After DD Cancellation, but in credit…?

Hi there,

In cancelling my Direct Debit with Bulb a little while ago, my statement date is looming at the end of this week.

However, I am in credit at nearly £200. My bill is likely to be around about £60ish.

Can I just let that bill amount come out of credit in its entirety?

Or do I have to pay an amount every month to stay within contract?

If I were in credit with, say, BT, then I wouldn’t have to pay my bill that month as it will already be covered, but I’m unsure what the state of play is with energy companies such as this one?

Anyone any knowledge on this?

Thanks I’m advance,

Will

The due amount will come out of your credit. Going against contract by cancelling your DD is another matter!!

Well actually if you check Bulb terms and conditions, you will see they say you have the right to cancel your direct debit at any time as long as you have another viable method of paying (assuming no credit available). So, that’s not really my worry or question.

It was more whether you have to make a payment even if the bill is taken out of credit?

Fair enough - you’ve read the contract better than I have! If you’re in credit then there is no need to make any payments as you don’t owe anything.

Admittedly, it’s a little contradictory. Here is what is says when you have a normal or smart credit meter:

4.4.2: You agree to pay for your energy with a monthly payment by Direct Debit, by debit card, credit card on receipt of the bill or using another payment method we agree with you.

4.4.5: You must maintain your Direct Debit with us at all times, unless we agree to an alternative form of payment.

But here is under a section about cancelling your direct debit.

11.1: If you agree to pay by Direct Debit, you have the right to cancel it at any time by contacting your bank and asking them to stop the payments. Depending on the bank’s terms, they might ask you to contact them by letter, or to give a certain amount of notice before the next Direct Debit payment is due. You should check the requirements directly with your bank.

11.3: You must let us know that you have cancelled your Direct Debit, so that we can update our records. You should also make sure that you set up another way to pay for the energy that we are supplying you with. If you change to a payment method that is more expensive for us to offer than Direct Debit, we may change your unit rate and standing charge. We will tell you the details of your new unit rate and standing charge.

Hence the question, really, because you want to avoid a Gotcha moment…

Perhaps in legaleeze, maintaining a direct debit is making sure there is money available to take; doesn’t stop you cancelling it… perhaps.

Either way… I haven’t seen anything that relates to: if you are already in credit with Bulb, do you have to make a payment each month regardless?

If it helps, I recently changed to paying the amount billed rather than a fixed amount. I was in credit at the time and the next few bills came out of the credit. I didn’t pay anything else until the credit was used up.

That is reassuring, yes. And makes sense. It is the way it ‘should’ be, after all. But times like these make us paranoid :slight_smile:

I have been told the following by Bulb:

You would still need to make a payment, even though your account is in credit.

Since we take payments in advance every month.

As not making payment may result to late payment fees may apply.

For roughly half the year, your monthly payments will be more than your monthly usage. This means you’ll build up credit in the warmer months, which you’ll use up during the winter, when your energy usage typically goes up.

So I have asked now how little I would have to pay.

If the response is at minimum, the amount of the bill, then that means that having credit is actually useless as you will never ever actually get to use it…

Just means you overpay each bill every month for no reason.

We shall see what the response is.

Your last post doesn’t apply to me as I pay the statement amount on receipt, I don’t make advance payments. Hence their conflicting response. Good luck