Energy payments by direct debits

[Jeff Layman]

I've said many times there are *no* checks, despite what is supposed to happen. It'll be interesting to see if anything else comes out of the woodwork.

[Colin Bignell]

Having seen that, I am grateful that a smart meter only overcharged me by £4,000.

[TimW]

It happened to me years ago when I was setting up a business in new premises. The Electric Co said I had to sign a DD which I did and they promptly estimated my charges on the basis of I don't know what before the business had even moved in, clearing the bank account, delaying the carefully planned move and launch, causing cheques to bounce before we had started trading; it was a nightmare.

They did refund the money, but it took them weeks. TW

[Jim Jackson]

As far as I understand the DD sytem, if they didn't tell you how much they were going to take before they actioned the direct debit then they were in breach of the DD conditions, and you could have got your bank to re-imburse, as per the DD guarantee. If they did warn you, then you could have cancelled the direct debit mandate with the bank until you had sorted it out.

[Jeff Layman]

What is supposed to happen, and what has happened, shows the system isn't working. From that BBC article, the guy who was massively overcharged said: "I have an issue with the energy company for doing it, the bank for allowing it to happen, and the whole direct debit system for allowing the payment to be taken without any safeguard." That makes a mockery of the statement at

: "Who actually controls Direct Debit payments?

You do. As the account holder, you can cancel any time you want, just as you can set up a Direct Debit Instruction. Outside of that, your bank or building society is responsible for running your account, including all payments, such as Direct Debit."

I also don't understand the statement at

under "Can my bank or building society ask me for information about an error?", it states "Most banks or building societies will have questions before they can process a claim – that’s not just to make sure it’s legitimate, it’s also to help them deal with the collecting organisation. Once an error in the payment of a Direct Debit has been established, you will be refunded immediately."

Why do they have questions? You set up, with them, the date and amounts of the DD payments for Company X. If you point out to them that an amount was debited from your account not in line with that, and/or on the wrong date, all they have to do is look at your account to see if what you've said is correct. The statement will show what Company X took and when. Why does that require questions to be asked and answered before action is taken?

[charles]

Because you might have asked to set up a DD by a fraudster and believe the request to be genuine.

[Jeff Layman]

I'm not talking about the need for checking when a new DD is set up. I'm asking about the need for questions when a DD has been running for some time and the amount and timing of the DD payments varies from that agreed by *all* parties. The bank supposedly has a record of the DD agreement and the payers bank account, so a quick glance at both should reveal if a DD has been taken which is not in line with what was agreed. In that case, the bank should act to restore the overpayment without delay of any sort, as it is supposed to under the DD guarantee.

[David Wade]

If you check most Direct Debit agreements are for an un-specified, un-limited amount.

Dave

[Andy Burns]

Yes, but ...

"If an error is made in the payment of your Direct Debit, by PSL re Utility Point or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society."

[Andrew]

Does that cover "an error in the calculation of the amount to be taken, caused by poor data or other reasons outside the control of the customer" ?.

[wasbit]

Don't know if this applies to you but when I had a DD for a variable amount I was able to set a maximum that could be taken.

[David Wade]

Generally not an option. The agreement they give you is always for an un-specified amount...

Dave