
Money Box
Banned Back Billing and Debt Help
Mar 15, 2025
In this fascinating discussion, Kate Pender, Chief Executive of Fair For All Finance, sheds light on the troubling practice of back billing in the energy sector. She delves into the urgent need for regulatory oversight and transparency among energy suppliers, following a recent investigation. The conversation also highlights a new low-interest loan scheme from credit unions aimed at helping those drowning in high-interest debt, emphasizing the critical role of consolidation for financial recovery.
24:46
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Quick takeaways
- Ofgem's investigation into back billing practices highlights the urgent need for consumer protection against wrongful billing by energy suppliers.
- Credit unions are introducing affordable loans to help individuals consolidate high-interest debts, improving financial stability for affected consumers.
Deep dives
Concerns Over Backbilling Practices
The energy regulator's inquiry into backbilling practices has been prompted by investigations revealing significant wrongdoing among energy suppliers. These suppliers have been sending bills for gas and electricity used more than 12 months prior, which is against regulations that were established to protect consumers. A letter from the Energy Security Committee Chair emphasizes the need for Ofgem to prioritize consumer protection and to investigate compliance with these backbilling rules. Customer experiences underscore the gravity of the situation, revealing distress and frustrations faced by individuals burdened with massive back bills that should never have been issued.
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