Quick Loans
    Really Interesting Finance News
    Really Interesting Finance News
    Friday, 11 January 2019 07:38

    Beware of Energy Auto-Switching Sites

    Auto-switching sites have jumped in popularity recently as people attempt to find the cheapest energy deals. We will show you why you should be careful as they can be more expensive.

    The purpose of an auto-switching service is to automatically switch you onto the best energy deal when your current one expires.

    Around 82% of people don't change their energy deals when their introductory rate expires. Which means they will automatically go onto the more expensive standard tariff. This 82% who don't switch will usually say that they weren't aware that their deal had expired or that they weren't aware it would go up in price when it did.

    This is where the auto-switching sites come in. You tell it when it expires, sign your authority over to them and they will do the rest. Each time your deal expires, they will move you without lifting a finger.

    But there is a catch

    The services don't say they will find you the cheapest deal, they say they will find you the best deal. 

    Now, this is where the problems come in. Just how are these services defining "the best" deal? Why do they not just say that they will find you "the cheapest" deal?

    Well, because they aren't going to get you the cheapest deal. They will often get you the deal that gives them the most commission. We've seen this with the price comparison sites. This has been proven, a majority of the time these sites comparison sites won't show you the cheapest deals. They will find you the deal which gives them the most profit.

    Now imagine, before seeing any deals, signing up to a price comparison site to say that whatever price they come back with - you will accept. This is exactly what you will be doing with these services. Giving them the authority to act on your behalf.

    In the past, they haven't shown themselves trustworthy enough to warrant that level of confidence in them.

    Our news service is great because it pulls no punches and doesn't allow political correctness to interfere with our views.
    © 2020 QuickLoans.co.uk All Rights Reserved. Authorised and regulated by the Financial Conduct Authority, Permissions Reference Number 763132