Credit, Collections & Insolvency News
Citizens Advice has raised concerns over unregulated debt collection by the administrators of failed energy suppliers and called for an urgent review of the interactions between insolvency rules and the Supplier of Last Resort (SoLR) process.
Customers of failed suppliers are at risk of aggressive debt collection tactics from administrators because they’re not bound by the same rules
The charity said the SoLR process does not bind administrators to the same rules that energy suppliers have to follow, meaning consumers face having their rights stripped away exactly when they need them most”
In its latest report on the energy market, the report also has found that the bill for supplier failures, including the administration costs for Bulb, stands at £4.6 billion, which will potentially add up to £164 to customer bills.
Citizens Advice says that some customers whose supplier failed faced months of misery in the transition to a new provider – missing out on credit refunds and struggling to fix inaccurate bills
Dame Clare Moriarty, Chief Executive of Citizens Advice, said “More than half a year since the energy market went into freefall, the bill for supplier failures is still mounting. On top of this, we’ve found that too often people are pushed from pillar to post when their supplier fails – adding to their stress and worry at an already difficult time.”
“An overhaul is needed before winter piles more pressure on suppliers and customers. The government must improve the supplier failure process and ensure people who’re struggling aren’t chased for debts or left in limbo when they’re waiting for a refund.”