British Gas - huge monthly DD increase :-(

Rochdale_Guy

Hi.

I have been paying a tiny sum of £8 a month by Direct Debit to British Gas for what seems like forever (well, at least since moving into this council flat 14 months ago), and my last bill dated Nov. 14th, showed my last 4 monthly payments of £8, yet it also showed I was £37.64 in CREDIT. I really hardly use any gas here, as I'm out at work all day and it's a 2 bed council flat, with just me here, not a family filled mansion! Anyway, when it's really cold I put a jumper on!!!!! Ultimate moneysaving eh?!

Anyway, after checking my December bank statement noticed they had increased my monthly Direct Debit from £8 to a HUGE £28 a month

I never had a letter informing me of this increase and as I am in credit, WHY are they taking MORE off me?

I phoned them up and after half an hour of getting nowhere, was basically told I had previously paid £24.50 a month at some point while living in this flat according to their records _ I don't think so _ and that my overall avarage annual gas bills were £151. I only have 3 months left on this billing cycle and need to make a shortfall of around £70?!?! So, they need to put up my payments for the last 3/4 months to recover it.

!!!!!!?

Why can't the speak in English?

The outcome, choose another supplier (my choice), go on a quarterly bill and pay it as it arrives, or continue paying by DD

After much haggling, the lowest she said she could "lower" my DD to was £21 per month for the next 3 months, but its too late to change the January one (due out my bank account on/after the 15th), so I will have paid 2x £28, plus 3 further upcoming months of £21 = £119 paid in 5 months?!?!

Can they do this?

And why can't they just take a fixed amount off me by DD each month, say £13?

Please advise/help ASAP!

Thanks,
Rochdale Guy

N.B. She said my payments would be reviewed in April....

chuckles1066

Rochdale_Guy wrote: »

Hi.

I have been paying a tiny sum of £8 a month by Direct Debit to British Gas for what seems like forever (well, at least since moving into this council flat 14 months ago), and my last bill dated Nov. 14th, showed my last 4 monthly payments of £8, yet it also showed I was £37.64 in CREDIT

In credit based on estimated meter readings I'd suspect?

Rochdale_Guy

Hi, nope. I *ALWAYS* give them a meter reading when an estimated bill comes so just can't understand this obscene monthly increase

Rochdale_Guy

* B O O S T *

kothodje

Hi There!

Just contact them again and your bank to cancel the direct debit. Then you could start the quaterly payment instead.

Good Luck!

Cardew

Well the answer is they can increase your DD as long as they notify you in advance. Bear in mind this doesn't mean ask your permission - they just have to let you know.

If they haven't let you know about the increase they have broken the Direct Debit guarantee and you can instruct your bank to recover the additional money from BG. That guarantee is between you and the bank and the bank have no option in the matter(although many try to wriggle)

It is fair to point out that the notification of an increase is often buried away in the small print at the bottom of a bill. If BG can prove that they did send you notification(even if that notification got lost in the post) they are 'off the hook.'

It really is quite pointless to pay quarterly at a higher tariff. The DD system works well for millions.

espresso

Rochdale_Guy wrote: »

....................The outcome, choose another supplier (my choice), go on a quarterly bill and pay it as it arrives, or continue paying by DD

After much haggling, the lowest she said she could "lower" my DD to was £21 per month for the next 3 months, but its too late to change the January one (due out my bank account on/after the 15th), so I will have paid 2x £28, plus 3 further upcoming months of £21 = £119 paid in 5 months?!?!

Can they do this?

And why can't they just take a fixed amount off me by DD each month, say £13?

Please advise/help ASAP!

Thanks,
Rochdale Guy

N.B. She said my payments would be reviewed in April....

Why don't you take them up on their first offer and switch to another supplier that actually listens to their customers? Disgraceful customer service!

SwanJon

Rochdale_Guy wrote: »

... my overall avarage annual gas bills were £151. I only have 3 months left on this billing cycle and need to make a shortfall of around £70?!?! So, they need to put up my payments for the last 3/4 months to recover it.
!!!!!!?
Why can't the speak in English?

Based on the readings they have, they expect you to use £151 in 12 months.
Paying £8 a month you would pay £96.
To catch up the difference in the next few months, they have increased the amount. This should bring you to the end of your plan year at a zero balance, and so they can set next year's payments lower.

Rochdale_Guy wrote: »

And why can't they just take a fixed amount off me by DD each month, say £13?

If the calculations are right, this is probably be what you next year's payments will be, as long as you don't change how much you use, and the prices don't change. The amount is only ever fixed until it is reassessed - every 6 months at the moment.

DDs (or any other plan) always seem to throw things like this up. You said you've been paying £8 a month for 14 months. They have now realised this isn't enough for what you are using, based on the readings you are giving, so they are changing it before you get into debt.

If you want to pay less, switch to an online plan, then it costs less per unit used.