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Everything posted by PhysDoc

  1. Starting from 2nd Nov, Lloyds are changing their overdraft fees and rates. There will be no charge for unauthorised overdrafts, as I understand it, but their rates will be charged at 1p for every £7 you are overdrawn, everyday. I will be switching banks, so it won't bother me. However, today I worked out the EAR that the new rates would be equivalent to. If x is your current overdraft, after 1 day you will be charged (x/7)×0.01=x/700. So your overdrawn balance will be x+x/700 after one day, assuming you spend nothing else. Factorize the x out, and this is the same as x(1+1/700). After 365 days that will be x(1+1/700)^365 = 1.68x. Therefore, the effective percentage increase over the year is 100*(1.68x-x)/x=100*0.68=68%!!!!!! Have I made a mistake? That is an obscene rate of interest!!! They say in the literature they sent me that this is to make it easier to understand the charges and control your overdraft, which I find extremely disingenuous. I would argue that it is nothing more than a greedy, profiteering, cynical ploy to profit from people, many of whom (including me) may already be struggling to keep their overdraft under control, and may not realize exactly how much more it will cost them. Moreover, I have not seen anywhere in their literature a statement of the EAR or APR. I even phoned them this afternoon and asked what the EAR of the new charges is, and she could not give a figure. They may be calculating their rates daily, but it does not mean the EAR cannot be calculated, as I have done above. I'm not sure about this, so maybe someone who is well versed in credit law can clarify, but I think that may even be illegal from the quick research I did. I think it is a requirement that lenders provide a percentage EAR or APR rate so that consumers can make meaningful comparisons between lenders. Is this correct? If so, can you give a reference to the appropriate piece of legislation? Apart from my specific questions about the legality of this, I just wanted to warn people. I'm surprised it hasn't been mentioned yet.
  2. Hi, I have had a problem switching from British Gas to PfP energy. I submitted meter readings to PfP in June. I wrote them down on a piece of paper and saved it, then submitted them on their website. I received confirmation that I was on supply. I forgot about it until I received a final bill from British Gas about a week ago. I checked their final readings against the ones on my online PfP account and they matched, so stupidly assumed all was ok. I paid my final BG bill today. However, I then decided to send a second reading to PfP and found the new reading was less than the reading on my PfP account. I checked against my records and they don't agree. I am 100% certain I did not enter the numbers incorrectly last month -- I am on a dual meter and the last 3 digits of both numbers are wrong -- so I believe PfP have started their supply on BG's estimated final reading; indeed I noticed my final BG bill was an estimated reading. I know I should have checked more thoroughly before paying the final bill, especially considering previous experience of British Gas. I'm pretty certain I did not type 6 digits wrong -- maybe 1, but not 6! So I am certain it is their mistake. I now have to correct PfP, which I'm sure will be fine because the lower initial readings are in their interest. But how do I make BG give me a correct bill and get a refund for the difference? Any advice appreciated.
  3. Yes I did, so I am looking forward to getting the bill to see what creative mathematics they have used to come to their figure.
  4. I believe so; I gave them the readings and she replied with this £314 figure and I made sure that it was definitely the amount by which I am in debit -- i.e. what I owe. As I say, yet to receive the paper bill to actually see how they have worked it out.
  5. Hi, thanks for your reply. I keep trying to register on their portal thing, but there's a fault. They say they are trying to correct it, but they never do. The chap I spoke to about it today said he was going to fix it so I can register. I gave them my current meter readings this afternoon over the phone.
  6. I perhaps ought to add that I have not actually received my bill yet; this is the figure she gave me over the phone this afternoon when I submitted my readings.
  7. Hi, Just joined because I have a specific question I'd like to ask. Hope it is ok to post this here. I think my electricity supplier has miscalculated my bill, and I just want to check that I am working it out correctly. I'll try to give as much info as I can. I moved into my current address on the 18th June 2014. I have one of those dual meter things, but I am paying the same tariff on both. The readings when I moved in were 11664 and 24844. The readings now are 12572 and 26660, and the tariff is 12.62p per unit and an additional 26p per day (both including VAT). So I get 26660-24844=1816 for the night meter and 12572-11664=908 for the day meter, which adds up to 2724 kWh. So, 2724*12.62p=£343.77. Plus the daily charge (228 days) of 228*26p=£59.28, totaling £343.77+£59.28=£403.05. Since I moved in, I have paid £385 (£50 a month and one month at £85), I am expecting to be £18.05 in debit, but they are telling me that since my last estimated bill in November of £220.95 that I owe £344!!! I phoned them about this, and she ran the argument that my November bill was only an estimate -- which I understand - - but since I have worked out my bill from when I moved in (with actual un-estimated readings) I think I should have only been charged the £403.05 in total since June? Is this correct? Have I calculated my bill correctly, and if so, what should I do to challenge them? Also, if they are correct, can they demand tho whole amount of money at once via direct debit, or just increase the payments? Thanks in advance.
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