Cancel DD?

oligopoly

Hi,

I switched with MSE to Igloo just over a month ago and now of course they've gone bust. I paid a Direct Debit of £240 a couple of weeks ago. There is no bill in my account and this amount just shows as a credit. But I have a DD lined up for a couple of weeks time and I'm wondering whether I should cancel it. Now normally I know that cancelling DDs can cause issues but equally I don't want £480 to disappear and be disputed while igloo goes under. Thoughts?

[Deleted User]

It will not be disputed. The SoLR has the legal right to takeover any existing mandates from a failed supplier. Your credit balance is also protected by Ofgem. 

oligopoly

OK great - so sit tight and not panic?!

JJ_Egan

Other wise you may find they want a few months payment in one lump sum in the future for your current usage .

brewerdave

The biggest potential problem with leaving the DD open is that the credit on the failed supplier's books, can increase disproportionally.
I have always cancelled the DD !! I've been thru 4 SOLR processes ,and on 3 transfers ,I've had issues with agreeing the carry forward figure for credit. In fact two of the problems were never resolved correctly, altho because the SOLRs concerned got in such a mess, I ended up in profit on both occasions!!

zagfles

brewerdave said:

The biggest potential problem with leaving the DD open is that the credit on the failed supplier's books, can increase disproportionally.
I have always cancelled the DD !! I've been thru 4 SOLR processes ,and on 3 transfers ,I've had issues with agreeing the carry forward figure for credit. In fact two of the problems were never resolved correctly, altho because the SOLRs concerned got in such a mess, I ended up in profit on both occasions!!

As most suppliers have a lower tariff for DD payments, if you cancel the DD do you temporarily move onto the non-DD tariff until you get a new one set up with the SoLR?

tux900

zagfles said:

As most suppliers have a lower tariff for DD payments, if you cancel the DD do you temporarily move onto the non-DD tariff until you get a new one set up with the SoLR?

It depends on the Ts&Cs. The few I've looked at require a certain number of DD payments to have been missed (e.g. with PFP it was two missed DD payments and no restoration within 3 days of notification). Bear in mind though that the SoLR transfer (for contractual purposes) generally happens within just a few days so it's a very small window that you are still subject to them. It's the account creation, database update, credit/debit resolution etc that takes more time.

wittynamegoeshere

I'm transerring from now-dead Symbio to Eon.  I've just got their welcome email, which states...

What happens next?
If you paid Symbio Energy by Direct Debit, we'll let you know how to set up a new one with us when we update you about your E.ON Next energy account over the next couple of weeks.

On the strength of this, I've just cancelled my existing direct debit.  Their website stated that they'd try to transfer it, it would appear that this has changed.

As long as I give my details when they ask then I'd assume that I'll be paying their DD tariff from day one.

matelodave

and this is what Symbio had to say about it

Q: Will my Direct Debits be transferred to the new supplier?

A: No, we don’t share any financial details regarding your direct debit with anyone. Once you have been switched over, the new supplier will send you details on setting up your direct debit as part of their onboarding process

zagfles

Different for Igloo - email from EON says:

"If you paid Igloo Energy Supply Limited by Direct Debit, please don't cancel this, as it will help make your move go more smoothly if you can leave it set up for now. But don't worry if you've already cancelled your Direct Debit. We'll let you know how to set up a new one with us when we update you about your E.ON Next energy account over the next couple of weeks."

phillw

zagfles said:

"If you paid Igloo Energy Supply Limited by Direct Debit, please don't cancel this, as it will help make your move go more smoothly if you can leave it set up for now.

This is the same for the Avro to Octopus transfer, it seems to be new & I am not entirely sure how it works (I won't find out as I cancelled mine already)