No Direct Debit means bigger bills!

I had endless arguments with my MiL (who was only 17 years older than me but could have been from another century, never mind generation!) She refused to have a debit card or pay by direct debit. She would hand me her bills that needed to be paid together with the cash and ask me to pay them "next time I was in the Post Office". The only time I went into the Post Office was when I had to pay one of her bills and it always meant a special trip. Eventually we had Power of Attorney and the first thing we did was get a debit card! And the second thing was to set up direct debits! She was always so keen on keeping control of her money but by keeping track of the account while I was using ATMs I had a far better idea of how much money she had.

Would she accept Direct Debits if the she could have it for her standard quarterly bill rather than a monthly direct debit?

I refuse to pay utility bills by monthly direct debit because so many people have hassle with the UC over how much the DD should be at a monthly rate, and getting money back if there is a surplus. I still pay quarterly on receipt of the bill, but do it by DD.

You make an interesting point, Nonnie (even if it should be made on another thread). One of the main reasons that the type of scams you mention are successful, is that the scammers are able to open an account in someone else's name so that money can be transferred. I can see absolutely no reason for that to be able to happen. Banks should have a duty to check that new accounts being set up are for legitimate purposes and the new account holder is who they say they are. Many of the scams where people are asked to transfer money to a new, ‘safe’ account set up in their name or the email scam where a last minute change of bank account appears to come from a conveyancing solicitor, could not take place without these rogue accounts being set up. So, in this specific area, I think the banks should take on the responsibility for compensation.

Welshwife I think the law has changed and they have to give you the money back if you have overpaid for a certain period of time. I believe it is no longer necessary to ask.

There is consumer protection for pretty much everything now which I think is a mixed blessing. It is good for those who are not able to sort things out for themselves but I wonder if it makes some people lazy? Nowadays banks have to tell you when your fixed term interest rate is stopping which means that those who are on the ball don't get such a good rate as they used to. Consumers seem to believe they have no responsibility for anything and expect to be compensated even when it is their own mistake. Yes, of course I feel sorry for people who are scammed but when they have given all the information away to the scammers is it really fair that the shareholders of the banks have to foot the bill for their mistake?

Sorry, perhaps I should have started a new thread.

Same with me Cold...recently taken over running my 90 year old mothers finances and have put her on DD for her energy. Cheaper and much less hassle.

They also take the amount they want and make you wait ages for a refund or only give it to you if you ask! I used to keep a very close eye on our DD for water, electric gas etc when we were in the U.K.

It costs much less to administer a paperless system: no paper bills, no postage, no manual checking of cheques, no 3 day wait for cheques to clear etc - instead all done by computer.

It is a unfortunate that being stubborn is costing her money - my mother used to be a bit like that - but when she was ill my brother took over managing her money, put it all on direct debit and gave her a spreadsheet showing her payments each month

X posts Nonnie

It does seem unfair but quite simply, the reason is that if you pay by DD it cuts down on admin for the utility companies. They don't have to process cheques, all payments are automatic, they don't have to use employee time chasing up bad payers and keeping all the data records associated with that. So it saves them money and they can pass on that saving to their customers.

They cost more because the admin is so much greater and has to be done manually rather than automatically. It really is that simple.