TV license extra charge

letsbehonest

I pay my TV license by DD every quarter, just received my payment plan letter which tells me that I am charged along with every one else a premium of £1.25 on every payment for the privilege of paying by DD. Payments all collected by computer so why the extra charge?

Sharon87

It's always been that way, not sure why the extra charge, maybe it's like an interest for not paying up front?

I pay my annually and put aside money each month to pay it once a year. Cheapest way if you can afford it (always cheaper when you have money paradoxically)

London50

Pay quarterly
Colour licences

You’ll pay instalments of around £38.89 every three months.

Unlike other payment methods, with quarterly payments you don’t pay for any of your licence upfront. As a result, each quarterly payment includes a £1.25 premium.

Moglex

When you pay by quarterly instalments you are effectively paying (very high) interest.

You don't pay interest if you pay monthly by DD, but that is because, once you get going, you are paying 50% in advance and 50% in arrears. It's a much better option.

neilmcl

letsbehonest wrote: »

I pay my TV license by DD every quarter, just received my payment plan letter which tells me that I am charged along with every one else a premium of £1.25 on every payment for the privilege of paying by DD. Payments all collected by computer so why the extra charge?

Because you've chosen to pay quarterly rather than upfront you're effectively taken a loan therefore the "premium" is effectively to cover the interest costs.

pogofish

I'm struggling to see what this has to do with PVW...?

If only MSE had A TV Forum to do this one again and again to peoples hearts content...?

Moglex

pogofish wrote: »

I'm struggling to see what this has to do with PVW...?

Allow me to assist.

The OP was Venting (the 'V' in 'PVW') that he had to pay extra. And Warning people of the extra cost.

Hope that helps.