BT Direct Debit, How To Beat It

Mytheroo

I still want to know why it costs £1.50 to process the payment of a monthly paying customer, but £4.50 to do the SAME PROCESS for a quarterly paying customer?

vix2000

because its' a rip off?

Mark_In_Hampshire

Mytheroo wrote: »

I still want to know why it costs £1.50 to process the payment of a monthly paying customer, but £4.50 to do the SAME PROCESS for a quarterly paying customer?

This is because, and, rather proves, that the "payment processing fee" has absolutely nothing whatsoever to do with the cost of actually processing the payment.

Given that the fee is the same regardless of "how many" payments you make, if we were going to pay the £4.50, then we'd get the best value by setting up a standing order to pay BT £0.36 per day.

If we did that then it might cost BT as much as 90p per quarter to process perhaps.

billsavings

Mark_In_Hampshire wrote: »

At the same time we have like other posters moved all our calls to 1899 and have saved a fortune. We had no intention of doing that prior to BT's attempt to "pull a fast one" with the changes, but it's BT's continuing loss.

Once the 12 months is up we'll be changing provider (the letter we received also stated that our 12 month contract will auto-renew every year unless we say otherwise, so we're refuting this change to their Terms as well). We'll be going with a reseller which isn't something I'd normally encourage, but then the service could not possibly be worse so there's nothing to lose.

If you move your line rental your new supplier could deny you access to 1899.

12 month renewable contract,s only apply to certain call packages not to line rental ,and you dont have to take a renewable contract anyway if you choose not to.

BritBrat

Well I am still paying the same way, I did wonder if the new T&C would make me have a charge as I pay by online banking, but I guess if BT do not ask for the payment charge I can't be in breach of contract even thou I don't pay it.

Mark_In_Hampshire

PPR wrote: »

BT are good at taking money via DD .But if they take the money early ,kick up a stink tell them they have put you overdrawn ,you should get a least 1 months line rental free .

... After ringing the Bank and getting them to reverse the direct debit, so they have to take it again later on.

And that's precisely what would happen every single quarter if we paid by direct debit, since we'd get the bill about two days before the money is debited, so every DD they took would be voided off by our Bank at our request.

It did occur to us to do this, but then you're into a slight legal issue - because even though you've surrendered control of your bank account to BT and allowed them to "take" their payments, it doesn't relieve you of any obligation to pay sums due. This is another DD specific issue and another reason why we don't go anywhere near it.

jhp

Whilst dds may not be everybody,s cup of tea, Martin. MSE recommends their use,as paying this way saves you cash.

http://www.moneysavingexpert.com/banking/direct-debit#save

Mytheroo

yes.....duh......we are arguing the REASONS WHY THIS IS THE CASE AND SAYING IT SHOULDN'T BE THE CASE!!

Does Martin MSE believe it costs BT more to process my internet transfer than to receive a DD payment 2 weeks later? Does it cost anywhere near £4.50 more?

Heinz

The solicitor who challenged it via the courts lost the case.

http://news.bbc.co.uk/1/hi/england/west_midlands/7319545.stm

There are time when the pragmatic approach is the sensible course.

eslick

whats the real reason any company likes you to pay by Direct Debit and no other way, the real reason is because they are then in control of their cash flow. If they Direct Debit they know they have the money on a certain day and then can invest it on that day. If they get a bank transfer a cheque they dont know when they are going to receive it so cant invest it as they can with Direct debit.

For this reason they use every means to get you to move to direct debit, only the TV licence actually charges you for using direct debit most other companies see it as a way of getting the money when they want to and not when we decide to pay.

We pay everything by direct debit, the direct debit guarantee ensures that a payment cant be taken before it is due and allow you to get the money back if either the wrong amount is taken or it is taken early.

For us its so much easier to pay by direct debit, we know when the money is going out and it helps us budget.

Not sure where the piece mentioned that its not secure, I work for a multi national and the amount of encryption that we and bacs provide I would say its very secure. Never heard of anyone hacking into a banks, company or bacs software. Have heard where your data can be used to set up debits but this I would say this isnt a case of the direct debit system been insecure more of other factors.

My only ever issue with a direct debit came when we joined the National Trust a few years ago, they suddenly charged us for a gift subscription my wife had purchased for a friends wedding a few year previous and paid by credit card. They said we hadnt paid so took the money totally against the direct debit guarantee , one call to the bank and the direct debit was cancelled and our statement looked like it never happened.

If you want to pay bills with no hassel I would use a direct debit

PS I dont work for BT