Refused my token payment-what now?

pnq06

Hi all,

I am currently in arrears with powergen.

I pay £50 a month DD and they wanted me to pay an extra £58pm :eek: taking it to £108pm :eek: to clear the arrears in 6 months.

I phoned them and told them that I could not afford £108pm. They said that they would go to £83pm to clear it within 12 months and I have tried it for a few months and its really a struggle. So I've emailed them as I always feel bullied and stupid when I phone them cos there attitude seems to be that yes I can afford it!!!!!!!!

Anyway, I've offered them £65pm (£50 usual and £15 arrears) just until we're a bit more flush and asked them to send in a letter whether it would be accepted or refused and they've emailed back saying-

"I am sorry for the delay in responding to your query, I have tried calling you but you have not been available.

Based on you last 12 months electricity consumption I have calculated that to cover your consumption only you will need to pay £61.00 a month. Paying this amount will not reduce the current balance on your account.

If you were to pay £65.00 a month, at your current consumption, this would take over 6 years to clear your arrears.

The maximum length of time I can offer is 12 months, to cover your usage and clear the balance over 12 months you will need to pay £83.00 a month.

Another option for you to consider would be having a pre payment meter installed. Should you do this the debt would be set on the meter to collect at £5.00 per week.

To discuss your account further, please feel free to call me on free phone 0800 056 3747 ext 2037 and I will be happy to help.

Kind regards"

I can't phone them as I really do feel bullied and nothing ever gets sorted out, I've also lost count of the amount of time that I've told them my landlord won't allow a meter to be installed. I also asked for them to specifically put it in writing (letter) so I can seek legal advice if they refuse my offer.

So now that it has been refused and I can't pay £83 this month what can I do?

Thanks

Cardew

I think you will find that legal advice will not help in your situation.

You appear to owe them in the region of £250.

I don't wish to sound unsympathetic, but that is a debt for goods already received. Powergen have been pretty generous in allowing you to pay back over 12 months and the tone and content of their email is excellent.

I suggest, few companies would allow you to pay off such a debt without payment of interest or penalty.

I don't think there is much you can do other than accept their terms.

lil_me

12 months is pretty much standard with most companies, only on a prepayment is it restricted as they reduce the amount you have to repay each week usually to what is stated, £5 a week.

Is there any way you can contact the landlord and request him to change his mind about the meter, I am sure he would prefer that than someone to have debts who lived in his property. I've never known it cause a probem with landlords as they can take them out if you move.

pnq06

I totally understand that its money that I owe but I have enough debts and not meeting payments on time as it is...

I was in credit until December of last year when I started using the storage heaters and voila I have a quarterly bill of an extra £250 for 3 months usage!!!!!!!
If I would of course known the damage of using the heaters then I wouldn't of used them- but then again I think an extra £250 for 3 months in a 1 bedroom flat (probably no bigger than your living room!) is pretty.... well its just not something I was prepared for!

With a baby due in a few weeks and no possible way to improve income surely there is some way that I can reach an agreement with them?

pnq06

lil_me wrote: »

12 months is pretty much standard with most companies, only on a prepayment is it restricted as they reduce the amount you have to repay each week usually to what is stated, £5 a week.

Is there any way you can contact the landlord and request him to change his mind about the meter, I am sure he would prefer that than someone to have debts who lived in his property. I've never known it cause a probem with landlords as they can take them out if you move.

Believe me I've tried and he won't budge- I didn't think it was such a major thing but obviously he does :rolleyes:

Cardew

Why would you want a prepayment meter?

Al it means is you will pay more money for all of your electricity. (Prepayment tariffs are more expensive.)

Even if they are restricted to recovering your existing debt at £5 a week(£22 a month) you will be worse off than the terms they are offering.

They calculate your usage at £61 a month and they want you to pay £83 a month.

On a prepayment meter you will pay more than £61 for the electricity you use and pay them back £22 on top of that.

pnq06

I had an appointment today at the CAB and mentioned it to them- they gave me a template letter to write out and send offering £65pm and if they are to refuse it to go back to them...

Apparently it won't stand in court as I am making a realistic offer of what I can afford til the baby is born then I can pay from child benefit etc.

Maitai_2

Although the CAB are giving you the correct advice, Powergen will still not accept such a low repayment. They will pass the debt to their internal debt collection agency who you will have to set up a payment arrangement with. Powergen's normal customer services would not be able to set your DD lower as your usage alone is £61 per month.

Irrespective of the above, you should inform your landlord that it is in his interests to have a prepayment meter because if you don't pay this bill and then move home, HE is liable for the debt on his property ! Explain to him your current dilemma regarding debts etc he may see the logic in this move !!

All the best :j

Cardew

Maitai wrote: »

Although the CAB are giving you the correct advice, Powergen will still not accept such a low repayment. They will pass the debt to their internal debt collection agency who you will have to set up a payment arrangement with. Powergen's normal customer services would not be able to set your DD lower as your usage alone is £61 per month.

Irrespective of the above, you should inform your landlord that it is in his interests to have a prepayment meter because if you don't pay this bill and then move home, HE is liable for the debt on his property ! Explain to him your current dilemma regarding debts etc he may see the logic in this move !!

All the best :j

Welcome to the forum.

I agree with your first paragraph.

However how will it help having a pre-payment meter? - see post #6 above.

tripled

Maitai wrote: »

Irrespective of the above, you should inform your landlord that it is in his interests to have a prepayment meter because if you don't pay this bill and then move home, HE is liable for the debt on his property ! Explain to him your current dilemma regarding debts etc he may see the logic in this move !!

No he isn't. The debts are nothing to do with him and he cannot be persued for them provided he can prove the tenant was responsible for paying the bills.

pnq06

Thanks for the replies...

Although I think I have been slightly misunderstood (me not explaining myself properly!)... I have asked powergen that I only pay a smaller payment just for the next few months as I physically cannot give anymore. As soon as I've had my baby I'll be able to pay out of child benefit (and child tax credits if we're awarded them).

My problem was that I had made an offer that I was able to afford and they refused- that was also the first time they gave me an usage of £61pm :eek:
I wanted to know what my next steps were as I'm offering money and their not accepting- I'm not refusing to pay to pay the debt.....