Quizzes & Puzzles1 min ago
Fixed Direct Debits
19 Answers
I have had lots of problems with EON in the pas suddenly increasing the amount taken by Direct Debit.
So I cancelled the DD and then filled in a paper DD with a fixed amount of £120 today they have taken £146.
Do I complain to the FCA or my bank?
There is no point in contacting EON because it will not get me anywhere.
So I cancelled the DD and then filled in a paper DD with a fixed amount of £120 today they have taken £146.
Do I complain to the FCA or my bank?
There is no point in contacting EON because it will not get me anywhere.
Answers
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I was with Eon for many years and they never increased my DD without first informing me on my bill. Also, you could always argue the increase down on the phone, if justified. However, I switched from them a year ago as they got too expensive, so things might have changed. Also, your paper DD might not yet have entered the payment system. I would certainly contact Eon, but go to the complaints department.
I am always miles in credit until the winter, that's how it works. Eg around November I am invariably £200 + in credit but that soon gets wiped out by the winter costs. You may not know it as a "budget scheme" but that's what it's know as in the industry. The monthly DD method is designed to smooth out payments throughout the year. Although there are periods where I am in credit, I prefer that to traipsing up the bank to pay the bill every quarter.
You can't set up a 'fixed amount' direct debit either online or on paper. That's the whole point. Normally the amount will be the same -for example your council tax, but other payments may be variable, like a Sky subscription or BT. If you want to guarantee you pay only one set amount then set up a Standing Order. This is a fixed amount sent to a person or company usually on a monthly basis. A direct debit is collected by the Company, a Standing order is sent by you.
Have a look at the electric company 'Bulb'. I changed 18 months ago and my bill has gone from £80 a month to £50 and I'm usually in credit. I reckon I've saved around £ 350 last year on my bill.
Have a look at the electric company 'Bulb'. I changed 18 months ago and my bill has gone from £80 a month to £50 and I'm usually in credit. I reckon I've saved around £ 350 last year on my bill.
Ok just had a search, it seems that you can specify a fixed amount but they can change it at will anyway, as per the DD set up rules. Eg on one supplier site it says:
"How do monthly fixed Direct Debits work?
With a monthly fixed Direct Debit, the same amount of money comes out of your bank account on the same day each month. We base this amount on what we know about your energy use, using either the figures you give us when you get your first quote, or your six-monthly energy review. We know that you use more energy during the winter months and so we factor this into your monthly payments as well. Direct Debits are a good way to spread the cost of keeping your home warm throughout the year.
We’ll review the amount you pay by Direct Debit every six months. If your monthly payments are usually too high for your actual energy use then you’ll build up credit on your account and we’ll reduce the Direct Debit amount.
If your monthly payments are usually too low to cover the energy you use, we’ll write to you letting you know we need to increase your payments so that you don’t build up too much debt"
so it seems that they are still changeable even if "fixed".
"How do monthly fixed Direct Debits work?
With a monthly fixed Direct Debit, the same amount of money comes out of your bank account on the same day each month. We base this amount on what we know about your energy use, using either the figures you give us when you get your first quote, or your six-monthly energy review. We know that you use more energy during the winter months and so we factor this into your monthly payments as well. Direct Debits are a good way to spread the cost of keeping your home warm throughout the year.
We’ll review the amount you pay by Direct Debit every six months. If your monthly payments are usually too high for your actual energy use then you’ll build up credit on your account and we’ll reduce the Direct Debit amount.
If your monthly payments are usually too low to cover the energy you use, we’ll write to you letting you know we need to increase your payments so that you don’t build up too much debt"
so it seems that they are still changeable even if "fixed".
British Gas keep changing mine (decreasing it) but I keep putting it back up (online) as I don't want to owe any money at the end of the year. They said I was paying too much at one point so they lowered the amount and I didn't change it and the following month they said I wasn't paying enough! So now I leave it at what I want to pay and if they change it, I change it back again.
You are referring to specific arrangements with companies. A Company is not obliged to send you communication before collecting your DD, it depends on their T&C's. For Example BT may take out more than your normal monthly payment if exceed your free phone call deal . Sky certainly take more without informing you if you buy a film. I simply can't understand why instead of putting 'pen to paper' so to speak on AB you don't just give them a call -10 minutes out of your life to sort it out.
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