Unrealistic Deposit from British Gas

Dsmithchez

Like many people these days I like to compare the best energy deals for my home. I do this every 3 months to make sure I'm getting the best deal and I've save loads especially going through referral links and getting nice welcome bonuses.

For the first time British Gas came top of my search and was offering the cheapest energy deal for my home. As usual I don't go for a fixed contract so I can easily switch elsewhere.

2 days after I put my switch request I get 2 emails, 1 each for my gas and electric account. In the email it states they want a deposit to open my accounts which is something no other company has ever asked me for.

First off I've been paying around £35-£40 per month as a single person in a 1 bedroom property. So I'd have happily paid a deposit for around 2 months worth of energy up front.

British gas however asked me to pay £290 for gas and £225 for electric totaling £515 upfront just to open my accounts. Now I checked it wasn't a scam and called the company directly who confirmed to me this was standard protocol and common procedure based on credit checks. My credit report isn't amazing but it's not bad. it's slightly above average in fact .

Has anyone else had this? Obviously I'm not switching to them as I can't justify paying almost 10 months worth of energy upfront but am shocked at the request.

wavelets

Dsmithchez wrote: »

Like many people these days I like to compare the best energy deals for my home. I do this every 3 months to make sure I'm getting the best deal and I've save loads especially going through referral links and getting nice welcome bonuses.

For the first time British Gas came top of my search and was offering the cheapest energy deal for my home. As usual I don't go for a fixed contract so I can easily switch elsewhere.

2 days after I put my switch request I get 2 emails, 1 each for my gas and electric account. In the email it states they want a deposit to open my accounts which is something no other company has ever asked me for.

First off I've been paying around £35-£40 per month as a single person in a 1 bedroom property. So I'd have happily paid a deposit for around 2 months worth of energy up front.

British gas however asked me to pay £290 for gas and £225 for electric totaling £515 upfront just to open my accounts. Now I checked it wasn't a scam and called the company directly who confirmed to me this was standard protocol and common procedure based on credit checks. My credit report isn't amazing but it's not bad. it's slightly above average in fact .

Has anyone else had this? Obviously I'm not switching to them as I can't justify paying almost 10 months worth of energy upfront but am shocked at the request.

You probably should look at your credit files - somthing in there seems to be making the supplier afraid to offer you credit.

Maybe that is for good reason, or maybe there is an error on your credit reports that you should seek to get corrected.

Edit: CIFAS markers, CCJ's etc
https://forums.moneysavingexpert.com/discussion/5502360/cifas-on-credit-file
You class that as a credit report that is "slightly above average"? :eek:
:cool:

You will not be paying "10 months worth of energy upfront"
You will be paying a security deposit in return for being granted unlimited credit.
You will still need to pay your ongoing bills, or pay monthly the amounts the supplier requests for such ongoing usage. If you don't, your credit line may be withdrawn, despite the security deposit paid.
The security deposit is normally returned with interest after 12 months (assuming you have kept up to date with payments)

[Deleted User]

Could you not switch and go on pre-payment? I’m with BG on pre-payment with a1 bedroom flat and single and my energy useage is low.

Dsmithchez

No cifas or CCJs on my file. I just found it strange as I switch suppliers every 3 months as I said and others don't ask for this. Someone has told me it could be to try and get me to stick with the same supplier. The deposit dosent even go towards my gas and electric unless I miss payments which means I would be paying the deposit on top of my monthly payments. I'm on smart meters also so it's very easy to switch to pre payment or credit meters which depending on the supplier has happened in the past.

matelodave

They obviously dont want you so why not go soemwhere else.

Dsmithchez

I am doing I just thought it was a strange request and was wondering if anyone else had been asked for the same.

Cardew

Dsmithchez wrote: »

No cifas or CCJs on my file. I just found it strange as I switch suppliers every 3 months as I said and others don't ask for this.

Hardly an incentive for BG to take you on as a customer!

[Deleted User]

BG ask for quite high refundable bonds for new customers who do not pass their credit history criteria. If you were a previous PAYG customer and now want to move to a credit meter then its usual for suppliers to request a bond, repayable after 6 months . Its nothing to do with energy usage , more a question of credit risk.
Switching suppliers every three months is not usual.

Dsmithchez

Actually it's a common thing these days. It's also something Martin Lewis has recommended doing. Their are now companies that can switch you automatically to the cheapest supplier in the backgroung. Currently I'm on a credit meters with EDF as I said I've had PAYG before but that was over a year ago. I'll just add I'm not going to switch to British Gas and will continue doing what I'm doing. In the last year I've gone from paying £82 per month for my energy to £38. When I switched to Bulb I even ended up getting 2 months free energy as I used a referral link which gave me £50 credit then a friend used my code for another £50. I've saved over £400 this year. It's the credit check thing that gets me. As I said earlier I've not got bad credit it's above the average and I have never defaulted on payment and don't have CCJs ext. What it could be as I also pointed out earlier is an attempt to get someone to stay a customer for as long as possible.

System

Unfair as it might seem, the assessment of risk sits squarely with the supplier/lender. They will no doubt have set the policy in the knowledge that it might impact on their future customer numbers.

Cardew

Switching suppliers every three months is not usual.

Dsmithchez wrote: »

Actually it's a common thing these days. It's also something Martin Lewis has recommended doing. Their are now companies that can switch you automatically to the cheapest supplier in the backgroung..

Most of the cheapest suppliers have fixed rate tariffs, with a penalty of around £30 per fuel for leaving early. That tends to cancel out cashback for most people.


The bottom line is that you are clearly not the type of customer that BG is seeking.