Another Eon DD thread

Former_E.ON_Company_Representative:_Malc

Hi John

Seems to be a number of issues here and, must admit, not sure if I’m reading your posts entirely correctly. Apologies in advance if I’m not.

From what you say, it appears there’s a debit balance on the account and there’s not yet a payment arrangement of any type in place.

If this is the case, our website will only allow a Direct Debit to be set at an amount to cover the ongoing usage and to repay the debt over a set period of time.

Sounds as though the £127/month being quoted is usage plus an amount built in to repay the debt. Once the debt has been cleared, the monthly payments can be lowered to cover the ongoing usage only.

The length of time to repay the debt can be adjusted by our agents depending on the circumstances and particularly if there’s vulnerability involved.

It’s certainly possible to clear the outstanding debt and set up a payment arrangement to cover usage only. We’ll also be happy to accept a one off part payment against the balance and set up an arrangement to cover usage plus the remaining debt spread over an agreed period of time.

Sounds as though the lad you spoke to initially took a part payment of £85 but no payment arrangement was set up. I’m afraid, promising to make another similar payment next month isn’t considered to be a formal arrangement.

Without a formal payment arrangement, debt follow up will continue to recover the remaining balance on the account. However, there’s usually a lengthy time lapse before we’ll involve third party debt collectors. How long has there been debt on the account?

We will point out the possible consequences of not paying the balance at an early point but it takes a considerable amount of time to reach the warrant stage. There’ll also be a number of letters/phone calls before a warrant is raised.

Standing Orders are a perfectly acceptable payment arrangement. These need to be arranged by the customer with their bank. Consequently, this is not something that can be set up through our website.

You’ll receive a prompt payment discount of 3 per cent for paying with a Standing Order.

Monthly Direct Debits allow us to set the payments and customers agree to having credit on the account at certain times. Therefore, they earn a higher rate of discount.

We do sometimes use third party outsource workers in the UK for specific tasks, particularly when demand is high. However, they have similar access and must follow similar guidelines to our call centre staff. They’re also subject to the same rules of conduct as all our agents.

It looks as though the reduced amount of £70/month offered by Andrew was on the understanding you cleared the outstanding balance. This would be ok so long as it covers your ongoing usage. If it doesn’t then this will certainly be the wrong thing to do as it will only lead to more debt and future problems.

If this is the case, you’re certainly right to complain and the Director’s Office is the best place to go.

Similarly, there’s no reason why a detailed breakdown of the payment arrangement cannot be given and I’m sorry if you were told this. Again, this will be taken up by our Director’s Office and calls listened to where necessary.

The complaint will be logged from the date you first raised your dissatisfaction. If, after 56 days, we’re unable to reach agreement or adequately explain our actions you’ll be able to refer the matter to the Ombudsman for an independent ruling.

Also, all debt follow up will be suspended whilst there’s an open complaint on the account.

I hope this is of some use John and sorry again if I’ve misinterpreted anything. Give me a shout if you need any more info as will be happy to help.

Malc

DirectDebacle

A recap on Eons zero spring balance policy.

It has been confirmed by an Eon rep on this forum that their zero spring balance policy is not a T&C of their contract.

Therefore if Eon insist that accounts that do not have a natural anniversary date in the spring, (defined by Eon as the months of April, May and June) must have a zero balance in one of these months, they are in breach of contract.

Perhaps an Eon rep would like to confirm this view.

Bear in mind that the affect of applying this policy can be masked by the more usual reasons a DD may be changed. For example price/usage or excessive balance (credit or debit) adjustments.

All suppliers are required to explain in plain, clear and intelligible language the basis upon which they are changing the DD amount. This should be in writing. If you do not receive such an explanation with the notification of change, request one. If you do not agree with the change, request it not be made until such explanation has been received.

Upon receiving the explanation it should be clear whether or not the zero spring balance policy has had any affect upon the change to the DD amount or indeed the anniversary date when the account would normally be at zero.

Suppliers must collect DD payments in accordance with the contract. It is often the only form of payment under certain tariffs and is a T&C. Normally the DD payment will be based upon cost of annual usage/12 = MDD amount.

