Quote:
Originally Posted by danielf
I've asked this before in another thread (and someone's brought this up in this one): I'd be interested in your opinion on the non-DD charges that NTL (and other companies) charge. From what you say above I conclude that, where they are deemed to exceed the actual administrative cost, they would be considered penalty charges, and therefore be illegal.
Seeing that NTL will happily apply a £5 non DD charge for a Broadband account @ £17.99 pcm (roughly 30% of the total charge), it appears to me that they either: have incredibly inefficient billing procedures, or are extracting the urine and have found a little money spinner which may turn out to be illegal.
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The exact same methodology applies though the contract terms (where direct debit is stipulated - as is the case with the majority of BB accounts) would hold considerable relevance. It could, however, still be construed as an unfair term in the contract for those who don't pay by direct debit as they are being charged £5.00 more for an identical service whether they pay or not.
Either way - if someone writes to NTL to ask for an exact breakdown of the charge I'd be very surprised if they got an answer detailing same. On that basis alone I'd suggest they would be as equally uncomfortable / vulnerable as the banks were someone to threaten litigation.