Utility company have defaulted me twice....

TheBearNecessities

Hey folks,

In a nutshell my utility provider defaulted me for missed payments about 3 years ago on my joint "gas and electricity" bill.  Fair enough.

But then a couple years later they split my gas and electricity into two bills, with new account numbers, and put my old defaulted debt into them.

But when I got in financial trouble again and missed more payments,(I've since got a job and a divorce and am getting my finances in order now), but what they've done now is put a second default on my credit file.   That doesn't seem fair that they have defaulted me twice (it's the same debt that was transferred to a new account number with a few extra payments missed).

Can they do that?

I've read that credit providers aren't supposed to put two defaults on your file for the same debt?

sourcrates

Are the default dates the same or different?

If the same, all is good, if different, make a complaint.

TheBearNecessities

sourcrates said:

Are the default dates the same or different?

If the same, all is good, if different, make a complaint.

Thanks Sourcrates,

They are different dates.

I suppose I just wasn't sure if they were allowed to put a second default because they might argue it's a different debt because it has a new account number and is now just for electricity.

I understand the principle that creditors aren't allowed to put a second default on for the same debt, but I thought maybe utility companies are allowed - if they split a defaulted "gas AND electricity" account into two separate new account numbers, split your debt between those two new accounts, and then you fall behind on the new bills two years later.

So the original debt (that they already defaulted me for) has been transferred onto the new account.

Is this a weird grey area , or are they simply not allowed.  Are there any credit expert companies I can perhaps pay to advise me, on whether the utility suppliers are breaking the rules here by defaulting me twice?

I wanted to figure out if I have a complaint before I make a complaint.

Haylbo

TheBearNecessities said:

Hey folks,

In a nutshell my utility provider defaulted me for missed payments about 3 years ago on my joint "gas and electricity" bill.  Fair enough.

But then a couple years later they split my gas and electricity into two bills, with new account numbers, and put my old defaulted debt into them.

But when I got in financial trouble again and missed more payments,(I've since got a job and a divorce and am getting my finances in order now), but what they've done now is put a second default on my credit file.   That doesn't seem fair that they have defaulted me twice (it's the same debt that was transferred to a new account number with a few extra payments missed).

Can they do that?

I've read that credit providers aren't supposed to put two defaults on your file for the same debt?

I'm trying to get my head around this. So what you're saying is you defaulted once, then you arranged a payment plan, which you paid for two years before you stopped paying again?

TheBearNecessities

Event 1- missed payments - I failed to make some utility bill (on one joint "gas and electricity" account) payments so I had a big debt, and got a default on my credit file.

Event 2 - that account (and the debt) splits in two - i.e. the utility company setup two brand new accounts with brand new account numbers (one for gas, and one for electricity) and put half my debt on one, and half my debt on the other.

Event 3 - a few more missed payments...
... So then further down the line I failed to make some more payments (I was unemployed, single parent and struggled with my mental health), and so they added a second default onto my credit file.

Hard to explain, hope that's better?

Just trying to find out if utility companies are allowed to default me twice?

Grumpy_chap

If you missed payments (event 1) and then missed some further payments (event 2), is that not two defaults so correctly noted on the update information provided to the credit reference agency?
Or have I read the thread incorrectly?

TheBearNecessities

Hi grumpy chap, yes you may well be correct, I got a default for missing payments, then got another default for missing more payments a couple years down the line.

The reason for my question was because I had read that companies are not supposed to put more than one default for the same account/debt.

TheBearNecessities

Maybe my case is too weird/unusual, so there isn't much knowledge or precisely for it.

Are there any credit file lawyers, or credit file advisors?  Where can I go to Tu figure out if this weird case of two defaults on the same debt is ok or not?

It quite important because the first one was years ago so was nearly off my file, but the second one was last year so my credit is wrecked for another 5 years or so, and I can't get a mortgage.

Imagine if a credit card company did this, they default a customer but the setup a new card, put all the old debt on it and default you again.

I thought the whole point in a default was that the contract is cancelled and they change the contract into a debt.

etienneg

You seem to have some strange ideas here. Of course the contract isn't cancelled - otherwise, how could the account possibly continue? And you keep on saying "the same debt", but you accept you have missed payments on two (widely separated) occasions. These are clearly NOT the same debt.

Do you really think you can miss a payment, get a default, then continue with the account indefinitely (even past the 6 year deadline, when your credit file would be clear) and miss further payments without any possibility of an adverse affect to your credit file? Come on, get real!

It's very simple: If you want a clean credit file, don't miss payments!