I recently issued a direct debit mandate in favour of Go plc to cover my monthly bills.  In theory, this is a very convenient mechanism because it removes the hassle of paying bills manually. It is, of course, also convenient to the service providers because it guarantees prompt payment.

However, it seems that companies in Malta (and in particular Go) abuse this instrument.  Abroad there are clear guidelines on the use of direct debit.  One rule is that if there is a mistake in the bill, the customer should be given an immediate refund.

In the last bill from Go I noticed a mistake.  I contacted customer support and the mistake was acknowledged.

However, when I pointed out that the bill was going to be paid by direct debit and that I was requesting that the mistake be rectified before my account was debited, the stock reply was that once a bill was issued it could not be corrected and that the best they could do was to issue a refund in the following bill.

They repeatedly assured me that this was the only way to rectify their mistake!

A direct debit mandate is not a blank cheque issued in favour of the supplier. At a minimum, one expects that if there is a mistake (especially if it is the fault of the supplier) this should be rectified and any incorrect sums debited, credited immediately.

It is rather ironic that if one delays making a payment one is penalised by a late payment fine and/or additional interest charges.

However, when the supplier knowingly overcharges you nothing is offered by way of compensation.

So my advice to fellow consumers is do not use direct debit.  Following this incident, I have cancelled mine.

I hope that the consumer protection agencies can do something about this because it is really convenient to have a properly functioning direct debit mechanism.