Utilities Warehouse - watch out for hard credit searches

ccawston

Just a quick heads up for anyone thinking of transferring to Utilities Warehouse. I went through their application process as their tariff would save me a couple of hundred pounds. It warned me there would be a hard credit search but I thought this downside would be outweighed by the benefit of saving money.

However, when I got to the end of the process, they informed me that I would need to provide an £800 deposit which they would keep for 12 months, on top of my monthly payments. This equates to over 6 months bills. This would have defeated the object of saving money so I terminated the application.

I'm now left with no savings and a hard search affecting my credit rating. Please consider this if you're thinking of applying.

(and the deposit request was not due to me having a poor credit rating in the first place - I'm around the national average)

la531983

National average of what?

The three digit number is a meaningless metric that lenders don't see and isn't used to make lending decisions. 

Netexporter

UW is more of a pyramid scheme than an energy supplier.

Brie

Why are you now left with no savings?

QrizB

Brie said:

Why are you now left with no savings?

No savings on their energy bills, as they chose not to switch.

I'm sure the contents of their savings account are still safe.

Stepanida

ccawston said:

Just a quick heads up for anyone thinking of transferring to Utilities Warehouse. I went through their application process as their tariff would save me a couple of hundred pounds. It warned me there would be a hard credit search but I thought this downside would be outweighed by the benefit of saving money.

However, when I got to the end of the process, they informed me that I would need to provide an £800 deposit which they would keep for 12 months, on top of my monthly payments. This equates to over 6 months bills. This would have defeated the object of saving money so I terminated the application.

I'm now left with no savings and a hard search affecting my credit rating. Please consider this if you're thinking of applying.

(and the deposit request was not due to me having a poor credit rating in the first place - I'm around the national average)

I had exactly the same experience with them on 18/09 when I was told I would have to pay a £400 deposit (electricity only) despite my Experian credit history being nearly 100%. I would not pay a deposit out of principle (who gets interest for 12 month at my expense?) and I am upset that that the hard search has compromised my credit history, essentially for nothing.

Does anyone know how long the credit history is compromised for after such an experience?

Gerry1

Stepanida said:

ccawston said:

Just a quick heads up for anyone thinking of transferring to Utilities Warehouse. I went through their application process as their tariff would save me a couple of hundred pounds. It warned me there would be a hard credit search but I thought this downside would be outweighed by the benefit of saving money.

However, when I got to the end of the process, they informed me that I would need to provide an £800 deposit which they would keep for 12 months, on top of my monthly payments. This equates to over 6 months bills. This would have defeated the object of saving money so I terminated the application.

I'm now left with no savings and a hard search affecting my credit rating. Please consider this if you're thinking of applying.

(and the deposit request was not due to me having a poor credit rating in the first place - I'm around the national average)

Does anyone know how long the credit history is compromised for after such an experience?

It probably has very little effect.  Lenders aren't going to worry that you're setting off on a spending spree by signing up with dozens of energy companies.  Even your mythical credit score number is likely to be back to normal in two or three months.

However, it's a very sneaky practice and needs to be outlawed in the same way as 'drip feed' airline surcharges, especially as it triggers a hard search before being revealed.

Scot_39

ccawston said:

Just a quick heads up for anyone thinking of transferring to Utilities Warehouse. I went through their application process as their tariff would save me a couple of hundred pounds. It warned me there would be a hard credit search but I thought this downside would be outweighed by the benefit of saving money.

However, when I got to the end of the process, they informed me that I would need to provide an £800 deposit which they would keep for 12 months, on top of my monthly payments. This equates to over 6 months bills. This would have defeated the object of saving money so I terminated the application.

I'm now left with no savings and a hard search affecting my credit rating. Please consider this if you're thinking of applying.

(and the deposit request was not due to me having a poor credit rating in the first place - I'm around the national average)

Suspect many if not most suppliers do a hard credit search for new customers. My current one does (EOnNext afaik - as it comes up on the google link - but then not on revised landing page on Eon site).

And reportedly most lenders will ignore a few over a year - knowing they are often for normal purposes like utilities.

And like you they can often see who was doing those searches in the reports.

Other firms will insist on pay as you use monthly billing for new customers etc - even those wanting annualised DD.

And even their existing customers would expect to have significant credit on their annualised DD plans by now - ahead of higher winter bills. 
Holding it for a year though a bit cheeky depending on exactly what that means in practice (DD accounts used to only be reviewed annually at EOn).

Eon offered me a refund of credit - but wanted to retain over 10% of my July rate estimated annual costs - and still increased my DD if took it.

Suspect they all have ways of protecting themselves.  Which are only likely to increase.  Given spiralling levels of customer debt and the firms costs of holding and servicing that debt.

born_again

Stepanida said:

I had exactly the same experience with them on 18/09 when I was told I would have to pay a £400 deposit (electricity only) despite my Experian credit history being nearly 100%. I would not pay a deposit out of principle (who gets interest for 12 month at my expense?) and I am upset that that the hard search has compromised my credit history, essentially for nothing.

Does anyone know how long the credit history is compromised for after such an experience?

Credit history is paid or missing payments.

Not the made up figure the CRA show you. Which is never seen by any lender.