Utility accounts in credit - refusing to refund

Quentin

You have no rights to the money. Explain to them what has happened, (you have spent the money, and cannot now repay them), and offer to repay them on the drip, enclosing a cheque for your first proposed instalment. See what their response is, but they will pursue you for this, and should they end up taking you to court they will win.

Former_E.ON_Company_Representative:_Malc

Hi Neil

It appears we closed your account down incorrectly. Sorry about this.

Did you give us an actual meter reading when we closed the account? Was this reading used on your final bill or was an estimate used?

It may be if we did not have an actual reading we closed to a lower estimate and then re-billed once we had the correct reading.

When an account closes any credit left is automatically refunded. If the account was then re-billed to accurate readings a new charge will then have become due.

If the new balance refers to energy actually used we will ask for payment. However, as the account seems to have been closed incorrectly we will be happy to set up a payment arrangement to spread the balance.

Give us a call so we can see what has happened.

Malc

mvan

Have to say I was surprised to see a refund message from eon on my last bill, I usually overpay and need to phone them and argue the case before getting "my" money back!

So a small tick in the box for eon (this time!), still annoyed why my "regional" discount was reduced (v5 to v13) without any explaination.

The whole DD/regional discount thing is a big con used by the major energy companies to increase profits (free loans), the Government/regulators deliver good press on this subject but (as with most policies) fail to do sod all about it.

Cardew

neil_hiscox wrote: »

Can you help me eon say the have over refunded me, the account is now closed but they are demanding the overpayment back with a debt collection company. Can they do this as this money is not a debt it is the overpayment they sent to me by cheque. As the account was closed i spent the money assuming it was my money as the account was closed, cheers Neil

I don't think it is as clear cut as indicated above.

My understanding is that if a company makes a mistake(and you spend the money) it comes down to what it is reasonable for you to 'assume' .

If they refunded you, say, £1,000,000 then it would not be reasonable for you to 'assume' that the money was yours to spend.

However with a smaller sum it might be reasonable for you to assume the refund was genuine. - how small is reasonable?????

I am certain I have seen this topic covered on MSE and elsewhere.

They most certainly should not have passed the debt to a DCA without writing to you first.

neil_hiscox

Thanks, the amount was less than £600 and they want £297 back so we are not talking about big money and they had meeter readings before the refund so that is why i thought it was safe to assume the money was mine, Neil

Former_E.ON_Company_Representative:_Malc

Hi Neil

If the meter readings closed the account accurately on the day you gave up responsibility for the property an over zealous agent may have over ridden the system and refunded a credit balance before the final bill was issued.

The system would then have kicked in and produced a final bill. As the credit was no longer there a debt will have shown up on your account.

This will be detailed on your final bill. If you no longer have this give us a call and ask for a copy.

If we have done this it is clearly our mistake and we will not expect immediate re-payment.

As I said yesterday, ask for a payment arrangement to spread the £297 over a period of time. We will be happy to do this if you give us a call.

Malc

Cardew

E.ON_Company_Representative:_Malc wrote: »

If we have done this it is clearly our mistake and we will not expect immediate re-payment.

As I said yesterday, ask for a payment arrangement to spread the £297 over a period of time. We will be happy to do this if you give us a call.

Malc

You appear to have missed this from his initial post:

but they are demanding the overpayment back with a debt collection company

Rather conflicts with your quote above doesn't it!!

Former_E.ON_Company_Representative:_Malc

I don't believe so Cardew.

Payment arrangements can still be set up even though a debt collection agency is involved.

As I said, where we have made a mistake we are happy to set up such arrangements.

From the info posted it does sound as though a mistake has been made. However, full details are not available here.

The important thing is for the customer to talk to us. Not sure from the posts whether this has happened yet.

Malc