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  • FIRST POST
    TheStationMaster
    TV Licensing APR Shock
    • #1
    • 15th Sep 05, 7:08 PM
    TV Licensing APR Shock 15th Sep 05 at 7:08 PM
    Love the site, I have been signed up for over a year now. Most of us have TV licences but how many have actually read the letter that TV Licensing send you? I have paid by quarterly direct debit for several years and have just spotted “As you are probably aware, the Quarterly Direct Debit Scheme includes a small premium of £5 per year”. I calculate that this is an interest rate of 23.7%! Any mention of APR? No of course not! Just thought everyone would like to know.

    Last edited by MSE Andrea; 11-10-2005 at 10:25 AM.
Page 1
    • Smiley_Mum
    • By Smiley_Mum 15th Sep 05, 7:11 PM
    • 3,779 Posts
    • 2,914 Thanks
    Smiley_Mum
    • #2
    • 15th Sep 05, 7:11 PM
    • #2
    • 15th Sep 05, 7:11 PM
    Thankfully I pay by monthly Direct Debit and pay them around £10.50 a month or thereabouts. Used to buy the stamps but direct debit seemed a better option for me.
    “Ordinary riches can be stolen, real riches cannot. In your soul are infinitely precious things that cannot be taken from you.” - Oscar Wilde
  • greenwich
    • #3
    • 15th Sep 05, 9:30 PM
    • #3
    • 15th Sep 05, 9:30 PM
    Love the site, I have been signed up for over a year now. Most of us have TV licences but how many have actually read the letter that TV Licensing send you? I have paid by quarterly direct debit for several years and have just spotted “As you are probably aware, the Quarterly Direct Debit Scheme includes a small premium of £5 per year”. I calculate that this is an interest rate of 23.7%! Any mention of APR? No of course not! Just thought everyone would like to know.

    by TheStationMaster
    Strange why they do this. I've been paying by monthly DD for years. The idea there is that you start paying for your licence 6 months before it starts and then keep paying for 6 months after it's started. I've never done the sums to check if that's to my advantage or theirs - the difference is not likely to be worth the hassle of calculation.
    • MarkyMarkD
    • By MarkyMarkD 15th Sep 05, 10:30 PM
    • 9,795 Posts
    • 4,216 Thanks
    MarkyMarkD
    • #4
    • 15th Sep 05, 10:30 PM
    • #4
    • 15th Sep 05, 10:30 PM
    Where do you get 23.7% APR from? I make it around 11% which is nowhere near as unreasonable.
  • TheStationMaster
    • #5
    • 16th Sep 05, 12:29 PM
    • #5
    • 16th Sep 05, 12:29 PM
    Oops, you're right its 10.5%! Still rather high though.
    • Seven
    • By Seven 18th Sep 05, 10:38 AM
    • 656 Posts
    • 277 Thanks
    Seven
    • #6
    • 18th Sep 05, 10:38 AM
    • #6
    • 18th Sep 05, 10:38 AM
    Buy the stamps - Save money

    I do it because I am often in the PO anyway and you just pay your license once a year and forget about it.
    The best things in life are free
    • MarkyMarkD
    • By MarkyMarkD 18th Sep 05, 3:01 PM
    • 9,795 Posts
    • 4,216 Thanks
    MarkyMarkD
    • #7
    • 18th Sep 05, 3:01 PM
    • #7
    • 18th Sep 05, 3:01 PM
    Save the money in a savings account, if you want to save money.
    • BargainHunterCat
    • By BargainHunterCat 20th Sep 05, 8:29 PM
    • 458 Posts
    • 261 Thanks
    BargainHunterCat
    • #8
    • 20th Sep 05, 8:29 PM
    Rip off
    • #8
    • 20th Sep 05, 8:29 PM
    Whilst I'm not sure about the APR comment, I do find it outrageous that TV licensing are cashing in once again.
    If it wasn't bad enough that they impose this ridiculous license which you cannot opt out of even if you don't want to watch the BBC channels it supposedly pays for. :confused:
    It's time we got rid of this outdated unfair license...surely a license should be for something that you need training to use?!
    I've stopped watching TV and detuned my telly in protest but TV licensing still hound me like a common criminal!
    I've joined a DVD rental club instead and that way I get to watch what I want to see!!
    Remember you dont need a license just to own a TV...only to watch broadcasts although they will try to convince you otherwise.
    • swebb
    • By swebb 20th Sep 05, 9:49 PM
    • 1,029 Posts
    • 595 Thanks
    swebb
    • #9
    • 20th Sep 05, 9:49 PM
    • #9
    • 20th Sep 05, 9:49 PM
    I pay qtly and enquired about the monthly DD. I was told that I'd have to pay for the licence 6 months in advance and then pay monthly afterwards - therefore effectively paying 6 months in advance. I thought I could save a fiver over the qtly payments, but this seems worse. I did ask the guy on the phone about. He said people pay what suits them.
    Never say never...
    • MarkyMarkD
    • By MarkyMarkD 20th Sep 05, 11:58 PM
    • 9,795 Posts
    • 4,216 Thanks
    MarkyMarkD
    If you think about it, swebb, if you pay monthly, you pay 6 months in advance and 6 months in arrears of the due date - i.e. the start date of the year of the licence. That's quite fair and there's no net interest cost.

    The quarterly payments have interest (read: admin charge) added because you pay in arrears of the due date, i.e. during the year of the licence's currency.
  • Newbird
    I save it monthly (along with all other bills) in the highest interest account I can find with no access probs, just transfer to bank account when due and pay it....you have then in earned the interest on monthly payments over up to a year instead of them...Obviously you need to start to do this from just after you have re-newed it, or divide the payments to yourself over however many months you have left b4 renewal...
    Bless Martin's Little Cotton Socks. I thank him for giving us MSE. Look what its grown into!

