unpaid Direct Debit

[millenitec]

Can we use the same system as used for the banks to claim back unfair charges for utilites ???

Thanks in advance

[gondukin]

If they have charged you £40 for an retuned payment I dare say you could. What was the charge for and how much?

[reduk054]

Hi Millenitec, have you been charged for an unpaid DD by your utility copany then? Dont forget just because they may have written to you and told you what they will charge you does not make it lawful!

There is a thread regarding direct debit late fees under british gas (which is currently at the top - but will try and be more specific in a mo). And from where I can see it, you can claim back any fees where they are a penalty charge. If it's a penalty charge then the utility co. must be able to justify their costs or its unlawful.

I would write to the utility company and request the fee back....
Cheers Red

[millenitec]

Hi the charge is for £11.00 for a Direct Debit payment that is not honoured after spending a couple of hours i found the charge on there web site Northubrian water i spoke to a customer service advisor who informed me that this charge is lawfull and fair abd it is clearly printed on the reverse of the bill it is not

[demon_x_slash]

Same process as for the banks, millenitec.

[reduk054]

Hi again Millenitec,
even if the charge is on their bill, or forms part of Northumbrian Water's terms and conditions does NOT make it a lawful charge
It is a penalty charge which can be reclaimed.

Send a letter requesting the fee is refunded, saying that you would like them to justify the breakdown of the charge, and if they cannot justify the costs, then it must be a penalty charge and if they do not refund the charge then you will be prepared to take them through the small claims court in order to retrieve the charges.
I say put it in writing because then you can't be fobbed off by someone who has probably been trained to tell you that the charges they enforce are lawful because they have put the charges on the reverse of your bill, which is not correct.
send any mail recorded, and hopefully they will sit up and listen!
Regards Red

[millenitec]

Hi Just a quick update a letter has arived regarding my call to the call centre " I write to advise that the £10.60 fee covers administration charges incurred by Northumbrian Water following the failure of you direct debit."
"Unfortunatley we can not be held responsible for an error by your bank and we do have to recover adminisration charges incurred therefore it will not be possible to remove the failed direct debit fee from you account"
"should you wish to discuss any of the information included in this letter or have any further points you would like to raise please contact us

[reduk054]

I would suggest that you request a break down of their administration costs to jusitfy their charge to you if you still want to persue this further, it still seems high for an administration fee, especially if it is all electronic like with the high street banks.
If they cant reasonably justify their admin fee then it would be a penalty IMO
Red

[10110001]

Originally Posted by millenitec

Can we use the same system as used for the banks to claim back unfair charges for utilites ???

Thanks in advance

If the water company can prove they have suffered a financial loss of £11 for your unpaid Cheque then it’s lawful. If they can’t prove it then it’s not. Heres why:

Statutory Instrument 1999 No. 2083

It says under SCHEDULE 2 of Regulation 5(5) Paragraph 1(e)

Requiring any consumer who fails to fulfil his obligation to pay a disproportionately high sum in compensation;

[reduk054]

Hey 10110001, that is a great link, thank you! Really backs the argument up!
Red