British Gas Price Rises

del76

Dear All,
Just a quick Vent

Typical, I recently switched to British Gas Web saver 11, I think the takeover date was the 01/05/2011.
The recent large price hike which I’m sure they knew they were going to impose at the time of my switching has now been announced and they are no longer competitive for me.

I rang them up to inform them that I was slightly upset that they had increased their charges so soon after heavily discounting to attract new customers and that I had done a comparison and could get a fixed rate till September 2012 at a saving of around 15% of their new prices and that I would be switching.

They then gave me the speil about me being locked in and their being a £30 charge to leave. I argued that was a perfectly understandable charge if I had decided to leave due to me finding a better deal but not a fair charge if I was leaving as they had changed the terms of our contract namely the price at which I paid for electric.

Computer says no! They would charge my direct debit with the cancellation fee, unless I switched to their new fixed price tariff which was even dearer. <Roll eyes> I told them I was withdrawing my authorization for them to collect payment by direct debit and that I wished to be invoiced. Which they agreed to do, moving me onto their standard tariff. I informed them I shall be happy to settle the invoice less the £30 penalty should they wish to try and invoke it.
He went on to vaguely threaten that if the invoice was not settled in full including the penalty then the account could be passed to debt collectors whilst the complaint was being investigated.

Sorry slightly long post I’ll surmise and ask my questions
Am I better to pay the £30 and chase them for it?

Pay the invoice less the £30 and let them chase me?

If so do I have an argument against paying it?

Currently I am leaning towards the option of paying all but the exit penalty and letting me chase them for that, can they put a marker on my credit file for this? or would it be required to go to court for that to happen?

To be fair the saving for my usage over the fixed period will be about 8 times the £30 exit penalty, but I still begrudge paying it.


Thanks to all who help and any opinions welcomed even those who don’t agree with my point of view

Kind regards

Del

fluffnutter

I'm not sure this is something you can fight alone. Contractually you'll owe them this £30 so they're within their rights to chase you for it if you don't pay, or to not refund it if you do pay.

Having said that, it's pretty sharp practice to run an aggressive marketing campaign shortly before raising prices. Of course they'll know the price is about to rise so it seems little more than cynical, and perhaps even misleading, marketing and I can see why you're cross about this.

It's the kind of thing that Ofgen *might* be interested in, if enough people found it a problem, or it came to the attention of a consumer action group such as Which.

However, with your particular circumstance, as a single consumer with a small voice, they've not breached any contract, and you'll have to stump up the £30, I'm afraid.

del76

Thanks Fluffnutter:beer:
Yes I would imagine contractually I do have to pay it, though I would prefer not to make it easy for them, If they wish to claim it then it may as well cost them as much as the exit penalty, so I can handle a few cross letters from them, you never know they may come to the conclusion that its not worth pursuing. Or they may think that morally they are in the wrong.... fat chance lol
But at least the direct debit is cancelled so If I pay it it shall be on my terms and if they don't complain hard enough then they won't get it!:rotfl:

garethgas

Frankly, you seem to already know more than me but my view is let them chase you as a matter of principle.
I really hate it when these companies try and threaten people when they've blatantly tricked you into a contract that they knew was going to change in their favour.
I bet your not alone in this.
Good luck

Azari

Beware when using the 'let them chase me' tactic.

They do not put too much effort into chasing small amounts so you may just get two or three letters and then nothing.

Until you check your credit history and find they have marked it.

garethgas

Azari wrote: »

Beware when using the 'let them chase me' tactic.

They do not put too much effort into chasing small amounts so you may just get two or three letters and then nothing.

Until you check your credit history and find they have marked it.

Blimey, can they/do they do that really?

del76

Can they mark your credit history, without some formal judgement that they are in the right?
If so then it may be a case of paying and then wasting their time and effort in defending the charge to me, the regulator and if required the small claims court.

It's not a case of can't or won't pay. I feel that they artificially lowered their prices to gain customers, unfairly locking them in to a 12 month deal to hike the price 2 months into a contract.

If my mobile phone company said we are raising our charges 16% I would be able to leave no questions asked providing the phone was returned to them. Same if my insurance provider part way through cover said they wanted an extra 16% I would be able to switch to a more competetive insurer.
Othereise why stop at 16% become the cheapest around get everybody on your tarif in a short amount of time and then triple your prices.

Azari

del76 wrote: »

Can they mark your credit history, without some formal judgement that they are in the right?

Definitely.

It should be a scandal but it seems to be one of those things that no one cares about until it happens to them.

Certain companies were known for it (not sure about the current state of affairs). Mobile phone companies would insist people had to keep to a contract and threaten them with damaging their credit history if they refused to pay.

The only way to fight that is to pay and then take them to court. And how many people are going to bother to do that. So they just got away with bullying people.

You can have a note added to your credit file to explain why you didn't pay but who knows how many companies would take any notice and not just adopt the simpler solution and refuse you credit?

del76

So if the bill for actual electricity used is satisfied in full. The early switching penalty is disputed through the correct complaints procedure. British Gas with nothing other than their word as evidence can go and place a mark on my credit file?
I would of thought that to do this they would have to have some sort of judgement in their favour. I know that companies can put late markers and such like where they can prove that someone has paid late.
They can even mark it as in default again they would be able to prove this.
I cannot comprehend that a large company when in receipt of the facts that the amount for the service provided has been settled in full can place a mark on a credit file for a disputed penalty charge, if they can then surely it is wrong?
I mean what is to say that I leant my mate £30 on a good night out the next day he gives me £20 back. Swearing blind I only gave him £20.
With no evidence to the contary I am able to then go and place a non payment marker on his credit file for the £10?

del76

Just as a quick update.
I found out through reading an article buried deep inside the Telegraph that even if signed up to a fixed term contract ( not a fixed price contract ) That providing you switch before the price rise comes into effect that you are not required to pay the early exit fee as long as you are switching because they have raised their prices and not because you have subsequently found a better deal.


Anyway saved me having to battle for the £30 and maybe British Gas knew they couldn't impose it when i rang to cancel and it was just a ruse to get me to stay. I've since had 3 telephone calls from them asking if i would like to come back