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  • FIRST POST
    • MSE Callum
    • By MSE Callum 12th Apr 18, 11:05 AM
    • 329Posts
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    MSE Callum
    MSE News: EDF follows British Gas with energy price rises
    • #1
    • 12th Apr 18, 11:05 AM
    MSE News: EDF follows British Gas with energy price rises 12th Apr 18 at 11:05 AM
    EDF Energy has announced that the price of its standard variable electricity tariff will rise by 2.7% in June - act now to beat the rise...
    Read the full story:
    'EDF follows British Gas with energy price rises'

    Click reply below to discuss. If you haven’t already, join the forum to reply.
    Read the latest MSE News
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Page 1
    • aj23
    • By aj23 13th Apr 18, 2:55 PM
    • 713 Posts
    • 243 Thanks
    aj23
    • #2
    • 13th Apr 18, 2:55 PM
    • #2
    • 13th Apr 18, 2:55 PM
    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
    • By nic_c 13th Apr 18, 6:44 PM
    • 1,701 Posts
    • 911 Thanks
    nic_c
    • #3
    • 13th Apr 18, 6:44 PM
    • #3
    • 13th Apr 18, 6:44 PM
    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.
    Originally posted by aj23
    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.
    • aj23
    • By aj23 14th Apr 18, 9:40 AM
    • 713 Posts
    • 243 Thanks
    aj23
    • #4
    • 14th Apr 18, 9:40 AM
    • #4
    • 14th Apr 18, 9:40 AM
    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.
    Originally posted by nic_c
    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
    • By PennineAcute 14th Apr 18, 12:14 PM
    • 176 Posts
    • 80 Thanks
    PennineAcute
    • #5
    • 14th Apr 18, 12:14 PM
    • #5
    • 14th Apr 18, 12:14 PM
    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.
    • aj23
    • By aj23 14th Apr 18, 2:17 PM
    • 713 Posts
    • 243 Thanks
    aj23
    • #6
    • 14th Apr 18, 2:17 PM
    • #6
    • 14th Apr 18, 2:17 PM
    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.
    Originally posted by PennineAcute
    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
    • By Hengus 14th Apr 18, 2:23 PM
    • 6,138 Posts
    • 3,927 Thanks
    Hengus
    • #7
    • 14th Apr 18, 2:23 PM
    • #7
    • 14th Apr 18, 2:23 PM
    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.
    Originally posted by aj23
    Suppliers pay their wholesalers in advance of supply. Would consumers that want to pay by cheque or cash be prepared to pay for 3 months of energy in advance of supply?

    Consumers who pay by DD do give the suppliers a source of income to pay their suppliers.
    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.
    • Consumerist
    • By Consumerist 14th Apr 18, 4:23 PM
    • 4,886 Posts
    • 2,406 Thanks
    Consumerist
    • #8
    • 14th Apr 18, 4:23 PM
    • #8
    • 14th Apr 18, 4:23 PM
    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.
    Originally posted by Hengus
    These appear to be the benefits to the supplier - not the customer.
    Warning: In the kingdom of the blind, the one-eyed man is king.
    • Hengus
    • By Hengus 14th Apr 18, 4:29 PM
    • 6,138 Posts
    • 3,927 Thanks
    Hengus
    • #9
    • 14th Apr 18, 4:29 PM
    • #9
    • 14th Apr 18, 4:29 PM
    These appear to be the benefits to the supplier - not the customer.
    Originally posted by Consumerist
    Exactly, which is why suppliers offer discounts etc to those that pay by monthly DD rather than cash or cheque in arrears.
    • nic_c
    • By nic_c 14th Apr 18, 10:40 PM
    • 1,701 Posts
    • 911 Thanks
    nic_c
    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.
    Originally posted by aj23
    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.
    • aj23
    • By aj23 15th Apr 18, 10:54 AM
    • 713 Posts
    • 243 Thanks
    aj23
    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.
    Originally posted by nic_c
    But that's how business works, supply now and pay later. Telefonica didn't take my direct debit in December and threatened me with late payment charges if I didn't pay within 7 days. My bank investigated and it turned out that Telefonica never attempted the make the direct debit after accusing me and the bank. I was in the South China Sea with weak GPS, so I didn't see the emails straight away and couldn't get a strong signal to make a card payment. So it's not always great. Had I have been in charge and been able to pay choosing my own method, that wouldn't have happened.

    They shouldn't be penalising people who don't want to do DD and then charging them more for it. Either they want the business or not, and without us they don't exist.
    • aj23
    • By aj23 15th Apr 18, 10:55 AM
    • 713 Posts
    • 243 Thanks
    aj23
    Suppliers pay their wholesalers in advance of supply. Would consumers that want to pay by cheque or cash be prepared to pay for 3 months of energy in advance of supply?

    Consumers who pay by DD do give the suppliers a source of income to pay their suppliers.
    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.
    Originally posted by Hengus
    All of these are from the perspective of the business, not the customer.
    • PennineAcute
    • By PennineAcute 18th Apr 18, 11:09 AM
    • 176 Posts
    • 80 Thanks
    PennineAcute
    So if paying by monthly DD enables the supplier to have a monthly source of income, which in turns allows them to again buy in bulk, thus giving you lower costs, then what is the issue?

    Now, TV licencing DD is a total con, where you have to pay a year's licence in the first 6 months and then pay 6 months in advance and 6 months in arrears.

    A store may buy in bulk, but they have a daily income.
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