Can companies refuse to change DD dates?

muddyl

Hi all,

I looking for some advice and/or information please.

My wife has private pension policy which she has had for 16 years.

Due to a change in circumstances (i.e. when she gets paid) she contacted them requesting to change the Direct Debit date. They said they would look into it.
The next month it was taken on the same date (incurring her a bank charge) so they were contacted again, this time it was taken to the complaints department.

She received a letter back stating that they could not change the DD date and that they would not be liable for the charge. They attached photo copies of the original paperwork which confirmed the date for the DD and said that this was proof it could not be changed.
What they sent was 2 pages of a document that was at least 8 pages long and nowhere on there, other than a date, did it have any information pertaining to the DD.

Are they within their rights to refuse to change the date?


All help will be greatly appreciated,


Mark

Paul_Herring

muddyl wrote: »

They attached photo copies of the original paperwork which confirmed the date for the DD and said that this was proof it could not be changed.

They don't need proof.

Are they within their rights to refuse to change the date?

Yes.

Though more understanding companies will try to accommodate customers requests, they are under no obligation to change dates, nor are they liable for 3rd party charges due to refusal to change them.

Your options are to either arrange your finances so that it doesn't incur further charges, renegotiate the whole contract itself such that the date can be changed, or find an alternative company to supply the relevant service.

From your description, the first would appear to be your only option.

Mark_In_Hampshire

Companies are usually keen to change the direct debit billing date, but this is more for their convenience than yours.

If someone gets paid on the 1st, all companies would prefer to have their direct debit on the 2nd of the month since the probability of getting their money will be higher - the customer might end up being landed with a huge bill (e.g. a mobile bill for hundreds of pounds, or thousands if it got stolen) and there might not be enough funds to cover everything so it makes sense that the company concerned usually wants to be first in line.

But no, the company does not have to agree to the request.

Olipro

You *could* simply cancel the Direct Debit which would then force them to set up a new one, Then again, you could just phone up and threaten to do it and revert to manually paying them and they might get the message.

Paul_Herring

Olipro wrote: »

You *could* simply cancel the Direct Debit which would then force them to set up a new one,

All that's likely to do is get it reset up on the same date, with a charge (from the company this time) for lack of payment.

opinions4u

muddyl wrote: »

Are they within their rights to refuse to change the date?

Yes.

But you are the consumer and you have rights too.

1) What rights do you have to stop contributing to the pension fund? Are there any penalty clauses if you do so?

2) What rights do you have to review your pension arrangements and take out a new pension elsewhere?

3) What rights do you have to switch the whole pension fund over to a new provider, depriving your existing company of future profits from you.

I'd track down a reputable local IFA, www.unbiased.co.uk, get some free time with them and then work out the best way forwards from there.

muddyl

opinions4u wrote: »

Yes.

But you are the consumer and you have rights too.



3) What rights do you have to switch the whole pension fund over to a new provider, depriving your existing company of future profits from you.

I think we will be changing to another provider. In 16 years this is the first time a payment has been missed and it was simpy because the date which my wife now gets paid conflicts with the date the DD is taken. Unfortunately we are not in the position to leave sums of money just in case.

Due to the way in which it has been handled and how she was spoken to when she phoned, i think its time we changed the policy provider.

Thanks to all who answered, much apreciated.