Any subsequent review must therefore be based within the period of the current DD scheme.

Suppliers do give information on projected annual usage. This is for information only and not to be confused with the number of payment months remaining on the current DD.

If it appears that your DD has been incorrectly set for any reason then challenge the proposed change by way of complaint. Insist your DD is conducted in accordance with the terms of the contract.

If your complaint is wholly or in part in connection with the zero spring balance policy, send a copy to Consumer Focus and mark FAO Colin Urquhart. Consumer focus are gathering evidence with a view to requesting Ofgem to investigate this policy.

Even if Eon adjust your DD to the correct amount for your anniversary date still forward the details to C.F. Eon have been operating this policy since April 2009 (Eon rep info) and probably it has not come to the attention of Consumer Direct/Focus because it has not been reported in sufficient quantity.The few that have complained may have been placated by Eon adjusting the DD to what the customer reasonably expected it to be. They would likely leave it at that and not inform a consumer organisation.

If you have suffered loss as result of this policy, e.g. bank or credit card charges caused through borrowing to meet an unwarranted DD payment, request Eon refund them.

temba

Thanks everyone for the replies. Sorry I've been away from internet for a few days!

Malc - thanks for that reply. I honestly can't remember how long I've been on it. I know I was on a cheaper tariff that ran out, but that was quite a while ago. I'll dig out my old bills and check out exactly when.

Cheers, T

Doshwaster

Well, I've just had a Christmas Miracle in the post this morning.

Last year I was paying £60 per month which I was fairly happy with, then EON increased it to £79 and then £114 within 3 months even though I was in credit. I called up to complain but they said there was nothing they could do about it ("it's to protect you from being in debt to us"). Today I get a letter dropping the DD to £75 per month.

backfoot

Doshwaster wrote: »

Well, I've just had a Christmas Miracle in the post this morning.

Last year I was paying £60 per month which I was fairly happy with, then EON increased it to £79 and then £114 within 3 months even though I was in credit. I called up to complain but they said there was nothing they could do about it ("it's to protect you from being in debt to us"). Today I get a letter dropping the DD to £75 per month.

You may want to have a look at this thread which is about an investigation into Eon's DD policy.

https://forums.moneysavingexpert.com/discussion/3686969

System

Just a thought and it might not work but cant you pay by Standing Order instead? I think you get a 3% discount instead of 6% but it might be something to think about if they intend to increase your DD by a lot.

By the end of Feb my account will probably be in the red but i intend to keep in the black by paying what i owe to save them increasing the Direct Debit. If they do, and its worth doing, i will investigate paying by SO. They will have had my account in credit for 10 months now (no doubt accruing interest). I'll be damned if i will give them more money to 'invest' in their pockets.

Former_E.ON_Company_Representative:_Malc

Hi Judi

Yes, you can certainly pay by Standing Order if you wish. You'll need to arrange this through your bank.

The 3 per cent discount is the prompt payment discount. This will apply if the Standing Order clears any outstanding balance on the account within 14 days of the date on the bill.

Alternatively, you can pay with a Variable Direct Debit. With this arrangement, we'll automatically collect the total balance on the account 10 days after each bill is produced. In this way, there'll be no credit on the account.

Again, the 3 per cent prompt payment discount will apply.

Hope this answers your question Judi. Give me a shout if you need any more info as will be happy to help.

Malc

System

Thanks for the information Malc, one more thing. If we do manage to keep in the black are we liable to have our direct debit increased? I'd rather not fiddle around with payment options if i dont have to.

Former_E.ON_Company_Representative:_Malc

A lot depends on your usage Judi. If your present arrangement is covering your usage and the account is already in credit then you should be ok.

One thought, what tariff are you on? If you're on a tariff which ends shortly you may see an increase in cost as it's likely the replacement tariff won't be as competitive. This may have an impact on your Direct Debit.

I'm speculating rather a lot here Judi. Give us a call or drop an email to the address in my Profile if you prefer. We'll be happy to let you know.

Malc

System

I'm presently on Saveonline 9. Which i believe is the cheapest option for me. Payment for both utilities is £104 a month combined.