MP's demand slashing of Direct Debit discounts

wakeupalarm

No doubt this will just lead to more increases in prices.

http://www.bbc.co.uk/news/business-26030212

daveyjp

If the argument really is about cost copy credit cards and if payment isn't received by a set date interest or late payment charges apply. I'm sure plenty of DD payments are missed and costs are incurred in chasing missed payments.

scaredofdebt

Government figures show that those paying by cash or cheque typically pay £114 a year more than those who make an automatic payment.

Ah, good old "government figures" - nPower offer the biggest Direct Debit discount at £90, so how the "average" can be bigger than that is hard to fathom.

Statistics and damned lies.

molerat

scaredofdebt wrote: »

Ah, good old "government figures" - nPower offer the biggest Direct Debit discount at £90, so how the "average" can be bigger than that is hard to fathom.

Statistics and damned lies.

Probably because those that pay by cheque or cash are also the ones that are less informed and do not seek out the cheaper deals

jacques_chirac

molerat wrote: »

Probably because those that pay by cheque or cash are also the ones that are less informed and do not seek out the cheaper deals

Then is education not the answer? Make sure everyone can benefit from the discounts, rather than making those who are better informed pay more.

Cardew

scaredofdebt wrote: »

Ah, good old "government figures" - nPower offer the biggest Direct Debit discount at £90, so how the "average" can be bigger than that is hard to fathom.

Statistics and damned lies.

Exactly my thoughts.


I suspect that the '£114' comparison is made between the very cheapest tariff a firm offer(usually an internet tariff, paying by DD) with the most expensive tariff the firm offer, paying quarterly.


The problem is that on many of the cheapest internet tariffs paying by DD is mandatory.


If you take the 'Standard tariff' with all the major companies. I suspect the average discount for DD payment is probably around £30 to £40 for average consumption.

[Deleted User]

scaredofdebt wrote: »

Ah, good old "government figures" - nPower offer the biggest Direct Debit discount at £90, so how the "average" can be bigger than that is hard to fathom.

Statistics and damned lies.

I meet these people daily , who refuse direct debits, and to get online, they are O.A.P s with an inbred mistrust of direct debits and a fear of computers. They are very stubborn. I am always letting them know how much money they are losing ( approx 6% ) simply by letting the bank transfer it, but they wont have it. So now it looks like I am going to lose money because of paranoid pensioners .Also prepay users are paying through the nose and they re increasing. Many or most prepay users have these meters because of their poor debt management. Looks like I will be taking a cut in my discounts to help these groups out if these blinkered MPs have their way

Bark01

Cardew wrote: »

Exactly my thoughts.


I suspect that the '£114' comparison is made between the very cheapest tariff a firm offer(usually an internet tariff, paying by DD) with the most expensive tariff the firm offer, paying quarterly.


The problem is that on many of the cheapest internet tariffs paying by DD is mandatory.


If you take the 'Standard tariff' with all the major companies. I suspect the average discount for DD payment is probably around £30 to £40 for average consumption.

There was a table in one of the red tops that explained this, from memory it included smaller suppliers and Spark have a +£300 CC/DD differential which may distort the figures some what. It also ignored the suppliers who don't have a differential.

I've always thought the main cost differential between CC/DD is bad debt. If you've got someone's bank details they are easier to chase down for debt

Nada666

The only fair way to do this is to introduce prompt payment discounts at the same rate as the direct debit discounts - you know, as was banned by Bark's bestest friends Ofgem.

It is wrong that cash payers who pay on time are savaged like this - but it was Ofgem who took their hammers to destroy Scottish Power's attempt at decency a few years ago.

The chances of Ofgem eating crow is zero. All that will happen is tariffs will be concertina'd up in price yet again. This will have the biggest impact on those with modest consumptions who will now have no option but to go with Ebico.

Nada666

(The Co-operative had a far higher direct debit discount than npower - it used to be £164 dual fuel (or something like that - could easily be £20 or £30 out - but definitely way more than £90.))

scaredofdebt

Nada666 wrote: »

(The Co-operative had a far higher direct debit discount than npower - it used to be £164 dual fuel (or something like that - could easily be £20 or £30 out - but definitely way more than £90.))

nPower advertise themselves as offering the biggest DD discount of any supplier, so more lies from them then.