Water firms issue misleading letters
15/10/2014
UK Water firms have been sending out misleading “debt collection” letters to customers who have missed payments.
The letters are made to look like they are being sent from a third party debt collection agency, however they are actually being sent from the water companies. The misleading letters fool their customers into thinking their debt has been sold to a third party.
The water companies have said they only send letters as a last resort. Northumbrian Water, Affinity Water and Welsh Water stopped the process earlier this year, but the UKs biggest domestic water supplier, Thames Water, and Yorkshire Water are still sending out “debt collection” letters. The two suppliers have recently amended their stationery to include links to themselves, but previously there was no indication the “debt collector” had anything to do with the water firms.
A Thames Water spokesperson said:
"Our open and transparent letters do increase in severity.
“When it gets to a final letter, we have found the use of an internally branded debt collection agency approach to be effective and cost-efficient,"
Ofwat (The Water Services Regulation Authority) have said that consumers must not be mislead or scared into making payments.
Chief executive of the charity Citizens Advice, Gillian Guy said: “We're not saying don't pursue debt, clearly companies are entitled to do that, but we are saying that they really ought to do that honestly and with some sensitivity.
"These letters are about increasing the level of aggression to get payment and they're made on the assumption that people won't pay rather than actually that many can't."
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