From: "rob." 
Newsgroups: uk.finance
Subject: Re: TV licensing direct debit con
Date: Wed, 8 Jun 2005 18:46:58 +0100

criticaldensity wrote:
> Is it just me, or does anyone else think that the TV Licensing
> people's monthly direct debit is a con? This is what it says on their
> website:
>
> ------------------
> Pay monthly
>
> You'll pay for your first licence by Direct Debit in equal monthly
> payments within the first six months.
>
> If you don't already have a licence, or your current licence has less
> than six months to run, you'll make fewer but larger payments.
>
> After this, you can start paying towards your next licence in 12
> monthly instalments of around £11 per month (six payments before it
> begins and six after). These payments will always add up to the same
> amount as the annual licence fee.
> -------------------
>
> It seems to me that you pay for your first licence in the first six
> months. You then pay half of the next licence in the next six. This
> means after a year you have paid 1.5 TV licenses.
>
> It appears to me that they always (after 6 months) have half a license
> worth of money of yours which you'll never get back. This is just for
> the ability to pay in easy instalments. If you were to pay
> immediately, of course they effectively have the whole license money
> immediately, however you'd never pay more than one license in one
> year.
>
> The whole thing sounds like a con, especially for those with low
> incomes. The text is misleading by saying "These payments will always
> add up to the same amount as the annual licence fee.".
>
> Well, I'm paying annually by credit card and keeping the 1%, thank
> you, not that I mind paying for the BBC (despite the number of crap
> reality shows they keep pumping out).

Assuming you start from zero - you get the first licence now and pay for it
in 6 monthly installments at 0% interest.
In fact this is probably one of the few 0% interest deals that is really
that.  i don't know that they specifically upped the fee to compensate -

You pay for the second licence half in advance and half afterwards.  Again
what you pay in arrears is at 0% interest which balances out the 0% you get
to charge them.

The alternative "easy pay" system is stamps - in which case to always pay a
whole fee in advance.

Finally, you would get the "half a licence fee" back when you pulled out of
the scheme.  Either paying up front or if you no longer use the TV for
broadcast reception purposes. Or leave the country.


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