2 Degrees now requiring direct debit authority on pay monthly plans

Forums › 2degrees (including Slingshot, Orcon, Flip, Stuff Fibre, MyRepublic, 2talk and Vocus) › 2 Degrees now requiring direct debit authority on pay monthly plans

landcruiserguy

765 posts

Ultimate Geek

#273236 11-Aug-2020 19:40

I went in to buy the Galaxy Note 20 Ultra 5g today. To get the $200 discount I had to swap to 2 degrees prepaid (which brought the price down to a bargain basement $2099).

On signing up for the new phone I had to do a new credit check. It came back conditional which means I need to supply a CC number or direct debit. This appears to be a change in policy rather than any change in my personal credit worthiness.

All this annoyed me enough that I decided to not spend $2099 on a new phone. On calling 2 degrees to reactivate my old plan I was caught in the same trap, it requires a credit check which then requires a new authority that enables 2 degrees to reach into my bank account whenever they need to.

Has anyone else had this? 2 degrees used to be the company with the good customer service and the crappy network. Not sure if their network is any better but their customer service appears to be getting worse.

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473 posts

Ultimate Geek

#2538821 11-Aug-2020 19:49

I have it on my broadband plan where if I dont pay it on time they can grab it themselves. Complained bitterly about it at the time but gave in. Seems very heavy handed.

dejadeadnz

2394 posts

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#2538824 11-Aug-2020 20:04

IMO this is stupid. I refuse to get into a situation where a company can accidentally (or otherwise) over-bill me and I have chase them from a POV that they have the advantage of holding onto my money. I've noted instances of 2Degrees behaving disgracefully in terms of the law and ethics.

It would seem that pushing everything to the hilt when it comes to customer's interests is a norm for them. Since MikeB4's incident, I've advise everyone that I know of to avoid 2Degrees.

landcruiserguy

765 posts

Ultimate Geek

#2538831 11-Aug-2020 20:11

I don't think they were going to steal my money, I just thought they should be nicer to me after a decade as a customer and on a day I was about to spend 2k with them.

I think they have gone downhill in recent years.

Dial111

978 posts

Ultimate Geek

#2538832 11-Aug-2020 20:13

Well I must say, 2D have overcharged me in the past (few years ago when I was a customer) which were errors on their end, the fact they now have my card details and they do take my money in error I would guess that getting it back just as fast as they took it would be a hassle.

tardtasticx

3075 posts

Uber Geek

#2538872 11-Aug-2020 21:22

Not a sign of bad credit necessarily, but certain people have DDA/CCA requirements.
You can get around it by setting up a CCA (Credit Card Authority) to meet their requirements, then just pay the bill ahead of the due date some other way to avoid the card surcharge (or eat the fee).

Not required for all customers however. Partner had signed up to them recently and had no such requirement. They asked if he wanted to set one up but we declined and opted to do it later.

No issues with DDAs, I just setup a separate suffix for each company that wants one (in our case Power, Fibre, Mobile and Water rates), so if they want to take more it declines. If any issues I simply delete that suffix from my account and move on.

michaelmurfy

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#2539012 12-Aug-2020 00:25

I operate all my bills (Power, Mobile, Broadband) on credit - I think I have nearly $1000 credit on my Mobile account at 2degrees. Basically do it this way just in case anything happens then it is less stress for me.

When I replaced my partners phone recently it was basically no questions asked. I was in and out of the store in about 5mins. Like @tardtasticx states, I have my credit card also attached to my mobile / broadband accounts with 2degrees and just pay via an automatic payment. Never had a billing problem as I monitor this and have spend control set up and to me it is no biggie at all as it reduces risk for them.

I seriously remember the customers back in the days I worked at Telecom (before it was Spark) where you just had a gut feeling they couldn't afford a mobile / plan or were outright telling fibs to why they need 4x iPhones attached to their account - you look at all those accounts a couple of months later and see they're unpaid / gone to collections. This way, with higher risk devices (like the Galaxy, Note, iPhones etc) they still have a chance to get payment if you don't pay.

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Handle9

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#2539036 12-Aug-2020 07:18

landcruiserguy:
I don't think they were going to steal my money, I just thought they should be nicer to me after a decade as a customer and on a day I was about to spend 2k with them.

I think they have gone downhill in recent years.

