SAY WATT
Martin Lewis issues ‘do not ignore’ warning to 200,000 energy customers of bust firms facing debt collection letters
Fail to act and risk damaging your credit report for up to six years
MARTIN Lewis and his team have have issued an important warning to 200,000 energy customers of two collapsed suppliers.
In a bizarre turn of events, debt collection firm Barratt Smith Brown has been accused of sending emails bearing Michael Jackson's signature and seeking repayments owed to defunct energy suppliers.
1
The emails target former customers of Igloo Energy and Together Energy, sparking outrage and confusion among recipients.
Igloo Energy went bust in 2021, and its customers were transferred to E.on Next.
Similarly, when Together Energy went under in 2022, its customers were moved to British Gas.
However, any debts held at the bust suppliers were not passed on to the new ones.
Read more in money
As a result, both of the bust supplier's administrators enlisted Barratt Smith Brown to help chase any outstanding customer debts.
Administrators are allowed to chase debts, but if you weren't sent a bill for the energy you used and didn't pay for within 12 months, debts are wiped under Ofgem's "back-billing" rules.
However, customers have flooded MoneySavingExpert.com with complaints, alleging that they're being chased for debts they either don't owe the debt or have already repaid.
Dave Parmenter, a former Igloo Energy customer, recounted his ordeal of receiving threatening letters from Barratt Smith Brown, despite providing proof of payment.
Most read in Money
The 67-year-old from Buckinghamshire first received a letter from Barratt Smith Brown saying he owed £25.83 in 2022.
Once Dave checked the letter was from a legitimate firm, he paid the money owed.
Martin Lewis issues urgent warning as households have just WEEKS left to claim up to £1,000 free cash – how to get it
However, since then, semi-retired Dave says he has continued to receive "threatening" correspondence from Barratt Smith Brown alleging he still owes the debt, despite providing proof of payment.
In January 2024, Dave was then sent an email saying his details had been passed on to solicitors to apply to start county court proceedings against him.
This email was signed with what appeared to be the signature of the late pop star Michael Jackson.
He said: "It's very frustrating. I know if it went to court I have proof that I've paid, but it's the hassle of having to defend yourself over and over again when you shouldn't have to."
Questions linger about the extent of the issue of these Michael Jackson-signed emails.
While the firm has acknowledged a "processing error" in sending out template letter emails, concerns persist over the ability for affected customers to complain and get access to redress.
In the meantime, Martin Lewis is warning affected customers to respond to any letters received by Barratt Smith Brown.
Fail to do so and your credit report could be affected.
The lender could even take you to court and ask for a county court judgement (CCJ) which remains on your credit file for six years and can dramatically decrease your ability to borrow money through credit cards and a mortgage.
MSE recommends that affected households email Barratt Smith Brown to challenge it on [email protected].
You'll need to include any of the following:
- Proof, such as bank statements confirming you've paid the debt
- A final bill showing you don't owe any debts
- Bills proving you were a customer of a different firm when the debt was alleged to have built up
Commenting on the issue Martyn James, consumer champion and personal finance expert, said: "The fact that liquidators can stick debt collectors on innocent people for energy debts that might not even be correct is an outrage.
"This situation has been known about for years and certainly since the collapse of energy firms en masse a few years ago.
"Yet these firms are acting with impunity and must stop right now.
"The energy industry also needs to take responsibility for this situation though.
"Had the energy firms that took over customers from collapsed firms agreed to transfer over the (alleged) debts, then everyone would have been able to complain about disputed bills and go to the Energy Ombudsman.
"But we are in this situation because that didn't happen in every case."
"Consumers are stuck in an endless loop, trying to find someone to complain to"
Martin Lewis
Martin Lewis has now formally called on Energy Secretary to plug the "extraordinary gap" in complaint rights for affected consumer.
His letter to Claire Coutinho MP says: "There appears to be no route to redress, complaints or alternative dispute resolution for some customers of bust energy suppliers, who are now being chased by debt collectors."
This is because customers unhappy with their treatment cannot go to the Energy Ombudsman if their supplier has gone bust.
READ MORE SUN STORIES
Affected customers can't take their complaints to the Financial Conduct Authority (FCA) or Financial Ombudsman either because they can only accept complaints regarding credit agreements, not energy bills.
For now, if you've been affected by the issues listed above, email Barratt Smith Brown at [email protected].
Topics