Can I insist on payment by bank transfer and not cheque?

[NoRegretsCoyote]

I've had a few refunds from utilities providers and health insurers in the last few years. when I call them up the conversation invariably goes like this:

Me: I'll give you my IBAN. Can you refund me that way?
Them: No. Company policy is to issue refunds only by cheque.
Me: It isn't convenient for me to go to a bank. A transfer is much easier. It isn't 1978.
Them: We only issue refunds by cheque.

They invariably post me a cheque which I then give to my father to lodge. He is retired and quite likes this kind of job.

Anyway, the only reason I can think of is that some non-trivial percentage of people just don't bother lodging cheques, which is something that utilities and health insurers take advantage of.

Is there any legal basis for me to insist on them refunding me by bank transfer?

 

[Seagull]

It's largely down to risk. If they make a typo with the IBAN, then they have a hassle getting the money back. If they make an error with the cheque, you call them up, and they issue a new one.

 

[Lightning]

I think refunds are offered by cheque in the hope that a certain percentage of customers will never lodge the cheque.

 

[NoRegretsCoyote]

I think refunds are offered by cheque in the hope that a certain percentage of customers will never lodge the cheque.

I am certain that you are right.

I am wondering if there is any way to force them to issue a refund by bank transfer.

I have several utilities that can happily take money from my bank account every month by direct debit but claim they cannot refund money to same account.

 

[RedOnion]

I am wondering if there is any way to force them to issue a refund by bank transfer.

No, there isn't. Remember the Irish Water refund fiasco with crossed cheques?

I don't think there's anything underhanded with cheques. Some companies just have terrible processes that aren't prioritised to change.

My biggest issue isn't the cheque Vs transfer, but the fact that none of the utility companies automatically issue refunds when you cancel a service.

Moved house and the following experiences:

Electric Ireland: had both electric & gas with them. Bills had been estimated, so one was overpaid and the other underpaid when I took final reading. But overall, net refund due to me. But - they collected the underpayment by DD, and left the credit sitting on other bill!
It was straight forward to request refund online - they sent by bank transfer, and wrote to me with details of payment. But I still had to apply for the refund.

Virgin - they bill for full month, and then put a credit in your account for part of month you don't use. This is to be 'helpful' to you when you move to new address so you have credit.

Storage company issued me a credit note for unused time I had paid for.

Etc.

 

[NoRegretsCoyote]

I closed an account with SSE Airtricity today and had a credit on the account.

Pleasantly surprised that they were able to credit the bank account they took the direct debit from.

 

[mathepac]

Now there's a thing. They've (utilities generally) been happily using a customer's IBAN to collect payments by direct debit. On what basis can they refuse a refund by direct credit? I agree with both @CiaranT and @NoRegretsCoyote

 

[Paul M.]

Now there's a thing. They've (utilities generally) been happily using a customer's IBAN to collect payments by direct debit. On what basis can they refuse a refund by direct credit? I agree with both @CiaranT and @NoRegretsCoyote

Unfortunately, there doesn't seem to be an obligation on the Creditor to provide refunds via the SEPA direct debit scheme for payments taken via the scheme. Interestingly though, there is on the banks involved! So it depends on who you ask to do the refund. Under the SEPA direct debit rules, your bank (the Debtor Bank in the terminology of the rules) can't refuse to refund a direct debit if you feel it shouldn't have been taken out of your account. This is on a no-questions-asked basis (as long as it is within eight weeks, see section 4.3.4 of the SEPA Direct Debit Core rulebook on the European Payments Council website). In the case of a company taking too much, you could then make a separate payment of the correct amount.