Non-direct debit fee from mobile provider

GrantM10

Hi,

My mobile provider is currently charging me approx. £3 extra per month on my contract because I elect to pay online rather than via Direct Debit. Excluding the obvious switch to paying via Direct Debit, does anyone have any knowledge as to the legality of the charge? The only precedent I can think of is an energy company providing a customer with a Direct Debit discount. This is obviously slightly different, so I wondered if anyone has successfully challenged the charge?

Cheers,

Grantley

spiro

Virgin Media charge TV & broadband customers extra to pay by DD. Don't see how it would be illegal if it is in the T&Cs unless they fail to declare it when you sign up to a £30pm deal.

macman

It's perfectly legal and this has been long established despite challenges to it.
Spiro, I think you meant to say that VM charge extra not to pay by DD?

NFH

GrantM10 wrote: »

My mobile provider is currently charging me approx. £3 extra per month on my contract because I elect to pay online rather than via Direct Debit. Excluding the obvious switch to paying via Direct Debit, does anyone have any knowledge as to the legality of the charge?

You're right to consider this to be an unfair commercial practice. It will soon be outlawed by Article 19 of Directive 2011/83/EU on Consumer Rights, which states:

Member States shall prohibit traders from charging consumers, in respect of the use of a given means of payment, fees that exceed the cost borne by the trader for the use of such means.

The government is aiming to enact Article 19 in the UK by the end of 2012.

spiro

NFH wrote: »

You're right to consider this to be an unfair commercial practice. It will soon be outlawed by Article 19 of Directive 2011/83/EU on Consumer Rights, which states:

Member States shall prohibit traders from charging consumers, in respect of the use of a given means of payment, fees that exceed the cost borne by the trader for the use of such means.

The government is aiming to enact Article 19 in the UK by the end of 2012.

So they will justify that it costs them £3 to process a non DD payment.

Buzby

Hoiwever, those who can (and do) pay by Internet Banking, will find that we are restored to the same level playing field. It has taken far too long, and complaints to the DTI was met with shrugged shoulders. The EU had again done a good thing.

NFH

spiro wrote: »

So they will justify that it costs them £3 to process a non DD payment.

If they are charged 1% of the amount to receive a credit card payment and 0% of the amount to accept an FPS payment, then they will not be able charge the consumer any more than these respective charges. Under the forthcoming legislation, a court would not allow them to claim ficticious internal admin costs.