Avro took money just before I cancelled switch

TerryPaul9

I started switching to Avro Energy and then cancelled the switch when they started making headlines. Received an email from them the day before they went bust to say the switch had been cancelled but they had taken a first payment via direct debit. Can I get this payment back and if so, how? Phoned my bank who said the Direct Debit Guarantee didn't cover it. Email from Avro said money would be returned within 10 days.

I'm appalled that a company knowing they were going bust can still be taking money the day before. I can afford to write this off if it comes to it, many won't.

oliverbrown

Octopus Energy will be in touch to refund it.

[Deleted User]

You credit balance including the DD payment that you have just made is fully protected by the Ofgem Consumer Levy. It will be returned by the SoLR but you may have a long wait as Octopus will look to the needs of Avro customers first.

What reason did your Bank give for not recovering your money?

TerryPaul9

[Deleted User] said:

What reason did your Bank give for not recovering your money?

They said the DD scheme only covered payments that were wrong (as in too high), not payments for companies that have gone bust.

Crdw

TerryPaul9 said:

[Deleted User] said:

What reason did your Bank give for not recovering your money?

They said the DD scheme only covered payments that were wrong (as in too high), not payments for companies that have gone bust.

But you had cancelled the switch, so surely the payment was erroneous?
You aren't asking for money back because they went bust, but because you didn't transfer to them in the first place.
I'd try asking your bank again.
Other than that, yes you will get your money back from the Solar at some point in the future.

Crdw

SoLR, not solar

hydratoad

Crdw said:
But you had cancelled the switch, so surely the payment was erroneous?

The problem here is the order of events. As per OP, the direct debit was taken (one assumes for the correct amount, on the agreed date) before the cancellation. In such a case the payment would not be erroneous under the direct debit guarantee.

OP is, of course, entitled to a refund. They would be an unsecured creditor with the administrator without the Ofgem process, but I'd expect them to receive a refund under the SoLR scheme from Octopus.

At present, Octopus are prioritising customers with a current supply. As per their information, I'd expect OP to be included in the "recently left" category and that Octopus would contact them within 4 weeks. http://octopus.energy/avro/