Heat Customers

Credit reference agencies may consider the data we share about you which could have an impact on your credit score, changing your ability to obtain additional credit. This impact may be positive, negative or neutral depending on how you manage your account.

If you are struggling to pay your bills and would prefer not to have a credit account, we can offer to switch you to prepayment free of charge. This will enable you to "pay as you go" for your energy and it’s the same cost as paying by Direct Debit. As we will not be providing credit to you, we will also not report how you are managing your account to the CRAs.

If you are still on supply with us we can spread your energy usage throughout the year with a payment plan such as a weekly, fortnightly, four weekly, or monthly Direct Debit. This will provide you with a regular payment amount by spreading the cost of your energy consumption throughout the year. As a minimum the amount you pay will need to cover your usage and any arrears and we will review your payments at least once a year.

If you are no longer on supply with us your final bill will be due in full. If you are unable to afford this amount we can offer you a payment arrangement which will stop additional reminders being received, however, this does not prevent the outstanding balance and number of months overdue being reported. Therefore this may still have an impact on your credit score.

If you believe what we have reported is inaccurate, please contact us and we will investigate. If we identify an error we will update your credit profile and notify you. The change will take effect immediately, however, if you receive a free update on your credit profile you may not be able to see the change until your next update.

A default occurs if the lender decides to close your account because you’ve missed payments. This might happen to an account you have with a bank, mobile phone company or utility supplier (e.g. gas, electric and water).

A default can occur regardless of how much money you owe, whether it’s a few pounds or a few thousand. It usually happens if you’ve been missing payments over the course of three to six months, but this can vary depending on the lender’s terms. So, it’s important to keep track of when you are due to be charged and set money aside for it.

A default notice is a notification from a lender asking you to catch up with your payments or else have your account closed. It’s your chance to stop a default from happening. You should try and pay the amount you owe immediately to avoid a default.

A default negatively impacts your ability to borrow money. When you apply for credit, lenders check your credit information to decide if you’re likely to pay them back. A default looks like bad news and is not looked upon favourably by lenders, as it shows you’ve struggled to repay credit in the past. So, you may find it hard to get approved, particularly for mortgages since lenders must meet strict rules to ensure you can afford one.

However, it’s still possible to borrow money with a default on your record. If you are looking for credit you could consider options designed for people with bad credit history, which usually have high interest rates and low limits. But make sure you can afford the monthly repayments first.

A default will stay on your credit file for six years from the date of default, regardless of whether you pay off the debt. But the good news is that once your default is removed, the lender won’t be able to re-register it, even if you still owe them money. Nevertheless, you should continue to meet any remaining payments as the lender could go on to take further legal action against you.

Note that the lender may pass your debt to a debt collection agency (a company that specialises in arranging for debts to be repaid). The lender must make this known on your credit report. Should your debt be passed to a debt collection agency, the six years will continue to run from the original date it was logged on your credit file.

You can see if you have a default on your credit profile by checking your Credit Report.

We send an update to credit reference agencies on a monthly basis which covers the previous month. As additional checks are carried out on the data prior to being published, this is not reflected until the following month. Therefore you may notice changes reflected are up to two months from the event taking place.