Trying to remove unfair default

nic_c · 19 October 2019 at 7:02PM

It is inthe ofgem rules, but this piece surmises it nicely

https://www.citizensadvice.org.uk/consumer/energy/energy-supply/problems-with-your-energy-bill/find-out-if-youre-responsible-for-paying-an-energy-bill/

It doesn’t matter if you’re not named on the bill - you’re still responsible for paying for any energy you used while you lived at a property.

However, you must have been ‘legally responsible’ for the property - ie your name was on a tenancy agreement or other legal contract. If it wasn’t, a supplier can’t prove you lived at the property.

If you’re using an existing supply
If you moved into a property and continued using the existing connection without setting up a new contract, you’ll have a ‘deemed contract’. In this case, anyone living in the house and using gas and electricity can be held responsible for paying for the whole of the supply.

Jumblebumble · 21 October 2019 at 9:17AM

nic_c wrote: »

It is inthe ofgem rules, but this piece surmises it nicely

https://www.citizensadvice.org.uk/consumer/energy/energy-supply/problems-with-your-energy-bill/find-out-if-youre-responsible-for-paying-an-energy-bill/

The residential landlord association disagree with your position in the case of non deemed contracts which applies here as the other tenant had the bill in their name and therefore there was an express contract
https://www.rla.org.uk/landlord/guides/electricity_and_gas_charges.shtml

Liability to pay may be under an express contract entered into with the electricity or gas supplier, in which case it is the customer under the contract who is the bill payer

I would still like to see what ofcom themselves say about express contracts and othe rtenants
perhaps you might like to contact them for clarification

nic_c · 21 October 2019 at 10:26AM

Jumblebumble wrote: »

The residential landlord association disagree with your position in the case of non deemed contracts which applies here as the other tenant had the bill in their name and therefore there was an express contract
https://www.rla.org.uk/landlord/guides/electricity_and_gas_charges.shtml

Liability to pay may be under an express contract entered into with the electricity or gas supplier, in which case it is the customer under the contract who is the bill payer

I would still like to see what ofcom themselves say about express contracts and othe rtenants
perhaps you might like to contact them for clarification

Surely that's the landlord v tenant as to liability where in a vacant property the landlord is deemed liable but if there us a tenant in then it is the named tenant rather than landlord. In this case two tenants, one was named on the bill.

It's been a while since I've looked into this and I was only pointing it out. I don't need to contact OFGEM (unless there is a telephone dispute too) just pointing out an opinion OP can either take it or leave it. You can dispute my point, I was only pointing out what OP may be told if they went to CAB. If you or the OP want to contact ofgem, feel free, but no need for me to.

Jumblebumble · 22 October 2019 at 9:27AM

EmeraldIvy wrote: »

Hello,

I am reaching out for some help and guidance.

I am in the position I am ready to apply for a mortgage with my first home, however I have found a default has been placed on my credit file in August 2019!

I was in a shared property from August 2017-July 2018. During this period I paid for council tax and water, whilst the other tenant paid for the electricity (or so I thought! - the account was set up in their name only) as per an agreement at the start of the tenancy (not in writing unfortunately).

In August 2019, I received a letter from a Debt Collecting Agency advising me of an outstanding balance that was due from December 2017-July 2018. I immediately contacted the DCA and NPower, as I was unaware of any outstanding balance, and no bills had ever been sent to me prior to this at the property I lived in or moved into after this tenancy. NPower confirmed to me that they could see no record of any correspondence to myself, however I was still liable for the payment, which I did not dispute, Since this, I have been trying to get a copy of the bill so I can settle the outstanding balance, however the DCA has refused to provide this to me, and NPower has also failed to sent this to me, despite telling me they are going to send me a copy of the bill. To date I still do not have any copy of this bill.

This week, I undertook a detailed credit check, prior to applying for a mortgage for a home I have fallen in love with, to find that a default had been placed on my credit file in August 2019. I called NPower yesterday morning and had a really positive call, I spoke to the complaints team and explained the situation, the agent that I spoke to confirmed once again that no communication had been sent to me and that they were required to write to me within 6 months of the end of the contract in order to recover the amount. This agent explained to me that it was likely he would be able to revoke the entire sum and the default notice as they had not followed the correct process (I was only requesting the default removed).

Five hours later I received a further call from NPower, this time from a senior complaints handler, who told me that the default would not be removed. She stated that two letters had been sent to me, I asked which address these letters had been sent to and the first address, which was sent in December 2018 was an address I have never heard of, and have no connection to. A second letter was allegedly sent to my current address in March 2019, however I have not received any letters from NPower at this address, only the DCA. I am confused how the advisors I spoke to in August and in the morning confirmed that no letters were ever sent to me and the final advisor could find a letter which they had sent and I had never received.

From my understanding of defaults, the definition is "A default is a negative payment marker that arises as a result of unpaid arrears on your credit file. When a default is issued it usually means that the lender no longer sees the borrower as a customer, but instead sees them as a debtor.". Is it fair that a default is issued when I was not aware of the arrears, I understand a Default Notice is not required, but is best practice, but surely a bill would have had to been issued in order to give me a chance to repay the balance before I can classed a debtor?

To clarify, I am not disputing the amount due to be paid (I just want a bill in order to pay this), I understand as part of my tenancy agreement that I am jointly and severally liable for the sum, I am just disputing the fairness of the default notice when I was unaware of the debt in the first place.

I really hope someone can give me some guidance as to how to 1. get my credit file in as good as position as possible quickly, and 2. best resolve the outstanding bill (which I have not received).

I am completely heartbroken that I am so close to getting onto the property ladder, having fallen in love with a particular property and concerned that bad flatmates error will affect my opportunity to obtain a mortgage.

Many thanks in advance!

Hi Op
I would get in touch with ofgem to see if you are actually liable or if the express contract in your ex flatmates name can or cannot be a deemed contract transferred to you
( you will need to tell them in whose name was the contract in January 2018, your flatmates or no one )
However I struggle to understand howyour tenancy agreement can make you jointly and serverably liable as I understand is not in anyone's contract with either Npower themselves or their agents and I therefore have my doubts this is enforceable. Perhaps ofgem could help with this as well
In my view it is really important to ignore any questionable advice from people who are regurgitating CAB's interpretation of some apparent Ofgem rules that no one can actually produce which may or may not be relevant to you

Trying to remove unfair default

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