Just walk and tell them why. There are plenty of telcos out there and if they don't see you as an attractive customer them why give them business?

These things don't change unless customers kick up a stink.

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SaltyNZ

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#2539054 12-Aug-2020 08:07

Handle9: There are plenty of telcos out there and if they don't see you as an attractive customer them why give them business?

I would be surprised to find many telcos willing to let you walk out the door with a $2300 phone without some guarantee you'll pay for it, especially right now when all three are under extreme pressure with a lot of late or bad debt due to the economic situation. But by all means shop around.

iPad Pro 11" + iPhone 15 Pro Max + 2degrees 4tw!

These comments are my own and do not represent the opinions of 2degrees.

Handsomedan

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#2539113 12-Aug-2020 09:03

I think it's fairly reasonable to expect a post-paid account to be on DD or Credit Card payment.

If you're on Prepaid - completely up to you how you pay, but if you are using their services in advance and there's no guarantee that you can/will pay? Then that is a customer for Prepaid.

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antonknee

1133 posts

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#2539136 12-Aug-2020 09:34

CCA/DDA was quite common when I worked with 2degrees Pay Monthly. Not every customer required it, but a lot did. It's just insurance for them - rather than sending a bill and hoping it will get paid, they can simply debit the bill each month. It certainly won't be personal and I believe it's generally an automated decision (although sometimes their credit team used to review applications and then require the DDA).

antonknee

1133 posts

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#2539141 12-Aug-2020 09:39

tardtasticx:

No issues with DDAs, I just setup a separate suffix for each company that wants one (in our case Power, Fibre, Mobile and Water rates), so if they want to take more it declines. If any issues I simply delete that suffix from my account and move on.

What a clever way to do this, for that added peace of mind.... I assume you don't get hit with dishonour fees (although I feel like most of the banks have removed those fees anyway)?

SaltyNZ

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#2539143 12-Aug-2020 09:43

antonknee:

CCA/DDA was quite common when I worked with 2degrees Pay Monthly. Not every customer required it, but a lot did. It's just insurance for them - rather than sending a bill and hoping it will get paid, they can simply debit the bill each month. It certainly won't be personal and I believe it's generally an automated decision (although sometimes their credit team used to review applications and then require the DDA).

And just to add to that - I was required to setup a CCA when I bought an iPhone XS last year, and I work for them, so it's not like they don't know how to come after me if I don't pay.

iPad Pro 11" + iPhone 15 Pro Max + 2degrees 4tw!

These comments are my own and do not represent the opinions of 2degrees.

tardtasticx

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#2539283 12-Aug-2020 12:04

antonknee:
tardtasticx:

No issues with DDAs, I just setup a separate suffix for each company that wants one (in our case Power, Fibre, Mobile and Water rates), so if they want to take more it declines. If any issues I simply delete that suffix from my account and move on.

What a clever way to do this, for that added peace of mind.... I assume you don't get hit with dishonour fees (although I feel like most of the banks have removed those fees anyway)?

I’ve never experienced a failed direct debit thankfully, but my bank doesn’t charge dishonour fees if I did get one so that works out nicely :-)

rugrat

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#2539313 12-Aug-2020 12:33

I had to supply credit card details to sign up to broadband. Set up monthly bill payment to pay four days before due in internet banking. Covers weekend dates without having to change date when that happens.

Have since lost credit card. (First one I’ve lost in my life), haven’t updated with new one. Wonder if that’s why I have an overdue balance every month.

When I go into details, it has you have an overdue balance $0.00 with red outline around it. It goes away when my account is paid, but 4 days later when it would take off card it goes red, with overdue balance. Balance is nothing as was paid four days earlier.

landcruiserguy

765 posts

Ultimate Geek

#2540118 13-Aug-2020 12:28

Handsomedan:

I think it's fairly reasonable to expect a post-paid account to be on DD or Credit Card payment.

If you're on Prepaid - completely up to you how you pay, but if you are using their services in advance and there's no guarantee that you can/will pay? Then that is a customer for Prepaid.

The whole telco industry is built on the principal of selling overpriced devices to credit unworthy teenagers so that they can be converted into reoccurring revenue streams. The phone isn't really worth 2.3k and they are locking you into that telco via the contract or the interest free finance.

So yes I do think it's reasonable that they do all this without a DD. 2 degrees also agree (or at least used to) because this has been their policy for the last decade.

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