Home » Forums

[MSE Lawrence]

This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.

Read Martin's 'Property Does the Prime Minister understand Direct Debit?' Blog.

Click reply to discuss below.

[fairenoughclough]

The answer is No.

The question could be changed to many other words after "UNDERSTAND" and the answer would still be NO.

[julie2710]

This is something I'm concerned about. I currently pay my quarterley bills as I get them. Due to a marriage breakup I desperately need to save money on my monthly outgoings. Would I be better off saving money by switching supplier and moving to direct debit - but then they might charge me more per month which would put me in a negative situation each month until I get the money back at the end of the year or do I stay as I am and just put money away each month?

[anniecave]

I've been with three of the major electricity suppliers and in my experience they are pretty good at estimating direct debit amounts. They are usually good when you switch suppliers to them if you give your annual kwh figures as part of the switching process as they then can calculate it exactly based on your tarriff and estimated usage.

Always keep an eye on your meter readings as well though. One of the other major problems for suppliers (more so than direct debits set at the wrong amount in my experience) is estimated billing!

I would definately go for direct debit.

[julie2710]

Thanks for that - if they seem to be charging too high can you get any movement or negotiation on the direct debit amount or do you have to generally just put up with what they say? To be honest my bills are always accurate readings - if they estimate I always phone them with the right reading at the moment as 1 it means I pay for what I've used and 2 It means the money's in my bank for even longer!

[dogsbreath]

Dont trust Direct Debit. You give the company authority to dip into your bank account and take what they like.

My other half worked in a building society. One day a customer came in to say that the local authority had taken the month's rent out three times that month and had left him nothing in his account. He wanted his money back but the building society's answer was go away, you signed up to allow the local authority to take money out of your account.

The Direct Debit guarantee is only insurance when your bank screw it up and not when the (insert utility or other company here) that you have given authority to raid your account make a mess of it.

Standing Order is the only safe solution. You CONTROL the payment.

Andy

[lu lu]

I have been using Direct Debit for 30 years and have rarely had a problem. If the mortgage company/utility company/council get it wrong contact them immediately not your bank as the provider is the person taking your money not the bank paying it.

Re gas & elec:

Have an internet account & ensure that you send them your meter readings each quarter. My provider Eon will recalculate the bill from my readings if they have raised an estimated bill. If you are seriously in credit request a refund (by email). I am £247 in credit & am getting £150 refunded to my bank account (within 5 days). As we are going into the winter I do not mind that they have £100 of mine because it will soon be used up when the CH goes on but I will request a further refund after Xmas (half way thro the winter hopefully) if I am still this much in credit and request that the Direct Debit value is amended.

[julie2710]

Have set up the internet account with Eon - was already with them but paying quarterly by cheque. They wanted to set the DD up at 149 per month but my current usage would only really warrant 100 per month - new tarriff is the same as my old tarriff even taking into account the price rise, so I spoke to them and got them to reduce it to 120 per month! Thought that was fairly reasonable!

[firespire]

Originally Posted by dogsbreath

The Direct Debit guarantee is only insurance when your bank screw it up and not when the (insert utility or other company here) that you have given authority to raid your account make a mess of it.

Wrong, if the charging organisation make a mistake the bank/building society are required to make a full and immediate refund. Google Direct Debit guarantee.