Beware a final 'large' Direct Debit payment!

If you think that a supplier will simply keep collecting the same old pre-agreed Direct Debit payments until the end of your contract and then tell you what is owed afterwards, then watch out!

Here's what happened to one of our customers...

We've overcharged you and now you have to ask for it back!

Unwilling to wait a few days until the final meter reading had been agreed for the purposes of changing supplier, an irregular and large Direct Debit payment (approx £120 in excess of the actual value of the energy used) was requested by the supplier and extracted unannounced from the customer's bank account.

This resulted in the supplier's gas and electricity accounts now having funds sitting in the bank and effectively owing to that customer. The customer was in this case observant and requested that  the overpayment be refunded.

A cheque - no, not an electronic refund to the bank account as that would have simply been far too quick - was issued on request and everything squared-off. Some questions though...

• If the overpayment hadn't been spotted, would the supplier have voluntarily offered to repay it, or would they have treated it similar to a dormant, unclaimed bank account and ignored it?
• If the customer operates an Internet-based energy account, how long after leaving a supplier will they have access to it so they can check whether they have funds owing. Your Internet access should not be removed instantly after leaving but it will be worth checking how long you will have access to your account to see whether you're owed any money?

That's why we recommend...

• You get a 'final bill' from the supplier with the agreed final meter readings and a statement of account.
• As soon as all monies owing have been paid, ensure your previous supplier's Direct Debit mandate is removed from your bank account.