British Gas Cold Calling

mpearson1968

Hello,

My current energy provider for Gas and Electric is Scottish Power.
About 2 weeks ago, around the time British Gas were advertising that they have the cheapest standard energy prices on TV I got a telephone call from one of their sales staff asking me I would switch to them. At the time I was already considering changing and the deal they offered sounded favourable. So I said yes.

A few days later I get an email from them telling me about the 7 day cooling off period and if I wanted to cancel the order I could do so by giving them a call. Well, today my current energy provider has offered me a better deal than the British Gas offer so I called British Gas (within the 7 day cooling off period) to cancel the order. I was told that I could not cancel and here's why.

Shortly after the initial call from the British Gas sales person they called again offering to fast track the switchover, it sounded all ok so I thought why not. Now, I do only vaguely remember the conversation but apparently by agreeing to 'fast track' the switch over I have waived my rights to cancel the contract during the 7 day cooling off period. I cannot recall if this was mentioned during the phone call or not, British Gas are going to listen to the recording.

Anyway I contacted Trading standards about this and apparently British Gas is perfectly within their rights to do this. It seems that a verbal agreement on the telephone is a legally binding contract. This was a total surprise, as far as I am concerned a legally binding contract requires my signature.

My view is that a sales person from any organisation has a job to do. They tend to speak very fast, bombard you with information and the perspective customer does not always get the full picture from a telephone call.

Picture this.....How many little old ladies and men are going to be dragged into an agreement like this.

Fortunately you can change supplier after 28 days so I will be heading back to Scottish power after that period.

But my advice is don't agree to anything on the phone, Get them to send it in writing and if they are recording the conversation make it clear to them that you are not agreeing to anything on the phone.

I was most surprised that this conversation is a legally binding contract. Basically anyone can tie you into an agreement verbally provided they can prove what was said.

Plushchris

I'm surprised they can "Fast-track" a switch, I always thought there was a 28 day notice period that had to be given to your current supplier.

Might be worth you contacting Scottish Power and seeing if they can block the switch from going to BG in the first place?

spiro

In elec the only '28 day rule' is the minimum you have to stay with one supplier. The supplier of any goods can ask you to waive the 7 day cooling off period and if you do thats it.
In domestic fuel contracts there are not for a fixed period but some have penalties if you leave early. It is technically possible for you to sign up today, waive the cooling off period and be on supply with you new supplier in a weeks time unfortunately IT systems tend to get in the way at most suppliers.

mpearson1968

Plushchris wrote: »

I'm surprised they can "Fast-track" a switch, I always thought there was a 28 day notice period that had to be given to your current supplier.

Might be worth you contacting Scottish Power and seeing if they can block the switch from going to BG in the first place?

Hi I have just done exactly that. They have put an objection on the account to stop it being transferred. I don't know if it will work or not, have to wait and see.

One thing Scottish Power did say that will definatley stop the account transferring is to put the account into debt for a while...then it can't be moved. However, I decided not to go down that route for now.

spiro

mpearson1968 wrote: »

Hi I have just done exactly that. They have put an objection on the account to stop it being transferred. I don't know if it will work or not, have to wait and see.

One thing Scottish Power did say that will definatley stop the account transferring is to put the account into debt for a while...then it can't be moved. However, I decided not to go down that route for now.

For SPOW to object to a transfer on the grounds of debt they must have issued bill more than a specific period ago which you have not paid. If this is not the case and they object they are in breach of their licence and OFGEM would be very interested.

mpearson1968

spiro wrote: »

For SPOW to object to a transfer on the grounds of debt they must have issued bill more than a specific period ago which you have not paid. If this is not the case and they object they are in breach of their licence and OFGEM would be very interested.

It doesn't matter in my case. I am nearly £500 in credit with them. :T

This whole energy pricing thing is harder to figure out than pensions. LOL

smidgey

I'm not sure on what grounds Scottish Power can object? My guess is Scottish Power have interpreted that you're saying there is no valid sales contract in which case BG will advise there is.

Takoda

I've just emailed BG to say I don't want cold calls from them. I usually hang up on cold callers but when it is from BG I always feel obliged to listen in case they are going to say something important.

Plushchris

spiro wrote: »

For SPOW to object to a transfer on the grounds of debt they must have issued bill more than a specific period ago which you have not paid. If this is not the case and they object they are in breach of their licence and OFGEM would be very interested.

I think in the OPs case this was suggested as a means of actually helping him (allbeit an odd suggestion) out rather than trying to breach their licence.

mpearson1968

smidgey wrote: »

I'm not sure on what grounds Scottish Power can object? My guess is Scottish Power have interpreted that you're saying there is no valid sales contract in which case BG will advise there is.

To be honest I'm not sure either other than that I have told Scottish Power I don't want to switch. However they did say they have come across similar problems before.

I do think it's a bit below the belt for BG to waive your rights to the 7 day cooling off period just based on a telephone conversation. It's very easy to catch you off guard.

Anyway, as I said in my first post worst case scenario is BG get my business for 28 days then I can go back to Scottish Power. Just a waist of everybodys time if you ask me.

Premier_2

Normally, when you agree to switch supplier, you are entitled to a cooling off period. Indeed, the supplier should contact you and check you are happy with the contract you originally agreed to and ensure you have the opportunity to cancel within the cooling off period.
http://cfe.custhelp.com/cgi-bin/cfe.cfg/php/enduser/std_adp.php?p_faqid=5683&p_created=1210150279&p_sid=eq2DgSUj&p_accessibility=0&p_redirect=&p_lva=&p_sp=cF9zcmNoPTEmcF9zb3J0X2J5PSZwX2dyaWRzb3J0PSZwX3Jvd19jbnQ9NjYsNjYmcF9wcm9kcz0wJnBfY2F0cz0wJnBfcHY9JnBfY3Y9JnBfcGFnZT0xJnBfc2VhcmNoX3RleHQ9Y29vbGluZyBvZmY*&p_li=&p_topview=1

Now the complication comes in that it is possible to waiver those statutory rights to a cooling off period (not sure if that applies to gas/electricity), but as I understand it, only when by doing so allows the contract to commence before the expiry of such cooling off period.
More importantly, such a waiver is only valid if it is confirmed to the customer in a 'durable medium'; a telephone conversation is not a 'durable medium'.

Now that SP have marked your account blocking any switch to BG, if the switch does go ahead (which I doubt), it sounds like you'd have a case to enact the 'Erroneous Transfer Customer Charter'