Question

Ovo taking direct debiits after contract ends


Hello

I moved energy supplier, leaving Ovo an the 31st March 2024

Ovo took direct debit payments from me on 1st April and 1st May.

Are they legally allowed to do this ?  Considering at the time I had no contract with them

Thanks

john

 


6 replies

Userlevel 5
Badge +1

It happened to me as well. I switched on the 6th March and a DD was taken on the 22nd March. You can actually close the DD mandate at any time (but not before you have switched) but then Ovo won’t have any means of crediting your account with any balance in your favour.

 

In my case they debited the normal monthly amount from my account (22nd), calculated the final payment for the energy used up to the 5th March and then credited my account on the 2nd April with the balance. As long as the DD mandate remains in force then it is legal for Ovo to debit and credit your account as necessary BUT after the final bill has been presented showing a zero balance then there should be no further transactions and you can then safely instruct the bank to cancel the mandate.

 

Peter

 

It’s 6 weeks since I left and they are telling me it will be two more weeks before I get the final bill.  I have no choice but to stop the DD as they have taken £1100 from me already.

 

I dont think they have any legal right to use a direct debit mandate to take my money without having a reason.  Taking the routine monthly payment for an account which is closed is not a reason.

Userlevel 7
Badge +5

When I switched at the end of last year, once my switch had gone through I cancelled my direct debit.

As you might expect, I got some (probably automated) messages telling me to set one up again but of course I didn’t.

The final bill did arrive just after 5 weeks after the switch and my credit balance landed in my bank account - just because the DD is not in place, they do still have your bank details so that should not be a problem.

Userlevel 4
Badge

Hey @jpbourke,

 

I’m sorry to hear that you left. We have a full guide on what happens when leaving OVO

 

Normally your Direct Debit is left active during the switch so that we can return any credit balance to you once your final bill has been produced. It would also help in scenarios where a customer cancels the switch during the cooling off period. This ensures we can get you back on supply with minimal disruption. Of course you can always cancel your Direct Debit as @BPLightlog has pointed out and once the final bill has been produced, settle this as a one off payment or if a credit balance is on the account a cheque would be sent to you. 

 

I hope this helps 😊

Can you please show me where in the guide it says that I will be charged my monthly rate after I have left ?

 

or can you show me in your contract where it says I will be charged my monthly rate after I have left.

 

It’s over six weeks since I left and I am told that Ovo have no estimate for when I will get my final bill.  This means that had I not cancelled the direct debit on my side, you would take another payment in June.

Userlevel 4
Badge

Hey @jpbourke

 

I would suggest reaching out to our Support Team who can check the account for you and give you more information on when the final bill will be available. 

 

When it comes to Direct Debit payments, unless you instruct the cancellation of the mandate, the Direct Debit payments will continue as normal as they are an automated process. When the account is closed, we will take responsibility for cancelling this and, as the guide states, refund any credit balance that was left on the account. 

 

 

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