Energy Ombudsman

HillStreetBlues

https://forums.moneysavingexpert.com/discussion/comment/82126318#Comment_82126318

Yep,just waiting on Octopus

HillStreetBlues

What I hate is when companies use AML that is not based on any fact.
There is nothing in law that a refund needs to be on the same method of payment.

MWT

https://forums.moneysavingexpert.com/discussion/comment/82128663#Comment_82128663

There are very real issues for a business if they refund to a bank account and amount that was previously paid on a credit card as they can find themselves stuck with a charge-back via the card even though they have refunded to a bank account.

AML does come into play though as using a card fraudulently and then getting the cash refunded to a mule bank account is a known method for extracting cash.

Consumer law does allow a customer to agree to receive a refund via a different method from the original payment but that doesn't oblige the business to actually do it that way because of the AML obligations.

HillStreetBlues

https://forums.moneysavingexpert.com/discussion/comment/82128697#Comment_82128697

I totally understand there can be issues, but there is a big difference between must & want and Octopus claimed they must.

masonic

https://forums.moneysavingexpert.com/discussion/comment/82128663#Comment_82128663

The Consumer Rights Act requires it, but only if the customer doesn't agree to a different method.

Ultimately, it just makes it easier for the firm to show they have complied with AML legislation. An energy supplier generally has a Direct Debit set up and has already performed a credit search confirming the customers personal details including address, so the risk is already low.

But all of this is a red herring, because the standard of performance compensation is not a refund. It is a payment direct from the business to the consumer. There is no matching purchase to reverse.

HillStreetBlues

https://forums.moneysavingexpert.com/discussion/comment/82128705#Comment_82128705

I wouldn't really call it a red herring as Octopus claimed it AML. They were on both counts first the AML regs don't state refunds must be returned to the same payment method, I take i they never stated anything about the CRA.
And like you state it has nothing to do with a refund and it's not something you actually paid.

My issue is much the same, they insisted that the WHD was paid as a refund, but it wasn't a refund as I never paid it.

masonic

https://forums.moneysavingexpert.com/discussion/comment/82128716#Comment_82128716

That's what I meant by red herring.

To say the WHD is a refund is nonsense. You get the full amount whether or not you spend that much on energy.

HillStreetBlues

https://forums.moneysavingexpert.com/discussion/comment/82128724#Comment_82128724

Sorry, see what you mean now.