Scottish Power added defaults to credit file before Ombudsman determination

David_Peckham

I was involved with a long running dispute with Scottish Power that was finally determined by the energy ombudsman on 15th October 2024. 

During the course of the dispute they agreed to suspend my account. 

I have recently discovered when checking my file ahead of a pending mortgage application that Scottish Power added an entry in June 2024 that there had been 6 missed payments and a delinquent balance of £3740 with the date last delinquent in July 2024. 

I have subsequently set up a payment arrangement to clear the arrears and have kept to the agreement. 

I have made a fresh complaint to Scottish Power to request that they remove the entries as they were made before the ombudsman determination and they have refused to budge. 

My questions are: 1) Are they entitled to do this; and 2) if not, is there any guidance online to state that they shouldn't that I can refer them/the energy ombudsman to? 

From what I understand, it's considered not the done thing, but I don't know if that's correct or not.

It seems to me that they are looking to bully me into settling the balance that has built up after them taking years to sort out my original issue.   

I would be very grateful for any pointers before I go any further. Thank you so much for reading.  

  

Isthisforreal99

What was the outcome of your ombudsman complaint?

Hoenir

David_Peckham said:

I have subsequently set up a payment arrangement to clear the arrears and have kept to the agreement. 



  

I'm accepting the fact that there was a dispute. However it seems you made no attempt to make payments even on an account basis for the energy you were using. Nor did you put the money aside to cover the debt that was accumulating. This information is what other financial institutions pay for when obtaining data from credit agencies. As is key in their own decision making process. Using debts owed as a form of interest free loan is generally frowned upon in the Corporate world. A trick that's as old as the  hills. 

David_Peckham

Isthisforreal99 said:

What was the outcome of your ombudsman complaint?

There were a number of issues which were all upheld. 

MattMattMattUK

David_Peckham said:

I was involved with a long running dispute with Scottish Power that was finally determined by the energy ombudsman on 15th October 2024. 

During the course of the dispute they agreed to suspend my account. 

I have recently discovered when checking my file ahead of a pending mortgage application that Scottish Power added an entry in June 2024 that there had been 6 missed payments and a delinquent balance of £3740 with the date last delinquent in July 2024. 

I have subsequently set up a payment arrangement to clear the arrears and have kept to the agreement. 

I have made a fresh complaint to Scottish Power to request that they remove the entries as they were made before the ombudsman determination and they have refused to budge. 

My questions are: 1) Are they entitled to do this; and 2) if not, is there any guidance online to state that they shouldn't that I can refer them/the energy ombudsman to? 

From what I understand, it's considered not the done thing, but I don't know if that's correct or not.

It seems to me that they are looking to bully me into settling the balance that has built up after them taking years to sort out my original issue.   

I would be very grateful for any pointers before I go any further. Thank you so much for reading.  

David_Peckham said:

Isthisforreal99 said:

What was the outcome of your ombudsman complaint?

There were a number of issues which were all upheld. 

Was the outcome of the issues being upheld that the balance was not due, or was that separate? If the balance was legitimate and due when you stopped paying then the missed payments and defaults are correct. They are entitled to continue debt collection whilst an ombudsman complaint is ongoing, but it would be unlikely to go to court as pending an ombudsman decision it would be very unlikely that they would be granted a CCJ.

They are not trying to bully you, you owe them money, they want that money, that is fairly simple and is the same in business and personal life. 

David_Peckham

There were a number of issues that the Ombudsman had to deal with, but Scottish Power had agreed to suspend my account pending my complaint being settled.

Scottish Power have said that they stand because the Ombudsman never determined they should be removed. 

The Ombudsman didn't determine on those because I didn't ask them to. And I didn't ask them to because I didn't realise they had been added to my credit file until later.  

You couldn't make it up!   

Ayr_Rage

David_Peckham said:

There were a number of issues that the Ombudsman had to deal with, but Scottish Power had agreed to suspend my account pending my complaint being settled.

Scottish Power have said that they stand because the Ombudsman never determined they should be removed. 

The Ombudsman didn't determine on those because I didn't ask them to. And I didn't ask them to because I didn't realise they had been added to my credit file until later.  

You couldn't make it up!   

It appears then that SP have acted correctly, you have acknowledged you owe them and have arranged to pay them back and your credit file reflects that.

Can't see any bullying if you are in an arrangement to pay.

You have indicated parts of your compliant were upheld but you have not said any of that relates to the debt.

David_Peckham

My issue is whether they can wreck my credit rating before the Ombudsman's determination; and whilst my account should have been suspended.

MattMattMattUK

David_Peckham said:

My issue is whether they can wreck my credit rating before the Ombudsman's determination; and whilst my account should have been suspended.

First, you do not have a credit rating, or score, that is a made up and meaningless number created by the CRAs for marketing purposes, no lender ever sees it, nor would they want to.

As to whether they can they add information to your credit report before an ombudsman decision, yes, a long as it is accurate. From your posts it appears you owe them money, you have not paid them as per the contractual terms, which are different from an arrangement to pay, which you have subsequently agreed with them and that they have correctly reported that factual information on your credit report. 

From what you have said in relation to the debt they have done nothing wrong in correctly reporting this.

Hoenir

David_Peckham said:

My issue is whether they can wreck my credit rating before the Ombudsman's determination; and whilst my account should have been suspended.

What matters to other financial institutons is how people go about managing their personal finances. An arrangement to pay suggests financial difficulties.  A key piece of information. Not paying monies due in a timely manner whatever the circumstances is viewed extremely negatively. 

Largs

You can add a notice of correction to your file.  Even just a few sentances saying the account was in dispute and with the Ombudsman Service.  

I am not all together happy that energy accounts are reported to the agencies actually.  The supply companies are not perfect at their billing, you only have to read the energy boards here and some accounts are a complete mess.

If they are going to report accounts then it should be across every supplier, it seems only some do at present and people often don't find out until the "black markers" are there.