Illegal Credit Check?

Ciderbob_2

First time poster, long time lurker!

I moved to Southern Electric in November on the basis we would move to Direct Debit as the pre-payment metre is crippling us. After a series of mistakes and many phone calls they finally arranged for the metre to be changed at the end of this month. I have now received a letter statign they can't do this due to a credit check they performed. I have no documentation showing this would be done, or have I been informed over the phone - is this legal??? I rang today and the Supervisor in the Customer Service team advsied that he was unaware that a check was part of the process.

Thanks in advance!!

Rob

Quentin

Virtually everyone who grants credit will do a credit check on the applicant.

Magentasue

I thought there were different types of checks. As Quentin said, I think I've heard it said that by applying for credit or payment arrangements you implicitly accept that you will be assessed for credit worthiness.

Cardew

It is unfortunate for you, that some people with pre-pay meters have had problems with paying bills. Not all by any means, but enough to be of concern to the companies.

In giving you 'normal' meters the Company are potentially offering you credit for several hundred pounds and they have a duty to check you are credit-worthy.

Joyful

You legally have to give permission for a credit check to be done on you. I would take this further. Also be aware that the more checks done on you your score lowers.

Magentasue

Are you sure, joyful? I've just googled this and it doesn't appear that you have to give permission. It seems, rather, that a business can do this so long as it's for legitimate business reasons. They have to satisfy the Data Protection Act, I think, and having your permission is one box that they can tick, but there are other things they can do instead.

Vestra

Do you not have to give them details such as your last addresses, did you not ask them why they would need these?

Cardew

If you apply for gas and electricity with Southern Electricity one of their terms and conditions states:

19.4 We may carry out credit and fraud prevention checks with

licensed credit reference and fraud prevention agencies and
they’ll retain a copy of the search. Information from your
application and payment details of your account may be
recorded by these agencies and may be shared with other
organisations to help make credit and insurance decisions
about you and members of your household and for debt

collection and fraud prevention purposes.

That is fairly standard with most companies I believe

Joyful

Magentasue wrote: »

Are you sure, joyful? I've just googled this and it doesn't appear that you have to give permission. It seems, rather, that a business can do this so long as it's for legitimate business reasons. They have to satisfy the Data Protection Act, I think, and having your permission is one box that they can tick, but there are other things they can do instead.

Sorry if what I said was wrong but at BG we have to ask permission and advise the customer about sharing the info with credit agencies re fraud etc. Many customers say "no" as they know they will fail. Also if someone is looking for a Mortgage for instance they may not want an extra search on their profile.

NME_2

Also bear in mind that utility companies will sometimes assess you internally and pass or fail you on that. If you have an old account with them somewhere with a debt on it or you've missed payments or received reminders etc. with them in the past they can pass/fail you for credit based on that without doing an official credit check.

Ciderbob_2

Cheers for the replied all. It's not so much the check I object to it's the awful service. I have asked for a letter explaining why this was done without my permission and see what they say. They state that this creditchekc system was only introduced early January - there is no way they have notified us of this. I am unsure of the in's and out's as to whether it was legal for them to do so without my permission however as Joyful said above, it is morethe affect on future checks.