British Gas credited my account in error and now they want the money back

Ectophile

There is a big minefield of Common Law around the concept of "unjust enrichment".  In general, if someone accidentally gives you money that they shouldn't have, then they are entitled to ask for it back.  Essentially:

• You gained money
• They lost money
• You haven't actually done anything in return for that money.

If it ever gets to court, there is a defence if you spent the money in good faith, thinking it was yours, and can't reasonably get the money back again.  But, otherwise, case law is against you.

Scot_39

LadyoftheSea28 said:

Well, to be fair, I didn't question it as I didn't think they would be this negligible with such a large amount of money and my bills had been very expensive the months previous. 
It took them 7 months to realise their mistake. I thought I was being sensible in not withdrawing the money as some people do. 
It's just annoying as I am now paying for their mistake which will put me in financial difficulty at a time when the energy prices are about to rise again and during the autumn/winter period. 

From the energy companies perspective - your simply paying for the energy you used - that they had effectively paid for you.  

If they are already sending solicitors notices - is this the first time they have contacted you - or when did you first get a statement with the £553 debit - and was it then demanding immediate payment (iirc the statement sent to my mum many years ago by Scottish Gas did so - which had her and my sister in panic).

It's what happened on my mum's account years ago - when all went pear shaped - the first corrected statement saw over £700 demanded for immediate payment - was essentially the way it was worded.

As above - your best bet is to plead a defense that this error has significantly worsened your financial plight going forward and cannot afford to pay it - certainly not immediately - if that is as currently demanded.

Hoping it might go away - may see you served with a court action letter - it has many others in the past.

Firms sadly are known to play hard ball - if feel customers are not engaging with them. 

You may be lucky and with the right help - have some of the debt waived.

In end in mum's case - admitted in part their mistake - negotiated an informal repayment agreement - not registered as a formal debt plan - via normal DD payment.  Mum was given around £120 compensation - and allowed to pay balance off over 12 months at c£50 per month on top of new usage adjusted DD level.  But that all happened before solicitors or debt recovery agenst stepped in - as tackled it head on - direct via customers services and SG teams - as soon as became aware.

Seen a few posts here where others on DD payment have been allowed 24 months by their suppliers recently.

But that doesn't help if you don't have the £553/12 = £46 (or £553/24 - £23 per month) - on top of actual current bills ( duel fuel cap just gone up c10% - your bills will likely follow).

So you may - I suspect should - consider calculating / prepare to make a reasonable offer to repay it at what your finances can afford.  There is an agreed - with charities and firms - procedure for trying to estimate that number. See below (*) 

So as above perhaps best to talk to an energy debt charity like maybe StepChange - who have a dedicated thread pinned at top of the debt free wannabe section of the MSE Furum - or say Citizens advice.

https://forums.moneysavingexpert.com/categories/debt-free-wannabe

Try reading some of the general debt advice as background on that forum - and either of say Stepchange or CA websites - for their background advice on debt. What may or may not happen - and for instance - what that says a little more about the process of offering an affordable payment rather than the demanded one - it can in some cases take very little - if thats what the process estimates you can afford (£s per week / £10s per month - not £100s in one go as may have been initially demanded )

There are literally millions of people in energy debt - whatever you do do not feel ashamed to ask for help - you are not alone. 

Many especially elderly have been for too long in this country - why nearly a million have not applied for pension credit.

A good supplier should be sympathetic to your plight.  Some iirc used to have dedicated advice teams - separate from normal customer services teams.

Remember to try not not to panic - but to try deal with it - with help potentially - and engage with supplier - as you do so - let them know your seeking advice - from them and independent advice - if you need to / decide to - to work out a way forward.

(*) ways for coming up with an affordable estimate - all I am afraid involve the horrible topic for many of "budget planning"

https://www.citizensadvice.org.uk/debt-and-money/help-with-debt/dealing-with-your-debts/making-a-plan-to-pay-your-debts/

which then links to a gov sponsored advice site budget tool

https://www.moneyhelper.org.uk/en/everyday-money/budgeting/budget-planner

or an alternative - using the stepchange website

https://www.stepchange.org/debt-info/income-and-expenditure-financial-statement.aspx

They seem very scary - even to some invasive (*) - so you might want to seek help before even trying to start the process - and perhaps do it with face to face or telephone help even.

But essentially in the end your asking for them to trust you to effectively loan you money - at whatever payment you might offer - and that estimate is really all you can afford.  And so what some people thought they could deduct as costs - is not always allowed  (a past poster here was iirc told couldn't deduct say £10s per month for non prescribed health supplements).

These and other debt charity agencies -  can often help you deal direct with suppliers if likely to be a struggle - either in a 3 way call with you - or directly in writing - on your behalf.

You local council or CA may have a list of local agencies / help - that you might prefer to deal with.

Some energy firms at least had if not have reserved hardship funds (I know one that helped an elderly neighbor two years ago - around £400 written off effectively - only about third of his debt - but lowwered the DRP capital - and as he had a DRP set-up - around £5 per week iirc - above 3 years - and as was still in debt - was then allowed onto a special 25% discounted tariff for x months).

Councils still have the Household Support Fund in many areas etc.

You may even find you are eligible for financial help you are not aware of - benefits you may never have claimed etc - when start talking to those sort of agencies.

SwanJon

Scot_39 said:

Some energy firms at least had if not have reserved hardship funds (I know one that helped an elderly neighbor two years ago - around £400 written off effectively 

You may even find you are eligible for financial help you are not aware of - benefits you may never have claimed etc - when start talking to those sort of agencies.

Might be worth getting in touch with the British Gas energy trust to see if they can help - also see if there is something similar for your electricity provider.
https://britishgasenergytrust.org.uk/grants-available/