Changing supplier when in debt?

mute_posting

Cardew wrote: »

Also you will probably find the gaining company unwilling to take on someone who would appear to have difficulty paying their bills.

What for instance is to stop someone running up debts with company A, moving to company B with that debt, increasing that debt and then on to company C etc etc.

I understand with your point, but would add there are different kinds of debt.

A user may be in debt with a supplier simply because they have been paying based on (under)estimated bills - that in itself doesn't make the person a bad debt risk.

As to your last point - surley it is only like balance transfering on a credit card?

There is nothing to stop the suppliers (assuming, as is being discussed witthin the industry / government the possibility of switching debts) "credit scoring" potential cusomers before accepting their debt.

In some ways it could make sense for a company to accept a debt from a "good" customer if they wre confident that that customer was a good repayment risk as they also gain that persons custom.

vix2000

The reason for my debt is because when I changed to powergen from scottish power they told me I was paying too much and although I questioned it, they made me pay less. They told me it was because they were so much cheaper. I have always been in credit according to their bills, last summer I was about £450 in credit, in october over £300. Then, just before christmas they sent me a bill for £750. I spent ages telephoning for an explaination as they were demanding around £275 a month. In reality I am not a bad payer but a very good payer. I have payed what I was asked for on the dot. It is due to eons incompetance that I have this debt, and as I have reduced £750 to £300 since january I don't see why they should think I am a risk. I just want to get rid of them, despite the tesco points!!!!!

Wolfsbayne

Actually, my father owed powergen £200 which they demanded in full and he couldnt pay back. He switched to Atlantic without a problem and is now paying Powergen back £12 a month - so it is possible to switch whilst in debt to a supplier.

Cardew

Wolfsbayne wrote: »

Actually, my father owed powergen £200 which they demanded in full and he couldnt pay back. He switched to Atlantic without a problem and is now paying Powergen back £12 a month - so it is possible to switch whilst in debt to a supplier.

Nobody is saying it is not possible, and £200 is not a huge amount in energy cost terms.

The point is that the losing company can, and usually do, block switching when a large sum is owed.