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It's wrong how they are penalising people who pay by cash or cheque.

Direct debit they can charge what they like and take it, then you have the hassle of trying to get through to correct it. It's so wrong.

nic_c wrote: »

Because people pay by cheque/cash are more likely to default, so more costs in trying to chase you. DD is covered by the DDG (DD Guarantee) which basically means if they take more than expected, ask your bank to do an indemnity claim, money paid instantly back by your bank and then they reclaim from BG.
BG will then chase you for payment as they would a cash plan that you hadn't paid.

Where is the proof of that? Someone on direct debit may go int overdrafts and incur charges. Someone on direct debit can cancel it.

PennineAcute wrote: »

You have been given to proof, it is called the DDG. I remember once when Virgin media took more than they should have. One phone call to the bank and it was back in my account.

That isn't proof that everyone who pays cash or cheque defaults. Proof is statistics. DD only benefits the provider, not the customer. It gives them authority to charge what they like and take it, hoping that you can't be bothered to question it after.

Hengus wrote: »

Other advantages of DDs are:

— It’s cheaper than cheque, safer than cash
— You control the date of receipt into your account
— You get cleared funds in your account on a known date
— You can collect variable amounts on regular or irregular dates
— It can eliminate time-consuming reconciliation
— When used in promotions, it can improve the conversion rate from enquiry to sales.

Source: Direct Debit Co.

These appear to be the benefits to the supplier - not the customer.

aj23 wrote: »

That isn't proof that everyone who pays cash or cheque defaults. Proof is statistics. DD only benefits the provider, not the customer. It gives them authority to charge what they like and take it, hoping that you can't be bothered to question it after.

I never said everyone defaults, just that the default rate amongst cash/cheque payers is higher than those who pay by DD. Yes it does benefit the provider because they know when it will be paid rather than sending out a bill and expecting the money sometime in the next month or so, possibly after you've sent a reminder. That's why they offer the incentive of a discount to pay be DD, it suits them for you to pay by that method.

The fear of setting up DD's is addressed by the DDG - if the fear is they can take what they like, then no the DDG means you tell your bank and they put the money back in straight away and claw it back from the provider - no delay, no need to request refund from the provider yourself, no need to prove that more was taken than expected.