Direct Debit too much?

[kazza55]

I currently pay my gas provider by monthly direct debit which is the same amount each month. I am nearly �100 in credit and on the 28th of this month another direct debit will be paid to them) I live in a 3 bed semi.

I like my gas account to have a reasonable amount of credit on it to help pay for the winter months when the central heating is on,but why should they have all my money, and everbody elses saved up. Surely they must be earning a fortune in interest if this is the case?

Can I make the gas company reduce the monthly direct debit? or do I have to wait untill they do it. They have already paid me back �50 into my bank account. (I had to ask for this mindyou!)

Any thoughts on this topic would be most welcome.

Thanks for reading.

[Loosehead]

This happenned to me, clearly they've over estimatated your consumption. They will refund if you like or adjust the monthly payment to a more realistic level based on your usage. Just call them, with British Gas you can do this on line now.

[puttycake]

Direct Debit has the nickname of 'dial-a-debt' in some companies - now you know why!

Of course they give you the 'you never need to think about a bill again ...' nonsense, while they squirrel your money away in their accounts when it could be in yours.

Why not save a regular amount in a separate account, and pay your quarterly bills out of that when they come in. That way, you have the money ready, and it earns interest for you, not 'them'. I refuse to do DD - if a company won't accept it, go elsewhere. If they say it's an obligation - advise them that the obligation is that you pay - the method is your choice, not theirs.

[Loosehead]

Putty you are correct yes you can earn tuppence halfpenny in interest but I just find it so much hassle writing cheques sending them off or queueing at the bank. I accept all the points about dd's etc but for sheer convenience it's great to have everything on automatic.

[kazza12345]

just call them and ask to reduce the monthly payments - alternatively look on it as a savings plan against big bills in the future

[stevie21]

Honestly, some people make it all sound like a great big evil nasty conspiracy.
"Why should they have your money" ?
Just phone them and either reduce the payments or refund the credit. Do you honestly expect them to make this decision for you and refuse you the option of having credit on your account?
So they overestimated your monthly usage - if you believe this to be anything other than an honest mistake then it's not just British Gas you should be on the phone to ;-)

[hinge1967]

Stevie, it IS a conspiracy!!! Lol!!

Costs for companies are massively reduced decause of DD, they are effectively gauranteed payment, and hold 100's of 1000's of pounds of other peoples money in credit.

If you went to Tesco and they asked you to pay in advance for some food you might eat in the future would you consider that fair?

Bear in mind that they set the estimated charge and it is almost always an overestimate, and I have yet to meet someone who has been sent a refund from these companies without having to ask for it.

[stevie21]

Holy bejeezus hinge1967!!!!
Let's look at some facts and not get hysterical...

I pay my phone bill by DD. This is debited from my account about a month or more after I've made the phone calls so neither BT, Tesco (or, in this case the gas board) are asking me to pay for ANYTHING in advance. They're giving ME credit. The gas board let you use the gas BEFORE they charge you for it.
Read that last sentence back over and over!

"Costs for companies are massively reduced..." Yep, and some pass on part of this saving to you if you pay by DD. Paying by DD also saves me time and (compared to posting a cheque or phoning them with my debit card) money.

"Almost always an over-estimate" : we can all safely assume that you've researched this thoroughly and checked with a representative sample of the population? This isn't just a sweeping statement? Even if true, would you prefer it always to be an underestimate and an extra bill to be sent to you at the end of the year? They can't win with you!

"sent a refund from these companies without having to ask for it" ?
As I said, if they refunded me without me asking for it, they'd be refusing me the option of building up credit so that the winter months are more affordable. I'd be unhappy if they did this. Please explain why on earth would they spend time and effort doing this without your consent.

We're all quick enough to say "parents should take more responsibility for their kids' behaviour" but how realistic is it to expect that, if people don't even take responsibility for their own money!? Hang your heads in shame you crazy, mad, hairy palmed people!!!!!

(rant over) :-D

[louadams6]

i would call them. mine was around the �85 in credit and after telling them certain readings from the meter itself, they worked it out and refunded the credit

[hinge1967]

Ok, Stevie, I won't get hysterical.........

I take your point on the generalisations. I simply disagree with your analysis and consider that since privatisation these companies are governed by the need to make profits, and are not making decisions based on being nice to their consumers. Payment by DD is very advantageous to their business position - not an act of kindness.

You were absolutely right about one thing - they can't win with me.

(BTW -I think the personal abuse was unwarranted).

[kazza55]

Ooh dear.....

looks like I've stirred up a couple of rants here. I must admit I was pretty cheesed off when I posted question. Have since managed to calm down and will ring British Gas and get it sorted.Thanks for all the replies!

[stevie21]

Oh dear, of the answers in this thread, it seems that my more reasonable one is *banned*.

In summary, I was being flippant and not intending to offend anyone with my "hairy palmed" thing. I still feel that I was making a valid point in that companies who use direct debits *give you credit* and charge you for gas AFTER you've used it.

Anyway, I can't be bothered to retype it all.