Hard search when leaving company

Mrs_Chelle

Hi all, I posted this last week I think in the energy forum and it may be more appropriate here..

My partner has switched energy providers recently (30/09/24) - he's gone from Eon to Ovo. On the date of the switch, Eon performed a hard search on his credit report. It's knocked his score down 125.

He had a final payment to make to Eon and a direct debit set up with them which was paid on 07/10/24, and he's due the refund for the amount he was in credit (no hurry with that though, of course). 

He's been with Eon for several years. Did have difficulties in 2020 due to losing his business/was rocked financially - but he had a repayment plan that same year and cleared what he owed.

We've contacted Eon and received this response:
"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 (or his final 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 (Ovo) want to perform a hard search also (which would actually make sense), 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

MattMattMattUK

Mrs_Chelle said:

Hi all, I posted this last week I think in the energy forum and it may be more appropriate here..

My partner has switched energy providers recently (30/09/24) - he's gone from Eon to Ovo. On the date of the switch, Eon performed a hard search on his credit report. It's knocked his score down 125.

He had a final payment to make to Eon and a direct debit set up with them which was paid on 07/10/24, and he's due the refund for the amount he was in credit (no hurry with that though, of course). 

He's been with Eon for several years. Did have difficulties in 2020 due to losing his business/was rocked financially - but he had a repayment plan that same year and cleared what he owed.

We've contacted Eon and received this response:
"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 (or his final bill)? If they were concerned he wouldn't be able to pay it, what would a hard search do??

You can raise a formal complaint, rather than just asking, that is the only way you will get any more information.

Mrs_Chelle said:

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. 

It is highly unlikely that some random person has chosen to credit check him. Either it is a design, or a fault with their automated billing systems. Was there an address change due to the final bill, e.g. he moved, final bill was to "Mr Chelle at new address"? In which case a hard search might make perfect sense. It is very unlikely to be unlawful.

Mrs_Chelle said:

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 (Ovo) want to perform a hard search also (which would actually make sense), 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. 

It will still make absolutely no difference. His made up score or rating are entirely meaningless, the fact that they change is as relevant and the orientation of the stars in the night sky. No mortgage lender will care about two hard searches for a utility, neither are they likely to care about a hard search for a credit card 6+ months before buying a mortgage. 

Mrs_Chelle

Thanks - it was raised as a formal complaint which detailed the main points in my post. The response was literally only what I've pasted above, minus 'hi' and 'kind regards'.

Their reasoning is that he was in debit, which he was every month, until the DD came out. There was no change of address. He's simply switched to another provider.

Thanks

voluted

Mrs_Chelle said:

Hi all, I posted this last week I think in the energy forum and it may be more appropriate here..

My partner has switched energy providers recently (30/09/24) - he's gone from Eon to Ovo. On the date of the switch, Eon performed a hard search on his credit report. It's knocked his score down 125.

He had a final payment to make to Eon and a direct debit set up with them which was paid on 07/10/24, and he's due the refund for the amount he was in credit (no hurry with that though, of course). 

He's been with Eon for several years. Did have difficulties in 2020 due to losing his business/was rocked financially - but he had a repayment plan that same year and cleared what he owed.

We've contacted Eon and received this response:
"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 (or his final 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 (Ovo) want to perform a hard search also (which would actually make sense), 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

Unlikely.

There isn't one "hard search." Each hard search will be for a specific category. There is one for utilities. Lenders aren't going to be interested in a hard search from a utility company, they would however care if you had a series of hard searches for financial lending products.