Customers of bust energy firms hounded by debt collector which appears to have used late pop star Michael Jackson's signature in 'threatening' letters

MoneySavingExpert (MSE) can reveal today that, unbelievably, a debt collection firm has been sending emails seemingly signed by the late pop star Michael Jackson asking for repayments owed to energy firms that have gone bust. In some cases, people don't owe the debt, in others they do – unfortunately it’s not always 'black and white'.

Importantly, the investigation by the UK’s biggest consumer website has also exposed an extraordinary gap in consumer protection for some customers of bust energy suppliers who are 'stuck in an endless loop', with no clear complaints route.

• MSE has seen hundreds of complaints on the MSE Forum, social media and online about the practices of debt collector Barratt Smith Brown (which also trades as Barratt Smith & Brown) when chasing former Igloo Energy and Together Energy customers for debts. The firms went bust in 2021 and 2022 respectively, and the energy regulator, Ofgem, confirmed it too has been contacted by former customers about the agency’s practices.
  
  
• Some of the complaints allege that it sent emails featuring what appears to be Michael Jackson's signature, as detailed on the late pop star's Wikipedia page.
  
  
• Some former Igloo Energy and Together Energy customers have also accused Barratt Smith Brown of chasing debts that have already been repaid or weren’t owed.
  
  
• When asked if it had used Michael Jackson's signature, Barratt Smith Brown admitted to MSE that a "processing error" saw it wrongly send "template letter" emails to some former Together Energy customers. It says it has since emailed those affected to apologise. However, it wouldn't tell MSE how many people were impacted by this, whether former Igloo Energy users also got this email (though MSE’s seen proof of this) and it's so far ignored all of MSE’s other questions.
  
  
• The concerns raised by MSE users have also brought to light that there is no apparent route to redress, complaints or alternative dispute resolution (ADR)  for some customers of bust energy suppliers who are now being chased by debt collectors.
  
  
• MSE founder Martin Lewis has written to the Energy Secretary and regulators to ask them to urgently address this.
  

Those affected can see what action to take in MSE’s news story.

Martin Lewis’s letter to Claire Coutinho MP, dated 12 March 2024, said:

To: The Rt Hon Claire Coutinho MP

Secretary of State for Energy Security and Net Zero

CC: Ofgem

The Energy Ombudsman

The Financial Conduct Authority

The Financial Ombudsman Service

The Insolvency Service

Tuesday 12 March 2024

Dear Secretary of State,

I am writing to you about an extraordinary gap in consumer protection. There appears to be no route to redress, complaints or alternative dispute resolution for some customers of bust energy suppliers, who are now being chased by debt collectors.

We have been investigating cases of consumer harm and poor practice by a debt collection agency, Barratt Smith Brown, working on behalf of the administrators of Igloo Energy and Together Energy (Alvarez and Marsal and FRP Advisory respectively). Yet this issue could apply to any debt collection for any insolvent energy supplier.

Here’s what we’ve been told…

• The Financial Conduct Authority (FCA) – and the Financial Ombudsman Service – say they can only accept complaints regarding credit agreements, not energy bills.
• The regulator Ofgem points to the Energy Ombudsman to raise complaints.
• The Energy Ombudsman says it is unable to investigate as the suppliers are no longer trading.
• Ofgem also suggested complaints could be referred to the Insolvency Service (though generally for disputes about the administrators themselves and not about money owed), which typically would refer on to the administrator’s own regulator, which for some is the FCA (so back to the start).
• The debt collection agency Barratt Smith Brown is not registered with trade body the Credit Services Association or with the Solicitors Regulation Authority (or indeed the FCA) – so complaints cannot be made to those either.
  
  

As you can see, consumers are stuck in an endless loop, trying to find someone to complain to. To put this in context, Barratt Smith Brown was sending debt collection letters, with what appears to be Michael Jackson’s (yes, the late US pop star’s) signature at the bottom, including to some who didn’t owe it debt.

I’m sure you’ll agree, debt collection, especially on a complex administration like this, needs proper oversight and the ability to complain to an independent higher authority that can make a binding ruling. I’d ask if you can help both in the short term, and for a long-term fix to this lack of dispute resolution in this situation.

Kind regards

Martin Lewis

Founder, MoneySavingExpert.com

-ends-