British Gas - Credit checks

f6063885

HELP!! i am at my wits end with british gas. i recently bought a repossessed property. the previous owner owed alot of money to british gas which resulted in the gas meter being removed from the property (before i purchased) now i am trying to get a new meter installed by them and have been told i need to pay £204 as a deposit because apparently i failed credit checks. i know my credit is not bas and certainly isnt as bad as they have made out. theyve also told me that due to the property having bad credit this also affects me, is this right? i am not living in the property and never had but yet they said when they did the credit check it is also on the property. i was also told that if the meter had never been removed i wouldnt have to go through the credit check process and that the reason i have to pay the £204 is because (in their words) "safeuguarding ourselves from this happening again" i am being penalised because of the previous owner is this right?? i could quite understand if i did have bad credit which i dont, put it this way ive just got a mortgage.

ex-energywatch_adviser

Infro from:

http://www.consumerfocus.org.uk/en/content/cms/Energy_Help___Advice/Your_energy_question/Your_energy_question.aspx

Companies can ask a consumer to pay a lump sum before they will supply them with gas or electricity. This money needs to be paid in advance however the consumer will get it back with interest after a year if they have paid their bills on time.
Before requesting a security deposit the supplier must make sure the following options have been offered as an alternative to the consumer if applicable:

• Pre Payment Meter option - if safe and practical to install
• Fuel Direct Scheme offered - if applicable to the consumer
• Direct Debit scheme
• Regular Payment Scheme

Reasons why you might be asked to be pay a security deposit include:
· if you are a new customer, and don't have a credit history
· if you live in temporary accommodation
· if you have taken over a property previously disconnected due to debt of a former occupier
· if you have had problems paying in the past
· if you are changing from a key, card or token meter to a credit meter (so they will get bills instead of paying in advance)
· if there is any history of interference with the meter
· if you are not on the Electoral Roll.


*Consumers cannot be asked to pay a security deposit if they pay through a pre-payment meter.*

Note: The supplier has to pay interest on the money that they hold, but will also take off an amount for income tax. This interest rate is set at Barclays Bank base rate at the time of asking for the deposit and the supplier should confirm what the rate is. If all your bills are paid on time for 12 months the supplier will pay the deposit money back within 14 days. If a consumer does not get the money back on time they should contact the supplier.
Should a consumer transfer supply within 12 months of paying the security deposit, they can expect to receive a full refund of the money less charges for any consumption used up to the date of transfer should a monthly payment plan not have been entered into with the supplier.

SwanJon

First off, I work for BG, so know a bit about this.
The credit check is on you, not the property - they take 3 years of address history to make sure it is you, not someone with a similar name.
If you went to ask for unsecured credit anywhere else, you'd expect them to credit check you.
The mortage is different as it is secured on your home. Have you taken out other credit recently (to help with a move, new furniture etc) - this can also affect your score.
If you want to check what is on your credit report you will need to speak to experian as they give BG the results.

f6063885 wrote: »

My credit...certainly isn't as bad as they make out

Did they actually give you a comparison? Usually it is a Yes/No thing.
The deposit is about what a winter bill could easily be.

Cardew

f6063885 wrote: »

i know my credit is not bas and certainly isnt as bad as they have made out. theyve also told me that due to the property having bad credit this also affects me, is this right? i am not living in the property and never had but yet they said when they did the credit check it is also on the property.

The other 2 have answered the main points.

However some years ago credit reference agencies did put a 'black mark' against addresses and new occupants were 'tarred with that brush'(I know a police officer who had this happen)

That practice was outlawed some while ago. The next occupant of 10 Downing Street will not suffer from the debts the current occupant has run up.