prepay/debt meter con

dori2o

A friend from the pub is in dire straits. After the break up of her marriage she went into very bad depression. It's only with the help of a few of her friends (only the real ones, the hangers on dissapeared once her money ran out) that we have managed to stop her house being repossessed, and get her back on her feet and back in work.

However, during the 7-9 months or so that she has been ill, she's amassed a gas and electric bill of close to £900. There is no way she can pay this back in one go, and E-on/Powergen were demanding this paid back in 3 monthly payments. Considering her other outgoings, of which the mortgage, water and council tax are the most important, she is left with just about £150 per month to live on, i.e. feed herself, clothe herself and have 2-3 nights a month out to relax (I don't think it's right to be expected to never go out), so she does not physically have £300 to pay them for the next 3 months.

I have now managed to convince them to put her on the cheapest tarrif after 2 weeks of speaking to them. Their customer service is non existant. i work in a contact centre, so know how to control myself on the phone. i have not raised my voice to them, I have put a genuine argument to them, but they speak to people as though they are a piece of s*** on thieir shoe.

They have now said that she can repay the debt with her monthly DD which they have set at £130, plus £66 a month repayment, so a total of £196. This would leave her with less than £80 a month to live on.

Now forgive me if I'm wrong, but are you not expected to live off a minimum amount?

They have said if she cannot agree to this they will fitt a debt meter, and it will collect £22 per week.

Now I was looking at the numbers involved here. The meter's tarrif is almost 1.5 times the tarrif of their cheapest rate, so is a lot more expensive. She'll be using almost £20 a week in gas/elec (which I am going to look at reducing but big problem is very innefficient CH/HW system) due to the tarrif on the meter, so thats a total of £42 per week, x 52/4 is approx £182 mth.

So if she could afford to pay £182 mth on the cheap tarrif she would.

These debt meters are a way of forcing people to pay more than they can afford. Surely that is plainly immoral. She knows she owes the money, she just wants to be able to live her life as well as paying this debt off.

I'm very worried that this whole saga may push her back into depression.

I even asked if I could act as a guarantee to the debt in a bid to see if we could arrange for the debt to be paid off seperately and allow my friend to switch to Ebico for the gas, which to my calculations would be her cheapest option.

Can anyone else suggest what we may be able to do. I've tried energywatch but they just sent her a letter stating they are going to try and mediate, but according to the last person at E-on, they are not willing to budge.

SwanJon

First I'd start making payments of whatever can be afforded - this way she shows that she is trying.
As you've noticed you need to really cut back - there is no way they'll agree to paying less than she is using. Give them regular readings so they can see the consumption coming down and take that into account.
She'll really be relying on their goodwill to put offf paying the debt, and you don't want to end up with them forcing a PP meter in as they'll add other charges on top.
Keep in contact with them so they know that she's trying.
I'm not sure if any charities can help out, but might be worth looking.

jamesb1239

Hi there, dont know if this will be of any help but i too managed to build up a debt with Eon/Powergen and was left with the same options, stump up a ridiculous monthly payment or go onto prepay, when the prepay was offered it was to reclaim at around £30 per week, but after many refusals i discuvered that this could be set at a minimum of £3 per week, which i know isnt ideal with the higher tarrifs etc but it does stop all action on the account and any further charges been added. Now all i do is use the meter as usual but also make payments to eon to reduce the debt as and when i can afford it. Tell your friend to keep her chin up.. theres light at the end of the tunnel!


Jay