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Query re cancellation of DD fee - who pays?

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  • 23-01-2010 1:11am
    #1
    convert
    Moderators, Sports Moderators Posts: 9,338 Mod ✭✭✭✭


    My sister moved into a house in September. When viewing the house we met the owner (who was moving out, hence the free room) and asked the usual questions re payment of bills, rent, etc.

    We specifically asked about how the bills would be paid and were told that once all tenants had put their share in the envelope, then one person would go to the post office to pay it in a lump sum, and this has worked fine.

    However, it has since emerged that the owner had originally payed the Airtricity bill via DD (until they moved out) as the bill was in their name. The bill is still in their name, but they have cancelled the DD. It appears that by cancelling the DD they have broken the contract with Airtricity and have incurred a fee of E300. A letter arrived saying that they will be cut off next week if the fee isn't payed.

    The owner, in whose name the bill is and who had been paying the bill by DD, says that the tenants are liable for the payment of the penalty, but they don't think that they should pay the fine because they didn't change the payment structure.

    So who should pay? Is it the house owner's responsibility because they cancelled the DD? Or is it the tenants who should pay it? Or should it be divided equally between all of them?

    Any advice much appreciated. Thanks in advance.


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    #2
    Victor
    Registered Users Posts: 78,336 ✭✭✭✭Victor


    I'm not sure whether this is a penalty or a deposit - you will need to check with Airtricity.

    I presume hte DD is only activated if the bill isn't paid. Presumably if the tenants pay on time the DD isn't taken from the landlord's account.

    If its a deposit, potentially put it in one of the tenant's names and pay by DD, win which case Airtricity may waive the deposit. Alternatively they get their deposit back when they leave, assuming the bills are paid. Splitting the fee would be messy.

    This is the landlord's fault. However it is the tenant's problem and it needs to be sorted.

    Be careful, because Airtricity can be a bit trigger happy with cut-offs, which will incur another fee.


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