Eon changed DD without telling me!

damtheman

Hello, slight dilemma after opening post this morning.

After months of convincing eon that I can't pay more than what I can afford, I agreed to setup a direct debit at a price I could afford, which I did. I have now received a letter confirming the direct debit but twice as much as I put on the direct debit mandate form.

My online banking system does not acknowledge this agreement, or anything pending. I have yet to phone my bank to see if its still pending or something.

But I cannot afford this new number they have used and I will be cancelling this. Am I in my full remit to do this? They did not phone me or send me a letter saying they will be changing it.

Any help greatly appreciated as always

~dtm

Volcano

I think it's been explained somewhere on this site that DD is a licence for any company you have one with to help themselves to your bank account as and when they feel like it. The "DD guarantee" means nothing.

Cancel the direct debit with the bank and eon and confirm this in writing with both. As long as you pay for what you use, then you're not doing anything wrong. (I'm assuming you haven't gone for one of those cheap rates that's only available if you agree to DD?).

I get my bills quarterly and a pay at the PO or by cheque. It's a minor hassle for the peace of mind I get knowing that I control who helps themselves to my hard earned cash.

damtheman

True. And no, it isnt a DD only rate, its the usual-i'm-sure-i'm-paying-more-than-i-use rate.

I'll do this.

Where's the 'complain about everything' thread?

E.ON_Company_Representative

Hi dtm,

Direct Debits can be cancelled by you, this isn’t an issue, just contact your bank and request this. E.ON will be able to tell you if the new amount is being claimed and if you have cancelled the Direct Debit in time.

Direct Debit changes are notified on the first page of your quarterly bill, this is because Direct Debit are amended on production of the bill, online customers receive a letter advising of any change as well, this is to ensure customers know about the change if they have problems accessing their account online.

As the bill notifies you of the change, no other letter or call would be made.

It sounds as though the Direct Debit has now been increased because the account is in arrears, this will probably be a result of the previous Direct Debit amount being set lower than it should have. I.e. you have consumed more energy than your Direct Debit has paid for, it sounds as though E.ON wanted to set this up at a higher amount originally, is this correct?

The new Direct Debit amount may be open to negotiation, so don’t be too hasty in cancelling, call E.ON and ask them if it can be reduced to a more manageable amount. There may be discount for having this Direct Debit so cancelling would take this away, definitely check this first.

The important thing is if you’re using more energy than you can afford, the payment method isn’t really relevant, the amount of energy you use needs to reduce. If you call E.ON ask for energy efficiency advice and ways of reducing your consumption, there are lots of little changes you can make that will make all the difference over the course of a year.

Hope this helps dtm, any questions give me a shout.

Brian

Premier_2

Volcano wrote: »

I think it's been explained somewhere on this site that DD is a licence for any company you have one with to help themselves to your bank account as and when they feel like it. The "DD guarantee" means nothing....

Then whoever explained it got it wrong I'm afraid.

A DD mandate, whilst being variable in nature, only allows the originator to collect the amount stated in the advance notice. The advance notice must state that actual amount to be collected.

An advance notice is usually a minimum of 10 working days (plus postage if applicable) unless otherwise agreed.

The Direct Debit Guarantee means that should an error be made, the paying bank will make a full and immediate refund to the payer on application.

Of course, getting a refund from your bank doesn't imply you don't owe the money to the supplier

sgt.tibbs1977

I was with e-on and they upped my DD from £60 to £110 despite only being over my consumption by £26 over the winter months. I rang up and complained and they refused to lower it down so I walked, their computer said no. As a consumer you can move to whichever company is offering the best deal providing you have no tie in clauses and your debts are not over £100.00. Do not forget that you get better deals if you pay for duel fuel and by DD. People power!

Volcano

Premier wrote: »

Then whoever explained it got it wrong I'm afraid.

A DD mandate, whilst being variable in nature, only allows the originator to collect the amount stated in the advance notice. The advance notice must state that actual amount to be collected.

I think it's fairly clear that energy companies and direct debit are NOT a good combination.:

http://www.moneysavingexpert.com/news/utilities/2009/03/energy-firms-accused-over-high-dd-c

http://www.moneysavingexpert.com/utilities/lower-energy-direct-debits

The Direct Debit Guarantee means that should an error be made, the paying bank will make a full and immediate refund to the payer on application.

:rotfl::rotfl::rotfl:

On balance, I'm happier paying only for what I've used, as and when I decide to pay it.

mvan

DD are free loans for the energy companies, no matter how much spin they create its a free loan for them from us the customer. Of course we get sucked in with small discounts but the sooner the industry sorts this out the better (of course consumers in this country has very little protection)..

KimYeovil

Credit meters are free loans to the consumer. No matter how much we whinge it is a free four or five month loan for us from the supplier.

NorhternMonkey

sgt.tibbs1977 wrote: »

I was with e-on and they upped my DD from £60 to £110 despite only being over my consumption by £26 over the winter months. I rang up and complained and they refused to lower it down so I walked, their computer said no. As a consumer you can move to whichever company is offering the best deal providing you have no tie in clauses and your debts are not over £100.00. Do not forget that you get better deals if you pay for duel fuel and by DD. People power!

I've had the sam problem DD was £60 now £100 when I aked them to lower it they said no problme we can change it £97. WOW that helps.

Now looking for new supplier

any one got an idea of what an average annual usage (gas and elec) is for 2 adults in a 2 bed terraced with central heating system

KimYeovil

NorhternMonkey wrote: »

any one got an idea of what an average annual usage (gas and elec) is for 2 adults in a 2 bed terraced with central heating system

The average costs more than £97 per month.