Poor Credit Score due to Mis-issued debt

dazzer21

We've just resolved an issue with regards to a bad debt with Scottish Power. A couple of years ago, we had a knock on the door saying that we owed them in the region of £500 on our energy bills. This came as quite a shock to us as this was actually the first we knew of this. After much argument, it was decided that we have pre-payment meters installed on the Gas and Electric. Debt would be taken off each time we fed them. I wasn't *too* bothered about this as I can get to the shop to top up in less than 50 steps. We have subsequently found out that the debt was increasing even though we were on a pre-payment meter. We queried as to why and they said we weren't feeding the meter quick enough - although there always seemed to be more than enough money in the meter without us having to spend a fortune topping it up. Last week, we got a statement saying that the debt now stood at over £1900! We rang Scottish Power and after 33 minutes, got through to speaking to someone. The long and the short of it was that a mistake had been made at their end as they were 'zapping' our meters at the wrong rate which, when taking it into account, as INCREASING the debt at the rate of £20 per day! We screamed at them - as you would - and they IMMEDIATELY wiped the debt! However, in recent times, we applied for finance for a Contract Hire vehicle and several other items for our business and we were refused as our Credit Rating was poor. It seems that this non-existant debt was a big factor in all of this. Obviously we're in the clear now, but I *could* be sitting behind a nice computer upgrade and be driving a new car now had this previously been the case. What is other people's view on this because I feel pretty hard done by on this. Is there a course for recompense?

[Deleted User]

What appears on your credit files in relation to the incorrect debt?

National_Debtline

Hi dazzer21,


Your credit file has to be an accurate representation of the debt. So, as some of the money was genuinely owed at one point, it may be the case that that shows as arrears and possibly even a default. However, if Scottish Power have agreed to wipe the debt, it should now show with a zero balance and the account marked as 'settled/satisfied'. If that is not the case you should do a written formal complaint and request it to be updated.


The arrears may have caused a damage to your history, but once the debt is showed as settled with nothing to pay, your rating can start to improve. Unfortunately, this does take time.


Laura
@natdebtline

Ben8282

Did you never get any bills or submit meter readings prior to the 'knock on the door'?