BT 'Payment Processing Fee'

flisspops_2

Hi there,

Anybody aware of legislation against the £4.50 'payment processing fee' levied by BT - aka Big Tariffs - if you elect not to pay by direct debit? I seem to recall a lawyer who is representing the elderly in court to this end - about now if my memory serves me correctly (it was on the BBC).

I feel that it is a discriminatory charge - I like to be in control of my bank as I temp - so effectively I'm discriminated against those who opt for automated payments.

With a recession looming I can't wait for the big companies to get a whipping when people simply can't afford to pay these punitive charges that were levied during the good times and people could afford to pay them.

Thx.
Flisspops

BritBrat

Today is the court case.

I hope she wins, £4.50 can't be a fair price to pay a quarterly bill if monthly processing costs £1.50 for the same process.

And I would guess £1.50 is also more than the cost for processing a bill.

normanmark

flisspops wrote: »

I feel that it is a discriminatory charge - I like to be in control of my bank as I temp - so effectively I'm discriminated against those who opt for automated payments.

I find with Direct Debit i have much more protection as a consumer by paying with this method. If anything more is taken out against my wishes i can inform my bank & they'll go through the appropriate methods to get it back to me.

topherxp

BritBrat wrote: »

Today is the court case.

I hope she wins, £4.50 can't be a fair price to pay a quarterly bill if monthly processing costs £1.50 for the same process.

And I would guess £1.50 is also more than the cost for processing a bill.

BT have won the court case, the charge is legal

BritBrat

We know it's legal but is it fair?

That was the question.

jhp

BritBrat wrote: »

We know it's legal but is it fair?

That was the question.

The Judge thought they were.

http://news.bbc.co.uk/1/hi/england/west_midlands/7319545.stm


"A solicitor has lost her case against BT over what she claimed were unfair charges for the five million customers who do not pay by direct debit.
Ros Fernihough, a BT customer since the 1960s, said the £4.50 a quarter charge penalised cash-paying customers.
But Walsall County Court heard that BT had given notice of the charges which were "fair" and "perfectly reasonable".
The case was dismissed after district judge Michael Ellery decided the telecoms giant had no case to answer.
Last March, Trading Standards described the charges as "outrageous" and "unjustified" but BT said it cost more to process non-direct debit payments and that those customers were also more likely to forget to pay.
Several utility companies, including British Gas, Orange and Virgin Media, apply similar charges to customers who choose not to pay by direct debit. But Ms Fernihough, who brought the case under the Unfair Terms in Consumer Contracts Regulations of 1999, said although the charge was not high it was a serious drain for pensioners and those on a low income. Mr Ellery said the charges were a "core term" of the contract between BT and its customers. "

Wombat21

Might not be the end of the matter - 'Ms Fernihough said she was considering an appeal.'
and from the Daily Mail 'The Office of Fair Trading believes customers who were with the telecommunications giant before it implemented its £4.50 quarterly fee for not paying by direct debit can argue a strong case against paying the charge'.

Imani

and no uk government will challenge these charges
i noticed charges on my bill i pay cash each month. i do not see the point in giving all these companies free range on your money because if they had made a mistake you would not have gotten your money back as quickly as they had taken it

gilfachboy

what a shame, complain to your MP like i have done, you can find your MP's website and e-mail him/her. the £4-50 per quarter is a rip off because the line rental is payed in advance

xenosys

While it's all fair and well taking a company to court over a quarterly £4.50 payment processing fee and challenging this in a court of law, why on earth has BT been hit with the brunt of the critisism and media plublicity when other telecoms companies in particular do exactly the same thing and not a peep is heard of it anywhere?

I see Virgin Media charge a £5 administration fee for non-direct debit customers per month (thats £15 quid per quarter) and some others don't even accept non-direct debit customers at all, forcing the customer to set up a direct debit if they want service with that provider.

I understand that BT still has the majority of the market on the basis of its historic standing in the industry, but since privatisation, de-regulation and a much more compeitive market, this number is dwindling as there is more on offer nowadays, so there is really no need for one particular company to be singled out for critisism. Pensioners who are on a low income have the option of the Light User Scheme, In Contact Plus and BT Basic packages which are designed for that very customer and do not get billed this Processing Fee on that basis.

I don't mean to come off here as a BT fan boy, because I'm certainly not, but it does concern me, that based on media exposure, BT seem to be the ones that are hit hardest, when really, they were just following suit.

jhp

I guess the only reason BT was in the frame was she is/was a BT Customer,so she was not able to take action against one of the other suppliers.

One of the BT Responses was :

"Simon Popplewell, defending BT, said: "If she doesn't like it, she doesn't have to take her telephone service from BT."

http://news.scotsman.com/uk/BT-39right39--to-charge.3927160.jp