I Hate Direct Debit

littleowl

I hope this is the right place to post this - if not, please feel free to move to somewhere more appropriate.

I really do dislike being coerced/bribed into making payments via Direct Debit. I feel that I am not in control of my finances because some outside body can vary a DD whenever they like and it takes one hell of an amount of time and effort to change it.

The present case in point is BT (don't groan!)

I changed to BT as my Broadband supplier in August. I was advised that it would be a good idea to set up a DD for BB plus telephone rental and calls. So, although I don't care for the system, I said I would and a payment of £36 pm was agreed. This week - some THREE weeks later I was informed by BT that the DD would be increased to £54pm. I phoned the helpline - in India - and negotiated the sum down to £42 pm - I must admit that I did not understand the rationale given by the advisor about just how he could do this - his responses were so convoluted they lost me. Anyway I am expecting confirmation in writing but doubt it will make any more sense.

Can anyone advise me if it is possible to set up a Standing Order for the BB element of the package - as a static known amount this should be possible - and pay the telephone bill by cheque? I do realise that I will not gain the financial benefit of paying via DD but I am happy to accept this for my own peace of mind.

I do realise that payment by DD is attractive for companies because they can cut their costs but is it such a good idea for the consumer? Mistakes do occur and frankly I would rather pay a little more than have to spend endless time and effort getting them corrected.

Perhaps I am just a control freak and don't relish the fact that someone other than myself can decide when and how I pay my bills. BTW I do pay immediately I receive a bill so am not attempting to avoid or delay meeting my responsibilities.

YorkshireBoy

I have all my utility bills on monthly direct debit, and I've never had a problem with either the amount or date they collect.

What I will say, though, is that £36 isn't going to go very far in paying your BT bill with a broadband package. I currently pay £31 with BT for a similar package (same intro offer as you?) and my debit balance is increasing significantly with every month that passes. Even so, they seem reluctant to increase the amount (and I'm not going to volunteer).

I've noticed that when companies do review your payments, they always err on the high side. However, a reasoned argument usually gets them to reduce it to a lower figure. I've always managed to get them to agree I'll reduce the debit balance to zero over the next 12 month period (and ignoring any price increases in the interim).

As you have realised, there are (significant) financial benefits to be had by paying by direct debit - and especially by monthly DD.

Finally, I don't think I've ever spoken to a BT CSA in India. I always seem to be able to speak to a UK based person.

littleowl

Hi,
I have a fairly low useage on the phone and started BB at the lowest package (because I cannot get more than around 4 meg due to my location) so deemed the £36pm as probably correct - especially as the amount was proposed by BT having reviewed my bills.
The benefits of paying by DD don't appear to be that significant - eg around £4 for BT? And I really don't believe that increased payments will be downwardly adjusted appropriately- BT appears to operate a three month cycle by the way.

Do you have a telephone number for a UK based helpline?

As I am on a fairly restricted pension income a rise of £18 pm was significant to me and future re-adjustment irrelevant as my income is fixed and such an overpayment would be difficult to absorb.

Becles

You don't have to sign up for a monthly payment plan based on estimated usage with BT.

Tell them you want to be billed and pay for actual usage each month. That's what I have, as I'd rather pay for what I'm using than build up credit or a debt with them.

littleowl

Thanks Becles - think I will do that - if I can find a UK number.

YorkshireBoy

littleowl wrote: »

The benefits of paying by DD don't appear to be that significant - eg around £4 for BT?

My comment was a general one, but your £4 BT figure is per quarter isn't it? If so, £16 per annum isn't to be sniffed at!

Do you have a telephone number for a UK based helpline?

I ring the billing enquiries number on the top of the bill - but through the day normally. Maybe I'm just lucky?

littleowl

Thanks - that is the one I used and it was not UK. Perhaps it depends on the time of day!

olly300

littleowl I can understand your fustration as in the past 12 months I've had a problem with 2 mobile operators, 2 landline providers and a broadband/digital tv provider, and all but one of them was a billing problem.

All the billing problems involved the companies thinking they could help themselves to my bank account and their customer service staff either being plain nasty or just incompetent.

Anyway all broadband providers stipulate that you pay by DD. So if I were you I would see if I could pay the broadband by DD as this is a fixed monthly amount, and the rest of you phone bill by any method you want.

BTW I've also had problems with the BT staff both India and UK based, due to their inability to follow simple instructions.

It seems that either/or:
a. asking the person's name and getting them to spell it out plus their call centre location
b. a written complaint sent by post using recorded delivery containing a threat to escalate the problem to OFCOM

gets the person to act properly.

For this reason I'm currently paying my phone bill by bank transfer the finanical benefits are not equal to the time and effort I've spent dealing with the BT issue I've had.

littleowl

Thanks olly. Why is it I wonder that BB providers only accept DD? Why not an SO as the amount is fixed?

computerwoman

I have BT Total BB option 3 and I pay £36 a month DD...which is what I would expect...but for the lower package I would not expect to pay that much ...unless...you also have a call package with them...I don't use the BB talk phone...or there phone for calls...I am with primus telecomms for my phone calls evening's and weekend free...90 minute cut off...I would suggest you change your phone calls to someone who is cheaper...as I would have had to pay an extra £15 amonth for callswhen they are suppose to be free...it's in case you go over the 60 minute's...so I pay bt for my line rental and BB option 3 unlimited...and my phone bill with primus this month was 34p...I pay both by DD with bt this save's me £12 ayear and I went paper free to save an extra 25p amonth...which is £3 ayear...total saved £15 ayear better off in my pocket than there's...you don't have to stay with bt for your calls give primus aring it will be set up within 10-14 days you don't need to put any numbers in just use the phone as before...but remember 90 minute's hang-up and call back...that way it's free...you can call them on 0800 036 3839 and you want primus saver option 2 free evening's and weekend's call's to 01 02 number's...:DI do use the phone during the day not very often which is why my bill is 34p as I have to phone an 0845 number to pay my rent...hense the 34p...that was for 4 calls to 0845 numbers tesco's etc...I would give it a try you never know you could save alot of money...hope this helps cw...:D

littleowl

Because I live in a difficult area I use BT BB Option 1 which is £17.99 pm so if I add the line rental presumably the charge wil be around £27-28 pm. I will have a look at Primus for calls - thans cw.
BTW - I assume the free weekend and evening calls exclude those to mobiles?