Can we switch when in arreas with current provider?

ferry

We owe a small amount of arrears to BG but switching to Eon looks to be a cheaper deal and it would of course be helpful to start saving now. We are overpaying each month to clear the arrears.
Can we switch now and just keep the arrears with BG or will we have to wait until our BG account is up to date?

spiro

What do you mean by arrears? Having you not been paying enough on your DD so you are in debit or do you pay on receipt of a bill and have not paid the last bill in full? Which it is makes a big difference to what you can do.

ferry

Not paying enough on DD so in debit.

dogshome

Probably depends on how much you owe.
It is possible to Switch with some debt on the account when you are paying by Direct Debit, but it seems that you are paying the bill on reciept and have already come to an arrangement with BG to clear debt, in these cirumstances I think it unlikely BG will let you go, particularly at this time of year with winter and higher bills coming, but you can ask.

D/Debit payment is the usual route to cheaper tariffs, so why not look at BG's tariffs for a cheaper one and pay by D/D

Cardew

The 'losing' company(BG in your case) can veto a switch if the debt is above a certain level.

In any case you will have to clear any debt with BG even if they allow you to switch.

If that were not the case people would change companies regularly leaving a string of debts.

footyguy

ferry wrote: »

We owe a small amount of arrears to BG but switching to Eon looks to be a cheaper deal and it would of course be helpful to start saving now. We are overpaying each month to clear the arrears.
Can we switch now and just keep the arrears with BG or will we have to wait until our BG account is up to date?

It depends on how much you are in arrears, but yes it is possible to switch supplier if you are only a small amount in arrears.

Note that when you switch supplier with a credit meter, the old supplier will produce a final bill for you shortly after the switch which they will normally expect you to settle immediately - if you can do that, why not settle the arrears now?

If you have a PPM, then by agreement arrears may be transferred to the new supplier (and which you settle through the meter)

ferry

Cardew wrote: »

The 'losing' company(BG in your case) can veto a switch if the debt is above a certain level.

In any case you will have to clear any debt with BG even if they allow you to switch.

If that were not the case people would change companies regularly leaving a string of debts.

Never any intention of trying to avoid paying the arrears.

No pre payment meter so I guess its a matter of asking BG direct if they will release me?

Cardew

ferry wrote: »

Never any intention of trying to avoid paying the arrears.

No pre payment meter so I guess its a matter of asking BG direct if they will release me?

I wasn't suggesting you personally were intending to avoid arrears. However the regulation is there to prevent those who would have no scruples about avoiding a civil debt.

If you look at it from BG's point of view, why should they make any concessions to a customer - so that customer can leave BG.

spiro

Not paying enough when you pay by DD means the old supplier CANNOT object to you switching away from them because there is no debt only a debit balance. They can only object it they have issued you with a bill (not statement) which you have failed to pay in full in 28 days which then is a debt.
What you do need to bear in mind though is the full outstanding balance with your old supplier must be paid in full within 28 days of them issuing you with a final bill. If you do not you will be looking at black marks on your credit rating and possibly a DCA chasing you for the amount.

footyguy

ferry wrote: »

Not paying enough on DD so in debit.

It doesn't sound like you are in arrears.

Arrears occur when you are billed an amount and fail to pay that bill by the due date.

It sounds like it's just your account that is currently in debit - which is really bad news at this time of year.