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Direct Debits - When is a month not a month?
Victor_Delta
Posts: 474 Forumite
I have a supplier who advertises their service as costing £16.99 "per month". However, I now find that because of "problems with customers due to pay on the 31st of the month" they actually charge their direct debits every 30 days.
Can anyone please advise me if it is legal for them to do this. The "monthly" payments actually get earlier and earlier in the month - so that over a 12 month period one actually pays £17.23 pm in reality (if my maths is correct!).
If they have a problem with payments at the end of the month, surely a better and simpler system would be to take DDs on the monthly sign-up date for most customers and make it the 28th of the month for any who signed up between the 28th and 31st. I imagine this is what most other 'monthly' suppliers do, and leaves no excuse for the preposterous 30 day argument.
Any thoughts please?
Can anyone please advise me if it is legal for them to do this. The "monthly" payments actually get earlier and earlier in the month - so that over a 12 month period one actually pays £17.23 pm in reality (if my maths is correct!).
If they have a problem with payments at the end of the month, surely a better and simpler system would be to take DDs on the monthly sign-up date for most customers and make it the 28th of the month for any who signed up between the 28th and 31st. I imagine this is what most other 'monthly' suppliers do, and leaves no excuse for the preposterous 30 day argument.
Any thoughts please?
0
Comments
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Certainly, after 30 payments you would have paid one more than needed so that doesnt appear to be right.
The excuse isnt valid either. If a 31st doesnt exist, it would be collected the next working day. ie. 1st.
Sounds like the supplier has come up with a "personal" excuse for laziness or perhaps are trying to get more money out of people over time.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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