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Thread ID: 99215	2009-04-23 23:34:00	Contact Energy Direct debits	george12 (7)	PC World Chat

Post ID	Timestamp	Content	User
767909	2009-04-23 23:34:00	My mother has her gas supply with Contact and pays by direct debit. Her balance has got up to $176 CREDIT and she has a direct debit of $82 per month. She called to skip her direct debit payment and they are refusing, saying that you may only do this once per year. On the bill it clearly states: Prompt payment discount $8.44 Cr CREDIT BALANCE (NO PAYMENT REQUIRED) $176.12 Cr Additionally in the payment area it says "Unless otherwise advised, $82.00 will be direct debited each month from your bank account". (my emphasis) Can they really take the money without her permission despite the credit balance?	george12 (7)
767910	2009-04-23 23:58:00	My mother has her gas supply with Contact and pays by direct debit. Her balance has got up to $176 CREDIT and she has a direct debit of $82 per month. She called to skip her direct debit payment and they are refusing, saying that you may only do this once per year. On the bill it clearly states: Prompt payment discount $8.44 Cr CREDIT BALANCE (NO PAYMENT REQUIRED) $176.12 Cr Additionally in the payment area it says "Unless otherwise advised, $82.00 will be direct debited each month from your bank account". (my emphasis) Can they really take the money without her permission despite the credit balance? But Contact does have permission - at some point, she would have signed something authorising them to deduct $82/month. I assume that this is one of those schemes where you pay a fixed amount each month (i.e. an average over a 12mth period), rather than pay more in winter when usage goes up, and less in summer? If so, the idea is that you will end up with a credit balance during the warmer months of the year, and by the end of winter, most of that would have been used up by the extra demands on hot water, heating, etc.	somebody (208)
767911	2009-04-24 00:04:00	But Contact does have permission - at some point, she would have signed something authorising them to deduct $82/month. I assume that this is one of those schemes where you pay a fixed amount each month (i.e. an average over a 12mth period), rather than pay more in winter when usage goes up, and less in summer? If so, the idea is that you will end up with a credit balance during the warmer months of the year, and by the end of winter, most of that would have been used up by the extra demands on hot water, heating, etc. Hypothetically, yes, but we don't currently use gas heating. All we have is one gas hot water cylinder, and that doesn't run the shower or bathroom - that's electric. We will use the same $82/month all winter and the credit will remain if they don't give it back, and mum would rather not pay a lower amount and then potentially owe them money. Could we simply change payment method and not pay for two months? It does after all say no payment required...	george12 (7)
767912	2009-04-24 00:14:00	George, energy companies all differ but my understanding is this. A direct debit (or payment plan) is usually set up on the basis that the credit built up over the Summer months offsets, or helps to offset, the higher Winter bills and some Winter bills can be enormous. If the amount being paid has been suggested by Contact, they would usually take a monthly average from the previous 12 months usage, allowing for any increases in charges. That should always be subject to review and usage can vary when a customer's circumstances change. The bank agreement is with their customer, in this case, your Mother and not with Contact, they are the third party. I would suggest your Mother (or maybe they will be prepared to talk with you, but some do run scared, stating the privacy act!) calls Contact customer service and asks to speak with a senior staff member. Cheers, Marnie	Marnie (4574)
767913	2009-04-24 00:15:00	Hi, have a similar arrangement with Contact for our electricity where a set amount is debited from my salary to them. Currently showing a $200 credit, so when it gtes a little larger, we just phone Contact and arrange for a refund. Have had no problems, just takes around 5 or so working days and have the option of a cheque in the mail, or into bank a/c. Hope this helps.	rny (6943)
767914	2009-04-24 00:35:00	Hypothetically, yes, but we don't currently use gas heating. All we have is one gas hot water cylinder, and that doesn't run the shower or bathroom - that's electric. We will use the same $82/month all winter and the credit will remain if they don't give it back, and mum would rather not pay a lower amount and then potentially owe them money. Could we simply change payment method and not pay for two months? It does after all say no payment required... Yup - if you contact them and say that you no longer want to be on the fixed-price-per-month scheme, rather paying what the "actual" bill is each month, then you could use up your credit that way - and then change back when you're done. The whole scheme really depends on the company you're dealing with - I'm with Meridian for electricity, and I think when they offered this option (their argument was that it avoids surprises in winter), the conditions were that the monthly amount was to be a number which they decided. I suspect Contact will be the same, and that they will be reluctant to let you reduce the $82/month as they would prefer you to over-pay than under-pay.	somebody (208)
767915	2009-04-24 00:39:00	If the gas supplier will not vary the amount, add a little incentive for them to reconsider. Just leave the hot tap running for a month and see how they like it when they are the ones giving more than they budgeted. ;) BTW, $82 / month seems a very large amount for a single hot water cylinder that does not supply the largest hot water users? If all it feeds is the kitchen, it may be cheaper to skip washing dishes and replace them with new ones after each use. Or eat out.	R2x1 (4628)
767916	2009-04-28 03:11:00	A direct debit usually only takes what is owed - so if you owe $87.43 this month, that is what they take, and if you owed $98.54 last month, that is what they would take. Sounds like she's been put on a fixed direct debit rather than a variable direct debit. Tell her to ask for a refund, then contact the bank and cancel the current authority. If she still wants to pay automatically, set up a new direct debit for a variable amount so she only ends up paying what she owes every month.	Beemer (6956)
767917	2009-04-28 03:16:00	Yes stop it by her contacting her bank. :)	Trev (427)
767918	2009-04-28 05:37:00	A direct debit usually only takes what is owed - so if you owe $87.43 this month, that is what they take, and if you owed $98.54 last month, that is what they would take. Sounds like she's been put on a fixed direct debit rather than a variable direct debit. Tell her to ask for a refund, then contact the bank and cancel the current authority. If she still wants to pay automatically, set up a new direct debit for a variable amount so she only ends up paying what she owes every month. Exactly. Maybe they have another system, where they direct credit the same amount each month, so people who have afixed income can average out their bills throughout the year, as winter their usage will cost more. If they are doing a direct debit for the same amount each month, you would be better to setup automatic payments with your bank, and that puts the customer in direct control. I don't trust these companies with direct debits. I had a problem with xnet, where they had a billing problem and direct debited an unauthorised amount from my account, and then credited it back in, and as a result, I had to pay additional bank fees due to their error, and xnet ignored my email compliant. PS. If contact will only allow one chnage a year, just change electricity companies. Contact will change their mind pretty quickly when you say that you will change companies. I believe contact have lost a lot of customers over this last year, after the pay rise scandle. which showed the arrogance of their austrlian owners.	robbyp (2751)
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