order for anyone to help..

[enaid]

Well I have just had my second bill from NPower. 6 months ago I was talked into going with them from B.G the feller who gave all the speel worked out off my previous bill how much I would save and have to pay them monthly. He said £40 per month. I have been paying the £40 for last 6 month. Bill today states they want £68 per month. On the phone refused to pay £68, I said I would pay £45 and then settle the bill at the end of the 1st year with them. I am blazing that they want to put my payments up by almost 50% when the smart *rse who sold NPower to me was obviously talking a right load of **it.