How soon after switching can I cancel my the direct debit with the old supplier? (Tonik Energy)

Maureen43

Hi All
After poor service from Tonik, and with much better prices available elsewhere, I have a switch in progress from Tonik to a new supplier. This is due to complete on 8th May,
At what point is it ok / legal to cancel the direct debit with Tonik? I just don't trust them and think they will carry on taking money every month after the switch! 
I will have about £50 credit with them. If I cancel my direct debit does that mean they won't be able to pay me the credit? (should they ever issue a final statement anyway....).
Thanks
Maureen

Robin9

Don't cancel it - that's how they will credit you with your balance

brewerdave

Robin9 said:

Don't cancel it - that's how they will credit you with your balance

This is a myth - they DO NOT have to have an active DD in place to repay credit. They all like to preserve this myth to cover themselves from someone leaving whilst in debit as they then have to chase to recover the underpayment.
It is generally taking suppliers so long to issue final bills at the moment ,that it is possible for the losing supplier to claim multiple DDs after the date of switch, so if you start in credit you may end up be owed hundreds of ££s

Biscuit_Tin

Maureen43 said:

Hi All
After poor service from Tonik, and with much better prices available elsewhere, I have a switch in progress from Tonik to a new supplier. This is due to complete on 8th May,
At what point is it ok / legal to cancel the direct debit with Tonik? I just don't trust them and think they will carry on taking money every month after the switch! 
I will have about £50 credit with them. If I cancel my direct debit does that mean they won't be able to pay me the credit? (should they ever issue a final statement anyway....).
Thanks
Maureen

You can cancel your DDI at any time you like, either before or after you switch. It is only a method of payment and does not affect the underlying contract with the supplier. Note that the terms of that contract may require you to have an active DDI in place to remain on that tariff.

Therefore, it is generally not wise to cancel the DDI until the final bill has been settled. You may indeed find that you do not have to cancel the DDI, as the supplier sometimes does that for you. Yes, cancelling your DDI will affect the repayment of any balance owed to you, as the supplier will not then have access to your bank details.
https://help.tonikenergy.com/hc/en-gb/articles/360010605039--I-have-credit-on-my-account-and-I-m-leaving-Tonik-Do-I-still-get-my-interest-
 For data protection reasons, suppliers should not be storing your banking details in any un-encrypted format.

Remember, you are always protected by the terms of the DD Guarantee, particularly in regards to any unauthorised DD collection e.g. after the production of the final bill (assuming that final bill does not reflect a later collection)

inspectorperez

Once you have confirmation from your new supplier that you are now their customer (for both fuels if you are dual fuel), you should be safe in cancelling your DD. This should prevent your old supplier from saying that you have breached a condition of the contract you had with them, allowing them to revert you to their variable (most expensive) tariff for final bill calculation purposes. I am assuming that you have estimated what the final bill should be and are confident that you will still have a credit balance after it has been issued.

The absence of a DD mandate in place should in no way affect the old supplier's ability to make a repayment to you.

If you left the DD mandate in place, you can be equally confident that Toxic would continue taking payments on the prescribed monthly days even though you were with a new supplier.

Biscuit_Tin

inspectorperez said:

Once you have confirmation from your new supplier that you are now their customer (for both fuels if you are dual fuel), you should be safe in cancelling your DD. This should prevent your old supplier from saying that you have breached a condition of the contract you had with them, allowing them to revert you to their variable (most expensive) tariff for final bill calculation purposes. I am assuming that you have estimated what the final bill should be and are confident that you will still have a credit balance after it has been issued.

The absence of a DD mandate in place should in no way affect the old supplier's ability to make a repayment to you.

If you left the DD mandate in place, you can be equally confident that Toxic would continue taking payments on the prescribed monthly days even though you were with a new supplier.

With respect, that is poor and inaccurate advice.

inspectorperez

Please elaborate Biscuit_Tin

Biscuit_Tin

inspectorperez said:

Please elaborate Biscuit_Tin

Not sure what more  there is to elaborate upon that I have not already provided above?

But if you want more, try reading this:
https://forums.moneysavingexpert.com/discussion/5015428/switching-when-to-cancel-direct-debit-with-existing-supplier

and

What do I need to do when switching energy?

 ... You may also want to cancel your previous direct debits, but you should only do this after you've settled your final bill. ...

source: https://www.uswitch.com/gas-electricity/guides/do-i-need-to-contact-my-current-energy-supplier-to-switch/#step2

Edit:
And I now see even Tonik themselves gave you grief when you cancelled your DDI with them too early
https://forums.moneysavingexpert.com/discussion/comment/76924770#Comment_76924770

inspectorperez

What I mean by "elaborate" is that you have refuted my comments as being "poor and inaccurate" advice, but you have not explained why you consider them to be poor and inaccurate.

Gerry1

Having endured Eco7's DD shenanigans (sister company of Outfox The Market and the Magic Dust non-storage storage heaters), I prefer to prevent unjustified DDs being taken or refunds not being given in a timely manner.  I calculate the likely balance on the changeover date and if necessary make a one off payment so that it will end about £10 in credit, just to be on the safe side.  I then contact the losing company to explain that I'm cancelling the DD but will make a one-off payment in the unlikely event that the final bill shows a debit balance, and I do the sums again before sending the final meter reading.

Provided that the account stays in credit then there will be no justification for attempting a DD that is rejected, so no penalty charge can be levied.

I've never had any problems.  If a really rogue company tried it on, e.g. a penalty charge for an unjustified DD that was rejected or calculating the final bill on an extortionate tariff, then I'd refuse to pay any increased amount and take them to the ombudsman or see them in court.  I doubt very much that they'd risk it because they'd probably lose, and the £550 Ombudsman fee would be far greater than any surcharge they could attempt to levy.

It's just another reason why variable direct debit should be the default: all this nonsense would be eliminated.

inspectorperez

Just wondering why Biscuit_Tin hasn't justified his/her dismissal of my earlier post (timed at 9.58 a.m) as "poor and inaccurate advice" when he/she has been active on other threads.

No discourtesy intended, but I would like to know his/her reasoning.