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I've opened 2 energy accounts with nPower and have subsequently discovered that they have registered 2 new credit agreements with me on the Experian Credit Reference database both with zero balances. I cannot see that any authorisation to open or register a new credit account in their T&C's. Any new credit account has a detrimental impact on an individual's credit rating score, so by registering 2 new accounts that counts as a negative factor. In my case I've been downgraded from 'Excellent' to 'Fair' which has prevented me from getting good deals elsewhere. There are no other factors here, so it has to be nPower's actions. The nPower new customer agreement does mention checking credit references, but doesn't mention taking out a new credit agreement. I think this is unfair and misleading. Has anyone else had a similar experience?
Originally posted by JohnfromEssex
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Standard practice. When I went with British Gas they put two accounts on, one for gas and one for electric, even though I only paid one DD. If you don't like it then don't go with an energy provider that reports to CRA. There are plenty out there.
Are you paying in advance for your energy or are you billed afterwards? Even with a regular DD you can often use more fuel than you are paying for, e.g. in winter so you are effectively borrowing money in terms of the fuel you use until you pay for it.