Small supplier Eversmart Energy stops trading - MSE News

nxdmsandkaskdjaqd

ivanleo wrote: »

Just called the bank and told them I'd been overcharged (which is true) and the company has gone out of business (which is also true) and the bank refunded the direct debit to my account. My credit balance was fairy small so I only had to reverse the August direct debit, and obviously the September one which they took after they'd gone bust (as they never had any ground to take a charge in September in any case).

You can legitimately reverse however many months of DDs are necessary to claim back all your credit balance, even if this leaves you with a small amount owing to the Eversmart administrators. It just means that in however many months time, they'll send you an invoice for the difference, which is fair enough.

Thanks I will give it a go. I didn't know you could do this. Just out of interest who was your bank (in case my bank doesn't allow this?

ivanleo

nxdmsandkaskdjaqd wrote: »

Thanks I will give it a go. I didn't know you could do this. Just out of interest who was your bank (in case my bank doesn't allow this?

I'm not going to disclose who I bank with, but the Direct Debit guarantee is universal, just google "Direct Debit Guarantee" and open the first link. It says:

If an error is made in the payment of your Direct Debit, by the organisation or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society

Under the terms of the scheme, liability sits with the sponsor bank (i.e. Eversmart's bank), so for argument's sake even if there's no money left in Eversmart's account, the sponsor bank still has to foot the bill.

If the bank makes a fuss, you can make a formal complaint and ultimately take it to the financial ombudsman, all at no cost or risk to yourself, so it's worth a try.

nxdmsandkaskdjaqd

ivanleo wrote: »

If an error is made in the payment of your Direct Debit, by the organisation or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society

Under the terms of the scheme, liability sits with the sponsor bank (i.e. Eversmart's bank), so for argument's sake even if there's no money left in Eversmart's account, the sponsor bank still has to foot the bill.

If the bank makes a fuss, you can make a formal complaint and ultimately take it to the financial ombudsman, all at no cost or risk to yourself, so it's worth a try.

Make contact with the bank, initially they refused on the basis that they were bust. So went through to the Complaints team who are now investigating. Expecting a call back latter today or tomorrow pm.

nxdmsandkaskdjaqd

ivanleo wrote: »

Under the terms of the scheme, liability sits with the sponsor bank (i.e. Eversmart's bank), so for argument's sake even if there's no money left in Eversmart's account, the sponsor bank still has to foot the bill.

I have been looking around the internet, but was unable to find any reference to the above point.

Are you able to provide any additional information where I might find a reference to this in the DD Guarantee? (just so I have an argument when the bank comes back and says NO).

brewerdave

nxdmsandkaskdjaqd wrote: »

Make contact with the bank, initially they refused on the basis that they were bust. So went through to the Complaints team who are now investigating. Expecting a call back latter today or tomorrow pm.

Interesting point - my layman's understanding of the DD guarantee is that the money is retrieved from the supplier's bank (and then restored if the complaint is unjustified) - but if the supplier has gone into liquidation/administration, how can the Bank recover the monies??

ivanleo

nxdmsandkaskdjaqd wrote: »

Are you able to provide any additional information where I might find a reference to this in the DD Guarantee? (just so I have an argument when the bank comes back and says NO).

Not really, the documents that underpin the scheme (which are indemnity agreements signed between the various organisations involved) are not publicly available, but to be honest you don't need to worry about it. The DD guarantee says that you are entitled to a full and immediate refund from your bank, you don't really need to concern yourself with whether they can or can't get the money from the sponsor bank or from eversmart.

matelodave

ivanleo wrote: »

Not really, the documents that underpin the scheme (which are indemnity agreements signed between the various organisations involved) are not publicly available, but to be honest you don't need to worry about it. The DD guarantee says that you are entitled to a full and immediate refund from your bank, you don't really need to concern yourself with whether they can or can't get the money from the sponsor bank or from eversmart.

That's how I understand it as well - it's up to them how they recover the money it shouldn't be your problem.

nxdmsandkaskdjaqd

ivanleo wrote: »

Just called the bank and told them I'd been overcharged (which is true) and the company has gone out of business (which is also true) and the bank refunded the direct debit to my account. My credit balance was fairy small so I only had to reverse the August direct debit, and obviously the September one which they took after they'd gone bust (as they never had any ground to take a charge in September in any case).

You can legitimately reverse however many months of DDs are necessary to claim back all your credit balance, even if this leaves you with a small amount owing to the Eversmart administrators. It just means that in however many months time, they'll send you an invoice for the difference, which is fair enough.

ivanleo. Thanks for the info. Santander just refunded 3 months of DD to me, already in my bank account.

Such a good posting of yours. Beats waiting months for the administrator to sort out.

Stratus

Just received a "sorry you're leaving" email and text from Utilita. Phew!

eliza2811

Hi all,


I am still awaiting my final bill. Was switching away from Eversmart and had handed my readings to Yorkshire Energy the day before Eversmart went into administration.


I have received a Cust Ref Number from Utilita, who I did ring, and despite sending me the cust ref number, they acknowledged, they can't set up any account with me, they can't produce my final bill as they don't have my final meter readings, referred me to Ofgem, which was completely pointless as the website says to complain your supplier in the first instance (so the one gone bust or the one which is the SOLR ??).



I have tried to claim my 4th Sept Eversmart DD payment back and Nationwide says you can't claim money back using the DD guarantee, from a company which has gone into administration.



I know the administrators for Eversmart are KPMG as Ofgem told me this and I must sit patiently and wait to hear from them.