Utility Debt

debtfreeby2013

Hi all,

I recently moved into a new address and had to, as everyone does, sign up with the previous utilities company for both gas and electric. I set up the standing order and straight away went about finding a new utilities company that was cheaper and succeeded. The first standing order for electric went out but they never bothered to take the gas S/O.
Once both the gas and electric had been changed I had a final bill which was due to be paid 30th November. I contacted them to ask if I could delay payment until mid December and they said that was fine. Unfortunately, when mid-December came I didn't have as much as I thought and wasn't able to pay the bill. I have had no further letters from the Company and intended to pay the money on Monday when my student loan comes in but today received a text from a debt collection agency asking me to contact them.
If I contact the debt collection agency am I likely to be charged more? The outstanding debt is around the £45 mark but I am tempted just to ignore the DCA and send the remaining balance, via standing order, to the utilities company on Monday as I had always planned.
I have never been in this position before and don't know what to do. I can't believe this has been passed to a DCA when its only 5 weeks late!!!

HappyMJ

If you don't pay it then you can't switch and if you can't switch you can't save money so do anything you can to get the money and pay the bill and then switch.

debtfreeby2013

HappyMJ wrote: »

If you don't pay it then you can't switch and if you can't switch you can't save money so do anything you can to get the money and pay the bill and then switch.

I'm already on the new supplier. The final bill came after the switch.

jalexa

debtfreeby2013 wrote: »

If I contact the debt collection agency am I likely to be charged more? The outstanding debt is around the £45 mark but I am tempted just to ignore the DCA and send the remaining balance, via standing order, to the utilities company on Monday as I had always planned.

You contacting (or not contacting) the DCA will make no difference to the charges liability. That arose when the utility passed the account to the DCA.

Unless you have grounds for complaint against the utility my advice is to settle with the DCA. I cannot see any grounds for complaint. You terminated your custom with an amount owing and (twice) failed to settle.

debtfreeby2013

I have only once failed to pay (the original repayment date was rearranged not missed) and that failure was only 3 weeks ago. I have had no further contact with the utilities company (no letters etc) so surely this is a bit of a drastic move for £40!!

NeverInDebt

Well sorry to say but its you that is in the wrong. You already had credit with the company and as you didnt pay its you that defaulted as this in turn was passed on to debt company. I would contact the utility company and offer to pay assuming when you have funds a.s.a.p

You wont be able to switch until you do pay. When you switch I would set up a direct debt account and monitor your usage, if you dont its so very easy these days to get into debt especially on energy usage

jalexa

NeverInDebt wrote: »

You wont be able to switch until you do pay.

I agree with your general comments but please read the post. The OP has already switched and the account was the final account not a pre-existing debt. Anyway a £45 "debt" would not have been enough to triggger "debt-blocking".

jalexa

HappyMJ wrote: »

If you don't pay it then you can't switch

Please read the post. The OP had already switched and the account was the final account not a pre-existing debt. Anyway a £45 "debt" would not have been enough to triggger "debt-blocking".

debtfreeby2013

NeverInDebt wrote: »

Well sorry to say but its you that is in the wrong. You already had credit with the company and as you didnt pay its you that defaulted as this in turn was passed on to debt company. I would contact the utility company and offer to pay assuming when you have funds a.s.a.p

You wont be able to switch until you do pay. When you switch I would set up a direct debt account and monitor your usage, if you dont its so very easy these days to get into debt especially on energy usage

It was them that didn't take the original direct debit which meant that the following month I had to try to find the gas bill twice over, couldn't so have therefore got into this mess.
I understand defaults going to a DCA but a default for an account that's 3 weeks late?!