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Business Energy Mis-Selling Claims
How to Get Your Money Back
Are you a business owner stuck in an unprofitable energy deal that feels more like a trap than a solution? If yes, you might be a victim of energy mis-selling. Imagine losing thousands to unethical practices, like being trapped in long-term contracts with inflated costs or falling prey to confusing terms and conditions!
This staggering reality is faced by many businesses globally. In our comprehensive guide on ‘Business Energy Mis-Selling Claims: How to Get Your Money Back,’ we’ll shine a light on how businesses can fight back and claim the compensation they rightfully deserve.
How we can help you make a business energy mis-selling claim
If you suspect that your business has mis-sold an energy contract, you may be entitled to make a claim for compensation. To do so, you should gather the details of your contract and any communications you have had with your energy broker or supplier. Then, we recommend getting in touch with a specialised energy claims management service who can assess whether you have grounds for making a claim.
My Energy Refunds have a team of expert energy claims advisors who can guide you quickly and easily through every step of the process. If successful, the claim could potentially result in tens of thousands of pounds in compensation.
Identifying Energy Mis-selling Tactics
If you have signed a business energy contract that didn’t live up to expectations, it’s possible that you fell victim to an energy mis-selling tactic. The problem is that these tactics can be difficult to spot, especially if you are not familiar with the details of your energy agreement.
One common mis-selling tactic is when energy brokers or suppliers offer you lower tariffs than competitors that are too good to be true. If it seems too good to be true, it probably is. Hidden fees and charges associated with these deals can prove significantly more expensive in the long run.
Another tactic is misleading offers, where businesses may not be given a clear breakdown of their total bill, leaving them in the dark about any hidden costs or fees. This lack of transparency can make it impossible for businesses to understand what they’re paying for and leave them overpaying for their energy.
Pressure selling is another way in which energy brokers may attempt to mis-sell their service. These salespeople use high-pressure tactics by insisting you sign up for a new plan right away and fail to give you enough time to read through the details of your agreement.
To summarise, mis-selling can occur when an energy broker or supplier intentionally withholds information or uses manipulative tactics to persuade businesses that they need a particular product or service. It’s essential not to rush into an energy agreement without fully understanding the terms of your contract and making sure your broker provides all relevant information.
Now that we have gone over some common energy mis-selling tactics, let’s take a closer look at one tool often used by energy brokers – hiding commissions [or fees].
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Hidden Commission Fees
Energy brokers commonly include undisclosed commission fees within contracts without providing clear information about the markup. This deception gives brokers an incentive to sign businesses up for energy contracts at inflated prices, with these costs hidden within the contract that was signed.
For instance, imagine if a supplier agrees to sell you gas at 15p per unit, but your broker then adds a commission fee of 1p per unit. In this case, you will be charged 16p per unit without being informed about the extra cost.
Many businesses remain unaware of these additional charges, sometimes for years on end. These brokers are incentivized to add markups since they receive a certain percentage of commission based on the size of the deal they closed.
This type of mis-selling should be prevented by transparency regulations in which energy brokers clearly disclose their commission percentages and how much compensation they receive from specific deals.
Think about it – you would never buy a product without knowing how much it costs. The same logic applies here. Energy brokers need to disclose any fees attached to their services since these can significantly impact your business’s bottom line.
Now that we’ve identified some common tactics used by energy brokers when engaging in mis-selling practices and discussed hidden commissions fees, let’s move on to how you can make a claim against such practices.
Pressure Sales and Misleading Offers
Energy mis-selling can often be the result of high-pressure sales tactics and misleading offers. Some suppliers may use these tactics to prevent customers from switching to their competitors.
For example, one common technique used by energy brokers is to offer fixed rates that are much lower than the market price. They will then encourage business owners to sign a long-term contract without providing all the facts. After a few months, these brokers may increase their fees significantly, making it difficult for businesses to switch providers without paying penalties.
Studies show that businesses who report energy mis-selling state that they feel rushed into signing contracts without fully understanding what they are agreeing to. They may also fall prey to attractive offers of “cash back” or other incentives when in fact, these offers often hide hidden commission fees.
While some businesses may be at fault for not reading the fine print or not seeking legal advice before signing an energy contract, the supplier should still provide information pertaining to interest rates, penalties and fees on the contract.
