British Gas wrongly cancelled my D/D & have now taken full amount

littlewren

I have been a loyal British Gas Homecare customer for many years and, as usual, I received my annual statement a few weeks ago, the price had increased from £45.80 to £53.72 per month. I noticed the same day that my Direct Debit hadn't been taken from my bank account for November and on checking further, I then saw that the last payment had been taken out in August!

I contacted my bank and I was very surprised when they told me that British Gas had cancelled the Direct Debit. I got on to British Gas and told them the situation and when I said that the bank told me British Gas had cancelled it, they told me they weren't authorised to do this and that it was obviously my bank. Back I went to my bank, only to be told that it definitely was British Gas that had cancelled it! I phoned British Gas again and after going through the figures, I was told by the customer services advisor - unfortunately I didn't get his name - that the increase was taking into account the missing payments. I said that the small increase wouldn't allow for this, but he insisted that over a period of time it would sort itself out. He told me the first payment of £53.72 would be taken out on the 14th December.

I decided to phone again to make sure he was correct and this time I got the person's name, on the 3rd December. After going through my account, she confirmed what the previous advisor had told me, that the payments would be £53.72 per month. Again, I said that I didn't see how the little extra per month would allow for the missing payments caused by British Gas cancelling the Direct Debit by mistake but she told me not to worry, that this was definitely the amount that would be taken each month, starting 14th December. She also told me that in view of the fact that I'd had this worry, she would forward a complaint through to Customer Relations and I have since received a letter from Customer Relations to say the 'team is dealing with the matter raised.'

I was checking my bank account this afternoon and was horrified to see that £223.20 was taken out of my account yesterday by British Gas Homecare! I phoned immediately and was left hanging on the phone for ages while a customer services advisor spoke to her manager. She then told me there was a problem with their computers and she would ring me back. I received a call half an hour later, she told me that she'd spoken to her manager and that the £223.20 was for the missing payments - missing only because British Gas wrongly cancelled my Direct Debit, which has been up and running smoothly for years!

I told her that I had previously phoned and sorted everything out with the two customer advisors, but all she would tell me was that I could make an indemnity claim. I want to keep my Homecare agreement with British Gas and do not want to get into indemnity claim wars with them.

It was British Gas who wrongly cancelled my Direct Debit, yet they decided to take out £223.20 from my bank account without contacting me beforehand, no letter to tell me they were going to do this has been received, it is disgusting. Even the payments for that missing period don't add up, the figure would be £191.12, not £223.20.

Where do I stand on this? I realise they want their money, but the underhand way they've just taken it from my account has left me fuming.

System

I doubt that BG actually cancelled the Direct Debit Mandate raised on your account. They just failed to initiate a payment request to your Bank. I am no lawyer but I believe that the argument goes along the lines of an annual premium paid in 12 monthly payments. This is how my boiler maintenance contract works.

You were no doubt expecting the payments to be taken, but I agree that BG could have handled things better. if I were you, I would make a complaint and see if BG will make you an offer of compensation by way of an apology.

As this is a money saving forum, can I ask what are you paying £644 a year for? It looks rather high to me. I pay £160 per year for a CH cover including an annual service. This covers the boiler, unvented cylinder, 21 radiators and an Evohome heating control system. If I was paying £650 per year, it would pay me to put the money into a building society and buy a new boiler every 5 years. You do realise that you are paying for your loyalty with a 17.3% annual increase?

littlewren

Hengus wrote: »

I doubt that BG actually cancelled the Direct Debit Mandate raised on your account. They just failed to initiate a payment request to your Bank. I am no lawyer but I believe that the argument goes along the lines of an annual premium paid in 12 monthly payments. This is how my boiler maintenance contract works.

You were no doubt expecting the payments to be taken, but I agree that BG could have handled things better. if I were you, I would make a complaint and see if BG will make you an offer of compensation by way of an apology.

As this is a money saving forum, can I ask what are you paying £644 a year for? It looks rather high to me. I pay £160 per year for a CH cover including an annual service. This covers the boiler, unvented cylinder, 21 radiators and an Evohome heating control system. If I was paying £650 per year, it would pay me to put the money into a building society and buy a new boiler every 5 years. You do realise that you are paying for your loyalty with a 17.3% annual increase?

When I first contacted British Gas regarding this, they told me to contact my bank, who confirmed that the Direct Debit had definitely been cancelled by British Gas. There was an ongoing DD which had been in place for years and of course varying at times so they had no reason to initiate payment. The last payment was August and September through to now would have been the same payment so the payments should have continued smoothly.


I have made a complaint to Customer Relations and, as advised by a British Gas advisor yesterday, I have used the Indemnity Claim to have the £223.20 put back into my account immediately.


As my boiler is so old (31 years) and British Gas have no parts for it, I have stuck with them for boiler cover as a lot of companies wouldn't cover it. I also have Plumbing & Drains cover, Home Electrical cover and Kitchen Appliances cover for my dishwasher, microwave, fridge/freezer and cooker, so all of this is why the amount for the year is so high. I have made use of most of the cover, particularly the Plumbing & Drains, when tree roots invaded my drain and Dyno Rod had to do a big job to solve the problem, needing to dig up some of my drive in the process!

System

Each to his own, but I still think an annual increase of 17% is staggeringly high. If, as you say, BG have no parts for your boiler, it is possible that they could invoke this clause next time your boiler fails:

6.3 Our cancellation rights

We may cancel your Agreement in the
following circumstances:

• If we are not reasonably able to find
parts for your appliance or system.

£600 a year would go a long way towards the cost of a new boiler, and a lot of the Homecare cover could be included on your House Insurance for a relatively modest extra premium.