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Electric_Twit
Rank 2
June 28, 2023

Credit Refunds

  • June 28, 2023
  • 26 replies
  • 1068 views

Interesting article on the internet https://www.thisismoney.co.uk/money/experts/article-12238861/DEAN-DUNHAM-energy-company-refuse-refund-credit.html

Ovo are named and shamed for their policy of encouraging customers to retain three months worth of direct debits when claiming credit balances. Ofgem are quoted as saying “There is no minimum amount that suppliers are allowed to keep.

Our rules ensure consumer credit balances are always protected and we recently strengthened rules regarding direct debits, which should prevent excessive accumulation of consumer credit balances. 

Refunds should be returned by suppliers in a timely fashion. Customers can always request their balance back at any time and we have made sure this is firmly in our rules.'”

Furthermore, the article goes on to say “This means OVO and other suppliers are not entitled to hold on to any credit, so its policy of forcing those consumers in credit to leave the value of at least three monthly direct debit payments in the account is unlawful.” 

I have been trying to get my credit of over £600 back and after failing on several occasions to get through to customer services I opted for the automatic refund minus three months.

I look forward to the web based claim system being made legal (I bet the facility is removed entirely).

26 replies

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Jeffus
Rank 20
Jeffus
Rank 20
June 29, 2023

@Jeffus I will try to reverse that dd from 18th June then, not that I know how to!!!

@Electric_Twit I wonder if it might work, when you’re ready to switch, to cancel the dd so your account will default to pay on demand (at a higher rate). Then claim back all your balance, then switch. Don’t quote me !!

Info here in case you want to try it. 

https://www.directdebit.co.uk/direct-debit-explained/how-to-claim/#:~:text=Simply%20contact%20your%20bank%20or,the%20organisation%20asks%20you%20to.

 

    Jeffus
    Rank 20
    Jeffus
    Rank 20
    June 29, 2023

    @Jeffus I will try to reverse that dd from 18th June then, not that I know how to!!!

    @Electric_Twit I wonder if it might work, when you’re ready to switch, to cancel the dd so your account will default to pay on demand (at a higher rate). Then claim back all your balance, then switch. Don’t quote me !!

    Sounds reasonable. That is how it must basically work with pay on bill now for those who switch 

      juliamc
      Rank 20
      juliamc
      Rank 20
      June 29, 2023

      As long as you can claim all the balance online, thus avoiding a phone or chat contact.

      Jeffus
      Rank 20
      Jeffus
      Rank 20
      June 29, 2023

      As long as you can claim all the balance online, thus avoiding a phone or chat contact.

      I wonder what the refund function does when you are on Pay on bill, as there is no DD then. 

      Blastoise186
      Super User
      Blastoise186Super User
      Super User
      June 29, 2023

      It does nothing, but at the same time that credit would drain when a bill comes anyway, which may automatically clear a few bills without you lifting a finger.

      Securing energy by zapping security bugs... For that is The Blastoise Way! Remember, I'm just like you - AI Powered Evil Geniuses aren't Staff!
      juliamc
      Rank 20
      juliamc
      Rank 20
      June 29, 2023

      So if you wanted it back before switching you have to make contact with customer support ?? I don’t think that’s acceptable if you have 3 months worth which you’d like back ! Especially if it’s going to take 6 weeks plus 10 days before they repay it.

      Blastoise186
      Super User
      Blastoise186Super User
      Super User
      June 29, 2023

      Actually, it’s best to leave it there if you’re switching away - that credit helps pay the final bill automatically which you’d still owe anyway. You get the rest back automatically after that.

      Securing energy by zapping security bugs... For that is The Blastoise Way! Remember, I'm just like you - AI Powered Evil Geniuses aren't Staff!
      E
      Rank 2
      Electric_TwitAuthor
      Rank 2
      June 29, 2023

      @Jeffus I will try to reverse that dd from 18th June then, not that I know how to!!!

      @Electric_Twit I wonder if it might work, when you’re ready to switch, to cancel the dd so your account will default to pay on demand (at a higher rate). Then claim back all your balance, then switch. Don’t quote me !!

      Frankly all I wanted to do was get over £600 of credit back and maintain an appropriate Direct Debit, but I object to the fact that I must phone customer services to do so, only because I really think waiting for over 15 minutes for an answer is unreasonable.

      Why does the online credit recovery tool state they will retain 3 months of Direct Debits?

      When you move to Ovo all they insist upon is one month up front, so 3 months smacks of profiteering, in my humble opinion.

      When I move I allow for due process on any surplus and await the final account. I just wish I could reduce the size of the surplus (over£300) in the meantime!

        juliamc
        Rank 20
        juliamc
        Rank 20
        June 29, 2023

        Actually, it’s best to leave it there if you’re switching away - that credit helps pay the final bill automatically which you’d still owe anyway. You get the rest back automatically after that.

        Well I realise that suits OVO, but as we have discussed, the amount there would cover far more than one month’s bill. Also the six weeks plus 10 days wait is a bit much. 

        juliamc
        Rank 20
        juliamc
        Rank 20
        June 29, 2023

        @Jeffus I will try to reverse that dd from 18th June then, not that I know how to!!!

         

        Info here in case you want to try it. 

        https://www.directdebit.co.uk/direct-debit-explained/how-to-claim/#:~:text=Simply%20contact%20your%20bank%20or,the%20organisation%20asks%20you%20to.

         

        Well this isn’t as simple as I’d hoped…! Now I’m in laborious ‘chat’ communication with the bank 🤦‍♀️ 

        It looks likely that waiting for the dd to be returned by the bank will be no quicker than waiting for OVO to do it. Thank goodness I’m not destitute. Of course Octopus have taken their dd too now, so even though the switch itself was fairly quick (a few days) the money side of it is going to take weeks. 

        I wouldn’t mind but the amounts were talking about are not insignificant.

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          Terms & ConditionsAccessibility statement

          OVO Energy Ltd, Floor 5, Crescent, Temple Back, Redcliffe, BS1 6EZ, (Company no. 06890795) registered in England and Wales.

          OVO (S) Gas Limited is registered in England and Wales (Company No. 02716495) at Floor 5, Crescent, Temple Back, Redcliffe, BS1 6EZ.

          OVO (S) Gas Limited is part of OVO Group Ltd