Abacus Daily Debt News

Debtors ‘must watch out’ for surreptitious bill increases

Borrowers must be vigilant of their energy suppliers, following the discovery by consumer group Which? of a system that allows companies to increase tariffs without informing their customers for over two months.

This suggests that indebted people could be put at a greater disadvantage through unknowingly paying premium prices on their bills, tactics that Which? is suggesting to the government and Ofgem should be banned, the Daily Mail reports.

Senior policy advisor at the organisation Dr Fiona Cochrane noted that it was unreasonable for people not "to be warned in advance of price increases", or for their deals "to be guaranteed for at least the time it takes to switch supplier".

The suppliers’ rules also make it harder for consumers to shop around for better deals, Which? suggested.

Earlier this month, borrowers were warned against taking in lodgers to assist with their money problems as it could make it harder to get adequate home insurance.

By Sarah Adie