standing order not cancelled when energy supplier switched

DeeJames

Hi, it`s just come to light my mum has still been paying a standing order to her old supplier every month for her electric we swictched in 2019. Unfortuanatly I was unaware until now as she has control of her account and I don`t

I have the account details for the account it`s being payed into from her bank and will speak to the old provider but she's understandably very worried in the meanwhille - where does she stand on this?

dunstonh

With direct debits, the originator (the supplier) controls the amount to take and when.

With a standing order, the supplier has no control over it.  The account holder sends the money to their bank.  The supplier cannot stop a standing order.

You would expect a refund of the excess paid since the account was settled and closed.

Gerry1

Standing order is a very strange way to pay for energy.  She'll either be paying too little, in which case the energy company will chase her for being in debt, or she'll be building up unnecessary credit, effectively giving them an interest free loan at her expense.  Either way, her rates will be higher.

Make sure she's now paying by Direct Debit.

Robin9

Who is this old supplier please?

Does she still have an open online account ?  What does the bottom line say?

Does she want to resolve this herself or hand over to you ?   If the latter the supplier may want a letter of authority.

canaldumidi

The supplier won't talk to you unless your mother first gives her permission, so ring the supplier together.

Have all the paperwork to hand eg bank statement showing the payments, utility account details etc

DeeJames

dunstonh said:

With direct debits, the originator (the supplier) controls the amount to take and when.

With a standing order, the supplier has no control over it.  The account holder sends the money to their bank.  The supplier cannot stop a standing order.

You would expect a refund of the excess paid since the account was settled and closed.

That's what i was wondering, i know the supplier has no control over a standing order but will they refund the excess paid?

DeeJames

Robin9 said:

Who is this old supplier please?

Does she still have an open online account ?  What does the bottom line say?

Does she want to resolve this herself or hand over to you ?   If the latter the supplier may want a letter of authority.

account is closed but i do have the account number and details of the account (number and sort code) of the suppliers account it's being paid into

DeeJames

Gerry1 said:

Standing order is a very strange way to pay for energy.  She'll either be paying too little, in which case the energy company will chase her for being in debt, or she'll be building up unnecessary credit, effectively giving them an interest free loan at her expense.  Either way, her rates will be higher.

Make sure she's now paying by Direct Debit.

account is closed, new supplier is set up with a DD

Thrugelmir

Of course they'll refund.  Firstly you need to get to the bottom of what's going on. Is the standing order for energy, as an odd payment method. 

Robin9

DeeJames said:

dunstonh said:

With direct debits, the originator (the supplier) controls the amount to take and when.

With a standing order, the supplier has no control over it.  The account holder sends the money to their bank.  The supplier cannot stop a standing order.

You would expect a refund of the excess paid since the account was settled and closed.

That's what i was wondering, i know the supplier has no control over a standing order but will they refund the excess paid?

One complication might be if they are no longer in business.

Have you/your mum contacted the old supplier yet ?

Has you Mum now cancelled that standing order ?   Was is actually for energy of for some other service eg Homecare ?

DeeJames

Thrugelmir said:

Of course they'll refund.  Firstly you need to get to the bottom of what's going on. Is the standing order for energy, as an odd payment method. 

good to know it was for energy yes, account closed a couple of years ago - no idea why she had it set up like that