Scottish Power increasing direct debit when I am in credit !

GingerTim

1. Yes, it's legal.
2. I'm not sure I see the grounds for complaint - you say you've done the calculations and they are broadly correct?

cr1mson

Yes it is legal and delaying the increase would mean that the increase would need to be higher to catch up. Surely it is better to have a smaller increase now?

rufford155

cr1mson said:

Yes it is legal and delaying the increase would mean that the increase would need to be higher to catch up. Surely it is better to have a smaller increase now?

No, because they are getting my cash early and can earn interest on it if they so wish.
But I am losing the interest I could get on it.
How is that money-saving?

rufford155

Maybe I should start giving money now to all my other utility providers in advance of bills in case prices go up.
If you are happy with it, I guess that's what you are doing?
I thought not !

[Deleted User]

rufford155 said:

Maybe I should start giving money now to all my other utility providers in advance of bills in case prices go up.
If you are happy with it, I guess that's what you are doing?
I thought not !

If you are not happy, you can switch to pay on bill on a variable direct debit.

Monthly Variable Direct Debit

• Only pay for what you use, provided that you submit actual meter readings via Your Account when we request them

• We’ll deduct your invoice amount by direct debit each month

• Payment is collected 10 working days after the date your invoice is issued and amount & date of payment due will be confirmed on each invoice.

• Protected by Direct Debit Guarantee

Scot_39

Did you ever try to ask for any of the credit back - either the £166 - when it was higher ?

And had they applied the full usage up to the end of June when that credit figure was shown. My usage "debit" goes on once per month - and its out of sync by over a week from when DD taken - so my baalnce swings by that amount in winter - but others are only billed every 3 to 6 months.

And of course - getting any credit back is likely to lead to a DD recalculation / increase - £166 is just under £14 pm.

And even at 4%+ in instant access - over 6m on average - that £166 only - c£3 in interest - if put that credit equally towards future higher DD payments.

If it does really irritate you - try asking for credit back.

Some posters with some suppliers get full credit back (minus any usage up to the daily reading you provide when call) - but others apparently may advise and/or hold on to 1-2 months credit.

And if your supplier allows - and you can afford the winter bill levels - or have the discipline to set aside savings in summer to cover - consider monthly variable direct debit - rather than annualised payments.

CSI_Yorkshire

rufford155 said:

frugalmacdugal said:

Hi,

if you go into debit then your DD will increase to catch up.

Not fair and not a usual business practice.

rufford155 said:

The important questions were (i) Is it legal? (ii) Who can I complain to?

Fair, usual, legal, and expected.

If you want to complain, you complain to the supplier first and then the ombudsman 8 weeks later.

Have fun.

[Deleted User]

Scottish Power’s DD review process (source MSE):

Any complaint raised against SP would have to show that the supplier failed to follow its stated DD review process. A good start would be to calculate an annual cost based on actual meter readings 12 months apart taking into account future tariff costs. Note: all suppliers make an algorithm-based adjustment to annual estimates to allow for seasonal variations. Last Winter was unseasonably warm. As you can see, if you disagree with SP’s DD calculation you have the ability to reduce the DD payment within limits. 

QrizB

[Deleted User] said:

rufford155 said:

Maybe I should start giving money now to all my other utility providers in advance of bills in case prices go up.
If you are happy with it, I guess that's what you are doing?
I thought not !

If you are not happy, you can switch to pay on bill on a variable direct debit.

Or you could cancel your direct debit entirely and instead pay in arrears on receipt of bill.

You will pay about 8% more for your energy as a result, but will have the warm self-satisfied feeling of preventing your supplier earning any interest on your account balance.

[Deleted User]

rufford155 said:

OK, I give in !
I have nothing new to learn here and we are all going round in circles.

PLEASE STOP POSTING.

Ask the moderators to close your thread.