Direct Debit on switching supplier

Pete99

Just switched supplier switch completed on 27 Jan, there is a debit of £13 on the old supplier account (it's the winter period) and they've taken February's direct debit which I assume they'll hang onto until the final bill's worked out, maybe 6 weeks, I've asked for it back though happy to pay their estimate of £13. This really needs sorting out and making plain to both the consumer and the supplier when they can take the direct debit, it's not the consumers fault that the meter verification process takes so long, having two direct debits of near on £100 taken and one payment held for nigh on six weeks is really not on, no wonder the suppliers all seem to say don't cancel the direct debit, they're effectively borrowing huge amounts of our cash for nothing, if you weren't bothered about the money you wouldn't bother switching anyway. To cancel the DD or not to cancel the DD on switching, that is my question.

brewerdave

I have only cancelled DDs on switching if either the Company I'm leaving have gone bust or are looking shaky. I do spend time "managing" my DDs/credit balance tho' ,to ensure credits are not excessive. eg looking back the largest credit I've been due was ~ £88 and the largest final bill was £112, this was only as high because the Utility Co. themselves decided not to draw a due DD:rotfl:

Pete99

Strangely just looked at this suppliers FAQ which gives this answer
Should I cancel my old supplier's Direct Debit?

Although you'll never have to pay twice for the energy you use (any overpayments are always refunded), you could find yourself with two active Direct Debits until your old supplier closes your account.
To avoid this you could cancel your old supplier's Direct Debit. This does mean that any closing credits or debits have to be made another way – by cheque, for example – so it's worth thinking about the impact of the cancellation before deciding to do it.


It really needs to be made part of the regulation by OFGEM that when the supplier switch has completed there should be no access by the losing supplier to the customers bank account, and when they produce the final bill the balance should be settled by BACS or debit card either way.