BT Direct Debit, How To Beat It

KAPW

Can someone tell me how BT are allowed to charge me for not paying by direct debit? On my most recent bill I have a £4.50 charge for such situation. Surely they cannot take away our freedom to pay a bill how we choose? I'm slightly old fashioned and like to check my utilities before sending payment as they are sometimes incorrect, as such I am now penalised for making sure their administration is correct. I can understand BT implimenting a late payment charge - but not a charged based on how I chosse to make payment in the first place. Is such a charge really allowed? Any advice?

BritBrat

Welcome to MSE KAPW,

Seems like it's allowed at the moment, lets hope that changes.

I was angry too but then I got even. They have lost more that £80 from me since they introduced this charge.

BT Direct Debit, How To Beat It

Full Thread Here:
http://forums.moneysavingexpert.com/showthread.html?t=446084

telephone_man

Although BT have only recently introduced the payment processing fee they are just following a trend that other companies have implimented for a number of years. And although £1.50 p/m does not seem fair just think about those Virgin Media customers who pay £6 p/m for non DD & Talk Talk £3.5 p/m.

BexTech

However BT have been charging customers who don't pay by Direct Debit more for many many years, it's not something recent.

K9ine

Biggles wrote: »

I'm trying to work out where the advantage is in this.
You have a DD set up, yet you voluntarily pay BT earlier than the DD date (presumably at least a week early, as that's often how far ahead some firms set uo their DDs), so losing interest on your money.

I totally agree. The DD is taken after you receive the bill so it's a bit odd to have a DD setup but pay early, especially if it's from the same account :huh:

The only real issues are

1. is the 1.50 per month / 4.50 per quarter a reasonable charge?
2. Should it be a lesser total quarterly than monthly? ie £1.50 per month or £3 per quarter? {I don't think it should be because you are getting a longer amount of time to pay when quarterly)
3. BT should not be singled out, other companies do this!
4. They should target non paying customers NOT good customers!

BexTech wrote: »

However BT have been charging customers who don't pay by Direct Debit more for many many years, it's not something recent.

This is true, only the amount and breakdowns changed in May. The actual increase in May was 50p per month for those who continued NOT to pay by DD.

Botch wrote: »

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"

I think this has some validity, but does NOT justify the charge. Good loyal customers who pay on time should NOT be subsidising late paying customers?

Botch wrote: »

So what is the late payment charge for?

Exactly, the late payment charge should be increased. I guess BT may have been worried by negative reaction due to similarity with bank charges and thought that other companies were charging this fee so why not BT.

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.

Many, many businesses do this and I cannot blame them. I believe it's been like this in Europe for years in restaurants etc... If I was a shareholder {I think I still am) I would be annoyed if they didn't do this. Many internet firms are registered in the Netherlands (?) to reduce tax. Many DVD shops are based in Jersey. Everytime we use a credit/debit card in many shops and supermarkets they avoid paying tax on approx 2.5% of the totals. IMHO This is acceptable tax evasion compared to giving 'cash in hand' for services.

Overall I am happy to be paying £16 less this year to BT for my telephone line :j. I would have been happier to do this without having a DD. I will continue to use my orchid dialler and 18185 etc. for discounted calls.

K9ine

BritBrat

I pay exactly as I always did but now get £1.50/£4.50 reduction.

I want to pay the way I want to not as BT want me to.

BritBrat

Why should you get a charge for paying on time?

So if every company folowed Virgin would you be happy if they went further so when you went to a food store and got charged extra because they no longer allow you to pay by debit card or cash?

Maybe you would have to use the store credit card or pay 5% more.

I know they dont but what's stopping them, this is the thin end of the wedge.

gt94sss2

KAPW wrote: »

Can someone tell me how BT are allowed to charge me for not paying by direct debit? On my most recent bill I have a £4.50 charge for such situation. Surely they cannot take away our freedom to pay a bill how we choose? I'm slightly old fashioned and like to check my utilities before sending payment as they are sometimes incorrect, as such I am now penalised for making sure their administration is correct. I can understand BT implimenting a late payment charge - but not a charged based on how I chosse to make payment in the first place. Is such a charge really allowed? Any advice?

BT have been offering a discount for many years for paying by direct debit and you would have been 'losing out' on this for many years due to your choice to check your bills etc..

All they have done now is lower the basic line rental rate and show the 'direct debit discount' as a 'processing fee' for not paying by direct debit.

I suspect this is because, under advertising rules, BT would otherwise have been forced to compare its non-dd line rental to its competitors many of whom quote their dd line rental (in some cases its the only form of payment they accept) leading to misleading comparisons.

Many other companies including utilities make a similar charge for not paying by direct debit, even if they call it a 'discount for paying by direct debit' as BT used to.

On a more general note, if you like to check bills before sending payment you can still do this using direct debits as under the direct debit rules, BT will send you a bill about 2 weeks before taking any money, allowing you to check the bill which gives you time to query the bill (if needed) or stop any payment from happening.

The direct debit guarantee also means that if anyone takes any money from your account without prior notice being given to you, the bank should refund it immediately..

Regards
Sunil

wantmemoney

KAPW wrote:

Can someone tell me how BT are allowed to charge me for not paying by direct debit? On my most recent bill I have a £4.50 charge for such situation.

because BT are greedy b******* that operate in a market place that (thanks to the Government) is completely devoid of any consumer protection.

The charge is unfair and unjustified and clearly does not represent the cost of any "process" or "service" that BT claim. It's pure commercial greed.

JCD_Capulet

As it has been mentioned already, it's not something new from BT and when setting up a telephone line with them you are told there and then if you pay by DD you have a reduction as opposed to monthly paper billing. (I used to work for BT)

And yes, as a virgin media customer it wholey p**ses me off that I get charged £5 per month to be sent my bill in paper form. Given the choice, i'd not complain about BT.