It’s like buying a car with a free tank of gas upon purchase only to find out that the tank has fractions of gasoline left in it — not enough to last you for more than a day or two. The small print was conveniently left out.
Now that we have discussed how pressure sales and misleading offers can lead to energy mis-selling, let’s explore ways you can make a claim if it happens to your business.
Steps to Make Business Energy Mis-selling Claim
If you suspect that your business is currently being subjected to energy mis-selling or have been misled in the past, there are steps you can take towards making a claim:
Begin by gathering all necessary information for your claim. This includes contract details, annual energy use, distributor ID, energy broker and supplier names, and business details. Having all this information laid out can help lawyers process your case quickly.
Find a lawyer or service specialising in business energy claims that can assess whether mis-selling has occurred before carrying out the claim. Legal firms dealing with business energy claims often operate on a ‘no win, no fee’ basis.
For instance, with https://myenergyrefunds.com/, businesses are only charged if their claim is successful. This encourages the firm to work harder on your case, ensuring you get the best possible outcome.
Seeking legal advice is important for many reasons including providing insight into the specific details of your case and making sure you have enough information to go forward with a claim.
While some businesses may hesitate to spend money on legal fees, pursuing such cases could be critical in recovering losses incurred through poor contracts or mis-selling tactics. The value of a business energy claim will depend on a number of factors such as the specific details of the case and the amount of financial harm suffered as a result of the mis-selling.
You may choose not to pay for car insurance for many years until an accident happens. The cost-saving tactics would come back to haunt you — leaving you paying even more than you would have if you had just paid for insurance all along.
With all the necessary information gathered and legal help secured, claiming compensation for business energy mis-selling can be a straightforward process.
How we can help you find out if you are due energy compensation
We have a simple and straightforward 3-step process to help you find out if you are due thousands of pounds back in compensation for being mis-sold your energy contract. There are no hidden costs – our Free Eligibility Check will not cost you a penny!
Fill in our Claim Form
Simply fill in a few details on our short claim form. We just need to know your business details, contact information and the name of your energy provider. It takes less than a minute!
Sign Your Letter of Authority
If the details on your claim form show that you may have been mis-sold your energy contract, all you need to do is sign a Letter of Authority and we will continue to progress the claim on your behalf.
Get Your Compensation
Once your claim has been forwarded to our expert legal team, it will take some time to process the details and provide a resolution. We will keep you informed of the progress of your case every step of the way.
Gathering Necessary Information
If your business has mis-sold an energy contract, then gathering the necessary information is crucial for making a successful claim. Energy companies and brokers may not be upfront about their commission fees or may include hidden charges in contracts, so it’s important to have all the relevant details before proceeding.
To start with, you will need to retrieve your contract details, including the supplier and distributor IDs, energy broker and supplier names. It’s also necessary to have information on your energy usage during the time of the contract – this can be found on your bills or statements. By having these documents in hand, you can move onto identifying where any possible mis-selling occurred.
One crucial area to focus on is the commission fees that brokers may have added to the cost of your energy supply without disclosing them. Look at your contract details and try to identify whether there are any hidden mark-ups that are impacting the cost of your energy supply. It’s essential to review all billing history and compare whether other customers have lower prices than what you were quoted for a particular consumption period.
Moreover, record all communication between you and your energy broker, particularly during the period leading up to signing a contract. This documentation can help prove if unfair sales practices occurred while securing the deal.
If you have received misleading offers or high-pressure sales tactics from your broker or supplier representative, note these down in detail. Have you been asked to sign up for an extended lock-in period? Are there no options available to negotiate on rates? These coercive practices could suggest that mis-selling has occurred.
It might also be helpful to take note of any poor customer service experiences as they could signal dishonesty on the side of suppliers or brokers.
Finally, assess whether any early termination fees charged by suppliers resulted from mis-selling tactics. You might find it difficult to justify paying an unreasonable exit fee since it was forced upon you due to others’ dishonest sales tactics.
After gathering all essential information, it’s now time to proceed with your claim.
£389m has already been paid back in redress payments
….and this number is rising.
Seeking Legal Advice
The business energy claim process can be lengthy and complicated, and this is where legal guidance comes in handy. Keep in mind that Energy brokers who have mis-sold contracts may not admit any wrongdoing voluntarily, making it challenging for businesses to assess their case alone.
