British Gas - dodgy?

Brennan1

I ahev just phoned British gas to announce that i am the new owner of a property. I wanted to set up a direct debit for my gas and Electric to be taken out each month.

They asked me if they culd take a credit check in order for me to set up on their account. I refused as i have never heard of a credit check on utility bills before. I was told that as they are providing a service which is like a 'loan' they request credit reports and have done so for the last 3 months. I again declined the report and was the told to call another department to get my DD set up.

is this normal practise? Or am i right in being dubious about this?

echoecho_2

This wasn't something dodgy. A few utility companies now carry out credit checks on customers.

This is mainly for new customers wanting to switch- a company may refuse to offer a certain payment method or may insist on a deposit before a customer can switch to them if they feel they are a credit risk.

For those moving in however it shouldn't make a difference. The company will want to carry out a check so they know in advance whether they need to keep a closer eye on how quickly you do or do not pay bills. The higher the risk, the quicker you tend to get a reminder. As you're paying by DD it shouldn't make a difference and you are within your right to refuse permission.

macman

A utility account with a credit meter is supplying credit, therefore sometimes you will be credit checked. A bad result will usually mean that a deposit is required upfront.

st999

You want them to give you credit but object to a credit check?

bengasman

macman wrote: »

A utility account with a credit meter is supplying credit, therefore sometimes you will be credit checked.

BG are well known for being heavy handed and lying to the public; there is no reason why should do a credit check if you offer to set up a dd.

You will NOT be credit checked just like that, nor should you be.
A credit check leaves a footprint which in itself has a negative effect on your credit rating, and therefore you should refuse it when they ask. Plenty of companies that want a dd customer.

macman

Paying by DD does not alter the fact that they are giving you open credit. That's why it's called a credit meter.

bengasman

macman wrote: »

Paying by DD does not alter the fact that they are giving you open credit. That's why it's called a credit meter.

Bearing in mind that BG tend to overestimate and overcharge, that is more than a bit arguable.

macman

Not really, because once you have a credit meter you have (theoretically) unlimited credit-you could use huge amounts of power and run up a massive bill before you do a runner. The fact that you've paid an estimated DD amount only partially offsets that risk (small though it is).

Plushchris

bengasman wrote: »

BG are well known for being heavy handed and lying to the public; there is no reason why should do a credit check if you offer to set up a dd.

You will NOT be credit checked just like that, nor should you be.
A credit check leaves a footprint which in itself has a negative effect on your credit rating, and therefore you should refuse it when they ask. Plenty of companies that want a dd customer.

Absolute rubbish, BG credit check along with E-on and Scottish Power (and some of the other smaller companies)

Why shouldnt people be credit checked when they are getting credit?

In three months you could easily rack up a thousand pounds or more of debt, saying that you are setting up a direct debit doesnt make the slightest bit of difference because the customer could set up a direct debit then cancel it the next day, still go on supply and build up a massive debt.

You really need to get your facts straight before posting on here.

eurmalian

Plushchris wrote: »

You really need to get your facts straight before posting on here.

I've lost count of the number of times bengasman has been told that about his rants. Why find facts when you can just make up stuff that sounds far worse though?

For the OP, as people have said, you are being given a lot of money on credit, so it does make sense. However, as you found, if you just say no then it gets skipped anyway. Especially if you're paying by DD. They can't make you go through one, just it's better for the company if you do.

Also, from your point of view, if your credit check comes back well then you should get more leeway if you happen to go away for a bit and miss a bill or anything like that.

macman

The majority of the cheaper tariffs (online discount etc) require payment by monthly DD, not quarterly on receipt of bill.