Direct Debit increases

k_man

Pete99 said:

Unless you're on a really good fixed deal, why pay with a fixed DD, most people must be on the standard variable rate tariff which in most cases can be paid for on receipt of bill instead, at the moment, when we don't know how much we'll be paying from October it surely makes sense not to stack up a huge credit or debit with a company that may go under, obviously going bust doesn't apply to the big suppliers.

Just to clarify, even if the company does goes bust, you do not lose that credit, although it may take a while to be added to the SOLR supplier account.

pochase

Pete99 said:

Unless you're on a really good fixed deal, why pay with a fixed DD, most people must be on the standard variable rate tariff which in most cases can be paid for on receipt of bill instead, at the moment, when we don't know how much we'll be paying from October it surely makes sense not to stack up a huge credit or debit with a company that may go under, obviously going bust doesn't apply to the big suppliers.

If you mean paying on variable direct debit and still getting the direct debit bonus that is fine, but if you pay by cheque, standing order or transfer you are losing money. The rates for paying this way are much highe rthan for DD payments.

For the OP this might be a bad decision anyway if she cannot afford the additional £5 and has to pay suddenly huge winter bills. The supplier will allow her to go into debt during winter, her bank might not.

MWT

jimjames said:

helen_stewart said:

please could you ask them why they are continuing to take more money from customers who can't afford it even though they will receive the extra payments this winter?  This is totally unfair!!!  Are there any other forumites in my position?

Is it worth switching to pay on receipt of bill so you don't have a credit built up with the company? Not all offer it but I believe most do. If things are so tight that £5 isn't possible then having wild swings between bill amounts each month/quarter might not be a good idea though.

Just to be clear, I assume you do not intend to suggest moving to a standard credit account with payment by cash/cheque upon receipt of the bill, as that would be the most expensive way to pay...

... but moving to a variable DD would cause the bill to be paid each month in full by DD as I suggested above, but it does require the ability to cover the larger bills in winter without the benefit of building up a balance to help with this over the summer...