    MFW = ASAP #124
  • dickpowers
    I agree .
    Its the same with the car insurance .If you havent got loads of cash to pay upfront then they make you pay extra .
    still i think its worth it just for that new weatherman.Know the one i mean?
  • innovate
    Any charge above 0% for direct debit payments is absurd because the savings made by not having to handle cheques or stamps, and not having to chase overdue payments (all involving manual work and therefore salaries - which we as the licencees pay!), already saves the Licensing Authority a bomb.

    Charging people who already help saving costs by DD is taking the mickey, to put it mildly. I pay by direct debit/standing order whenever I can, but as long as TV Licensing charge for DD, I will absolutely not pay them that way. I know it's only a fiver a year, but it's the principle.

    Utilities used to give zero incentive to pay by Direct Debit, now have bowed to pressure from the Regulators (staggering that they didn't see the common sense in it before then), and now offer discounts on direct debits. The TV Licensing authority should do the same. But of course they are a legal monopoly, so there's little hope they'll change their pricing policies any time soon.
    • Stonk
    • By Stonk 27th Sep 05, 6:20 PM
    • 921 Posts
    • 333 Thanks
    Stonk
    A friend of mine is an actuary working out car insurance premiums. It's fascinating what things can make a difference.

    One of them is whether you pay in instalments or in one lump. Aside from the admin/credit/whatever fee for paying in instalments, your basic premium might be higher as well, because statistics show that people who do so have a greater tendency to claim. Presumably this is because if you're short of cash you're more likely not to want to cough up personally for minor repairs (not that actuaries care *why*).
    • MarkyMarkD
    • By MarkyMarkD 27th Sep 05, 10:29 PM
    • 9,795 Posts
    • 4,216 Thanks
    MarkyMarkD
    Any charge above 0% for direct debit payments is absurd because the savings made by not having to handle cheques or stamps, and not having to chase overdue payments (all involving manual work and therefore salaries - which we as the licencees pay!), already saves the Licensing Authority a bomb.

    Charging people who already help saving costs by DD is taking the mickey, to put it mildly. I pay by direct debit/standing order whenever I can, but as long as TV Licensing charge for DD, I will absolutely not pay them that way. I know it's only a fiver a year, but it's the principle.

    Utilities used to give zero incentive to pay by Direct Debit, now have bowed to pressure from the Regulators (staggering that they didn't see the common sense in it before then), and now offer discounts on direct debits. The TV Licensing authority should do the same. But of course they are a legal monopoly, so there's little hope they'll change their pricing policies any time soon.
    by innovate
    They do NOT charge extra for DD payment - I pay annually, in advance, by DD at the standard rate.

    They charge extra for SPREADING THE COST using DD. That's a different matter. Why shouldn't you pay extra for paying in arrears whereas others pay in advance?
  • darbooka
    Disproportionate costings are not new to the License Fee or to the closely related BBC. After all, the license fee itself is more than the price of many nice new TV's at high street shops. And while TV's can last for years and years, the license fee has to be paid every annum. So when you buy a new (not to mention also a used) TV, you're actually being forced by the law to comit to spending the price of many new models of TV's again and again, each and every year.
    Imagine if Road Tax would cost more than the cost of your vehicle each year, or if your Council Tax band would cost more than the value of our home? How many roadworkers and council employees can be paid with salaries of BBC presenters?
  • innovate
    They do NOT charge extra for DD payment - I pay annually, in advance, by DD at the standard rate.

    They charge extra for SPREADING THE COST using DD. That's a different matter. Why shouldn't you pay extra for paying in arrears whereas others pay in advance?
    by MarkyMarkD
    I am sure they like people like you...........paying them 10%+ interest
  • Muzza
    we pay the monthly dd and although you have paid 6 months in advance if you move house you transfer it and if you cancel it you get a refund of the outstanding amount you have 'overpayed' so you don't end up out of pocket
    • moneyuser
    • By moneyuser 7th Oct 05, 4:52 PM
    • 1,058 Posts
    • 466 Thanks
    moneyuser
    I've just changed from paying quarterly to monthly and wish I hadn't! I thought it would be cheaper, about £10.50 per month they say. Now I have to pay closer to £25 a month and pay for a full licence within 6 months! Then start paying for my next licence 6mths in advance at around the £10.50 mark. Ridiculous.

    How is that fair?
    • santana-mx3
    • By santana-mx3 7th Oct 05, 5:33 PM
    • 407 Posts
    • 76 Thanks
    santana-mx3
    I've just changed from paying quarterly to monthly and wish I hadn't! I thought it would be cheaper, about £10.50 per month they say. Now I have to pay closer to £25 a month and pay for a full licence within 6 months! Then start paying for my next licence 6mths in advance at around the £10.50 mark. Ridiculous.

    How is that fair?
    by moneyuser
    It's harder at the start but once you get past 6 months, it'll be ok and easier. I like paying monthly because regular small monthly payments are easier to manage. I just switched from annual d/d in advance to monthly so I'm still better off whereas you're feeling the difference because you switched from quarterly. Did you sign up online or by phone. They should have pointed it out to you if you did it by phone. I signed up online and it was explained there.

    If you read MarkyMark's post you may feel better about it:

    If you think about it, swebb, if you pay monthly, you pay 6 months in advance and 6 months in arrears of the due date - i.e. the start date of the year of the licence. That's quite fair and there's no net interest cost.

    The quarterly payments have interest (read: admin charge) added because you pay in arrears of the due date, i.e. during the year of the licence's currency.
    by MarkyMarkD
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