Martin Lewis issues a ‘do not ignore’ warning to 200,000 energy customers
MARTIN Lewis and his team have issued an important warning to 200,000 energy customers about two collapsed energy supplies.
In a bizarre turn of events, debt collector Barratt Smith Brown has been accused of sending emails with Michael Jackson’s signature and demanding refunds from defunct energy suppliers.
The emails are addressed to former customers of Igloo Energy and Together Energy and are causing outrage and confusion among recipients.
Igloo Energy went bankrupt in 2021 and its customers switched to E.on Next.
Similarly, when Together Energy went under in 2022, its customers were transferred to British Gas.
However, any debts owed to the bankrupt suppliers were not passed on to the new ones.
As a result, both administrators of the bankrupt supplier engaged Barratt Smith Brown to help identify any outstanding customer debts.
Administrators are allowed to chase debts, but if you haven’t been billed for the energy you used and haven’t paid within 12 months, the debts will be wiped away under Ofgem’s “back-billing” rules.
However, customers have flooded MoneySavingExpert.com with complaints, claiming they are being chased for debts they don’t owe or have already repaid.
Dave Parmenter, a former Igloo Energy customer, has told of his ordeal when he received threatening letters from Barratt Smith Brown despite providing proof of payment.
The 67-year-old from Buckinghamshire first received a letter from Barratt Smith Brown saying he was owed £25.83 in 2022.
When Dave checked to see if the letter was from a legitimate company, he paid the money owed.
However, since then semi-retired Dave says he continues to receive “threatening” correspondence from Barratt Smith Brown claiming he still owes the debt, despite providing proof of payment.
In January 2024, Dave then received an email stating that his details had been passed on to lawyers requesting that proceedings be initiated against him in the District Court.
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 goes to court I’ll 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 remain about the extent of the issue of these emails signed by Michael Jackson.
While the company has acknowledged a ‘processing error’ in sending emails with template letters, concerns remain about the ability for affected customers to complain and access redress.
In the meantime, Martin Lewis is warning affected customers to respond to letters Barratt Smith Brown receives.
Failure to do so could affect your credit report.
The lender may even take you to court and ask for a County Court Judgment (CCJ), which will remain on your credit file for six years and can dramatically reduce your ability to borrow money through credit cards and a mortgage.
MSE recommends that affected households email Barratt Smith Brown to dispute the issue at collections_team@thebsbco.com.
You must include one of the following:
- Evidence, such as bank statements showing that you have paid the debt
- A final statement showing that you have no debts
- Invoices showing that you were a customer of another company when the debt was allegedly accrued
Commenting on the issue, consumer champion and personal finance expert Martyn James said: “The fact that liquidators can impose debt collectors on innocent people for energy debts that may not even be correct is a shame.
‘This situation has been known for years and certainly since the massive collapse of energy companies a few years ago.
‘Yet these companies act with impunity and must stop now.
“However, the energy sector must also take responsibility for this situation.
‘If the energy companies that took over customers from bankrupt companies had agreed to transfer the (alleged) debts, then everyone could have complained about disputed bills and gone to the Energy Ombudsman.
“But we are in this situation because that did not happen in all cases.”
“Consumers are stuck in an endless loop, looking for someone to complain to”
Martin Lewis
Martin Lewis has now formally called on the Energy Secretary to close the “extraordinary gap” in complaints rights for affected consumers.
His letter to MP Claire Coutinho said: “There appears to be no route to redress, complaints or alternative dispute resolution for some customers of bankrupt energy suppliers, who are now being pursued by debt collectors.”
This is because customers who are dissatisfied with their treatment cannot go to the Energy Ombudsman if their supplier has gone bankrupt.
Affected customers will also not be able to take their complaints to the Financial Conduct Authority (FCA) or the Financial Ombudsman, as they can only accept complaints about credit agreements, not utility bills.
For now, if you are experiencing the issues mentioned above, please email Barratt Smith Brown at collections_team@thebsbco.com.