Housemate refusing to pay share of bill. Help!

FrustratedHousemate

I just finished university. While in my third year I lived in a house with 5 others. Our landlord had the house set up with British Gas and before we moved in put 3 of our names on the account (dunno if that's ok to do because he never asked any of us first).

But the real problem is that our final bill has recently come through, after we've moved out. One housemate, let's call him Jay, is refusing to pay his share of the bill. We are in communications with him but he is not going to pay. I don't know what to do. I don't want mine and two others credit ratings to get affected (Jay's name is not on the account unfortunately). How much does it take before credit ratings get affected (is it only once it gets to the debt collectors stage)? None of us are still at the property so we do not see their letters. The account has since reverted back to the landlords name when we moved out but there still exists this bill of ours.

What should I do?! I find British Gas very difficult to talk to on the phone in general. One person there will tell you one thing, you phone up the next day and get a different answer...

HappyMJ

Pay the bill using your own money then take your ex-house lodger to court. Warn Jay that if he fails to make a payment to you then he will have to defend a case in court. It's very likely you will win and then he will have a CCJ destroying his credit rating if he fails to pay you within 30 days and at a far greater cost than just paying you in the first place.

If it's a small amount you may just want to think about writing it off or you may want to try not paying BG and wait to see if they take you to court. But then they will win and you will have to pay court costs and pay the CCJ within 30 days yourself for it not to destroy your credit.

Something to think about....BG will not take small amounts to court.

FrustratedHousemate

HappyMJ wrote: »

Pay the bill using your own money then take your ex-house lodger to court. Warn Jay that if he fails to make a payment to you then he will have to defend a case in court. It's very likely you will win and then he will have a CCJ destroying his credit rating if he fails to pay you within 30 days and at a far greater cost than just paying you in the first place.

If it's a small amount you may just want to think about writing it off or you may want to try not paying BG and wait to see if they take you to court. But then they will win and you will have to pay court costs and pay the CCJ within 30 days yourself for it not to destroy your credit.

Something to think about....BG will not take small amounts to court.

The whole bill was £204, for each of us it was about £34. Four of us have paid with the fifth to come in the next few days, just leaving Jay's share on the account. What do you think?

I just want to add that another housemate phoned up BG who apparently said that once the debt collectors get involved we will be able to transfer the remaining balance to a new account in Jay's name and send them off after him. I just don't know if BG will stick to their word on that one... and I don't know if they will just take our word on it

HappyMJ

FrustratedHousemate wrote: »

The whole bill was £204, for each of us it was about £34. Four of us have paid with the fifth to come in the next few days, just leaving Jay's share on the account. What do you think?

I just want to add that another housemate phoned up BG who apparently said that once the debt collectors get involved we will be able to transfer the remaining balance to a new account in Jay's name and send them off after him. I just don't know if BG will stick to their word on that one... and I don't know if they will just take our word on it

You won't be able to transfer the remaining debt into a name that isn't on the bill. BG (and BG debt collection arm) can chase any of the named people on the bill for payment. It's only £34 I'd leave it (my personal opinion only-technically you should be really nice to BG and pay it). My guess is BG will write that off. Hopefully though you never actually want an account of your own with BG or they'll just add the outstanding amount to that.

Richie-from-the-Boro

As MJ says, no contest, whoever holds the account pays, BG will not be remotely interested and most certainly will sell the £204 debit to collections for about a £100. Collections in turn will get the original £204 plus costs of another £204 from the 3 original account holders, because you are at that point their 'cash cow' and they will be relentless.

My opinion (1) pay the bill in full and forget about chasing the non-payer, or (2) pay the bill in full and get properly signed individual statements plus £10 each for a 'fighting fund' from the other house-sharer then start proceedings against the toe-rag who let you down. The cheapest effective way to do that starts here.

MillicentBystander

For me, the relatively small amount that toe rag owes wouldn't be the deciding factor - it's very much the principle involved here but maybe that's just me? Like has already been said I would pay the full account but definitely take him to court. If he gets away with this the die is cast as to his future behaviour imo. I would take great pleasure in destroying his credit rating - it's not like he isn't asking for it, is he? Plus you would probably be doing anyone else he would have had financial dealings with in the future a BIG favour.

pmlindyloo

The easiest way to do this is to pay the bill and then write a letter headed Letter Before Action giving him 7 days to produce the money before you start court action. Enclose a copy of the bill and the amount he owes.

Hopefully this will give him a nudge in the right direction. You could telephone CAB who should suggest this before taking him to the Small Claims Court. Then you can say that you have spoken to CAB and they advised you to write.

To be totally honest the amount of money involved doesn't make it worth taking it to court.

I am not a fan of Facebook but in these circumstances I might just put a comment there!

Terrylw1

Why not add his name to the account? If you show the supplier the tenancy agreement,they will change this straight away as the tenancy agreement is the legal document providing the liability. The names on the account are only liable until the suppliers gets this agreement allowing them to enact the changes.

You could split the payment.

Is Jay thinking he is not liable and because his name is not on the account, thinks he will get away with it? Would telling him the tenancy agreement has been accepted and his name is on the account, make him rethink? Or is he just an idiot?

macman

Any amount owed by 'Jay' is between you, him, and the other account holders-nothing to do with BG. It's a 3rd party dispute and of no concern to them.
You and the other account holders are all jointly and severally liable for the entire debt. BG will get the money from wherever they can accordingly. But for £34 between 5 of you (less than £7 each), is is really worth trashing your credit record for 6 years? Then pursue Jay through the small claims process if you wish.

[Deleted User]

Just" put it down to experience " its worth it to avoid similar mess ups in your future dealings with your finances

Hasbeen

Sorry. but we all know "students" do not live in the real world. They go to uni and after 3-4 years boozing and having a great time they get a worthless degree in arts and design or in roman arcitecure etc.
and expect the world at their feet. As previous posters have said learn from this and move on. £7 for god sake!