British Gas row over direct debits
November 26, 2008
A row has erupted in connection with claims that British Gas has been massively increasing the direct debit payments for many of its customers in a bid to take advantage of increased use of fuel over the winter and to raise cash over the period. The energy giant has told many of its consumers that their monthly direct debits will be rocketing.
Many have said that the increase that British Gas in applying is far too much, and certainly far more than is necessary to cover increased usage. In the current financial climate, where many are struggling with their finances, the decision by British Gas to increase direct debits by such a huge amount has caused outrage.
One pensioner was told that her monthly direct debit would be increased from £90 a month to £142 a month. This is despite the fact that her account is over £250 in credit. She said: ‘I’ve got to find another £52 a month and I can’t stop worrying. I’m going round turning radiators-down. I think I’ve been conned.’
British Gas said: ‘We would expect customers to have a credit on their account at this time of year, which is built up through the summer. Customers get into credit because they chose to pay by monthly direct debit, which allows them to spread the cost of energy over the year.’
Written by Peter · Filed Under News Credit Cards
I have cancelled both direct debits with british gas-i would rather the interest to grow in my bank than allowing british gas to hold it in their accounts. This company makes me sick with their greed. Take my advice continue to pay monthly but give them a reading and pay your bill each month on line or on the phone. If we all did that, British Gas would not make billions of pounds in profit as they hold onto our money and may be forced to bring down their prices because of it. We need to start standing up and be counted.
I came bac kfrom holiday on 12 January to find communications from gas and electricity arms of British Gas. In both cases, I was advised that my monthly direct debits would increase by almost 100%.
I have been a customer of British Gas for almost thirty years and have regular meter readings. I am, also, supposed to be a fixed-rate tariff until the end of 2009.
I have just retired and am living a a fairly low, fixed income, so need to watch the pennies, without having this double whammy.
I suspected that this was a try-on and wrote to BG to complain. Today, I had a telephone call, which I hate, because you have no record, as with a letter, of what was said, from someone, who sounded about 12 and just fobbed me off with what he said was company policy.
Is there any consumer body that I can usefully approach, in the hope of getting some action?
Geoffrey Peake
I returned from holiday and sent a meter reading by email to BG having missed the metetr reader. I was advised by BG my Direct Debit would increase from £62 to £96 per month, A RISE OF 54%.!!! My account about £60 in debit. On challeging them they have eamiled a new monthly debit of £86 per month, A RISE OF 39%, a inrease of £288 per year!
I await a reply to my letter. They did drop my Direct Debit from £69 per month 6 months ago, 6×6 = £36. May be I am cynical but was the reduction a deliberate ploy to introduce a debit in my account and thus enable them to point to a debit situation?