Can a company do this (legally)? - SV650.org

Tigerrrr....... · 16-01-11, 11:09 PM

I took out a service agreement when I bought my car last August. The deal was for two years worth of servicing for £17.62 per month.

They've taken £17.62 by Direct Debit for the last four months, but the January 2011 payment was £17.99.

When I queried it, they said it was due to the VAT increase.

Now, the actual amount is a measly 37p per month, but I'm interested in the principle. If you sign up to an agreement based on a certain price per month, can the company then legally increase the amount during the term?

And...they've not even confirmed in writing which breaks the Direct Debit guarantee.

What do others think?

Cheers.

16-01-11, 11:21 PM

They can't increase the amount but you'll find the vat is nothing to do with them.

16-01-11, 11:24 PM

There is usually small print somewhere regarding vat being charged at the current rate, so if it goes up so does your price. It will be in the terms and conditions some where.

fizzwheel · 16-01-11, 11:28 PM

Quote:

Originally Posted by Tigerrrr.......

If you sign up to an agreement based on a certain price per month, can the company then legally increase the amount during the term?

Sky did that to me a while ago, the put up my direct debit payment, but they also wrote to me and told me that it would be going up by x amount on y date which gave me time to cancel it if I wanted to.

16-01-11, 11:36 PM

Quote:

Originally Posted by bris

There is usually small print somewhere regarding vat being charged at the current rate, so if it goes up so does your price. It will be in the terms and conditions some where.

+1

MisterTommyH · 16-01-11, 11:39 PM

But if he's paying it off in installments surely the actual purchase of the product was in last August, and the VAT would have been paid at that time. The payments he's making now are like finance surely? Unlike the sky, which is an ongoing payment for an ongoing service.

andrewsmith · 16-01-11, 11:51 PM

Quote:

Originally Posted by bris

There is usually small print somewhere regarding vat being charged at the current rate, so if it goes up so does your price. It will be in the terms and conditions some where.

Yep

Unless its a repayment for a item which was bought when the VAT was at XX%

punyXpress · 17-01-11, 10:36 AM

Ask Gordon for the 37p ?

mattSV · 17-01-11, 10:40 AM

Is it a CCA (Consumer Credit Act) regulated agreement?

17-01-11, 12:21 PM

as they have already breached the Direct Debit mandate then get them to repay you the difference plus £25 costs for contacting them over the error.
they would do that to you after all.

16-01-11, 11:09 PM	#1
Tigerrrr....... Member Join Date: Mar 2004 Location: Edinburgh Posts: 155	Can a company do this (legally)? I took out a service agreement when I bought my car last August. The deal was for two years worth of servicing for £17.62 per month. They've taken £17.62 by Direct Debit for the last four months, but the January 2011 payment was £17.99. When I queried it, they said it was due to the VAT increase. Now, the actual amount is a measly 37p per month, but I'm interested in the principle. If you sign up to an agreement based on a certain price per month, can the company then legally increase the amount during the term? And...they've not even confirmed in writing which breaks the Direct Debit guarantee. What do others think? Cheers. __________________ Be safe, be seen.

16-01-11, 11:21 PM	#2
Specialone Guest Posts: n/a	Re: Can a company do this (legally)? They can't increase the amount but you'll find the vat is nothing to do with them.

16-01-11, 11:24 PM	#3
bris Guest Posts: n/a	Re: Can a company do this (legally)? There is usually small print somewhere regarding vat being charged at the current rate, so if it goes up so does your price. It will be in the terms and conditions some where.

16-01-11, 11:39 PM	#6
MisterTommyH Member Join Date: Jul 2010 Location: West Mids Posts: 854	Re: Can a company do this (legally)? But if he's paying it off in installments surely the actual purchase of the product was in last August, and the VAT would have been paid at that time. The payments he's making now are like finance surely? Unlike the sky, which is an ongoing payment for an ongoing service.

17-01-11, 10:36 AM	#8
punyXpress Member Mega Poster Join Date: Feb 2008 Location: Riding, North Posts: 2,664	Re: Can a company do this (legally)? Ask Gordon for the 37p ? __________________ Was: K2 naked in rapid yellow - gone to a better? place Now: Street Triple R

17-01-11, 10:40 AM	#9
mattSV Member Mega Poster Join Date: Jul 2003 Location: Darn sarf, innit Posts: 2,025	Re: Can a company do this (legally)? Is it a CCA (Consumer Credit Act) regulated agreement? __________________ 2000 - 2004 SV650S 2004 - 2009 SV1000S 2009 - 2013 Triumph Sprint ST1050 2013 - 2016 Triumph Explorer 1200 2016 - Ducati Multistrada DVT S

17-01-11, 12:21 PM	#10
collis Guest Posts: n/a	Re: Can a company do this (legally)? as they have already breached the Direct Debit mandate then get them to repay you the difference plus £25 costs for contacting them over the error. they would do that to you after all.

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