Arvato Financial Solutions "acts compliantly at all times"

An investigative report in the Times alleges that Arvato, while conducting work as debt agents for British Gas, ignored the vulnerabilities of customers and forcibly entered homes to install equipment. 

An Arvato Financial Solutions spokesperson told us: "Arvato Financial Solutions Limited acts compliantly at all times in accordance with the regulatory requirements in the areas in which we are operationally active. In doing so, we respect and adhere to the regulations of Ofgem as well as other regulatory bodies.

“Our client is British Gas, whose requirements we also follow.

“We treat customers with whom we come into contact with respect and assess their individual needs at the time of our visit. If there has been any verbal or any other type of misconduct by individual employees, we deeply regret it. If any inappropriate statements were made, none of these statements represent the company’s views or official guidance on how to interact with consumers.

“Our bonus structure is solely focused on obtaining the most appropriate outcome for each individual customer, we do not prioritize or reward one outcome over another.”

The Times alleged that third party company Arvato Financial Solutions, used by British Gas as debt collectors, had broken into homes to fit meters even when there were signs that young children and people with disabilities lived in the property. These employees were apparently incentivised with bonuses to fit prepayment meters.

British Gas had received warrants from the courts to justify the use of forced entry into customers’ homes in order to install equipment as a result of unpaid bills.

The energy regulator Ofgem is conducting a review into suppliers’ use of prepayment meters.

The business secretary Grant Shapps said he was “horrified” by the findings and was calling an urgent meeting with British Gas. He said ministers would be “demanding answers to ensure this systemic failure is addressed”.

Commenting, the CEO of Centrica (parent company of British Gas) Chris O’Shea said: “Protecting vulnerable customers is an absolute priority and we have clear processes and policies to ensure we manage customer debt carefully and safely. The allegations around our third-party contractor Arvato are unacceptable and we immediately suspended their warrant activity.”