2 Companies collected DD's in same month

dont_use_vistaprint

This is very annoying, new supply starts 04/11, with first DD collected today 05/11. Old supplier knew about the switch as they emailed to try and stop me leaving yet still collected full amount on 01/11. I've a good mind to reverse it under the DD guarantee.

No wonder people are not switching, if you are on a tight budget this would be a major problem and could incur overdraft fees.

Is this normal ?
Whose at fault?
What should I do?

Thank-you

System

dont_use_vistaprint wrote: »

This is very annoying, new supply starts 04/11, with first DD collected today 05/11. Old supplier knew about the switch as they emailed to try and stop me leaving yet still collected full amount on 01/11. I've a good mind to reverse it under the DD guarantee.

No wonder people are not switching, if you are on a tight budget this would be a major problem and could incur overdraft fees.

Is this normal ?
Whose at fault?
What should I do?

Thank-you

What you are describing is normal. The losing supplier will continue to collect DD payments until it is confirmed that the transfer has gone through, and later if there is a debit balance on your account.

Many of the smaller suppliers now ask for the first payment in advance of supply as they pay their wholesalers in advance.

It is possible to reduce the possibility of a double DD payment by looking at the timing of your switch. This isn’t easy as some suppliers will take 17 days to transfer your supply and others will take up to the full 35 days.

dont_use_vistaprint

Hengus wrote: »

Many of the smaller suppliers now ask for the first payment in advance of supply as they pay their wholesalers in advance.

This is terrible and it was never mentioned. So effectively by switching to a cheaper provider you immediately make a loss of one months bills ?

Robin9

Who is your new supplier ?

dont_use_vistaprint

Robin9 wrote: »

Who is your new supplier ?

Outfox the market

Stompa

dont_use_vistaprint wrote: »

So effectively by switching to a cheaper provider you immediately make a loss of one months bills ?

If you are in credit on your account with your old supplier, that will be refunded.

System

dont_use_vistaprint wrote: »

This is terrible and it was never mentioned. So effectively by switching to a cheaper provider you immediately make a loss of one months bills ?

There is nothing terrible about it. You will only pay for the energy that you use at the agreed tariff rates. The gaining supplier will have your opening readings verified. These verified readings will be used to open and close your accounts. Your losing supplier will issue you with a Final Bill which will show all the payments made and charges deducted. If you are in credit, this will be repaid in full.

I appreciate that a lot of people regard monthly DD payments as billing/charges. This isn't the case. Monthly DD payments are money paid on account from which usage charges are deducted.

From OFTM's terms and conditions:

7.2 Paying by direct debit means:

You must keep your account in credit by paying for the supply in advance.

You agree to contact us before the direct debit is taken from your bank account if you believe your bill is incorrect.

We will carry any debit or credit balance forward to the next month’s bill.

You must give us an up-to-date meter reading at least every 30 days.

7.3 Paying by standard direct debit means:

Your monthly standard direct debit amount will be fixed based on the amount of energy we think you’ll use each year of your contract divided by 12.

We can increase the standard direct debit amount if necessary to cover your consumption.

We aim to review your standard direct debit where necessary, to make sure you are paying enough to cover the energy you use, or offer to reduce your standard direct debit if it’s too high.

We may not reduce your standard direct debit payments unless we have up-to-date meter readings for your account.

dont_use_vistaprint

Hengus wrote: »

There is nothing terrible about it. You will only pay for the energy that you use at the agreed tariff rates. The gaining supplier will have your opening readings verified. These verified readings will be used to open and close your accounts. Your losing supplier will issue you with a Final Bill which will show all the payments made and charges deducted. If you are in credit, this will be repaid in full.

I appreciate that a lot of people regard monthly DD payments as billing/charges. This isn't the case. Monthly DD payments are money paid on account from which usage charges are deducted.

From OFTM's terms and conditions:

7.2 Paying by direct debit means:

You must keep your account in credit by paying for the supply in advance.

You agree to contact us before the direct debit is taken from your bank account if you believe your bill is incorrect.

We will carry any debit or credit balance forward to the next month’s bill.

You must give us an up-to-date meter reading at least every 30 days.

7.3 Paying by standard direct debit means:

Your monthly standard direct debit amount will be fixed based on the amount of energy we think you’ll use each year of your contract divided by 12.

We can increase the standard direct debit amount if necessary to cover your consumption.

We aim to review your standard direct debit where necessary, to make sure you are paying enough to cover the energy you use, or offer to reduce your standard direct debit if it’s too high.

We may not reduce your standard direct debit payments unless we have up-to-date meter readings for your account.

Of course its terrible, maybe not for you but to anyone on a tight budget its devastating. The issue is the government / regulator promotes switching as easy when the reality is it can screw someone budget completely by collecting 2 payments in one month. No one mentions that some charge in advance and some in arrears & the T&C's are not summarised into Key facts.

Still haven't had any refunds btw & I have no expectations it will happen soon. No wonder the majority of people dont bother switching

System

dont_use_vistaprint wrote: »

Of course its terrible, maybe not for you but to anyone on a tight budget its devastating. The issue is the government / regulator promotes switching as easy when the reality is it can screw someone budget completely by collecting 2 payments in one month. No one mentions that some charge in advance and some in arrears & the T&C's are not summarised into Key facts.

Still haven't had any refunds btw & I have no expectations it will happen soon. No wonder the majority of people dont bother switching

I accept that it can be a problem for people on a tight budget. That said, all suppliers that I have dealt with in the past few years (Zog; Bulb; Powershop; Iresa and Octopus) have stated very clearly in their Welcome Packs when the first DD payment will be taken. Some also backed it up with an email 5 days before the payment date.

dont_use_vistaprint

Hengus wrote: »

I accept that it can be a problem for people on a tight budget. That said, all suppliers that I have dealt with in the past few years (Zog; Bulb; Powershop; Iresa and Octopus) have stated very clearly in their Welcome Packs when the first DD payment will be taken. Some also backed it up with an email 5 days before the payment date.

I think the issues then are coming from one of the big suppliers to one of the new entrants, the first time. No one talks about this and for many, myself included, its not an issue, I'm just annoyed! and feel like the £300 savings expected in reality is going to be £230 in my pocket - but for a lot of people I know it would have them awake at night and having to cut the food bill.