Yet that's what millions of us are doing thanks to mistakes on our bills. From utility suppliers and water companies, to broadband providers and banks, many of us are paying over the odds simply due to errors.
So, as every penny counts, it's time to nosey through our bills and check that we're not being unnecessarily penalised. Check out some of the more common billing mistakes below for what to look out for and what you can do to rectify them.
Energy bills
Inaccurate estimates
Many suppliers estimate readings, so simply check your actual meter reading against the estimate and notify your supplier of any discrepancy. Be pushy though - many suppliers benefit from over zealous meter estimates - overcharging you and gaining the benefit from your account being in credit.
Also, don't assume your supplier will send a meter reading agent to check your gas and electricity readings. These happen on a rota system so it is best to send in your correct meter readings yourself by email, phone or even text message and ensure you are billed correctly.
Don't assume that an underestimate will work in your favour and that it's best to keep quiet. Most energy suppliers will take an accurate reading of your bill on occasions - for example, if you move house or switch supplier - and if they find you have underpaid you could face a hefty, unexpected bill.
Our tip: Do a quick meter reading at the end of every month and jot it down. It's a quick and easy way of keeping on top of your consumption, especially if you're watching the pennies. Plus, it takes literally seconds to do.
Direct debit overpayments
Paying monthly by direct debit is invariably cheaper than any other way of paying for your gas and electricity - as our comparison tool highlights. However, there are many scenarios in which your direct debit could be set too high.
If you feel you're paying too much contact your provider and ask for it to be reduced. Remember though, paying monthly averages the cost out over the year, so in the summer months when your consumption is lower, you may be paying for more than you use. However, this should even out over the winter months when usage increases.
If you still have a dispute...
Energywatch has been abolished so if you have exhausted your provider's complaints procedure the next step is to consult Consumer Direct, a service provided by the Office of Fair Trading, which will advise you on how to take the complaint further. Another option is to consult your local Citizens Advice Bureau.
From there, contact the Energy Ombudsman. The deadline for raising matters with it is nine months from the date the company was told about the problem.
Broadband bills
Common errors: Exceeding monthly usage cap, paying for services you did not request
If you check your broadband bill and find you are being charged for going over your monthly usage cap or have been charged for any extras you did not agree to, make sure you call them straight away.
Most issues can be resolved via the provider's customer services line. For example if you've exceeded your monthly usage cap, your provider may be willing to upgrade you to a different package although this will usually incorporate a higher monthly charge.
If you still have a dispute...
Should you have problems resolving the issue through the normal support channels, ask the provider for details of its complaints procedure. You need to put a formal complaint in writing and ask the company to investigate it. Most companies will acknowledge the complaint and let you know a timeframe in which they will get back to you.
However, if you can't reach a resolution with the provider directly contact the Alternative Dispute Resolution (ADR) scheme to which your provider is a member - either OTELO or CISAS - this can normally be found on your bill or from the company's customer service staff. Every service provider must be subscribed to one of these Ofcom-approved schemes which offer free and impartial arbitration.
Going through an ADR is an option after 12 weeks have passed since the first complaint, or if the company has written what is known as a "deadlock" letter informing you that it does not accept it is at error. You can also report an issue to industry regulator Ofcom, but it can only monitor events - it cannot investigate individual complaints.
That said, it it receives a large number of complaints about the same provider or issue it may then investigate the
Mobile phone bills
Common errors: Exceeding minute/text caps, cashback disputes, paying for unwanted services
Mobile phone bills work in much the same way as broadband bills. If there is a problem, your first step should be to contact the provider. If your concerns can't be resolved then make a formal complaint - details of how to do this should be on the back of your phone bill.
The next step is to contact the company's ADR scheme - much like with a broadband provider, if the company is found to be wrong then the ADR can order it to rectify the problem and potentially pay compensation. You can only use an ADR scheme if: you have tried to make a formal complaint to the company without success; 12 weeks have passed since the first complaint; or if you've received a "deadlock" letter. If you are still not happy after the ADR's involvement you can contact one of Ofcom's special advisers.
Banks or credit card providers
Common errors: Outstanding direct debits and standing orders, unauthorised charges
If you make payments by standing order it is up to your bank to send the payment and if you pay via direct debit it is up to the payee's bank to call for the payment, with errors covered by the direct debit guarantee. This states that if the bank or building society makes an error the customer is guaranteed a full and immediate refund, and customers can cancel a direct debit at any time by writing to their bank or building society.
If you're concerned that a bank or card provider has misplaced a charge can request a list of charges and must receive a reply within 40 days. You must then put into writing that you want a refund and receive a reply within two weeks as to whether that request has been accepted or rejected.
In terms of overdraft charges, the Financial Services Authority (FSA) implemented a waiver which means that complaints regarding penalty charges do not currently have to be investigated. However, it is still worth lodging a complaint while the Office of Fair Trading determines whether fees are fair and legal so that your claim is registered if the waiver is lifted. For more on this issue read our article 'Bank charges - more twists and turns'
If you still have a dispute...
The Financial Ombudsman Service provides a free service to help settle disputes. If that doesn't work then the small claims court may be the next stop.
Other tips when making a complaint:
Finally, remember that whatever the issue there are steps to be taken that can make the complaints process run more smoothly and help prevent issues from getting out of hand:
- Select a provider based on service and not just price - Use our comparison tools to compare products such as gas and electricity tariffs, mobile phone rates and broadband bills.
- Keep cool - Always be polite on the phone but firm if necessary.
- Keep copies of correspondence - Keep copies of any correspondence during a complaints procedure and log any calls made.
- Use recorded delivery - For any correspondence sent through the post keep receipts and record deliveries as proof that the letters were sent.
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