British Gas sell off their old debt portfolio

[Amethyst]

BG have passed their old debts to TDX (the people that sell debts on to the main purchasers for collection) The debts average about £200 and theres about 300,000 customer accounts.

Its expected the debts will earn British Gas less than 5p per pound.

So watch out for old bills resurfacing some point in the future.

[Curlyben]

Re: British Gas sell off their old debt portfolio

Also to remember the time of collection of OLD utilities is TWO years and not the more normal 6.

[Tools]

Re: British Gas sell off their old debt portfolio

Not sure I understand Curly, do you mean that the utility companies are not able to chase you for a debt if they have not sent you any correspondence relating to that debt.

i.e in normal circumstances the statute barred time limit is 6 years, but for utility bills it is only 2 years?

Is this still applicable if they have previously sold that debt onto a DCA, say for example 3 years ago?

Just trying to clarify for myself and any other members that may be affected by this.

[Curlyben]

Re: British Gas sell off their old debt portfolio

Basically YES.
I'm just looking for source for you.

[Amethyst]

the two years refers to when something is first billed to you - ie. if they havent read your meter for over two years then read it they can only bill any surplus up to two years back. Actually didnt it just change to 1 year ? (think it changed in july 08)

If they have billed you and you just havent paid, then the 6 years still applies as per any other bill.

Here we are - http://www.energywatch.org.uk/upload...hanges2007.pdf

Changed July 2007 not 2008 sorry.

[Curlyben]

Re: British Gas sell off their old debt portfolio

Here you go: http://www.official-documents.gov.uk.../6609/6609.pdf

3. On 6 April 2005 Ofgem received a supercomplaint from energywatch,
under section 11 of the Enterprise Act 2002, alleging that there is evidence that the billing processes of gas and electricity suppliers are harming the interests of domestic consumers. Ofgem published a consultation letter seeking views from interested parties on the issues raised by the supercomplaint and is now considering those responses carefully. Ofgem published its analysis and conclusions on 5 July. While Ofgem found no widespread failure of industry billing arrangements, it did find that a relatively small number of customers suffered real harm when companies made billing mistakes. Ofgem’s measures are designed to protect customers.
They are:

# suppliers must stop ‘back-billing’ customers beyond two years, if no
bill is issued and the supplier is at fault. This will reduce to one year in 2007

# energy suppliers must set up an independent body, with the power to
award compensation, to resolve disputes quickly, and

# they must review their domestic customers’ contract terms to ensure
compliance with consumer rights legislation.

Should be helpful if nothing else.

[Amethyst]

# suppliers must stop ‘back-billing’ customers beyond two years, if no bill is issued and the supplier is at fault. This will reduce to one year in 2007

If they have billed you and you have defaulted on payments etc then yes they can chase you for the 6 years. If they havent billed you, or have undercharged you and bill you outside of 1 year to bring readings up to date - they can't chase you for the error.

so if you leave a property and they don't take a proper reading at end of your agreement, then they only have a year to bill you any surplus.

[Tools]

Re: British Gas sell off their old debt portfolio

Thank you both for clearing that one up

[cinders]

Re: British Gas sell off their old debt portfolio

# suppliers must stop ‘back-billing’ customers beyond two years, if no bill is issued and the supplier is at fault. This will reduce to one year in 2007

so if you leave a property and they don't take a proper reading at end of your agreement, then they only have a year to bill you any surplus.

This is not strictly true I am afraid... If theyve billed you and you have prevented them from getting meter readings (by being at work and not replying to the card through your door, or deliberately not letting them in) or you have not provided readings when they have asked you to, whether its by letter or by phonecall then they are not at fault! As long as they have attempted to get meter readings, you will find that they can infact and will in most cases bill you for underestimated consumption whether its for a year or more.

I think the idea of the 1 year back billing has been misunderstood here.

The only reason that a customer cannot be backbilled for more than a 1 year period is if the customer has made reasonable contact with their supplier to resolve ANY issue. If you deliberately avoid contacting a supplier when they have made an effort to contact you, then they will back bill you and this can be done for more than a one year period.

The owness of a final change of tenancy meter reading is on the customer and NOT the supplier to provide. If you move out of a property and do not provide readings then that is your fault not the suppliers.

Loulou

[Amethyst]

Re: British Gas sell off their old debt portfolio

okay lol crap example.

It does have to be the supplier. Re the readings - it is enough for them to offer the facility for you to supply your own readings for missed readings or underreadings not to be the suppliers fault.

If the error is on the part of the supplier and the consumer was not reasonably able to be aware of the fact they can only back bill you for a year.