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Energy Costs - tenants told not to skip payments

Tenants planning to cancel direct debits in protest at rising fuel bills could face “paying the price for many years” a property expert says.

Earlier this month Prime Minister Liz Truss announced measures which aim to support those facing increased gas and electricity costs.

However campaigners at Don’t Pay UK are calling for a day of action on October 1 - urging people to cancel direct debits. 

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The group is hoping to attract one million supporters and will hold nationwide events in a bid to boost support. 

Jonathan Rolande from the National Association of Property Buyers says: “It might be tempting to cancel your direct debit and sign up to the campaign.

“But the reality is you could be paying the price for it for many years to come. The risks of not paying your energy bill are really significant. 

“First you will enter into debt and this will impact your credit rating. That, in turn, could wreck your chances of ever getting a mortgage, passing checks for a rental or being able to get a credit card in the future. 

“Energy firms are unlikely to take this lying down. They will pass the debt onto debt collectors and you could end up with a knock at the door from bailiffs who will bill you for just arriving to collect their money.

“In rare cases those who refuse to pay can be placed on a pre-paid meter and eventually cut off entirely.

“My wider concern about this Don’t Pay campaign is where it might end and what it might lead to.

"If millions of people decide it’s acceptable to just not pay for their household energy, we might see people start with-holding mortgage payments, refusing to pay water bills and just taking items from shop shelves. Times are undoubtedly tough, but it just sends out totally the wrong message.”

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  • icon

    Utility companies are not allowed to cut off supplies to domestic properties.
    Cancelling a DDR does not mean the customer will automatically end up in debt, I pay all mine when I receive a bill based on accurate meter readings

  • jeremy clarke

    By cancelling direct debits, most customers will find themselves transferred to a higher rate of energy. Most utility companies offer a discount for dd payments and their contracts advise that rate will only apply to customers paying by direct debit.

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    To be honest I think there is very little in it, if anything at all with most suppliers

     
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    Even Octopus are going to start charging more for not having a DD. Most disappointing as I was getting loads of Tesco clubcard points.
    The standing charge and unit prices are both higher and they reckon the average customer will pay £80 more for not paying by DD.

     
  • icon

    We cancelled our direct debit earlier this year and settle up when the bill is due. We have no intension not to pay our bills. I agree with this article.

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