Transferring or refunding Credit from previous supplier

peter021072

Should a credit balance be transferred or refunded automatically when changing suppliers by law?

I'm in the process of switching to a new supplier Avro. To my horror I've just discovered they've been holding onto a balance from when I transferred away from them several years ago. They tell me any balance is held by default and not transferred unless specifically requested, even when ceasing to becoming a customer. Whilst I recognise we all should check our accounts, I suspect many people forget, which must be a massive source of free capital for these rogue firms.

Do we know if any other firms which have the same policy The firm I'm transferring from Greenenergy say they refund automatically which seems unfair to them.

Mister_G

OP - If you post this in the correct section "Energy", rather than "LPG, Heating Oil, Solid and Other Fuels", you may get more replies.

Flt._Lt._Biggles

Mister_G wrote: »

OP - If you post this in the correct section "Energy", rather than "LPG, Heating Oil, Solid and Other Fuels", you may get more replies.

If you think a particular thread may receive an improved response elsewhere, please contact the Board Guide and make that suggestion.

The Board Guide will consider your application, and if in favour, will move the thread to that new location

Flt._Lt._Biggles

peter021072 wrote: »

Should a credit balance be transferred or refunded automatically when changing suppliers by law?

I'm in the process of switching to a new supplier Avro. To my horror I've just discovered they've been holding onto a balance from when I transferred away from them several years ago. They tell me any balance is held by default and not transferred unless specifically requested, even when ceasing to becoming a customer. Whilst I recognise we all should check our accounts, I suspect many people forget, which must be a massive source of free capital for these rogue firms.

Do we know if any other firms which have the same policy The firm I'm transferring from Greenenergy say they do this automatically which seems unfair to them.

Credit is not usually transferred from one supplier to another.

When you switch supplier, you should expect a final bill from the old supplier. That is typically issued within 6 weeks of the switch having taken place.

If money is owed to you according to that final bill, the supplier must then refund that to you within 10 working days of the fianl bill date.
(similarly, if you owe the supplier money, they normally expect payment within 10 working days)

The above are the current arrangements that all suppliers are now expected to follow.

Years ago, some suppliers did not automatically refund money owed on a final bill, but they were still expected to have produced a final bill.
https://www.moneysavingexpert.com/utilities/reclaim-energy-bill-refunds/

If it was over 6 years ago since the supplier last acknowledged the money was owed to you, you may find they attempt to rely upon the Limitations Act to avoid refunding you now.
But worth asking

peter021072

No it was only 2 years thankfully, but perhaps I should check all the other companies I changed. My present suppler has confirmed they will refund any balance.automatically.

Really companies should be required to refund all monies from previous customers however far back. I'm amazed retaining it indefinitely, isn't defined as theft!.