I got a refund and then a bill.

Blackhorse1998

In October I handed my flat over to agent to rent out. I did not take meter readings at the time as the flat could have been vacant for a while and fridge and freezer were left running.

The agent took the readings when the tenant moved in and passed them on to British Gas. I contacted British gas told them I had moved out and provided them with readings.

I received a letter stating that I was in credit with my gas for £202 and my electric account was nil. A few day later I received a cheque for my electric for £79. I contacted them to find out what was happening. A week later I got a cheque for my gas refund of £189. I phoned again and was told this was correct and my accounts were now nil.

I December I received a letter to say my gas account was £15.5 in credit but no cheque this time.

Now in January I have received a bill for the electric for £89, when I phoned to query it they said the credit was incorrect and now they want their money or they will start court proceedings.

I work in Payroll and we have a law called Estople, which in basic terms means if I tell an employee their pay is correct and they spend the money in good faith we can not legally recover it if an error was subsequently found. Its up to the employee if they repay the overpayment and they can set the rate they pay it back at.

So my question is, can British Gas insist on payment even though I have spent the money in good faith having been told my accounts were clear. Surely they cant issue refunds and then issue bills on an account that has been transfered into my tennants name. (even though they told my tennant there was no gas meter in the flat and no record of gas being supplied to the flat, but thats another whole story.)

spiro

Yes they can correct 'billing errors'.

jalexa

Blackhorse1998 wrote: »

Now in January I have received a bill for the electric for £89, when I phoned to query it they said the credit was incorrect and now they want their money or they will start court proceedings.

Is that *exactly* how the phone conversation went?

Cardew

Welcome to the forum.

I think you have misinterpreted estopple, which isn't a law as such, but a legal principle.

If you received the refunds in good faith, without making untrue statements, then you have done nothing unlawful. However that doesn't stop a correction of a billing mistake.

There apparently have been cases where, the monies so received have been spent, a ruling has been made that payment cannot be enforced where the respondent argues that to repay will cause financial hardship; but the debt remains valid. It might be difficult for you as a landlord to argue on those grounds.

macman

Don't ever rely on an agent to take readings. It's not their job and they'll invariably screw it up. It would have taken you seconds to take your own readings when you vacated.

Blackhorse1998

macman wrote: »

Don't ever rely on an agent to take readings. It's not their job and they'll invariably screw it up. It would have taken you seconds to take your own readings when you vacated.

It is in their contract that they will take reading on seeing a tennant in and out.

Having had problems with my meter in the past and send in weekly reading I am aware of how long it takes.

As I stated the flat may have been unoccupied for some time and as it is a considerable distance from where I am living now, popping back to take a reading was not viable hence hiring an agent to do so.

Blackhorse1998

Cardew wrote: »

Welcome to the forum.

I think you have misinterpreted estopple, which isn't a law as such, but a legal principle.

If you received the refunds in good faith, without making untrue statements, then you have done nothing unlawful. However that doesn't stop a correction of a billing mistake.

There apparently have been cases where, the monies so received have been spent, a ruling has been made that payment cannot be enforced where the respondent argues that to repay will cause financial hardship; but the debt remains valid. It might be difficult for you as a landlord to argue on those grounds.

As a landlord I am out of pocket each month as the rental income does not cover my mortgage. I am on a DMP, I have left my flat to live with my partner and reduce my outgoings. The refunds were uses to reduce outstand amount on my DMP so now a bill will cause Financial hardship.

Blackhorse1998

jalexa wrote: »

Is that *exactly* how the phone conversation went?

Probably not *exactly* but there is a £5 fine and court proceedings have been mentioned.

Cardew

Blackhorse1998 wrote: »

As a landlord I am out of pocket each month as the rental income does not cover my mortgage. I am on a DMP, I have left my flat to live with my partner and reduce my outgoings. The refunds were uses to reduce outstand amount on my DMP so now a bill will cause Financial hardship.

So I assume that you are not disputing that the demand was correct, and hence the refunds were an error? albeit received in good faith.

IMO there is no doubt that BG can correct a billing mistake, even if it was their error and not that of the agent.

I think you might get better advice on how avoid payment of a valid debt in the 'Debt free Wannabe' section of MSE.