Outfox The Market Direct Debit changes

editor1

Hi, in order to stop overpayment you are allowed to cancel DD with your bank, that is you must instruct your bank to cancel the DD payment, which is fine if you are in Credit with your vendor and fine if credit does not cover last bill as they can then invoice you for any excess - this is what I did with First Utility this year and Ovo Energy a couple of years ago. Oh, and we were £550 in Credit with Ovo upon leaving, which was paid out within 30 days.

_Mezzanine_

editor1 wrote: »

Hi, in order to stop overpayment you are allowed to cancel DD with your bank, that is you must instruct your bank to cancel the DD payment, which is fine if you are in Credit with your vendor and fine if credit does not cover last bill as they can then invoice you for any excess - this is what I did with First Utility this year and Ovo Energy a couple of years ago. Oh, and we were £550 in Credit with Ovo upon leaving, which was paid out within 30 days.

According to OFTMs terms, they will charge a fee of £25 for any missed DDs that are not made good within 5 days of due date. They also reserve the right to charge additional bank fees and interest charges. I leave on the 2nd (I have enough credit for the final bill) and my next DD is due on the 4th December...

editor1

Actually, just had a shock when I run the Energy Club figures again. Had not realised if's a £50 exit fee charge for both gas and electricity, so can only emphasise again to those on OFTM's Fixed deals to stay the course until they hit the wall, with, or without all the crap associated with their increases to DD payments from December of this year financially we'll be far worse off if leave due to their crass management skills.

geoffplus

nameloc2080 wrote: »

As well as this evening's price increase email I've received another to tell me that my direct debit instruction has been cancelled. I didn't ask them to do that and I've not asked my bank to either. What a complete and utter mess they are making.

Strange goings on with OFTM for me.

OFTM have, with no correspondence, cancelled my direct debit. I did not ask them to. I joined on 20 Nov. Next payment to them due 20 Dec. I did apply switch to another provider yesterday.

Are OFTM trying to prevent the switch by cancelling the direct debit? - I will be in debt to them if they can't take payment for what energy I have used in my short stay with them.

Will try and get a response from them if I can

Steve456

geoffplus wrote: »

Strange goings on with OFTM for me.

OFTM have, with no correspondence, cancelled my direct debit. I did not ask them to. I joined on 20 Nov. Next payment to them due 20 Dec. I did apply switch to another provider yesterday.

Are OFTM trying to prevent the switch by cancelling the direct debit? - I will be in debt to them if they can't take payment for what energy I have used in my short stay with them.

Will try and get a response from them if I can

One thing for sure - do keep as much evidence as you can that they, and not you, cancelled the direct debit. They're just as likely to try and heap further charges on you due to their own actions!

System

geoffplus wrote: »

Strange goings on with OFTM for me.

OFTM have, with no correspondence, cancelled my direct debit. I did not ask them to. I joined on 20 Nov. Next payment to them due 20 Dec. I did apply switch to another provider yesterday.

Are OFTM trying to prevent the switch by cancelling the direct debit? - I will be in debt to them if they can't take payment for what energy I have used in my short stay with them.

Will try and get a response from them if I can

An account debit balance is not a debt. A debt exists when the supplier has notified the customer that there is an outstanding balance which needs to be paid AND 28 days have elapsed without payment. That said, this forum is littered with examples of suppliers not playing by the rules. For the avaoidance of doubt, I am not suggesting that OFTM would be minded to do this to retain customers.

Edit:

From the Ofgem website

Repaying a debt and switching

If you've been in debt to your supplier for less than 28 days you can still switch. Any owed amounts will be added to your final bill from your old supplier.

If you've been in debt to your supplier for over 28 days, you'll need to repay the debt first.

If it's your supplier's fault you're in debt, they can't stop you from switching.

geoffplus

geoffplus wrote: »

Strange goings on with OFTM for me.

OFTM have, with no correspondence, cancelled my direct debit. I did not ask them to. I joined on 20 Nov. Next payment to them due 20 Dec. I did apply switch to another provider yesterday.

Are OFTM trying to prevent the switch by cancelling the direct debit? - I will be in debt to them if they can't take payment for what energy I have used in my short stay with them.

Will try and get a response from them if I can

Did get through on Web Chat. Looks like they cancelled by mistake. I have told them to re-instate it and they are doing. They must be in meltdown. Feel sorry for the staff. Good job I spotted it though

editor1

Geoff,

You were within the 14 day Cooling off period, so you can Null & Void any contract you have with OFTM and change supplier - they have already deducted a DD payment from you which should cover all associated costs of your small stay with them.

Here's a link to help you with this issue: https://www.citizensadvice.org.uk/nireland/consumer/energy/energy-supply/problems-switching-energy-suppliers/you-ve-changed-your-mind-about-switching-gas-or-electricity-suppliers/

domjon1

not looking good for OFTM is it?

I switched within ten minutes of that email about the winter DD hikes.

My switch date is 7th december and I have enough credit balance to cover my final bill. A hiked DD of £148 is due to go out on 2/12...must admit I dont really feel like paying that as suspect it will get lost in the system when they inevitably go bump....am I safe to cancel my direct debit?

editor1

If Switch date is a few days after they hike their DD I'd check what credit you have and if above £50 quid cancel any further payments, that is instruct your bank to cancel the DD now and then worry about any fallout - they have enough on their plate and don't seem too managerial savvy presently.

However, please remember funds are in danger during the timelines between changing a supplier if the business hits the wall, which could be anytime soon given two energy price increases in the space of a week, regardless of the DD debacle.