Outfox the Market changing my FIXED direct debits!

kindregards

Sorry I'm new here on the MSE forum, but I want to make anybody reading this and Martin Lewis (who is now championing them again on here, and probably on his programme last night) aware of Outfox the Market changing your Direct Debits while you are on a FIXED rate! You can't trust them to keep their word basically!
   
This has happened twice to me this year, which makes me think they review your account every quarter! First time round they tried to put my DD up £10 a month in Feb (BTW they change the DD AND THEN email you the panic email). I questioned this and they quickly changed it back, must have got the nice female agent in the office.

But this second time they really went for the biggie, nearly a 70% increase to £219 a month (my DD is £130), so I was on the phone straight away, and they did bring it down, but it is still a £31 rise a month to £161.

I tried to explain that by the end of August contract (the next four months being the lowest usage a given right?), my account would be back to zero or very close to it. Unfortunately I did not get the intelligent agent this time but some robot who just wouldn't give in, even though he knew what I meant!

The cynic in me is saying that OTM has set the algorithm to go after pensioners to get some quick money in, pensioners less likely to complain or not understanding etc right? Then OTM can bank the extras and stick your money in a high savings account and make lots of money! The other thing I thought was that they may just in financial trouble.

So has anybody else had this done to them. Would be handy to hear from yous. Hope I haven't broken any rules being new, bit am pretty livid at the moment. It's not so much the money but the principal in all this, and I feel like I'm being ripped!

Thank in advance,
David

debitcardmayhem

The fixed part of the contract only applies to the unit rates and service charge. The amount you use on fixed doesn’t mean all you can eat(heat). Usually the energy cos would expect you be be zero around April, and then bulid up credit for winter. They don’t stick the money in savings accounts and earn interest, and they don’t charge you interest on your debt to them. 

Gandalf644

Yes, as stated above.

The way they look at it is that by the end of summer you should have built up a credit balance, as opposed to clearing a debit.

The idea being to build up this credit over summer for use over the following winter (when usage exceeds payments normally).

That way you stay in credit, not go into debit.

Oddly enough, I have the opposite problem with Outfox. Due to a moderate credit build up (by the end of summer will be £450 in credit) they want to reduce my ‘fixed’ monthly payment. However I want to maintain it so I am well in credit incase it is a very cold winter.

p00hsticks

As the poster above says, a fixed rate doesn't mean that you always pay the same amount - if you use more or less then the amount owed will change.  
A Direct Debit allows the company to change the amount, providing they give you sufficient (!0 days?) notice.  

Keep_pedalling

Paying a fixed amount per month should take your account into credit by the end of summer not to zero, as you will immediately go in to debit once you get the heating back on.

You would seem to be in debit now so you are obviously not  paying enough to cover your annual usage. You have two options, to pay more per month or move to a pay as you go on actual usage, but that may require a switch of supplier. 

kindregards

Thanks for your replies. I've been with all the energy companies over the years (thanks to Martin lol), and this is the first time a DD has ever been changed like this (and twice) during a fixed contract. In the past, usually if there is a debit at the end you just settle up with them and vice versa.

Maybe the moral of the story is not to change your supplier at the end of August, especially with OTM?

I'll be changing anyway, don't like their ways.

Ayr_Rage

You have misunderstood how the system works, DDs are SET but NOT fixed, they need to be varied according to your usage.

You need to look at the ML annual curve, not have a rant about OTM's procedures.

Whooooooosh

I'm on Outfox The Market (OTM) and they keep reducing my DD.  I want to pay £200 a month to build up a buffer in case of a harsh winter.  Twice now they've sent me an email saying "GREAT NEWS Your Direct Debit is REDUCING!" and they knock it down to £181.

I then have to contact OTM and ask for it to be increased back to £200.

MattMattMattUK

kindregards said:

Thanks for your replies. I've been with all the energy companies over the years (thanks to Martin lol), and this is the first time a DD has ever been changed like this (and twice) during a fixed contract. In the past, usually if there is a debit at the end you just settle up with them and vice versa.

Maybe the moral of the story is not to change your supplier at the end of August, especially with OTM?

I'll be changing anyway, don't like their ways.

The moral of the story is probably to not go on a rant before attempting to understand what is actually happening. Nearly every supplier now adjusts Direct Debits throughout the year because they get in trouble when customers get either too much into credit or into debt at any point in the year. 

bagand96

Doesn't Ofgem require suppliers to now keep on top of accounts and not let them get into debt to avoid bill shock etc? 

MWT

bagand96 said:

Doesn't Ofgem require suppliers to now keep on top of accounts and not let them get into debt to avoid bill shock etc? 

Correct, Octopus got a warning for not increasing DD payments soon enough and allowing customer to go into debt.