Debt with British Gas - they rejected my payment offer and unsure what to do next!

ChrisJJ

I am trying to reach a resolution with British Gas regarding a debt with them.

I have done everything I have been instructed to do; contact CAB, National Debtline, etc, and have submitted an in depth budget to British Gas. It is clear from the budget that I have nothing left over to pay towards the debt. Both CAB and NDL suggested a token payment, and the CAB actually provided a template letter to submit to BG. I did this. BG refused the token payment and said the minimum they could accept was £40 per month. It is clear from my budget that I do not have this spare money.

Backwards and forward emails ensued, and BG have now suggested a scheme called You Pay, We Pay. It sounded reasonable so I requested more details. It seems I would have to allow British Gas access to my bank account via something called 'Open Banking'. They say this is to prove eligibility. This feels like an invasion of privacy. I have already provided detailed information about my income and outgoings, and I definitely do not want to give ANYONE access to my bank account. Just writing that makes me feel like I have something to hide, which is not the case. It just feels so intrusive.

I am expecting a call from a mental health charity next week and I have been told that they could take over negotiations for me. I hope this is the case as this is creating a great deal of anxiety.

Just to clarify - this debt occurred due to failings on the part of BG after a gas meter change. Too long and complicated to go into. Suffice to say that up until that point, I always paid my bills on time, by cash, at the post office. I will continue to do this, going forward. 

Can anyone let me know if this Open Banking is now a standard thing? Am I wrong to feel it's incredibly intrusive? What do people (in my situation) do when all advice has been followed but not produced a result?

Thanks for reading.

BarelySentientAI

Open Banking is completely normal now. Used for many things.

https://www.openbanking.org.uk/why-open-banking-is-safe/

https://www.moneysavingexpert.com/banking/open-banking/

Jemma01

I agree with you, it is highly intrusive. I only have it enabled between my business account and my accountant firm because they manage my taxes and need to know everything about it

It's unclear the extent they'll go with that knowledge, will they question your transactions? Or do they want to know if you can afford to pay more? What information do you have about their use of the information?

ChrisJJ

Jemma01 said:

I agree with you, it is highly intrusive. I only have it enabled between my business account and my accountant firm because they manage my taxes and need to know everything about it

It's unclear the extent they'll go with that knowledge, will they question your transactions? Or do they want to know if you can afford to pay more? What information do you have about their use of the information?

Yes, that's exactly it. Are they going to scrutinise how much I spend at a supermarket on the weekly shopping and then want to know details of what I bought? I buy certain supplements for my health conditions as they're not available on the NHS - will they want to know the details of that transaction? (I included these supplements in the budget I submitted to them)

It just feels so invasive. Prying into my personal information that has nothing to do with them. And all because of their failings in the first place. It's not long since it was suggested that the DWP were going to be snooping in the accounts of those in receipt of benefits (that's me!) and that was bad enough, but for your energy provider to be doing this is ridiculous. 

Clearly if you are in debt you have no right to privacy.

BarelySentientAI

ChrisJJ said:

Jemma01 said:

I agree with you, it is highly intrusive. I only have it enabled between my business account and my accountant firm because they manage my taxes and need to know everything about it

It's unclear the extent they'll go with that knowledge, will they question your transactions? Or do they want to know if you can afford to pay more? What information do you have about their use of the information?

Yes, that's exactly it. Are they going to scrutinise how much I spend at a supermarket on the weekly shopping and then want to know details of what I bought? I buy certain supplements for my health conditions as they're not available on the NHS - will they want to know the details of that transaction? (I included these supplements in the budget I submitted to them)

It just feels so invasive. Prying into my personal information that has nothing to do with them. And all because of their failings in the first place. It's not long since it was suggested that the DWP were going to be snooping in the accounts of those in receipt of benefits (that's me!) and that was bad enough, but for your energy provider to be doing this is ridiculous. 

Clearly if you are in debt you have no right to privacy.

If you're in debt to them, and claiming simply by filling in a bit of paper that you have insufficient income to pay anything more than a token amount, is it not legitimate for them to see that your budget is correct?  Otherwise anyone with a debt could just invent a budget that 'proves' they can't afford to pay.  I don't think you've done this, but how do they know that?

Looking at the scheme - which StepChange helped them with - they're offering to halve your bills if your situation is as described by your budget, and you're worried that they are going to ask for your Tesco receipt?

Qyburn

What information do they want you to share via Open Banking? You can just share the balance, or you can allow them to see transactions as well.

