Hard check by Eon when leaving...

Mrs_Chelle

Hi all, please could anyone advise/explain...

My partner has switched energy providers recently - he's gone from Eon to Ovo. On the date of the switch, Eon performed a hard search on his credit report.

Why would they do this as he's leaving the company?

Ovo, however, have not performed a hard search.

I'm baffled. It's knocked his score down 125. He has a final payment to make to Eon and a direct debit set up with them. He doesn't need to pay this as he's in credit, and with this last bill paid he'll be owed a refund. 

He's been with Eon for several years. Did have difficulties in 2020 but he had a repayment plan that year and cleared what he owed.

Are Eon allowed to do this? What is the purpose of it? 

Thank you

MikeJXE

Your credit score on any of the CRA sites mean nothing so don't be concerned about it 

Mrs_Chelle

Regardless of whether the score means anything -  why this has been done? Is this not strange when exiting a company?

Swipe

Email Eon and ask why.

EssexHebridean

I would absolutely be asking them why.  While the information about the score is correct - it’s irrelevant - the hard search would have an impact on his file so could impact his ability to get a new credit card or to sign up for some forms of contract. That impact will be temporary though - give it 3 months he will see it having a reduced impact (this is the only way scores are really useful - it enables the consumer to see what is going on in a fairly understandable way) and in 6 months it should have returned to normal. 

Mrs_Chelle

Yes he's going to get in touch on Monday, after him telling me late last night and me saying WHAT?!

He switched to Ovo on 30th Sept and Eon performed the search on the same day. They've since rang him to convince him to stay and he didn't get into it with them as he was in work.

He's been with them a decade and just wondering if any of you would know what on earth was the purpose, and do they have any business going in and have a look?! Whether this is a normal thing to do?

Thanks

mmmmikey

Mrs_Chelle said:

Yes he's going to get in touch on Monday, after him telling me late last night and me saying WHAT?!

He switched to Ovo on 30th Sept and Eon performed the search on the same day. They've since rang him to convince him to stay and he didn't get into it with them as he was in work.

He's been with them a decade and just wondering if any of you would know what on earth was the purpose, and do they have any business going in and have a look?! Whether this is a normal thing to do?

Thanks

Like you I'm at a complete loss trying to think of a legitamate reason for this. The only thing I can think of is a mistake was made as part of the "trying to persuade you stay" process. Maybe worth checking that they haven't signed him up for a new contract when he gets in touch? The impact of this is likely to be fairly small but IMHO it does matter and is worth following up. Not really sure on the law but I've always been asked for permission when anyone does a credit check. I'm wondering if there's advice on any of the other boards on this?

Brie

I wonder if there's some protocol of the previous provider doing the hard check on behalf of the new provider or something similar??

Scot_39

Given millions were switching during the Ofgem switch to save matra era - surely it would have been more highlighted if normal procedure.

EssexHebridean

I’m pretty sure if this was happening a lot it would have been flagged here previously. 

Mrs_Chelle

Hi, so just to update. Eon have responded:

The hard search was conducted due to a debit on your account; the bill was sent on September 30, 2024, and your payment was received on October 7, 2024. Thank you for your understanding.

I dont know what to make of this. They did a hard search because he had a bill? If they were concerned he wouldn't be able to pay it, what would a hard search do??

I'm just seeking advice from people more in the know before we respond. I work in data protection so for me does not feel right - someone there has decided (without his knowledge or consent), to have a root in his personal history, without I believe a good reason to do so. It doesnt feel lawful.

I understand people get frustrated because the score means nothing, but this does matter for him because he's recently applied for a credit card. If the new company want to perform a hard search also, his credit report is going to take a massive hit (3 in succession). He's hoping to be in a position to buy a home in the next 6 months.

Thanks