Direct Debits - British Gas

xhostilex

I currently pay my British Gas bill by direct debit. The amount paid is said to be related to my usage or predicted usage.

My last bill stated that my account was in credit by £165. I telephoned British Gas and asked for this money to be credited back to me (they are after all my Gas company and not a 0% savings account).

Telephone call 1: British Gas employee told me that this money was already in the process of being refunded to me as 'I had reached the end of my direct debit cycle', and that the money would arrive in the form of a cheque within 28 days!

Telephone Call 2: No money arrived. No log of 1st call had been made. No money sent out. Please can I have my money back? I was told that no money could be refunded unless I provided a meter reading and that if I was refunded the money my direct debit would be cancelled!

Telephone Call 3: Can I speak to a manager please? No manager available, manager will contact you within 48 hours. Told money can be refunded but direct debit is suspended as money cannot travel both ways in the system. Have not yet spoken to a manager.

Help!

Question:Who does the money belong to if my account is in credit, British Gas or me?

Question:Is it reasonable to wait 28 days for a cheque or is it possible for them to 'electronically' credit my account?

Question: Has anyone had the same experience and how was it resolved?

tripled

1) The money belongs to you
2) Depends. If the customer reference number on your latest bill starts with 100 (gas accounts on the old billing system) it is always possible to refund electronically, takes around 3-5 working days to appear in your account. If it starts with 8500 (gas and ele on the new billing system) it is supposed to be possible but rarely does. Any other number (electricity accounts on the old billing system) cheque only, takes 10-14 days.

They ask for a meter reading because it means they can calculate the charges to that day so they don't refund too much and leave the account in debt. Due to major teething problems with the new billing system and inadequate staff training and support, there are currently huge backlogs of work for our indian friends in the processing departments to get through, which is why there is a 28 day wait.

xhostilex

Thank you for the information, really helpful, short thread! Glad I posted.

Wig

I have a simple method for dealing with this

Either stop the DD yourself or by asking them to put a stop on the account.
If your concern is that there is a direct debit discount that you will lose out on if you stop the DD....read on...

In this case just ask them to reduce the DD to 1 pound per month for the next 3 months. Or however long it will take you to use the gas credit that has built up.

I don't see the point in confusing matters by asking for refunds, the interest in a normal current account is zero, the interest on a couple of hundred pounds in a saving acoount for a few months is a couple of quid. They lose out too when the direct debit is not enough, then we have borrowed from them, they don't get in a panic and demand a cheque immediately. So a little calm reflection is needed here about how serious this problem is and what is the best solution.

wannaberich41

hi
i to have just phoned british gas re being in credit by just over £100 of my money. and asked for a refund. she said no because we are in the winter months and my usgae will go up. She told me to call back in march when my next bill is due :mad: . I asked her if my monthly payment would be reviewed then as im obviously over paying and she said no because british gas are putting their prices up then. Why should they earn the interest on my money?
This makes me mad. especially as i could do with the money.
bye for now

jonnyb

I'm in a similar situation. Strangely they have refunded my leccy bill £77 credit, but the gas bill almost £200 credit appears to have stalled, despite me giving them a new reading and them telling me on the phone that a cheque would be sent.
I'm going to take the advice to wait until march, then get the full refund anf reduce my direct debit.
Price rise is irrelevant to me coz I'm protected until 2010 -

hansi

I have the same problem. I am about £75 in credit and they wanted to increase my DD payment. I think I'm going to cut out the DD altogether and go back to quarterly billing. I may be paying a bit more for the gas but at least I'll only be paying for what I'm using.

Wig

wannaberich41 wrote:

hi
i to have just phoned british gas re being in credit by just over £100 of my money. and asked for a refund. she said no because we are in the winter months and my usgae will go up. She told me to call back in march when my next bill is due :mad: . I asked her if my monthly payment would be reviewed then as im obviously over paying and she said no because british gas are putting their prices up then. Why should they earn the interest on my money?
This makes me mad. especially as i could do with the money.
bye for now

Hi
I find that to be unacceptable, I would give a meter reading on the phone and as for an instant balance of your account. Then ask for your DD to be reduced to 1 pound for 2 - 3 months. If they refuse ask for a manger. if the manager refuses say you will be starting a change of supplier today (EBICO is probably cheaper but I need your annual kwh and current tariff to confirm that).

johnnyb,
You are on 2010 tariff so you won't want to switch supplier. I would still ask for a line manager and insist on a DD reduction. Tell them if they don't do it you will send a letter demanding payment and sue them in the small claims court for a refund.

Hansi,
British gas aswell? What tariff are you on and your annual kwh? If you go with Ebico there is no price diff between DD or quarterly.

hansi

Wig wrote:

Hi
I find that to be unacceptable, I would give a meter reading on the phone and as for an instant balance of your account. Then ask for your DD to be reduced to 1 pound for 2 - 3 months. If they refuse ask for a manger. if the manager refuses say you will be starting a change of supplier today (EBICO is probably cheaper but I need your annual kwh and current tariff to confirm that).

johnnyb,
You are on 2010 tariff so you won't want to switch supplier. I would still ask for a line manager and insist on a DD reduction. Tell them if they don't do it you will send a letter demanding payment and sue them in the small claims court for a refund.

Hansi,
British gas aswell? What tariff are you on and your annual kwh? If you go with Ebico there is no price diff between DD or quarterly.

I'm on Click Energy and the whol problem is that i don't know what my annual consumtion because I haven't been with them for a year yet so I can only go on the monthly payments. I'll have a look at Ebico. Thanks

Cardew

I am a little confused by many of the posts above.

The Direct Debit system will usually put you in credit by late Autumn so that you have a 'cushion' to be used for the much heavier winter bills. Most people are in debt by Spring and then gradually pay back that during the summer. Thats how the system is designed to work.

If at the end of a 12 monthly billing cycle you are more than £100 in credit you get that paid back and your DD for the next 12 month period is re-assessed.

We sign up for the DD payment scheme - it is not compulsory. BG and most of the utility companies offer financial incentives for us to sign up as it is a simple system for them to operate(and for us customers as well)
As said above, to demand a credit balance is returned during the 12 month cycle defeats the object; as it would if the Utility companies demanded payment every time we went into debit.

I am nearly always a couple of hundred pounds in credit in October and by April I usually have a debit balance.

The Regulator has stated that the companies are on balance owed far more money from debit balances than they owe on credit balances. Which is to be expected with the tariff increases experienced over the past couple of years; so overall they are making loss not a profit from cash owed/owing.

If it really bothers people about the small amount of lost interest, surely it would really be better to simply come off the DD scheme and go to paying each quarter in arrears. Then they can have all the interest on their money right up to the time they pay their bill.

hansi

Exactly, and that is what I plan to do. I'm going to be away for considerable periods of time this year and my gas usage will be nil and just minimal electricity used. So if I continue with DD, I will be worse off.