Doorstep energy doesn't alleviate debt management issues

Millions of customers who have signed up for a new energy deal have not had their debt management worries eased, as they don’t believe they have got a good deal.

Research carried out by comparison site uSwitch, found that less than a quarter (22 per cent) of the people they questioned thought that they hadn’t got a great deal when they decided to switch energy provider at their doorstep.

Worse still was that almost a quarter of people felt intimidated, whilst almost one in six (59 per cent) thought that sales of this type were too pressurised.

Figures show that over seven million people have decided to change their energy provider at their doorstep, many in order to save money that they can then put towards getting out of debt and preventing debt problems.

Ann Robinson, Director of Consumer Policy at uSwitch.com, said: “…more needs to be done to protect consumers and to make sure they are given all the information needed so they do not end up out of pocket.

“At the moment consumers are running scared of doorstep sellers and quite rightly so. With the right rules in place, direct selling could be an effective way of reaching a wider range of consumers and encouraging people to switch to a better energy deal.

“It could particularly help the vulnerable and elderly who like the reassurance of face-to-face contact and are the groups missing out most on the benefits of a competitive energy market.”

Ivan Cooper, Chairman at debt advice specialists Chiltern, said: “For people who are trying to reduce their expenditure, so they can repay debts quicker, these doorstep salespeople aren’t solving the issue.

“As a result, people’s debt problems aren’t being helped by switching energy provider at the door. The best way to save money on household expenses is by seeking impartial debt advice from a reputable specialist – as these will be able to explain ways to boost income and save money, whilst offering the most appropriate debt help solution where necessary.”

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