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Are energy companies delaying cashback to keep customers?
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I switched to EDF Energy, via Top Cashback on 5 August. The cashback was confirmed and listed an expected payment of 30 September.
My energy switch went through without a hitch from EDF. My first payments came out of my bank account in early October. There was a note on my account on Top Cashback to allow another month.
My cashback was still not paid, so on 8 November I submitted an enquiry.
I got the following response:
So are EDF (and other energy companies) dragging their heels over paying cashback to stop customers switching again?
This seems dubious for two reasons:
1. I am legally entitled to switch energy supplier after 28 days, using non-payment of cashback to prevent switching is wrong.
2. Topcashback pay for me to switch, not to stay with the supplier.
I have responded to Topcashback saying that is dubious for the reasons given. I am considering dropping a line to Energywatch (or whatever they are called these days).
My energy switch went through without a hitch from EDF. My first payments came out of my bank account in early October. There was a note on my account on Top Cashback to allow another month.
My cashback was still not paid, so on 8 November I submitted an enquiry.
I got the following response:
Hi there,
Thank you for your enquiry.
So that I can give you an update, I have checked this merchant's stats for you and it appears they have paid transactions up to the middle of July therefore, at this stage your transaction is progressing as expected.
Please be aware that certain types of transactions i.e. insurance/fuel/contract, can take longer to reach payable status than usual. This is due to the merchant having a much longer validation period for security reasons, to avoid people purchasing a product/service and then cancelling soon after receiving the cashback (not that in any way I am implying this is something you would do).
We realise in some circumstances that our systems for indicating the estimated payable date are perfect but I do hope that this updates you.
I hope this helps and my apologies that I cannot give you a more definite answer.
Kind Regards,
So are EDF (and other energy companies) dragging their heels over paying cashback to stop customers switching again?
This seems dubious for two reasons:
1. I am legally entitled to switch energy supplier after 28 days, using non-payment of cashback to prevent switching is wrong.
2. Topcashback pay for me to switch, not to stay with the supplier.
I have responded to Topcashback saying that is dubious for the reasons given. I am considering dropping a line to Energywatch (or whatever they are called these days).
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Comments
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using non-payment of cashback to prevent switching is wrong.
From a Utility company's point of view it makes absolute sense to delay paying cashback as long as possible.
Whilst no blame can be attached to people who switch solely for cashback, it is a nonsense that companies don't delay cashback for at least 6 months and preferably a year.
Indeed that must be why companies have penalties for leaving within 12 months - or at least I hope that is the reason.
People switching purely for cashback means that all of us pay a little extra on our bills and it is time the practice was stopped.0 -
I doubt it. Suppliers don't pay cashback to consumers.
What they do offer is a commission to those people who successfully entice consumers to sign up to their tariffs ... it's called marketing.
The supplier can establish whatever terms they like as a term of paying commission to their marketing partners. If that is after 3 months continuous connection (and payments), so be it.
Take up any complaint with whoever offered you the cashback ... it certainly wasn't the energy supplier.
"Energywatch (or whatever they are called these days)" will have no interest in whoever promised you any cashback."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
From a Utility company's point of view it makes absolute sense to delay paying cashback as long as possible.The supplier can establish whatever terms they like as a term of paying commission to their marketing partners. If that is after 3 months continuous connection (and payments), so be it.
In principle, I agree. However the cashback is offered for switching, not for remaining a customer for a certain length of time. If this is the case, it should be absolutely clear.
Many energy companies impose penalties for leaving early. At least one offers a discount only after 12 months. That is all clear and up front. The cashback issue is not (if it is indeed the case they are deliberately delaying).
I have had a reply from Top Cash back that says:I don't believe that companies are purposely delaying however the validating of contracts etc may be a longer winded process to ensure that transactions are genuine as some merchant's have suffered from non-genuine (fraudulent) transactions in the past0 -
In principle, I agree. However the cashback is offered for switching, not for remaining a customer for a certain length of time. If this is the case, it should be absolutely clear. ...
Any complaint you have is with whoever offers you cashback ... which isn't the energy companies."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100
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