Scot_39

People have differing ideas of spending priorities - and those you owe money to are likely to have a very different view.

Not to be cruel or seem unsympathetic - but since you specifically mentioned them - even declaring them  on forms - have you ever asked why the nhs doesn't provide what are often expensive supplements for someone on a low income. 

Does your GP even agree those you are taking are (still are even if once might have been) genuinely beneficial ?

Because my mum's GP didn't at her age - after certain conditions had already progressed - beyond the supplements in many cases largely preventative benefit.

How much would the cost of those supplements close the difference between your affordable offer level of payment to the £40 mark as asked for by BG ?

And not wishing to siund flippant, but re choices
Should the energy suplliers also allow people to offset a few cans of beer, glass of wine or a packet of cigarettes a day from disposable income as helps them get through the day - a higher priority than clearing their debt ?
Or a weekly trip to McDonalds with the kids if a parent ?
Or shopping at say Waitrose/M&S rather than Aldi / Lidl ?
Using an iPhone 15 Pro series rather than a Nokia 1xx series etc.
Or running a car ?

So yes as individuals your financial choices matter.

And if you want help, the provider of that financial help arguably has a right to know and question those choices.


Energy suplliers as you may or may not be aware - are now facing £ billions in bad debts.  Those not in debt - often regardless of own income - pay an increasing amount to suppliers for those who havent.

Even just the new temp debt special included in energy cap / bills from April - including yours if still on default standard credit - at the higher rate of c£28 pa - was c£11 - are non trivial additional costs being imposed on millions of others - regardless of income in many cases.


You might think they are being overly  intrusive - others will disagree - and that it's right energy companies do due diligence before using what is arguably in end  others cash.  


Open banking - I accept is a step change - but what are they wanting it for - and say for instance - is it any more onorous or intrusive than providing  - e.g. several months of bank and credit card statements for monitoring spending etc. (In past  had to provide 3m of paper statements - many years ago -  not just a summary - when moved mortgage provider)

You appear to be being offered a genuine reduction in costs above post saying half bills on  you pay we pay) - to help you. 

On balance I suspect you want as much financial help as can get - and if the tech enables that at low risk in a convenient fashion - why not consider it.

vic_sf49

@ChrisJJ I'd have a look on the Debt-free wannabe forum (link at the end of this post), and maybe post a similar question, or ask for this thread to be moved over (not sure how that happens, sorry). 

There's lots of excellent in-depth knowledge and support over there, ref all types of debt(s), to all sorts of companies.

https://forums.moneysavingexpert.com/categories/debt-free-wannabe?utm_source=community-search&utm_medium=organic-search&utm_term=Wannabe

ChrisJJ

vic_sf49 said:

@ChrisJJ I'd have a look on the Debt-free wannabe forum (link at the end of this post), and maybe post a similar question, or ask for this thread to be moved over (not sure how that happens, sorry). 

There's lots of excellent in-depth knowledge and support over there, ref all types of debt(s), to all sorts of companies.

https://forums.moneysavingexpert.com/categories/debt-free-wannabe?utm_source=community-search&utm_medium=organic-search&utm_term=Wannabe

Thank you, that's appreciated, 

ChrisJJ

Qyburn said:

What information do they want you to share via Open Banking? You can just share the balance, or you can allow them to see transactions as well.

I'm actually not sure about the level of access they want. The guy I've been speaking to via email simply said they would "need access to my bank account". I've responded asking if they would accept other proof from me, such as bank statements and DWP proof of income (as instructed by the National Debtline)  I'm not unwilling to share this information, it's just the access to my bank account that seems too intrusive.

This is all new to me, so I really don't understand how it works. Perhaps he will clarify in his next email. It's a bit like pulling teeth though, this process.

doodling

Hi,

The DfW board is the right place for this but as a general point, the worst that can happen is that BG will go to court for a CCJ and the OP will then have to fill in an income vs. expenditure form very similar to the ones they have already filled in.  The odds are that the court will come to the same conclusion as the various debt charities and the OP will be ordered to pay a nominal amount each month.

A court is not going to order that BG has access to the OPs bank account.

The OP should only consider allowing access if they are in a position where they absolutely must not get a CCJ (e.g. they would lose their job if they did), even then, if the OP just starts making token payments the odds are that BG will accept it (as the alternative would be BG paying the costs of going to court to get exactly the same amount as the OP would already be giving them).