Avro energy switch - cancelled switch but took out 2 months of DD

rp112

Hi all,

Back in September, when I started to hear about rising energy prices, i decided to search around and switch onto a fixed tariff. 
None of the comparisons sites worked properly though, but my manual search turned up Avro being the cheapest.

So I decided to switch on 21st September, unfortunately within around 48 hours Avro ceased trading, hence I asked my current energy supplier at the time (Octopus) to cancel the switch, which they did. I even received an email from Avro saying the move was objected.

However, Avro took out two direct debit payments in Oct and Nov despite not providing a single unit of energy to me and an objected move. The direct debits were finally cancelled in mid Nov. I'll be honest, I didn't think to cancel the direct debits, as I assumed they wouldn't take any money out since the switch was objected. I've certainly learned my lesson in terms of ensuring direct debits are cancelled ASAP going forward should this situation arise again.

I've been chasing my bank Barclays to get this money under the direct debit guarantee scheme, went into the branch, wrote emails and letters, but they are unable to retrieve the refunds due Avro being in administration.

I spoke to citizens advice earlier today, and they told me to contact Avro's administrators, but they aren't even answering the phone.

I was wondering what advice anyone has for me to resolve this issue? i've been out of pocket for nearly 4 months. 


Many thanks,

QrizB

rp112 said:

I've been chasing my bank Barclays to get this money under the direct debit guarantee scheme, went into the branch, wrote emails and letters, but they are unable to retrieve the refunds due Avro being in administration.

I would consider submitting a complaint to Barclays, and (if that isn't successful) complain to their Ombudsman. "Avro being in administration" is not a valid reason to refuse a DD refund, in my opinion. Avro were already in administration when Barclays paid the DDs!

MWT

rp112 said:

I've been chasing my bank Barclays to get this money under the direct debit guarantee scheme, went into the branch, wrote emails and letters, but they are unable to retrieve the refunds due Avro being in administration.

A refund under the indemnity scheme is not predicated on the ability of the bank to retrieve the funds from the company, and most banks will have some level of write-offs each year in those circumstances, so the answer you were given is irrelevant.

There is a more narrow view they could take which would let them refuse, which is that the amounts and dates of the payments were as per the mandate which you had agreed, so there was no error in them being taken.

The indemnity is fairly narrow in that it is based on the accurate collection of the amounts you agreed, on the expected dates, it does not extend further into the state of the company or if the payments were really due or not.

Some banks are very liberal in interpreting the indemnity, others much more narrow.

As you now know, it is important to cancel any DD mandates that are no longer required.

I would agree that a complaint to the bank is justified though as their given reason is not actually valid under the indemnity.

Additionally you can contact Octopus (avro@octopus.energy) and let them know that you are an ex-customer who is owed money, and see if they can help as the SoLR for Avro.

rp112

Thank you so much for your advice, @QrizB and @MWT

In terms of complaining to Barclays, I've tried this for the past few months, on one occasion, I actually did a refund and then two days later, they took back the refund.

I've recently reached out to Avro via their Octopus email and i provided some proof in terms of bank statements illustrating Avro charges as well as my Avro customer reference number which was issued at the point of signing up.

They have told me, they've migrated a number of customers over but they haven't yet got access to my billing details from the Avro system. My case is regarded as "more complex" as it involves a switch away from Avro prior to formally going into administration. 

I'm hoping in the next few weeks, Octopus, with the help of the administrators, will refund the money via the original direct debit details.