First Utility new exit fee scam switching tariffs

Alpha_5

I received my closing bill from First Utility today. I'd still be a customer if it wasn't for this change.

Snap63

Me too - awaiting my "sorry to hear you're leaving us" email/letter tomorrow

Alpha_5

I got my first 'sorry your leaving' email about 90 minutes after signing up with my new supplier. Then got another one a couple of hours later (separate emails for gas and elec).

John214

Interesting to read comments posted over the last day or so.

Snap 63 - Ombudsman awaiting info/file from FU, so they can make a decision.

Alleycat - Very interesting comment about Campaign for Clear English :-)

I am so pursuing this to see if Feb16-Apr17 is deemed to be a 'longer' period of time than Feb16-Dec16.

Tonycotte - Congrats on getting your exit fees refunded and still remaining on your new tariff - result :-) and just shows the stupidty of how FU (and I expect other energy companies) handle matters

Contagalo - I was about to come to your help, but you resolved it - though you shouldn't have had need to raise your voice and quote as you did. I too will be moving abroad sometime soon and I have an email - in black and white :-) from FU, confirming that due to moving abroad (and FU not being able to supply to an overseas property) because of this no exit fees would be charged if terminating within my contract period. Once again, just shows the stupidy of how FU (and I expect other energy companies) handle matters.

Now, for my Interesting Development. Lets not forget that FU have attemepted to have my Ombudsman case dismissed on the grounds that they (Ombudsman) have no right to investigate the terms and conditions of the company, but the Ombudsman has decreed that FU must respond and send their notes/file and whatever supportive evidence to substantiate that Feb16 to Apr17 is not longer than Feb16 to Dec16, and that this decision and request will have only arrived at FU this week. So yesterday I received a call from First Utility, and whilst going through the usual security questions, I ponder the call. Knock me Down with a Feather, and Pick Me Up, the girl tells me that my old account, from a property I moved out of 18 months ago, the final bill was all paid and closed - though FU created all sorts of problems at the time, has suddenly become active as it's showing a balance owing of £150 !!!!!! which has to be immediately paid as it will impact on my current account, and before I answered I was asked whether I would be using a debit or credit card to pay :-) :-) When I refused to pay, what I do not owe, I got a constant explanation, over and over, of the consequences on my current account - it will be suspended !!!!!! the debt will be pursued !!!!!! and if this is to do with an old account, she starts quoting and reading from the recent notes on my file, the dispute on exit fees, my account being suspended, think she also said frozen (does that mean my DD is also frozen, bet not), which I read in my mind as a means for FU to not deal with the Ombudsman, as they will maintain the account is frozen and has a problem with an unpaid debt. It will be 9/12 months before we know, and some statutory time will have passed :-) :-) So, I am asking to speak to a manager and being refused, as it serves no purpose. Eventually I am offered - with my permission !!!!!! to have the matter passed to case resolution - here comes the 9/12 month delay, to be investigated. I am sure there will be a problem in finding my old account papers from 18 months ago, hence the delay. So, with a raised voice and experience of many years of holding my ground, I am refusing to accept case resolution, quoting the time that the call started so they can retrieve my recording, I am explaining that I am already writing my letter, with her name, time of call, copy to Ombudsman, and I get transferred to a manager. Having obtained his full name, title - companies love giving them 6/8 letter titles, Duty Floor Operational Manager for Strategic Deployemnt of Customer Queries, he refused his national insurance number :-) :-) I told him what would happen, even before he tried to read his script or usual speech, and how he would send emails and get answers, and that he would phone me on Monday to confirm the error - as I was constantly now telling him that FU instigated this call and FU will resolve the matter, now and not in 9/12 months, and that you don't phone a customer 18 months after an account is closed and start demanding money with menaces and consquences. It is arranged to speak on Monday, reasonable of me to allow him 24 business hrs to resolve the matter at his end, and to then apologise to me, and FU can get back to sending my file/notes/explanation to the Ombudsman.

My problem now, is that I stated to the Ombudsman that my preferred optional outcome was to have my tariff revert to Apr 17 with no exit fees and an apology from FU for appalling cusomer service. What I want now is to leave FU, obviously with no exit fees :-) :-)

Anyway, must cut the grass :-)

jblackmore

John214 wrote: »

I received a call from First Utility ....the girl tells me that my old account, from a property I moved out of 18 months ago, ....has suddenly become active as it's showing a balance owing of £150 !!!!!!

Sorry to hear this, clearly F:U are getting desperate to engage in such underhand tactics digging up a previous account/address purely to prevent a current complaint being investigated by the Ombudsman.

As account was in good standing when complaint was sent to ombudsman, you would hope no-one would be fooled by retrospective actions to block this especially relating to another account/address, which should be entirely separate.

Best of luck with complaint, I also would hope Ombudsman can accept you changing outcome request to leaving without penalty, as F:U are clearly not acting in "an honest and transparent way" as Ofgem supposedly require!

DavidP24

Can you please upload screenshot of old terms to IMGUR and post the IMGUR link here so others may take this up with authorities.

jblackmore wrote: »

I've been with F:U for a few years, and have switched to cheaper tariffs with them a couple of times, as energy prices are falling, I figured this was easier than switching suppliers.

