DD issue

jonnygee2

My question is when I signed the DD Guarantee, how long does this give them permission to set up a DD payment and take money out of my account?

What you mean is the Direct Debit Instruction, not the direct debit guarantee which is different. When you sign the instruction, it sits on your account indefinitely, until either you or the service provider cancels it.

is there a set time limit when they need to set up and take the first payment out or can they do this when they fell like it and have no time limit?

No, no time limit exists. A direct debit instruction allows the company to debit your account whenever they need to.

BUT

To stop abuse there is a Direct Debit Guarantee. This means that if you phone up your bank and say that the money was in error, your bank MUST give you a full and immediate refund, without investigating any further. The bank will refund you from their own funds and then they will reverse the direct debit payment and reclaim the money back from the service provider.

But, of course, in your situation you still legally owe them the money. So they cannot take it by direct debit, but they can (and will) still chase down the debt you legally owe them through the normal debt recovery processes.

Shakin_Steve

Terry_Towelling wrote: »

If I've understood correctly, the original DDR was set up by the power co with your bank. The power co failed to take any payments and you cancelled the DDR after a few months. You then switched power companies 8 or 9 months later and the original power company re-instigated the DDR (without your consent) but still never took a payment because you also cancelled that one.

So, the old power co cannot just take cash from your account but they will bill you for what you owe as of the switch date/meter reading. I'm amazed they allowed the switch to happen - but, then, if they failed to take any payments for a year perhaps we shouldn't be so surprised. Maybe their incompetent admin will mean they don't actually chase you for the arrears.

Personally, I'd put the effort into doing the right thing and cough up rather than expecting other customers to subsidise my spending through their payments.

I'm pretty honest, but that last sentence is taking it a bit too far. I'd have no compunction in screwing a power company. In fact, I'd be smug for ages afterwards.

jonnygee2

I'm pretty honest, but that last sentence is taking it a bit too far. I'd have no compunction in screwing a power company.

Me neither. I'd be more than happy to get away with it.

But in this situation they have 6 years in which they can back bill you. They often !!!! up and bill late, but they rarely forget altogether.

Personally I'd stick the money owed in an interest bearing saving account, and pay it after the first demand letter, *just* in case they do completely forget. And in six years, I'd probably have a very nice, guilt free meal on behalf of the energy company.

agrinnall

jonnygee2 wrote: »

No, no time limit exists. A direct debit instruction allows the company to debit your account whenever they need to.

However, if the instruction has been cancelled at the bank, which is what the OP did, then the company would require a new DDI in order to set up the DD again and take it.

Terry_Towelling

Shakin_Steve wrote: »

I'm pretty honest, but that last sentence is taking it a bit too far. I'd have no compunction in screwing a power company. In fact, I'd be smug for ages afterwards.

jonnygee2 wrote: »

Me neither. I'd be more than happy to get away with it.
.

Karma has a nasty habit of exacting retribution when you least expect it and in the most inconvenient of ways. Good luck.

PRAISETHESUN

jonnygee2 wrote: »

Me neither. I'd be more than happy to get away with it.

But in this situation they have 6 years in which they can back bill you. They often !!!! up and bill late, but they rarely forget altogether.

Personally I'd stick the money owed in an interest bearing saving account, and pay it after the first demand letter, *just* in case they do completely forget. And in six years, I'd probably have a very nice, guilt free meal on behalf of the energy company.

Energy companies can only backbill for 12 months of usage - I think what you mean here is that they have 6 years to chase OP for the debt from unpaid energy bills before it becomes statute bared, unless they apply for a CCJ against the OP.

@OP:
As much as I'd personally love to take the energy companies for a ride, I think everyone should pay their fair share for what they use. I'm not trying to suggest that's what you're trying to do, that's just my opinion. Cancelling the DD mandate simply stops it being used to pay the bill, but doesn't remove the fact that you owe them money. Make sure that you only agree to pay for energy that was actually used however - based on actual meter readings (and not "estimated" readings). The readings taken when you moved in, and moved out should be the ones to use here.

ivan_dunne

Can't believe this, just checked my bank account and they have set up another DD payment, unbelievable. No communication for this at all...again

Vortigern

I believe the power company has to tell you how much they intend to take by direct debit, and when they plan to take it. If they don't do this they may be in breach of the DD guarantee.

I also believe the power company has the ability to wreck your credit file. You have effectively borrowed money from them to pay for the power you used. Your account is in arrears and they should report that to the credit reference agencies. Have you checked your credit files?

Terry_Towelling

ivan_dunne wrote: »

Can't believe this, just checked my bank account and they have set up another DD payment, unbelievable. No communication for this at all...again

Not a lot of point telling us about this. If you have withdrawn the mandate, then they are acting improperly by instating a DDR without your express authorisation.

However, you said there was no problem with the issue 'catching you up'. Are you going to pay your bill or wait for karma to open it's bowels upon you from a great height - and then still end up having to pay it anyway?

Robin9

I am surprised that your old supplier didn't block your transfer to the new one in June as you were in debit.

One consequence of you cancelling the original DD back in 2017 is that you will have been transferred to a SVT and when they do catch up with you the bill will be bigger than you thought.

I hope that that you have a comprehensive set of meter reads and suppliers invoices - you may well need them in 6 years time.