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Changing suppliers

Snakey
Snakey Posts: 1,174 Forumite
I've been doing some reading around on this and keep seeing that you can't change suppliers if you owe them money.

I've just got a whole year's worth of backdated billing sorted out with a supplier who I now want to leave for obvious reasons. My debit balance isn't much, considering - it's about fifty quid - and since I'm on monthly direct debit billing it will clear itself in a few months. So I don't have outstanding arrears per se, but there is a debit balance.

Does this count as owing them money, for the purposes of them being able to prevent a switch? Or is it more reasonable than that, and I would be given a final bill and the money taken out of my account shortly after the swap date?

I don't particularly want to make an extra payment right now to clear the balance, if I don't have to, because otherwise they'll end up owing me money (because there'll be at least one direct debit coming out if it takes 4-6 weeks to switch) and I'd rather not have the hassle of trying to get it back from them.

Thanks for reading :)

Comments

  • System
    System Posts: 178,186 Community Admin
    10,000 Posts Photogenic Name Dropper
    A small debt will not prevent a switch going ahead. You need to bear in mind though that final billing from your old supplier can take some weeks. In my experience, this often results in the customer making payments to two suppliers. This is reconciled when the final bill is raised. You will not lose out but they may be a period of slight financial turbulence. A word to the wise: whatever you do, do not cancel any DDs until the switch has actually gone through as cancellation may be seen as a contract default. Some suppliers will then exercise the right to cancel DD discounts and/or move you to their standard variable tariff.
  • Consumerist
    Consumerist Posts: 6,311 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I agree that you should not cancel DDs until the new supplier confirms the switch has completed (for both fuels in the case of dual-fuel tariffs). Once you have switched, the contract with the old supplier has ended and, clearly, they cannot then amend it in any way.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • Snakey
    Snakey Posts: 1,174 Forumite
    Thanks, both - I've gone ahead and set it up in that case, since it'll take a few weeks anyway so the sooner I get started the sooner it will be sorted out. Fingers crossed it won't be such a palaver as the last time!
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