Punished For Having a Bad Credit History

drees5761

We changed to British Gas from Eon 2 months ago because the rate was cheaper (we are all electric) and was told that after a while we could switch from our existing pre-paid meter to a normal one for a minimal charge of £10.
After hearing Martin's advice on radio yesterday we decided to phone and try and get it changed as well as enquire about capped rates etc.
After spending an age waiting to get through we spoke to a lady who informed us that before we could change meters we would have to have a credit check done!
As we have a bad credit history and trying hard to rectify it we knew the outcome before she even tried. We were told we could have our meter changed but at a charge of £300!!:eek:
As if we could afford that in the first place, after all we are trying to save money.
Why is it that people like us, that are trying hard to save money and get our credit record back on track, are punished for trying to save money?
After all electricity is an essential item, its not like we are asking for a new car or mortgage.
Does anybody know of a utility company that does not charge an extortionate rate to go from pre-paid to standard meter?

jembie

That is my problem too. They won't even entertain the idea of giving me a normal meter.
I moved into this flat a year ago and the key meter was already here but If I had moved into a property with a normal quarterly meter then they would have just let me set up a DD and wouldn't have questioned it. I don't think this is fair at all.

SwanJon

there's nothing to stop you switching to another company to see what they can offer.
As you've already found out, be careful of companies offering to swap the meter at the time you sing up.
Whoever told you about getting your meter swapped by BG was either very confused or telling porkies.
BG do not charge you for swapping your meter, but if you do not pass the credit check they will ask for a security deposit (where possible based on your consumption) - you will get this back with interest after a year on the billing meter (if all bills are paid/plans kept to).
The theory is that once on a quarterly billing meter, a customer could easily run up a bill of a couple of hundred pounds then have trouble payig for it, so they will do a credit check - the same as if you were buying a sofa on vredit.
There have been other threads about this, but not sure if other companies have changed their policies. You could try searching the forums.
If you are going to switch, use a cashback site.

penrhyn

You could look at Ebico, they charge the same rate for prepayment customers as those on Direct Debit.
Be aware they are usually only competitive for low users, and they have yet to increase their prices.

Cardew

Surely this is the whole reason why Credit Reference Agencies exist, to warn companies against allowing people to have credit if they have a bad credit record.

Seems perfectly sensible to me!