OVO Direct Debit - One month in credit at all times

guyrws

Hello,

I queried a rise in my DD and part of the reply said:
"As part of our terms and conditions we ask our customers to be one months in credit at all times"

Is this usually a condition with other suppliers?

Cheers, Guy.

System

Yes, many of the smaller suppliers require payment in advance of supply but I cannot understand the explanation given. The truth, as I understand it, is that Ovo is attempting to achieve a zero balance on your account by April by varying your DD payments. The amount by which DDs can be varied is set out in Ovo's ts and cs.

It follows that for the coming year (Apr15/16) - provided usage doesn't vary - that your DDs should stay at 1/12 of the projected annual charge. Clearly, a credit balance will build up which you draw down on during the more expensive winter months.

Why? Smaller companies do not like customers to be in debt. Their operating margins are much smaller than those of the Big Six.

JJ_Egan

I have just used Ovo my account to withdraw £200 of my credit and reduced my DD by £25 .
Ovo do pay 3% on credit balance .

Nada666

Most suppliers expect you to be a whole season's worth in credit. Several hundred pounds this time of year. If Ovo only want one annual-average month's credit then that is well below what is typical.

elantan

I like the fact OVO give you the 3% for credit balances, most banks dont give that

jjlandlord

Nada666 wrote: »

Most suppliers expect you to be a whole season's worth in credit. Several hundred pounds this time of year.

Since when?

I have been with OVO since this year and am in credit because they pay 3% but with previous suppliers I was only as much in debit as possible...