BT Direct Debit, How To Beat It

topherxp

Botch wrote: »

I notice that BT have also found a loophole in the VAT regulations the £4.50 has 0%VAT applied. So we can all reduce prices to our customers and pay less VAT and call the difference a payment charge! What a clever idea.

Yep, there is an exception to the VAT that involves finanical services i.e. BT Payment Service Ltd

Botch

Yes that's the whole point no VAT, all the profits and as there is a nil cost to BT for online banking there should be plenty, will all go back to BT. As this is a "financial services company" it will also be outside the scope of the regulator what a surprise! The whole scheme is a sham to increase profits and short change Customs and Excise and following this to it's logical conclusion any business in the country could set up a payment processing scheme to reduce the end price of their products by paying less tax.

trinovantes_2

As I always pay via online banking I'm at a complete loss how BT can charge me £4.50 per bill. I asked BT for a full breakdown of their "charge" and told them that I will not pay the £4.50 until they provide this. I've had some 'wordy wordy' Indian call-centre email back, but nothing that breaks down the charge. I've replied saying that until I receive a full monetary breakdown I intend to withhold payment of the £4.50.

BritBrat

I asked BT for a full breakdown of their "charge"

I asked the CEO and you won't get the data, my guess is it only costs 5 pence or less.

Do what I did, sign up to DD but pay using online banking but make sure you do it before they call for the direct debit.

I've replied saying that until I receive a full monetary breakdown I intend to withhold payment of the £4.50.

Be carefull you don't get a late payment charge.

topherxp

trinovantes wrote: »

As I always pay via online banking I'm at a complete loss how BT can charge me £4.50 per bill. I asked BT for a full breakdown of their "charge" and told them that I will not pay the £4.50 until they provide this. I've had some 'wordy wordy' Indian call-centre email back, but nothing that breaks down the charge. I've replied saying that until I receive a full monetary breakdown I intend to withhold payment of the £4.50.

BT aren't required to give any breakdown their charges and won't give any breakdown. By withholding the payment you will be liable for the late payment charge of £7.50.

imo613

What is the legal position of advising British Telecom that, owing to rising costs, one has no option but to introduce a Document Verification Fee for each application for payment, i.e. bill, that one receives from them?

BritBrat

You mean a payment processing fee

For our time and postage or what ever medium we use to get it to them.

£1.50 a month or £4.50 a quarter sounds about right to me.

Botch

I too refused to pay the payment fee and e-mailed Ben Verwaayen to ask for a breakdown of the fee (cutting out the indians) and you will all be thrilled with the following quote from the reply
" When we calculated the Payment Processing Fee we took into account the total costs associated with non-automated payment methods, which includes not just the collection costs, but also the follow up costs if customers pay late or forget to pay. The fee is therefore based upon the average cost to us for processing non-automated payments"
So what is the late payment charge for? Yes its a rip-off!

Josie64

trinovantes wrote: »

As I always pay via online banking .

pay using online banking? I was arguing this morning with a BT advisor that I want to pay other ways than monthly DD and she said I couldn't but if I did then it would be a restricted service...

where do I get BT payment card from ? hubby has just phone up BT and they said we have to cancel DD ?

BritBrat

I just paid mine using online banking, not sure where you get the payment cards but I am sure someone will be along soon to tell us.

Guessing, you may be able to pick them up at pay point centers.

http://www.paypoint.co.uk/


EDIT:

Phone up BT on 150 and you can order a card, takes a week or so.

You may have to cancel the direct debit, but tell them you will do that after you get the card.
And even if you do cancel direct debit maybe you can activate it again after online.