This is what Victoria Coren should do after Ovo ‘wrongly’ withdrew money from her account: consumer rights lawyer DEAN DUNHAM explains

Broadcaster and TV game show host Victoria Coren Mitchell has approached X (formerly Twitter) to threaten legal action against Ovo Energy, accusing the company of ‘wrongfully’ withdrawing thousands of pounds from her bank account.

If only I could say this was an unusual or isolated story. Unfortunately, it’s a complaint I hear almost every week as consumers contact me desperately trying to get their money back.

It is unclear whether Ovo incorrectly deducted a one-off payment by direct debit from Victoria’s account, or whether the direct debits over a period of time have exceeded her energy consumption, leaving her with extensive credit. on her energy bill.

Either way, Victoria is entitled to her money back and possibly compensation.

This is why:

Payment was made incorrectly

When you set up a supplier and agree to pay by direct debit, you are protected by the so-called ‘Direct Debit Guarantee’.

This offers consumers several protections, including the right to an immediate refund when a payment has been made in error or fraudulently.

The guarantee also stipulates that if the billing company (here Ovo) fails to provide an immediate refund, the bank that set up the direct debit (here the Bank of Victoria) must step in and issue a refund, and then request a refund have to ask at the bank. company, as is the case in a Section 75 claim.

Credits

Many consumers now pay their bills via direct debit, for convenience and also because most companies offer discounts on this payment method.

The amount you pay for energy via direct debit will be ‘flattened out’ over a year. This means that you usually pay the same amount every month, even though your energy consumption may fluctuate seasonally.

When determining the amount for direct debit, an energy supplier must take all reasonable steps to base the amount on up-to-date and accurate information about the customer’s usage and tariff, as well as other factors, including credits.

In this regard, the regulator (Ofgem) says it expects suppliers to regularly review their customers’ direct debit amounts to ensure they are accurate and appropriate. Direct debits may also be increased by suppliers to take into account upcoming price cap increases.

It is not unusual for consumers to build up a credit on their energy bill. It may happen that your consumption never reaches the amount that is actually withdrawn via direct debit and that the difference – the credit – can sometimes be significant.

If this has happened to Victoria, she has the right to demand a refund of the credit and Ovo will have to honor this request unless there are good reasons not to do so.

Unlike the case of an incorrect payment, you cannot normally submit a claim to your bank under the Direct Debit Guarantee.

The reason for this is that your energy supplier has the right to increase your direct debit, provided he notifies you at least three days in advance.

Backbilling principle

Although this is not as common these days, I still hear from consumers whose energy supplier has deducted a lump sum from their account for a recent period that has not been previously charged.

Under Ofgem rules, energy suppliers cannot charge you for energy use more than twelve months ago, if the supplier itself is at fault for not billing the household correctly. This is known as the backbilling principle.

A compensation

If you suffer inconvenience, inconvenience and/or financial damage as a result of malpractice or breach of contract, you often have a possible claim for compensation.

It is clear from Victoria’s social media posts that she has suffered at the very least inconvenience and inconvenience, and it is entirely possible that she has also incurred bank charges and therefore also suffered financial loss.

In my opinion, Victoria should ask for damages, in addition to full refund of the amount wrongly withdrawn, or credit, as the case may be.

Complain further

If Victoria has a claim against its bank under the Direct Debit Guarantee and it refuses to honor such claim, it can complain to the Financial Ombudsman.

In all other scenarios, if Ovo fails to reimburse her and pay compensation, her next step will be to file a claim with the Energy Ombudsman.

This is as long as at least eight weeks have passed since she first submitted the complaint to Ovo. The Ombudsman will have the power to order Ovo to refund the money in question, apologize to Victoria and pay her compensation.