Is BT late payment charge legal?

Edinburghlass_2

The charge will be legal, its the amount that may be unlawful.

Edinburghlass_2

1899/18185 requires payment via a bank or credit card though so this is not an option for the OP.

Rikki

Edinburghlass wrote:

1899/18185 requires payment via a bank or credit card though so this is not an option for the OP.

Sorry didn't realise.

Edinburghlass_2

Its okay Rikki, it was the first thing I thought when I read the amount being paid but sadly its just another instance when people on low income are being penalised for not being able to use the direct debit function and gain a small amount of savings from doing so.

Debt_Free_Chick

oldnick wrote:

I pay my BT bill monthly, and used to pay just before the next bill was due.

I'm a bit confused, sorry ...

Are you saying that you don't pay the bill as soon as you get it? If not, is there any reason why you can't pay it straight away.

oldnick

Debt_Free_Chick wrote:

I'm a bit confused, sorry ...

Are you saying that you don't pay the bill as soon as you get it? If not, is there any reason why you can't pay it straight away.

I am on incapacity benefit. After my electricity/ water/ rent /CT arrears etc get taken off I am left with £97 a fortnight. For the first six months before I got the long term rate I had £51 per fortnight after direct deductions. Off that I have to run a car or never see my 4 & 7 year old sons again, and pay my phonebill, most of which is my broadband connection. I have broadband because I am teaching myself web design because I recognise that my chances of getting a job are remote and the only way I am going to get out of this is by my own resources. I do not have a TV because I can't afford a licence.

My car cost me £21 on ebay and £40 to get it through it's MOT. It costs me £13.50 a month for my car insurance. It costs me £12 for petrol each fortnight to pick up and return my sons. It isn't practical to use public transport because it is over a 2 and 1/2 hour journey. I view toilet paper as a luxury!

Prior to losing my income I paid my phone quarterly and paid on the 26th of the month following invoice, as I have done for the last 30 years, without ever having a problem. I thought switching to monthly billing was smart and always paid the bill the day I got my benefit after getting the reminder.

The penalty charge was only introduced a few months ago and I now pay my phone bill from the first benefit I get after I get the bill so last month it was 9 days + 4 days to go through the banking system and that meant they still only got it a day after the charge was applied to my account.

What they have told me is that next month the charge will be applied on the due date which is 7 days after the bill now. so that means if I can't pay within 4 days of getting the bill I am getting charged an extra £5. That is my weekly food budget!

oldnick

wxmlad wrote:

cant you just ring 150 and select the billing option, it lets you put a date in that you'll be able to pay the bill i done it in August and didnt pay till the 24th sept i didnt get charged anything extra

They apparently only allow you to extend the payment period twice in any 12 month period.

My most recent bill dated 23/10/06 arrived today. It has to be paid by 30/10/06. My next benefit is due 02/11/06 and the bill will be paid at the post office that day. The £5 penalty will be applied to my account on 03/11/06 because they won't have received the payment by then even though it will have been paid.

£37.99 line rental and broadband
£5 Late payment charge
£2.99 cost of calls of which 55% are 0845 calls to BT tech support

£45.98 Total

Up until 3 months ago the due date was 10 days after the bill and the reminder 4 days after that. you then had 5 days to pay. so I was within that. Now the period has shortened. By next month I will be within their payment criteria again as I pay my bill every 4th week.

Debt_Free_Chick

oldnick wrote:

I thought switching to monthly billing was smart and always paid the bill the day I got my benefit after getting the reminder.

I sympathise - really I do. But I think you will need to re-jig your budget so that "priority" bills, including those that charge for late payment, get paid first.

You may find that you can change the payment date for your car insurance - and any other insurances. I find they tend to be most flexible.

Whilst I understand your comment about having broadband, you don't actually need to be online to learn web design. Could you switch to dial-up for six months, just to give you some breathing space in your budget? You can switch back to BB after that ...

HTH

gt94sss2

oldnick wrote:

what I was trying to find out is whether the charge was legal. I don't have another option as there is no cable here and every provider I have spoken to either demands DD or does a credit check. As a bankrupt that makes life a bit hard.

Have you looked at the link in my previous post about 'basic bank accounts' ?

I believe several of the financial institutions there will allow you to open basic bank account (including access to direct debits etc.) even if you are/have been bankrupt.

Regards
Sunil

gt94sss2

GeoThermal wrote:

Are those saying it is legal sure? It is legal to make a charge to cover administration fees etc but whether it is legal to charge that amount given the short timescale they demand payment in I'm not so sure. I wonder what the laws regarding unfair T&Cs would make of it?

BT only charge the late payment charge if:

1. they have issued a bill and it has not been paid and
2. the reminder has not been paid within 10 calendar days, (for Customers that are billed quarterly), or 7 calendar days, (for Customers that are billed monthly), of the date of the Red Reminder.'

Hence, I doubt it would be considered an unfair charge.

What the OP may want to try and do is call BT and arrange some kind of special payment terms/agreement quoting the timing of their benefit payments as the a factor... and/or I don't know if paying BT bills by Paypoint may mean the money is credited to BT more quickly than paying by cheque etc..

Regards
Sunil