The British Gas bailiff firm slammed for forcibly fitting pre-payment meters in homes was last night urged to return furlough cash. Arvato Financial Services was propped up by almost £1.5million of public money during the pandemic.
It comes days after an undercover probe revealed Arvato heavies contracted by British Gas forced their way into people’s homes. The furlough handout came even though the firm is ultimately controlled by a billionaire German media tycoon.
Labour’s Richard Burgon said: “Arvato has behaved in an unbelievably heartless way in targeting vulnerable people. The company was quick to take public funds during the pandemic but seems only too prepared to treat the public like dirt if it can make extra profits.
“The regulators need to step in and take the toughest action against this cruel company, including stripping it of powers to carry on as a debt collector.”
Simon Francis, of the End Fuel Poverty Coalition, added: “This is a firm that is happy to call for help when it is facing a crisis but won’t show mercy to vulnerable people in energy debt.”
Arvato was revealed to have obtained warrants and broken into the homes of British Gas customers to force-fit electricity meters. Agents were said to have broken in despite signs kids and disabled people were living there.
It was reported that customers who had prepayment meters forcibly fitted included a woman described in job notes as “severe mental health bipolar” and a mum whose “daughter is disabled and has a hoist and electric wheelchair”. It was also alleged that Arvato staff were given bonuses to fit the meters. One bailiff was recorded calling it “exciting” as a locksmith prepared to force a door. They added: “I love this bit.”
Arvato is part of Bertelsmann, whose largest shareholder is Liz Mohn, 81, who reportedly has a £5.3billion fortune. The German firm made £2.06billion in 2021 – its largest profit for 15 years.
Arvarto, which has been used by British Gas to chase unpaid bills since 2017, received £1.32million in help under the Covid job retention scheme in 2020. Another £70,000 of support was given in 2021 towards its 363 debt collectors. Despite turnover of £23.8million in 2021, it made a loss of £628,488. The firm said its increase in turnover was linked to the pandemic.
Centrica, which owns British Gas, announced it was suspending “all warrant activity” after the report was published. Arvarto and Bertelsmann were approached for comment. Arvato previously said it had acted “compliantly at all times in accordance with the regulatory requirements”.
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