E.On compensation for early direct debit payments

Are you an E.On customer? Are you eligible for compensation as a result of E.On’s early direct debit payments? Read on to find out.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Young man shopping with credit card and laptop computer

Image source: Getty Images

You might have heard about or been involved in the E.On customer outcry around Christmas time last year – more on this later. Have you been compensated for any bank charges or detriments caused by the energy supplier’s early direct debit payments? You can still contact E.On for compensation now. Here’s what you need to know.

[top_pitch]

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

Why is E.On paying customers compensation?

Energy giant E.On took payments from almost two million customers earlier than agreed. This took place on 24 December 2020, when the payments were due for collection in January 2021.

Most of these customers were caught off-guard and faced unplanned overdrafts, cancelled Christmas plans and financial difficulties.

The energy supplier reported a technical glitch in its system after the changes made to E-credit hours for pre-payment (PPM) customers. It apologised and promised to refund customers by 29 December 2020.

Since the refund may not have resolved any bank charges or detriments caused by the early direct debit payments, the energy giant had to make things right. How? By compensating any customer who makes a legitimate claim concerning this issue.

Who regulates companies like E.On?

Energy suppliers like E.On are regulated by Ofgem. Ofgem’s role is to protect consumers by delivering a greener and fairer energy system. So, how did Ofgem protect consumers from the problems caused by the early direct debit payments?

E.On reported the early direct debit payment error to Ofgem the same day it happened, 24 December 2020. It is clear that E.On failed to adhere to the terms of the contracts they have with customers, meaning they are liable. The good thing is that E.On acknowledged its error, was ready to make things right and continued to engage with Ofgem.

To date, E.On has paid more than £55,000 to customers who have reached out to them, having suffered out-of-pocket expenses, unexpected bank overdrafts and other detriments.

The energy giant has also promised to pay £627,312 to Ofgem’s energy redress fund.

[middle_pitch]

Is compensation from E.On still ongoing?

Customers negatively affected by E.On’s early direct debit payments, and who haven’t received compensation, can still contact E.On.

Anna Rossington, Ofgem’s director of retail, has called upon negatively affected customers who haven’t already spoken to E.On to do so. These customers should contact the energy supplier if they wish to claim any compensation.

How do I contact E.On?

Customers can contact E.On by calling 0345 052 0000 between 9am and 5pm, Monday to Friday. You can also use the chat system on E.On’s website.

Only people named on your E.On account should contact the company to discuss compensation. Additionally, you should have details/evidence of the extra costs incurred and any other detriments faced.

Ofgem’s advice to other energy suppliers

Ofgem has appealed to other energy suppliers to always conduct the appropriate checks to avoid unintended consequences for customers. This might help avoid a similar situation to that faced by E.On customers. Additionally, Ofgem favours working with energy suppliers who report themselves early, are co-operative and want to make things right.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »