Consumer champion Martin Lewis has issued an urgent plea to millions of Brits, urging them to conduct a crucial check on their bank accounts immediately. The Money Saving Expert founder revealed that a common banking error could be silently draining hundreds of pounds from household finances.
Speaking on his ITV show, The Martin Lewis Money Show Live, the financial guru highlighted a widespread issue affecting countless UK residents. Many are unknowingly overpaying on their energy bills due to a simple direct debit miscalculation that's easily rectifiable.
The Hidden Cost of Incorrect Direct Debits
"This is one of the most common money drains I see," Lewis explained. "Energy companies often set direct debits higher than necessary, building up substantial credit balances in customer accounts. While having some credit is normal, hundreds of pounds of your money could be sitting unnecessarily with your provider."
The problem typically occurs when suppliers estimate annual usage incorrectly or fail to adjust payments when credit builds up significantly. With energy prices remaining high, this oversight can have a substantial impact on family budgets.
How to Check If You're Affected
Lewis outlined a simple three-step process for households to verify their situation:
- Review your latest energy statement - Check your current balance and compare it to your typical monthly usage
- Calculate your actual consumption - Most providers show this information on bills or online accounts
- Contact your supplier immediately - If you have significant credit, request a reduction in payments or a refund
Your Rights to Reclaim Overpaid Money
Under energy regulations, suppliers must refund any credit balance upon request. Lewis emphasised: "This is your money. If you've built up substantial credit, you have every right to ask for it back. Don't feel guilty about requesting what's rightfully yours."
For those concerned about winter bills, Lewis suggested maintaining a small buffer of around one to two months' payment as credit, but anything beyond that should be reclaimed.
The financial expert's warning comes as many households continue to struggle with the cost of living crisis, making every pound count more than ever before.
