why is SE water awarding themselves a free loan through my DD?

cepheus

I've had a water meter installed last year and as a result my bill has reduced, however SE water don't seem to be planning on rebating my credit or reducing my Direct debit!

Is it still normal practice for utilities to award themselves free loans until the account holder asks for their money to be returned and monthly debits adjusted fairly? I though there was a new law preventing companies doing this.

Cardew

You have no need to pay by Direct Debit - there is no discount for doing so.

You can pay in arrears with a meter with no penalty. Thus saving your monthly payments and earning huge amounts of interest!

If you want to reduce your DD - just ask!

cepheus

I did earlier in the morning but they didn't discuss the possibility of paying in arrears. If that could be automated and debited from my account every six months that would be preferable.

This is what I mean,

But there is a nasty sting: by signing up to direct debit I would have to grant my supplier the right to take a fixed amount of money out of my bank account every month — to all intents and purposes letting it dip its fingers into my bank account at will.

If it calculates your bill wrongly, or over-estimates what you should be paying, you may find yourself paying far too much. In the meantime, the energy supplier enjoys an interest-free loan at your expense.

Indeed, consumer groups estimate that the companies can make profits totalling more than £30 million a year through this payment system.

Read more: http://www.dailymail.co.uk/news/article-2167510/Utility-firms-claim-direct-debit-saves-money-In-fact-conned-lending-fortune.html#ixzz2WrqVayrR


I vaguely remember there was a law coming in preventing utilities awarding themselves credit.

Cardew

That extract is typical Daily Mail and needs no further comment.

Although they don't have to seek your agreement on the level of the DD, they have to inform you in advance of any change. If you have any grounds for believing the DD is too high, then I have never come across a firm that won't reduce the DD if you present evidence.

datlex

I had built up a credit on mine, so this year Northumbrian Water are reducing the payments. They seem to set payments once a year. It is possible other water companies have different policies.

dan3811991119

Cancel the direct debit at the bank until your credit is used up. If they ask why you cancelled it tell the water board your using up your credit

Cardew

If you cancel the Direct Debit then any bill becomes immediately payable in full.

dan3811991119

Cardew wrote: »

If you cancel the Direct Debit then any bill becomes immediately payable in full.

You did not read the OP properly. There is no bill because he is on a water meter NOT water rates & the account is sitting with a bundle of credit on it. So my post is correct cancel the direct debit & as the bills is printed the credit will go down. The OP was complaining the account was in credit & the water company are refusing to lower the direct debit so in affect they where taking an interest free loan at his expense.

Cardew

dan3811991119 wrote: »

You did not read the OP properly. There is no bill because he is on a water meter NOT water rates & the account is sitting with a bundle of credit on it. So my post is correct cancel the direct debit & as the bills is printed the credit will go down. The OP was complaining the account was in credit & the water company are refusing to lower the direct debit so in affect they where taking an interest free loan at his expense.

Didn't read the OP properly?? I suggest you read my Post #2:

You have no need to pay by Direct Debit - there is no discount for doing so.

You can pay in arrears with a meter with no penalty. Thus saving your monthly payments and earning huge amounts of interest!

If you want to reduce your DD - just ask!

In my further post I was making the point that you have to find the total for the whole bill which some people find difficult!

At current rates of interest, the saving in interest accrued for most people, if they pay 6 monthly rather than by DD, is minimal - little more than the postage if you pay by cheque.

Again, as stated in post#2, if you ask the water company they will usually reduce the DD.