How to deal with a British Gas/Moorcroft debt 28 November 2019 at 1:37PM in Credit file & ratings 10 replies 759 views

kerance

Outline of the situation.
~ I moved into my current rented flat December 2018
~ The first electric bill with British Gas was over £620 - this was for just over 1 months of electric
~ I contacted them several times disputing this as I live in a small 2 bed flat.
~ It turned out that the boiler was ramping up my electric
~ I left British Gas to go elsewhere as they never supported this daft bill and wouldn't return calls, the only reason I figured it out was through this forum.
~ I wasn't able to pay the £620 so I didn't make an arrangement with B.G.
~ They have sold my debt to Moorcroft
~ Moorcroft have been contacting me for a few months now
~ within the time that Moorcroft have contacted me I have received a default notice from B.G (dated 8/10/19) giving me 28 from the date to contact them
~ I didn't contact them as I didn't have a spare £620
~ My credit file is now showing 4 x missed payments to B.G.
~ I plan on getting a mortgage at some point so want to know what's best to do?

~~ Do I contact Moorcroft and set up a payment plan. Is it possible to get the debt back with B.G? Moorcroft have mentioned they will offer me a discounted payment, however that will show partially settled on my credit...is this a wise idea?

~ I worry that if I pay Moorcroft then even though I paid the debt my credit score will drop as it has done in the past as I would have still defaulted on the original account.

I hope all that makes sense and thanks in advance

zx81

Make arrangements to pay it as quickly as you can. Discount or not will make little difference.

You're right that your score will drop again when you settle it, but that's fine. You want lenders to like you, not the CRA.

Ebe_Scrooge

The bottom line is that you failed to pay a debt to BG, they sold it to Moorcroft who are now chasing it. You need to make an arrangement to pay. Don't worry about the drop in your score, it's meaningless. But the defaults will have a more significant impact on your credit file.

A partially-settled debt is a bit better than an outright failure to pay, but as it stands the information on your credit file is factually correct. There's not much that can be done about that apart from paying the debt and wait for the defaults to drop off.

kerance

zx81 wrote: »

Make arrangements to pay it as quickly as you can.

You're right that your score will drop again when you settle it, but that's fine. You want lenders to like you, not the CRA.

Thank you for replying so fast.
So I should just accept that the debt is now with Moorcroft and make a payment arrangement with them or accept their offer of a discounted total?

zx81

Accept the discount and pay ASAP.

sourcrates

Moorcroft don’t buy debts, they only manage them.

Your debt remains with BG, but moorcroft has discretion to offer arrangements sanctioned by the creditor.

If you dispute the amount they are asking, then contest it in writing.

kerance

UPDATE:
I just called British Gas and paid the debt, they said they will call off Moorcroft and change my credit file to 'settled'.
I'd much rather pay them than give Moorcroft a penny.

Luckily I was able to scrape together the money to settle the bill - if I couldn't settle in full they would have left me with Moorcroft.

So just for anyone else in this situation, if you're able to pay what you owe to original company then contact them direct to do so, as I've paid things to Moorcroft in the past and it still showed as a default from the original account on my credit file.

zx81

It will still show as a default, but also as settled.

Payment doesn't override the default.

D_M_E

Too late now, you have paid it, but - did you check that the £620 did not include anything towards energy used by a previous occupier, did you check the dates of the billing period matched when you took over the property?

Did they bill you for actual consumption, or estimated - what they thought or guessed you might use?

£620 for 1 month's electricity seems extortionate, even with an electric boiler.

sourcrates

D_M_E wrote: »

£620 for 1 month's electricity seems extortionate, even with an electric boiler.

positively ludicrous if you ask me.

Ben8282

kerance wrote: »

Outline of the situation.
~ I moved into my current rented flat December 2018
~ The first electric bill with British Gas was over £620 - this was for just over 1 months of electric We are billed quarterly by British Gas but I suppose you could be billed monthly. We also pay by fixed monthly direct debit. Are you sure this was your actual consumption? Was this an actual meter reading or an estimated reading? I can tell you from experience that British Gas love to over-estimate gas consumption.
~ I contacted them several times disputing this as I live in a small 2 bed flat. So what did they say? I have found them to be quite helpful on the phone.
~ It turned out that the boiler was ramping up my electric yes but even so the amount is excessive
~ I left British Gas to go elsewhere as they never supported this daft bill and wouldn't return calls, the only reason I figured it out was through this forum. The only reason you found what out was through this forum? What do you mean when you say they never supported the daft bill? Supported how? You need to take a meter reading and compare it with the meter reading that you took when you moved in and took over the suppy and calculate the cost yoursself using the information provided on the bill. I made that calculation when they overcharged us for gas (not their fault but mine for allowing the estimated readings to go on for so long) and got the answer right so it is not difficult. How did you leave them after one month? Did you not sign up to a minimum contract period? Are you sure this excessive bill is not some sort of charge to let you out of your contract?
~ I wasn't able to pay the £620 so I didn't make an arrangement with B.G. Why not?
~ They have sold my debt to Moorcroft
~ Moorcroft have been contacting me for a few months now
~ within the time that Moorcroft have contacted me I have received a default notice from B.G (dated 8/10/19) giving me 28 from the date to contact them
~ I didn't contact them as I didn't have a spare £620
~ My credit file is now showing 4 x missed payments to B.G.
~ I plan on getting a mortgage at some point so want to know what's best to do?

~~ Do I contact Moorcroft and set up a payment plan. Is it possible to get the debt back with B.G? Moorcroft have mentioned they will offer me a discounted payment, however that will show partially settled on my credit...is this a wise idea?

~ I worry that if I pay Moorcroft then even though I paid the debt my credit score will drop as it has done in the past as I would have still defaulted on the original account.

I hope all that makes sense and thanks in advance

Sorry but it really doesn't make sense but my experience with British Gas sorting out problems has been positive and when we ended up in credit on our gas account by more than the electricity bill you refer to they accepted my meter reading and word and refunded us very quickly.

Are you sure there is no reason other than the boiler for this massive electricity consumption?