Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • stooby doo
    • By stooby doo 15th Jun 17, 9:42 AM
    • 3Posts
    • 0Thanks
    stooby doo
    Incorrect Final Utility Bill has overdrawn my bank account
    • #1
    • 15th Jun 17, 9:42 AM
    Incorrect Final Utility Bill has overdrawn my bank account 15th Jun 17 at 9:42 AM
    Hi,
    I recently switched supplier from First Utility. I paid my bills by direct debit and payment was taken yesterday for more than double what the final amount should have been which sent my bank account overdrawn and therefore with charges to pay. I contacted First Utility this morning who have admitted their error in completely ignoring the final meter readings submitted by both myself and my new supplier and instead using vastly exaggerated estimates. They have said it could take up to 5 days to produce a new bill.
    In the meantime I have submitted an indemnity claim to my bank to get the payment refunded.
    Can anybody advise what my rights to recompense are in this situation as I am absolutely fuming with First Utility over this after being a loyal customer of theirs for many years.
    Regards,
    Stooby.
    Last edited by stooby doo; 15-06-2017 at 11:57 AM. Reason: typo
Page 1
    • gsmlnx
    • By gsmlnx 15th Jun 17, 10:28 AM
    • 598 Posts
    • 474 Thanks
    gsmlnx
    • #2
    • 15th Jun 17, 10:28 AM
    • #2
    • 15th Jun 17, 10:28 AM
    @Stooby
    Put in an official complaint and ask for them to pay for the banking charges that have arisen from their actions (once they have been billed by the Bank so you know what to ask for).
    • ARH
    • By ARH 15th Jun 17, 1:46 PM
    • 13 Posts
    • 4 Thanks
    ARH
    • #3
    • 15th Jun 17, 1:46 PM
    • #3
    • 15th Jun 17, 1:46 PM
    Hi,

    Your bank will likely waive the banking charges in the circumstance along with granting your DD indemnity claim. However, under the DD guarantee, they aren't obliged to waive/refund the charges - only the amount of the DD - so ask nicely, and you'll probably receive.
    • teddysmum
    • By teddysmum 15th Jun 17, 6:35 PM
    • 7,792 Posts
    • 4,615 Thanks
    teddysmum
    • #4
    • 15th Jun 17, 6:35 PM
    • #4
    • 15th Jun 17, 6:35 PM
    Unless you pay a variable direct debit amount, are they not obliged to give notice if the amount is likely to be more than usual ?
    • footyguy
    • By footyguy 16th Jun 17, 12:10 PM
    • 3,307 Posts
    • 1,277 Thanks
    footyguy
    • #5
    • 16th Jun 17, 12:10 PM
    • #5
    • 16th Jun 17, 12:10 PM
    Hi,
    I recently switched supplier from First Utility. I paid my bills by direct debit and payment was taken yesterday for more than double what the final amount should have been which sent my bank account overdrawn and therefore with charges to pay. I contacted First Utility this morning who have admitted their error in completely ignoring the final meter readings submitted by both myself and my new supplier and instead using vastly exaggerated estimates. They have said it could take up to 5 days to produce a new bill.
    In the meantime I have submitted an indemnity claim to my bank to get the payment refunded.
    Can anybody advise what my rights to recompense are in this situation as I am absolutely fuming with First Utility over this after being a loyal customer of theirs for many years.
    Regards,
    Stooby.
    Originally posted by stooby doo

    Ok, lets take this step by step and you have a number of issues here.

    Fisrt of all, any agreement to pay by Direct Debit means you are covered automatically by the Direct Debit Guarantee.

    Part of this guarantee means you must be provided with advance notice of the amount, date (and frequency if applicable) of any collection. Usually such advance notice is 10 working days (plus postage time)
    In the case of bills like those for energy, such advance notice is often included as part of the bill (and hence collection is made usually about 10 working days after you receive the bill)

    The advance notice can be reduced, but only by notification and your agreement prior to any collection being notified.
    (In reality, 'your agreement' is often take it or leave it - if you don't accept then you are deemed not to accept to pay by DD at all)

    Where the advance notice is reduced from the 10 working days default, it should only be offered by the supplier where the supplier is confident that despite such reduced notice period, they can still cancel a DD collection if it is objected to, beacuse that is the reason for the advance notice; to notify you in advance of the amount to be collected and for you to either agree (and allow the amount to be collected) or object, so you notify the supplier accordingly.

    So where do you stand?
    Are you saying you received a final bill (albeit to the incorrect readings) , you did not object, and that amount was then colleted by DD?
    If so, there is no complaint.

    However, if you were not given advance notice, or were but objected, then you reclaim the amount direct from your bank under the terms of the DD guarantee. Such refund must be immediate by your bank (i.e. on the day you claim)
    If you have a valid DD Guarantee claim, yopu can also claim 'consequeential damages'. This effectively is bank charges incurred due to the incorrect/inappriate DD collection. You also calim thes direct from your bank at the same time, however, the bank are not obliged to refund these immediately but when they receive the money from the DD collector (and this should be within 10 working days)

    So there we go, you appear to have done the right thing by going doirectly to your bank for a refund.
    (Note that the bank will accept your word as to the validity of the claim, but the supplier may not, and may pursue you for such losses later if they feel they have incurred them unfairly)

    In regards to First Utility, I'm not sure if you received a final bill from them.
    Presumably you did as you say it was based on incorrect meter readings, and the supplier has since accepted (according to you) such error.
    Therefore you should now receive an amended final bill.
    You can raise a complaint if you want. Some suppliers may offer you say £20 goodwill gesture, but smaller (and often cheaper) suppliers tend to be more stingy with goiving away money. If they provide you with a revised bill top accepted meter readings, then they may say that fully resolves any dispute against them.
    Last edited by footyguy; 16-06-2017 at 12:13 PM.
    • footyguy
    • By footyguy 16th Jun 17, 12:14 PM
    • 3,307 Posts
    • 1,277 Thanks
    footyguy
    • #6
    • 16th Jun 17, 12:14 PM
    • #6
    • 16th Jun 17, 12:14 PM
    Hi,

    Your bank will likely waive the banking charges in the circumstance along with granting your DD indemnity claim. However, under the DD guarantee, they aren't obliged to waive/refund the charges - only the amount of the DD - so ask nicely, and you'll probably receive.
    Originally posted by ARH
    I'm sorry, but that is incorrect.
    See the details in my post above
    The bank doesn't 'waive' anything (assuming the bank itself have not caused the error) - they recover it all from the supplier
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,422Posts Today

8,739Users online

Martin's Twitter
  • RT @Emloy93: @MartinSLewis I did this! It 100% works ????????

  • RT @Photo_Pete: @MartinSLewis Thanks Martin, I'll renew mine before my 24th in September!

  • Tell any 23 yr olds... you're allowed to buy a 3 year 16-25 railcard the day before your 24th birthday then it's valid until ur almost 27 RT

  • Follow Martin