Credit file and British Gas Energy Trust

woeestme

Hi, back in the autumn I applied for a grant to the British Gas Energy Trust.  

Further to the collapse of Neon Reef and the subsequent energy market chaos, I never got round to fully setting up my account with British Gas.  The increase in prices left me with a large outstanding debt which I couldn't pay off.  After 12 months, many threatening debt collection letters and no sign of stability in the energy market, I then resolved to sort out my account.  I applied to the British Gas Energy Trust for debt relief from which I got some support.  This was also part of a debt payment plan I set up with British Gas.

Almost immediately after this arrangement was set up, my credit file got hammered and my borrowing limit was massively reduced by the credit card company.  I've been with the company for 15 yrs and always paid off my debt but in spite of my record with them, they decided to strike me down?  What's interesting is that there's no such action with my other credit cards where the limits are still in tact (so far).

It seems like the credit card company were looking for those applying to the BG Energy Trust?

Anyway, obviously I'd like to clean the mark against and restore my credit and so any advice here would be appreciated.  Regards.

MorningcoffeeIV

You won't remove the history so the best you can do it to clear the arrears.

The company wasn't looking for those applying to the BG Energy Trust as they would not know who those people were, given provider names aren't visible. It would also be far too granular a strategy, when they should be managing risk overall.

woeestme

MorningcoffeeIV said:

You won't remove the history so the best you can do it to clear the arrears.

The company wasn't looking for those applying to the BG Energy Trust as they would not know who those people were, given provider names aren't visible. It would also be far too granular a strategy, when they should be managing risk overall.

You didn't really answer my questions here.

By accessing the British Gas energy trust, did this instantly register as a payment default thereby slashing my credit limit?

Why did one credit card company hammer my credit whilst the other did not?

woeestme

The company wasn't looking for those applying to the BG Energy Trust as they would not know who those people were, given provider names aren't visible. 

So how did they know to slash my credit limit?  BG must upload the information somewhere for CC companies to see and reduce people's credit scores.

woeestme

Checked my credit score with Experian and it came out excellent.

So this is an internal thing with my bank/credit card company.

Have my bank/credit card company broken the law here?

redrosebud

I'm finding it a little difficult to understand what exactly the issue is, maybe you could clarify a couple of things.

Is your British Gas account on your credit reports? From what you say it sounds like you were late with payments, does your BG account on your credit reports show late payment markers? Is there a default or a CCJ?

I'm unsure how applying to the British Gas Energy Trust is relevant here. It wouldn't change any existing late payments, defaults, etc., and I can't see that it would cause anything to come up on your credit reports. Is there something specific to "British Gas Energy Trust" on your credit reports?

You say you'd like to "clean the mark against" - what exactly is the "mark"? Missed payments? Default? CCJ? On what grounds do you believe it was incorrectly applied?

The "credit score" with Experian is purely internal to Experian, the credit card company can't see it. They can, however, see your credit report, so if there are late payments, a default, or a CCJ on it from you getting behind with your BG payments, that will be what's had an impact. They do their own internal scoring based on the importance they attach to particular factors.

The credit card company will have absolutely no way of knowing you applied to the British Gas Energy Trust. They don't know from your credit report who your utility provider is. 

You ask if your credit card provider have broken the law but I'm unsure why from the information you've provided - perhaps you could explain what laws you think they've broken and how, and somebody may be able to answer that question.

redrosebud

Also, did the credit card company give a reason for reducing your credit limit? It's possible there's no correlation between your BG debt and your reduced credit limit. Some CC companies will reduce your limit if you never come close to approaching it, others will reduce it if you regularly come close to it. It varies from provider to provider, and can be for a lot of different reasons.

woeestme

"You say you'd like to "clean the mark against" - what exactly is the "mark"? Missed payments? Default? CCJ? On what grounds do you believe it was incorrectly applied?"

Isn't that what I'm asking?  I have an excellent credit score and so why was my CC limit drastically reduced just after applying to the BG Energy trust?

Now, you have highlighted there's a difference between 'credit score' and 'credit report'.  I haven't seen my credit report but only the credit score (see my post from Friday).  However, if the credit score is excellent - then I assumed there was no issue with my credit worthiness.  Hence my question as to why my CC limit was reduced.

The credit card company will have absolutely no way of knowing you applied to the British Gas Energy Trust.

I disagree.  They must have known because the limit was immediately slashed just after my application to it.  So the question is how?

woeestme

A few weeks after the BG Energy Trust decision, I got an email from the CC provider saying they were lowering my limit based on 'details sent from Credit Reference Agencies'.

Then it says I have to keep my credit score in 'tip-top condition' if I want a higher credit limit in future.(See  contradictions above.)

MorningcoffeeIV

woeestme said:

The credit card company will have absolutely no way of knowing you applied to the British Gas Energy Trust.

I disagree.  They must have known because the limit was immediately slashed just after my application to it.  So the question is how?

They couldn't have known as there is no way they could have known. They don't know you're with BG or that you applied to the trust. 

You're taking that view that when two things happen close together, they must be connected. That's not how reality works. 

Your payment plan and arrears would be a possible reason for a lender to reduce their risk in lending to you.  But just as your score is not related to your credit worthiness, the BG trust isn't related to other lenders decisions.

redrosebud

woeestme said:

"You say you'd like to "clean the mark against" - what exactly is the "mark"? Missed payments? Default? CCJ? On what grounds do you believe it was incorrectly applied?"

Isn't that what I'm asking?  I have an excellent credit score and so why was my CC limit drastically reduced just after applying to the BG Energy trust?

We can't see your credit report so we can't answer that. Your Experian credit score isn't relevant as the credit card company don't see it. The "score" your credit card company refer to is their own internal score which you can't see. Look at your credit reports (use MSE Credit Club for Experian, Clearscore for Equifax, Credit Karma from TransUnion and you can get them all for free) and you will be able to see if there are missed payments, defaults, etc.

woeestme said:

I was waiting for the general situation to stabilise and for some sanity to enter our realm before settling the debt and moving forward.  Alas, that hasn't happened..

From this post that you posted almost a year ago, it would seem that any missed payment markers or default have been correctly applied.

woeestme said:

The credit card company will have absolutely no way of knowing you applied to the British Gas Energy Trust.

I disagree.  They must have known because the limit was immediately slashed just after my application to it.  So the question is how?

Okay. I'm not sure what the point of your question is if you're going to disagree with the answers. Have a nice day.