F:U have never charged exit fees when switching to a tariff with longer date, and this was specifically stated (quote below).

A couple of weeks ago my bill once again suggested a cheaper tariff, so I clicked to switch (from Dec16 to Mar17 fix - clearly a longer date) - had an email today that they would charge me £60 exit fee's for swapping within FU tariff, so I phoned as I thought this must be a mistake.

Customer services advised they now charge exit fees unless you move from 1 to 2 year or 2-3 year fixes, even if new fix is longer period, they still consider this an 'exit' and charge the fee's ! I said this was a change of terms and conditions, which they say it isn't, despite me having a screenshot of the old terms:

"Customers on fixed price tariffs may be charged an early exit fee when changing to another tariff or switching away from First Utility. These fees will be waived if a longer fixed price tariff with First Utility is selected. More details about the exit fees on a particular tariff can be found in the terms and conditions within the tariff guide."

Really sneaky in my view, as clearly they are having to advise of cheaper tariffs on bills under new regs, but then locking customers into higher prices through exit fee abuse - not sure how anyone would consider this treating customers fairly or acting in an honest and transparent way.

I notice the exit fee's explained on F:U website says "Exit fees are designed to cover the costs we incur if you decide to end your contract early." - would love to see a breakdown of what its costing for me to click between online tariffs and get an email confirming that

jblackmore

DavidP24 wrote: »

Can you please upload screenshot of old terms to IMGUR.

This won't help, F:U terms state F:U 'May' charge exit fee's but are waived when moving to a longer fixed price tariff.

The issue is prior to December 2015 First Utility policy was 'longer' meant a later end date, so you could move to a cheaper fixed tariff without penalty providing the new fix had a later end date. Sometime in December F:U changed this 'policy' so 'longer' then only meant moving from a 1-2 year or 2-3 year fix (regardless if the new fix had a later end date) otherwise exit penalties were charged.

Clearly to any reasonable honest person, this is a change of the terms and conditions, however as F:U are claiming the T&Cs never changed only 'their policy' F:U seem to think they can get away with this (I suspect they can), and clearly are keen to avoid the ombudsman interfering through whatever underhand steps available (which I suspect they will achieve, by relenting for customers who have a likely chance of getting a complaint to the ombudsman).

If anyone thinks 'the authorities' are interested in UK energy companies ripping us off, then best of luck with that

Best advice is if you feel F:U are taking the Michael, tell THEM F:U and move supplier, you will certainly save more than the exit penalty anyway.

Apathy

Anyone else switching from the July 31st fixed deal as well? I guess now is within the window? As it's the weekend, i'm assuming they would be contacted then rather than today. Also I know this is a silly question but the cheap energy club offers £30 for a switch but going directly through EDF for example on topcashback/quidco is £55? Is it a no brainer or is the cheap energy club more reliable when tracking and paying out? Thanks.

John214

Hi.
Ombudsman phoned and has now submitted formal written decision.
it was explained that they only consider each case, and do not take an overall view, so it's down to each individual to argue the case against First Urility.
Anyway, they agreed that it was not clear, and didn't discard the matter because of binding terms and conditions - because non exist on this matter.
It's just another example of how companies try to dictate, and walk over the consumer.
Somewhat stupid od First Utility to have taken such a stand, as another previously loyal customer walks in December, only 4 months (allowing for the 49 days! period prior to the end of the tariff to commence moving), when my current tariff ends.
Ombudsman decision below.
Regards.

You state in your complaint notes that you switched your tariff to November 2015. This change in tariff went smoothly and you received a confirmation email from it on 21 November 2015 advising that if you were to change the tariff again prior to the current tariff expiring, then it would apply £30 exit fees. This would be waived if the new tariff was longer. First Utility have stated in its evidence that the tariff you chose was not longer and therefore the exit fees apply. It states that you signed up to a one-year tariff in November 2015 and that when you changed tariff again in February 2016, this was also a one-year tariff. We have considered this information and although it is correct, we do not believe that this has been made clear to you. The information does not clearly state what First Utility means by a ‘longer’ tariff. We do not believe that you would have changed your tariff in the first place had you known you would incur fees. We therefore believe it should waive the exit fees in this instance and allow you to change to your preferred tariff.

We spoke to you on 28 July 2016 and you advised us that you were no longer wishing to change tariffs and would prefer your current tariff to expire so that you can change energy supplier. Based on this information, we do not feel it would be necessary to ask First Utility to put you onto your preferred tariff and to remove the exit fees.

We can see that there have been some shortfalls in customer service. We can see that it has not been clearly communicated with you regarding the terms and conditions of changing tariffs and we can see that you have changed tariff on a number of occasions previously with no issues. We would therefore ask First Utility to send a letter of apology for any inconvenience caused and to credit your energy account with £50 as a gesture of goodwill.

D_M_E

Interesting update, John - so what they are saying is that now the fix new tariff must be longer in terms of actual time length, for example 18 month fix instead of a 12 month fix, and not that the new tariff simply has an end date which is beyond the end date of the old tariff.

Also means that anyone else who makes the same complaint is likely to get the same response.