Do I cancel Direct Debit or not?

hillcats

The question being asked by many is ‘Do I cancel my Direct Debit or not?’ 

My energy provider was PFP Energy for both fuels, who have recently collapsed. I currently haven’t cancelled either of the DD, and they are still claiming monthly funds from my bank, plus both accounts are £100+ plus in credit. 

Should I cancel these DD’s before October payments are due, or will this make the switch to SOLR and tariff I’m allocated worse? 

YoghurtCloset

Please speak to PFP via telephone to do this. Many pfp customers on other threads have incurred a £12 charge from PFP for cancelling it directly with their bank.
I called pfp on Monday and they cancelled mine no problem and said this will avoid the £12 fee. 

robatwork

Ofgem site is a little woolly about this. They suggest you "can" cancel it but on this page People's Energy customers: Your questions on new supplier British Gas | Ofgem it says 

Should I cancel my direct debit?

You don’t need to cancel your direct debit, but can if you wish to. British Gas will be in touch with you about whether your existing direct debit will remain in place, or whether they will set up a new direct debit .

The implication is that the new supplier could modify the direct debit themselves

[Deleted User]

YoghurtCloset said:

Please speak to PFP via telephone to do this. Many pfp customers on other threads have incurred a £12 charge from PFP for cancelling it directly with their bank.
I called pfp on Monday and they cancelled mine no problem and said this will avoid the £12 fee. 

PfP no longer exists as a trading company and, as such, through its actions it has broken the energy contract. There is absolutely no legal way that it can impose a penalty for the revocation of a DD. That said, the old computer system may still be set up to impose an automatic charge. Personally, I wouldn’t cancel.

CalvinHobs

I cancelled my direct debit with Avro on Monday - it was due to be taken tomorrow. I did not want to pay them just before going  bust. As it turns out, they went out of business today so I needn't have cancelled. I will simply set up a direct debit with my new supplier.

t1redmonkey

I'm cancelling my Avro one.  Ofgem guidance says it's ok to do.  Probably would just take longer to get the money back if I don't cancel.

poppellerant

Bear in mind that the new provider might put you on their more expensive cash tariff as a result of you cancelling the direct debit with the original provider.  Not to mention the cancellation charge on top.

malcolm0831

I cancelled my Avro DD today, it was due on 4/10. We are £230 in credit so don’t want to pay any more until the dust has settled. We have to pay for what we use at whatever rate we get thrown at us, so will hang on to the money and “ring fence” it until we know who we need to pay!

johnbhoy70

I'm about £140 in credit but owe approx £60/70 for last statement. Spoke to bank and they told 3 working days to cancel DD. I've being lucky with dates as I'm due to start Sainsbury's on 7th and DD is 12th do I'll wait till I'm over then cancel. 

waynedance

Was only yeaterday I logged in to see where my account was at which was -£35 and enter meter readings. 

Today I find out they closed down, I have also cancelled my direct debit. Wonder who the new supplier will be? If I do switch what's best to do, keep to the big 6?

lohr500

Totally anecdotal and without any facts to back it up, but I have read elsewhere that cancelling your DD can affect your credit score.