Utility accounts in credit - refusing to refund

Magentasue

As said, OP has option to switch to eon or whoever, if he doesn't like BG's terms. BG have reduced the DD to half of what's needed to cover use whereas eon do refunds.

jimexbox

Magentasue wrote: »

As said, OP has option to switch to eon or whoever, if he doesn't like BG's terms. BG have reduced the DD to half of what's needed to cover use whereas eon do refunds.

That doesn't distract from the fact that BG are using your money as an interest free loan. How many £150 do BG have? A nice little fund me thinks.

1carminestocky

jimexbox wrote: »

That doesn't distract from the fact that BG are using your money as an interest free loan. How many £150 do BG have? A nice little fund me thinks.

We tend to agree on every thread except one, jimexbox. I call what Magenasue and cardew suggest the OP does the Ofgem Approach (TM). If you don't like the T&Cs, then just switch. Why should they have to? Surely if these companies were regulated properly there would be a standard, laid out procedure that ALL suppliers would have to adhere to in cases like these? Domestic fuel is not a luxury product that some people want, it's an essential to 99.9999999999% of the GBP and the market should not therefore be totally left to its own devices like it basically has been.

Magentasue

1carminestocky wrote: »

We tend to agree on every thread except one, jimexbox. I call what Magenasue and cardew suggest the OP does the Ofgem Approach (TM). If you don't like the T&Cs, then just switch. Why should they have to?

I'm not saying it's as it should be. Just that in these days when accounts are managed by software, the simplest option is to vote with your feet.

1carminestocky

Magentasue wrote: »

I'm not saying it's as it should be. Just that in these days when accounts are managed by software, the simplest option is to vote with your feet.

Agreed, and I wasn't having a go, your post was an eminently practical solution to the OPs problem (certainly better than anything I've come up with ). Only problem being if we all just played their 'game' like this and didn't complain nothing would ever change for the better in this industry.

jimexbox

Magentasue wrote: »

I'm not saying it's as it should be. Just that in these days when accounts are managed by software, the simplest option is to vote with your feet.

If our accounts are managed by software it would cost practically nothing to refund amounts for less than £150 then. If I were with BG I would be making a complaint about unfair terms and conditions. Just because it there in print does not make just, or indeed legal.

This is nothing more than a convenient way of easing their cash flow, with our money. At least Utility Warehouse give you cashback card when you give them an interest free loan.;)

Quentin

jimexbox wrote: »

At least Utility Warehouse give you cashback card when you give them an interest free loan.;)

Should anyone think this is a good way to get a cashback card, in fact they don't give you one. If you want one, you have to buy one (£10), and pay ongoing charges for it, whether or not you use it.

And the UW will never refund any credit balance you build up due to monthly payments being over estimated.

The only way you can get any balance built up this way with uw is to leave them, and once all final bills have been calculated they refunf any credit.

Lots more cautions on the uw card (and uw in general) are discussed in this thread:

http://forums.moneysavingexpert.com/showthread.html?t=387161

Cardew

jimexbox wrote: »

That doesn't distract from the fact that BG are using your money as an interest free loan. How many £150 do BG have? A nice little fund me thinks.

Certainly in the past(when interests rates were considerably higher), ofgem had stated that all utility companies had a huge negative balance on the accounts of their DD customers i.e. debit balances were considerably in excess of credit balances. I don't know if that has changed with what appears to be a more aggressive method of revising DD payments.

It is also pertinent that the vast majority of complaints on this section of MSE are for DD payments set too low and huge debit balances of £hundreds/thousands building up. These paid back without interest over a year or more.

There has even been conjecture on MSE that it was a deliberate policy to run accounts with a debit balance so that a customer was tied to the company as they couldn't leave until the debt was cleared.

It has also been posted on here by Utility company employees, that it is against licence conditions to run overall accounts to profit from DD balances.

The bottom line is that it is surely up to any company to decide their policy on commercial grounds. People may consider £150 is too high. So what should it be? £100? £50? £10.

Anyway the question I answered was that IMO this situation is not covered by legislation.

dogshome

Hi benhill 1984 - From what I gather from the traffic, your monthly
Elect D/debit is worth £11 now you have cleared the debt, and £20 a month pays for the gas. I can't be certain about the gas as I'm oil fired, but it's a fair bet that for Elect. you would be a deal better off with Ebico

Cardew

jimexbox wrote: »

If Eon can do it.....



Why does BG apparently insist £150 is a operating balance, when a fiver will do for Eon.

I haven't followed the EON thread closely, but on the latest price cut didn't they reduce the DD discount such that many customers are paying more after the 'Price Cut'.

If BG were to return all monies over, say, £5 but reduce their DD discount, would this be acceptable?

Surely it is a commercial decision by any company and, as stated above, customers can choose to leave if they don't like the conditions imposed.