BT Failed Direct Debit Charge

ilesmark

Hi all

This question may have already been asked and answered and, if so, I apologise for my lack of searching expertise.

Recently I had a contretemps with Nationwide when they reduced my overdraft limit (having only told me after the event) with the result that 4 direct debits bounced. For this, Nationwide charged me £150. One of these d/ds was to BT. As if to add insult to injury, BT then charged me itself for this failed d/d.

My question - we all know the current bank charges situation, but can the old bank charges arguments still be used against utility companies who make bank charge-like charges?

Mark

Mark_In_Hampshire

I'm not sure on this one. I thought the outcome of the bank charges case was that the unauth'd o'd fees were ruled to be "core terms". That would significantly reduce the likelihood of a challenge on the basis of fairness (UTTC) and so if that's good for the banks, it's probably good for everyone else who imposes usurious charges.

I am perhaps alone on this forum in recommending that people never, ever use direct debit as it means that you have to pay for other peoples' mistakes - whether that's your bank failing to inform you or a supplier making an error. Your case illustrates just how expensive direct debit can be versus paying the extra to manage your own financial affairs.

Personally I have a separate account with an Electron debit card. If a supplier insists on debiting my account automatically as opposed to sending me a bill which I pay, they get that card number. I transfer the money into that account the day before payment is due. If the payee makes a mistake, they don't get their money as the transaction is declined, and it costs me nothing.