Pricewatch queries: Direct debit bounce leads to unwelcome charges

Flogas recently tried to process a direct debit payment on an account owned by Yvonne in Ranelagh, without success.

“Flogas does not allow consumers to choose the direct debit date,” Yvonne says. “If I were allowed to choose a date to coincide with my salary payment, this issue could have been completely avoided.”

It is not only Flogas who she believes are to blame.

“The problem from my bank side is that there were a lot of pending charges that hit my account the same day as the direct debit, which left insufficient funds in my current account to meet the payment. However, in other accounts with the same bank there were ample funds to meet all payments.”

The total charge to Yvonne arising from this bounced direct debit was €22.50: €10 from KBC and €12.50 from Flogas.

“Advice frequently churned out by the Commission for Energy Regulation (and other regulatory bodies) to shop around is useless, as it is next to impossible to do a comparison across providers about ancillary charges to energy contracts,” she says. “I would love to know how much income the utility providers are making through these types of charges.”

She also wants to know why the “pending charges” were not put through on a more timely basis. “In the age of electronic banking, why does the bank not offer an early-warning system when funds are running low? Indeed, in the UK the FSA is looking at this issue.

"Seven large banks in the UK, including Barclays, HSBC and Santander, have said that they will offer a 'retry system', meaning that if there are not enough funds to pay a direct debit in the morning, the bank will try again in the afternoon and advise customers if a direct debt is missed so that accounts can be topped up.

“If the FSA can get involved in this issue for customers there, why not our Central Bank?”

Flogas said it offered “a wide range of payment options”. It said customers on direct debit options get an invoice 14 days before the payment is taken from their account and added that it encouraged customers with payment difficulties to contact it. “We engage fully with such customers and can by agreement with the customer arrange to alter the direct debit payment date.”

KBC said it could “accommodate any Direct Debit date that the customer chooses with their utility provider”. It also said its unpaid charges were “typically applied to accounts on the day of occurrence and are in line with other financial providers”.

Homebase has experts on all things fairy

Stephen Sands starts his letter to us in ominous fashion.

“I am writing to formally complain about two Homebase sales assistants – Lauren and Tanya – who are based in the Santry Homebase store.”

Oh dear.

“My complaint is that the two ladies were far too helpful and nice to myself and my daughter, Gráinne, aged 8, almost 9.”

Phew.

“While deciding to buy a few paints on a Wednesday evening with a budget of €10, to freshen up a fairy house for the summer, Lauren and Tanya advised us that fairies like bright colours and suggested we pick up a few more. So off we went and got three more colours with brushes.

“While picking up more colours, another sales assistant told us that, as the house needed fixing, we would need PVA glue and sandpaper, which were added to the basket.

“When we went back to the queue I was then informed by Lauren and Tanya that fairies like flowers and if this wasn’t bad enough, a person in the queue – another fairy expert – informed us that fairies like herbs to eat and that fairies also fly with butterflies, and butterflies like flowers. So naturally off we went and picked up flowers, mint, thyme etc.

“I would like to take the opportunity to thank all the Homebase staff and especially Tanya and Lauren for the excellent service and expert knowledge on fairies and plants.”

He then adds that he has also written to Danny Healy- Rea about the weather.

“Although he is based in Kerry and we live in Dublin, maybe he will put in a special word to the powers that be. I was reliably informed by Laura and Tanya that fairies and butterflies like sunshine in the summer. So if Danny could put a word in for Gráinne, we would be very grateful.”

We are pretty sure Danny Healy-Rae can do nothing about the weather, seeing as how climate has nothing to do with mankind (his words). But we are delighted our reader and his little girl had a good time in Homebase.