Warning! BT increase charges for non direct debit payers

SUGARSPICE

Hi

I was just wondering if anyone knows why there is a £4.50 charge for my Nan to pay her phone bill in at the Post Office?

Does anyone think that this is too much?

Any Answers/Advice would be much appreciated.

BritBrat

Because she is not using direct debit.

Any other method costs £4.50 per quarter.

wantmemoney

SUGARSPICE wrote:

I was just wondering if anyone knows why there is a £4.50 charge for my Nan to pay her phone bill in at the Post Office?

Yes.
Firstly it has little to do with the cost to BT of your Nan using the Post Office to pay her bill. It has nothing to do with the cost to BT of 'processing' a cheque.

BT claim they incur bad debt of £100m/year due to late payment and non payment of bills. They also claim that it's non direct debit customers that are mostly responsible for this bad debt.

They have calculated that on average each of their 5 million non direct debit customers cost them about (£100m / 5m) = £20/year = £5/quarter.

The actual figure BT decided was £4.50/quarter or £1.50/month.

SUGARSPICE wrote:

Does anyone think that this is too much?

In as much that it is actually a rolling monthly penalty surcharge yes.

BritBrat

So they are charging everyone else who pay on time a charge to offset the bad payers.

Nice way to lose your loyal customers and make them angry.

bubblesbonbon

Quote from B.T's latest "good news" post

Information about the payment processing fee.
Prescribed information under the Financial Services (Distance Marketing) Regulations 2004.
We are providing the information below on the payment processing fee as required by the Financial Services (Distance Marketing) Regulations 2004. We advise you to read this information carefully. It concerns a change to your contractual relationship with BT. Please note, however, that the payment processing fee itself remains unchanged at £1.50 per month or £4.50 per quarter and will be charged directly to your account as normal if you are not paying by direct debit or monthly payment plan. There will also be no change to how the payment processing fee is shown on your BT bill.
If you take BT Telephony Services ("telephony"), BT Total Broadband ("broadband") or BT Vision ("Vision") and you choose not to pay by direct debit or monthly payment plan, BT now requires you to enter into a separate agreement with BT Payment Services Limited ("BTPS"), who will collect and process your payment. You have a statutory right to cancel your contract with BTPS, as described in the terms and conditions, but please note that if you do cancel it, you will be in breach of your contract with BT for telephony or broadband service, or for Vision, and BT will have the right to terminate that service as a result. Our terms and conditions for telephony, broadband and Vision have been changed as of 1st February 2008.
If you choose to pay by means other than direct debit or monthly payment plan, then when you pay your next bill, you are agreeing to enter into a separate contract with BTPS. BTPS agrees to process your payments and to ensure that your payment reaches us promptly. In return, you are agreeing to pay a fee for that service each time you pay your bill. In other words, as long as you take telephony, broadband or Vision from us, and choose not to pay by direct debit or monthly payment plan, you must pay BTPS for collecting and processing your payment. There are some services to which the fee does not apply, and these are also set out in the terms and conditions.
The information in this notice relating to the payment processing service, and the terms and conditions of that service, is provided by BT on behalf of BTPS, a wholly-owned subsidiary of BT whose registered number is 6111881 and whose registered office is at 81 Newgate Street, London EC1A 7AJ.

Well and truly stitched up now methinks

slenderkitten

i think people should only be charged for how much it costs to process non direct debit payments probably about 50pence, not the ridiculous £4.50 charge, they are just making money out of us.

I am only glad that i make my calls through my orange broadband VOIP service at no extra cost, i can call whatever landline and orange mobile calls i want and it doesn't charge me a thing. i only use bt for 0870 0845 type numbers.

My gripe with direct debit that it doesn't always take the money out when they apply for it sometimes they will take it a few days before the date or after depending on holidays and weekends, which is annoying, does this mean its still a MANUAL process to get the payments?

sargentusuk

just a update over the direct debit charge

Last monday i've started a small claims case with 3 over the £3 charge if you don't pay by direct debit

My case is simple that these charges are classed illegal under section 2 schedule 1 (e) of the Unfair Terms In Consumer Contract Regulations 1999 (same part that was used in bank charges)

I'm also looking for judgement whether these charges fall as a fine or a forfeit and as i think they qualify as a forfeit using Section 12 of The Bill Of Rights Act 1689

I'm also asking for judgement if these charges also discriminate against the low paid, people who don't have a bank account, the eldely and the people who don't trust direct debits.

They have until Wednesday 13th Feb to respond keep you updated as if i win you can try with other companies

slenderkitten

sargentusuk wrote: »

I'm also asking for judgement if these charges also discriminate against the low paid, people who don't have a bank account, the eldely and the people who don't trust direct debits.

low paid people do have bank account they are called Basic Bank Accounts most if not all accept direct debits, if you are claming benefits they pay into your bank i assume this is as a direct debit i dont know what other method other than BACS that they could use to do this.

But i'd recommend Co-Op as it has a debit card Visa/Electron facility, not many of them about

Mary_Hartnell

sargentusuk wrote: »

just a update over the direct debit charge

Last monday i've started a small claims case with 3 over the £3 charge if you don't pay by direct debit

My case is simple that these charges are classed illegal under section 2 schedule 1 (e) of the Unfair Terms In Consumer Contract Regulations 1999 (same part that was used in bank charges)

I'm also looking for judgement whether these charges fall as a fine or a forfeit and as i think they qualify as a forfeit using Section 12 of The Bill Of Rights Act 1689

I'm also asking for judgement if these charges also discriminate against the low paid, people who don't have a bank account, the eldely and the people who don't trust direct debits.

They have until Wednesday 13th Feb to respond keep you updated as if i win you can try with other companies

There is a whole world of difference between a prompt payment discount appearing on the next bill and a fine "just in case you are a slow payer".

BritBrat

I hope my loophole still works.

Will let you know soon.

What is the worst that can happen? they take the direct debit and I am in cedit

If it does fail I intend to put myself in credit each month of £12 - £13 and see if that works, ie. no bill to pay.

Then if they do charge me I am going to phone up India and confuse them.