14 March 2024 , 12:48
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Martin Lewis has issued a "do not ignore" warning to thousands of energy customers of two collapsed suppliers.
The MoneySavingExpert.com team this week revealed that a debt collector firm had been sending emails which bizarrely appeared to be signed by the late pop star Michael Jackson asking for repayments owed to two collapsed energy firms. The emails were found to have targeted former customers of Igloo Energy and Together Energy and were received by both customers who owed money and those who didn't.
Igloo Energy went bust in 2021, and its customers were transferred to E.on Next whilst Together Energy went under in 2022, its customers were moved to British Gas. Igloo Energy had 179,000 customers when it collapsed and Together Energy had 176,000.
However, the debts at these companies were not passed over to the new supplier and were instead transferred over to collectors Barratt Smith Brown - who also trades as Barratt Smith & Brown - by the energy firm's administrators. Under the energy regulator Ofgem's "back-billing" rules, administrators can chase up debts, however, if you were not sent a bill for the energy you used and didn't pay within 12 months then the debts are wiped.
Despite this, Martin Lewis' MSE team has been flooded with complaints from customers claiming that they are still being chased for debts they don't owe or have already paid. MSE also reported that customers had also made complaints to Ofgem about the firm's practices.
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One energy customer who received one of these emails was Dave Parmenter from Buckinghamshire. He paid off a £25.83 debt in 2022 and has continued to receive "threatening correspondence from Barratt Smith Brown who claims he still owes debt.
An email, which was sent in January 2024, said his details had been passed on to solicitors to apply to start county court proceedings against him this email had the late pop star's signature at the bottom. Dave told MSE: "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."
When asked if they used Michael Jackson's signature on these emails by the MSE team, Barratt Smith Brown admitted that a "processing error" saw the firm wrongly send "template letter" emails to some former Together Energy customers. Barratt Smith Brown said it had since apologised to those who received this email however would not confirm how many people had been affected. MSE also reported that former Igloo Energy customers had also received this email - although the debt collectors had ignored their questions.
MSE says its investigation has "brought to light" the "extraordinary gap" in consumer protection for customers of energy suppliers who had collapsed. MSE says there is currently no apparent route to redress, complaints or alternative dispute resolution (ADR) for some customers of bust energy suppliers who debt collectors are now chasing. Martin Lewis has now written to the Energy Secretary and regulators to ask them to address this urgently.
However, alongside this reveal, the Money Saving Expert website founder warned energy customers to not ignore any debt letters/email which have been sent to them. This is because administrators of bust energy firms are allowed to chase debts and it could impact your credit score - even if it is wrong.
Those who receive letters from Barratt Smith Brown - and believe their claims are incorrect - can challenge it by emailing: [email protected]. In this email you will need to include the following:
- Proof that you have paid the debt - such as bank statements
- 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