Lawyers who specialise in energy claims are well versed in handling complex cases like these. They have tools that businesses lack, being able to manoeuvre through the intricacies of supplier contracts to find misrepresentation.
Solicitors specialising in business energy claims can conduct checks on the commission fees you were charged against what a broker was entitled to earn from the supplier for your contract. They will also use their professional experience and expertise to move through any other contractual language that could indicate a hidden charge or unfair pricing strategy.
Moreover, they provide unbiased advice after evaluating the merits of your case, including assessing its value. Legal firms dealing with business energy claims typically operate on a ‘no-win-no-fee’ basis to protect clients’ interests and ensure that costs do not exceed potential benefits.
While some elements of a business’s claim might seem straightforward, others can risk getting lost in translation missed entirely. A skilled legal service provider will help customers navigate mis-selling disputes while giving them peace of mind.
Furthermore, keep yourself informed about any changes in laws or regulations governing the energy industry. As mentioned earlier, nuanced practices concerning fees and commissions are often not standardised across different jurisdictions. UK companies must understand the complexities included within the laws of regulation governing energy sales to remain fully protected from possible mis-selling manipulation or maleficence within their current and future contracts.
Remember that having the right information about your energy contract and seeking external guidance is crucial to receive compensation if you have suffered unjustified losses. This guidance is even more mandatory if you are uncertain that you are eligible in filing a claim. Seeking legal advice can help answer any questions and overcome barriers that could exist to finding potential compensation.
Understanding the necessary information required to file your claim and seeking out specialised legal advice is just one part of a comprehensive process of recovering compensation after being mis-sold an Energy Contract. But it’s important to remember: mis-selling does often occur, and action must be taken to counter it.
Factors Affecting Mis-selling Claim Value
Making a claim for business energy mis-selling can be a complex process. There are several factors that determine the value of your claim, including the length of time you were overcharged, the type of contract you signed, and the industry you work in. Let’s take a closer look at some of the key factors that could affect the value of your mis-selling claim.
The Specifics of Mis-Selling: First and foremost, it’s important to understand the specifics of what happened during your mis-sold energy contract. Did the broker not declare the commission they would receive? Were there unexpected changes in bills after signing the contract? Did they use high-pressure sales tactics to get you to sign? All these details will play a role in determining how much compensation you may receive.
Contract Length: The length of your energy contract is another important factor that can impact your mis-selling claim value. If you signed a long-term contract and were paying inflated prices for many years, then your compensation amount will naturally be higher than someone who was overcharged for just a few months.
Industry: Your industry plays a role in how much compensation you receive as well. Some industries, such as manufacturing or construction, use more energy than others. This means they are likely to have paid more money to their energy supplier, making their claims potentially worth more.
Financial Harm: The severity and duration of financial harm suffered as a result of mis-selling play an obvious role in determining claim value – if a company has been struggling financially due to high energy costs caused by mis-selling, this would increase their potential claim amount. An analogy may be that it’s like an injury – if someone breaks their leg, they will need more medical attention and time off work (and therefore financial compensation) than someone who has a minor cut.
Check If You Have A Business Energy Claim
Answer 3 simple questions to see if you are eligible to make a Business Energy Claim
Avoiding Future Energy Mis-selling Contracts
Prevention is always better than cure, and it’s no different when it comes to avoiding future energy mis-selling. Here are some steps businesses can take to avoid falling victim to dishonest brokers in the future:
Do Your Research: The first step is to research potential energy brokers thoroughly before signing up with them. Look for reviews from other customers, investigate their reputation within the industry, and check their credentials are genuine.
Transparency & Clarity: It’s important that your broker is upfront about any fees or commissions they will earn from your energy contract. This should be included in any contract, in clear language that makes it obvious how much you’re paying. If a broker claims there are ‘no fees’ then this may be a red flag.
Negotiation: Don’t be afraid to negotiate with your broker if you’re not happy with the proposed terms or fees – this is often an area that may be flexible (even more so in light of recent changes in UK law). However, negotiating alone lends itself to making mistakes – it’s always more beneficial when done through legal representation.
Power Dynamics: Remember that you are the customer and hold the power in the transaction! It’s all too common for unscrupulous brokers to use high-pressure tactics to make deals happen quickly, but never forget that you have the right to take your time, ask questions and feel comfortable with any decision made. Always question things where they don’t add up; just like if someone is trying to push you into buying something that seems too good to be true.
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