TV license DD ripoff?

Calathea_2

Just renewed my TV license and whilst driving home it occured to me that i have been ripped of by 90 quid.
I've set up a direct debit for 26.3 for the first 6 months which totals £157.80 then 11 pound a month from then on which means by this time next year i wll have paid £223, instead of the 131 it should be. Now how in the name of everything can that possibly be allowed?
Over the next year at 11 pounds a month it works out correctly but for the first year you pay almost 60% extra

Am i going mad?

Doglover88

if i remember correctly you have to pay in advance for your 1st license? works out your 6 months (i think) in credit, i have no idea why though

Calathea_2

I am only renewing it though, i will phone them tommorow and have it out with em.

rich_jtg

I remember when I used to pay by direct debit, you were always 6 months behind.

I queried this (as it's not as if you're going to get it back when you die!), then stopped the direct debit. I didn't pay anything for 6 months, then bought one the 'old fashioned' way.

I now have a standing order each month going into a web saver account, the money of which I use each year.

You get the interest on the money - and if you buy with a credit card, you can get cash back too!

Mikeyorks

Calathea wrote:

I am only renewing it though,

Sorry - but you're not;) Your first post indicates you've just set up a DD - which strongly suggests you're paying by DD for the first time. If you were paying for it outright - you'd have to fork out all the money up front

With monthly DD for a TV licence (quarterly is different - there's an 'admin' charge) - they don't charge you any extra for the 'credit' - but make you pay 6 months in advance - and 6 months in arrears. So - to start off with - you have to catch up with that first 6 months, as presumably your renewal is this month end?

As here :-

http://www.tvlicensing.co.uk/waystopay/directdebitintro.jsp#link2

justin138

Give it up - you'll have more time for MSE! which is cheaper and much more entertaining

nickweeb

I know this is an old thread, but was just going through the cost of direct debit vs. paying up front having finally reached the point where I have to buy my own license (leaving a house where the landlord has paid for it for the last 8 years and buying my own place):

I've put a spreadsheet printout here:
https://www.ambient-music.com/private/tvlicense.pdf

There are times when you'll have paid more via direct debit and times when you'll have paid more by paying it all upfront... if you consider that by paying it all upfront then in month 13 you'll have paid £262 (2*131) but only £207.98 by direct debit. In month 24 you'll still have only paid £262 but 328.98 by DD. I guess it all comes down to whether you need to spread the payments or can afford to do it all in one lump sum.

I've not taken into account interest lost or potential credit card cashback.