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British gas bill

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I switched from Powergen to British gas as we owed £400. They said they would take on the arears, only accumalated from 'estimated bills' I thought the bill was the bill as the meter was being read! and just paying what was asked for. So we set up a DD to pay off the £400 I now have the British Gas letter telling me my Direct Debit is going up to £42.02 (from£30)a month and this will clear the now £616.20 dept in 12 months! Powerd gen won't take us back till the dept is paid. I can see it just getting bigger HELP. :cry:

Comments

  • Cardew
    Cardew Posts: 29,059 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    Welcome to the Forum.

    It is most unusual for a firm to 'take on' a debt of £400.

    I cannot understand how 12 payments of £42.02(£504.24) will clear a debt of £616.20 especially as I assuming you will be using gas(or electricity?) in the forthcoming year.

    Can you give some more detail?
  • tripled
    tripled Posts: 2,882 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I've heard of debt being transferred for prepayment customers, although it's not common, but never credit customers.
  • geordie_joe
    geordie_joe Posts: 9,112 Forumite
    1,000 Posts Combo Breaker
    tripled wrote:
    I've heard of debt being transferred for prepayment customers,

    How do you get into debt with prepayment?
  • tripled
    tripled Posts: 2,882 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Three ways. Either you request a meter because you are behind with your bills and can't afford to pay them, the utilitly gets a warrant and force fits it due to debt at the property, or because prices have gone up and your meter hasn't been reset so you accumulate a debt on the account.
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