Is it legal to charge customers who don't pay by direct debit more?

I

iceman

Registered User
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I have noticed in a few utility bills that there is a 2-3 euro charge if you do not use direct debit.
I was wondering if this is legal ?
 
Non-direct customers are less likely to pay bills on time or even at all.

I think it is reasonable that businesses price these risks into their charges
 
dubrov said:
Non-direct customers are less likely to pay bills on time or even at all.

I think it is reasonable that businesses price these risks into their charges
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The point is that the risk was not priced into the charge. The non-dd cost is added on top of the charge.
What am I getting extra for paying this extra cost ?
 
dubrov said:
Non-direct customers are less likely to pay bills on time or even at all.

I think it is reasonable that businesses price these risks into their charges
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- Very generalised statement that I disagree with.
 
becky said:
Are you not going to share? I hate dd's so pay the charge. I too pay bills on time.
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I signed up for a DD to a joint account (not for any devious reason). They mentioned on the phone that they can't do DDs to a joint account, but they didn't push me for a DD. So I pay by internet banking each month.
 
theresa1 said:
- Very generalised statement that I disagree with.
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I am not saying that people who don't pay buy direct debit always pay late

Surely the main reason to avoid direct debits is to maintain control over the timing of the payment.
 
Indeed, the main reason is to control the payment date. Also it is handy if you receive a disputed bill. Payment can be withheld pending resolution.
 
I remember upc saying that it is not an extra charge but a reward to people for paying by DD.

Would love to see a test case being taken in the courts on this.
 
iceman said:
I have noticed in a few utility bills that there is a 2-3 euro charge if you do not use direct debit.
I was wondering if this is legal ?
Click to expand...


There is more admin when you dont opt for the DD route, also there are postage cost and if people forget to pay their bill on time there are additional cost incurred in sending out reminder letters and so on. Some people pay by cheque and that adds to the banking charges of the supplier. Nothing wrong with DD as long as the funds are in the bank to cover the utility bills.
 
I was thinking of taking this issue up with consumer affairs as I don't think people should be pressurised into taking out direct debits. I recently moved to Vodafone and was told that I had to give my bank details over the phone and pay my first bill by direct debit. I could cancel afterwards if I wanted to, but I couldn't take up their offer without signing up. (Presumably they are hoping that people won't bother to cancel once DD has been set up). I reluctantly gave my bank details over the phone and subsequently ignored their first two bills as I presumed I was paying by direct debit. I then got a letter telling me I would be cut off if I didn't pay and when I phoned to query, no-body could tell me where my bank details were as they hadn't been uploaded to the system. I don't think it should ever be compulsory to pay by DD and companies such as UPC certainly shouldn't be allowed to charge 36 euro a year extra to people who opt not to pay using this method
 
Complainer said:
I signed up for a DD to a joint account (not for any devious reason). They mentioned on the phone that they can't do DDs to a joint account, but they didn't push me for a DD. So I pay by internet banking each month.
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Just curious - is this a joint a/c that needs both parties to sign? My UPC DD is from a joint a/c where either party can sign.
 
What if you didn't have a bank account (unlikely but possible).

Not sure if this is still the case, but did banks charge for setting up a DD and each month charge for a transaction, there was also extra charges when insufficient funds. A way around this was to use a Credit card for the DD, no transaction charges and no missed payments. Not sure if this can still be done.
 
Pat Bateman said:
How so?

It's convenient for the consumer and the provider usually gives the consumer ample time to query an issues.
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In my experience it did not give enough time to raise a query. By the time you get the bill (BGE, I am looking at you!) and raise a query the DD was set in motion and could not be stopped. Even if the biller acknowledged an error, they would not be able to recall the DD and you could be left short of funds.

The only option left would be to cancel the DD and pay by cheque or online. I don't like DD and for those reasons I don't have any.
 
Bills can also be paid electronically with your phone, I have my own set up on TSB open 24
 
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