thank you for your advice everyone. theycallmelaura, what was your strategy in negotiating the charges down? And who did you speak to, just the normal customer service representative or a manager/team leader person? Were they quite polite and willing to come to an agreement or did it take several phonecalls before you actually got anywhere?

The payment is due to be taken on 22nd September so 11 days. I have been receiving conflicting advice from friends, one friend says if I cancel my direct debit I will be black listed on O2 but no other networks and would be able to get a contract with another network. Another friend says I will be black listed on all networks for the rest of my life meaning I would be on PAYG for the rest of my life (maybe not such a bad thing) and that the bailiffs would be round my house if I do not pay the outstanding bill. Can you tell me which is correct or neither? Also, I was thinking of ringing O2 and saying I would like to cancel my contract which would hopefully lead to them asking "why do you want to cancel" and I would explain and hopefully they would want to maybe do a deal with me as they would not want to lose a valued customer? Or do you reckon they will just say "fine, you can cancel your contract but we want the money you owe"?

Thank you for your advice Human Writes. I can afford to let the payment go through, but if I do do that won't O2 regard the issue as closed as they have received the full payment and therefore not be interested in negotiating a reduction or full waiver of the charges? Aren't I best trying to make a complaint and try and get the bill reduced or waived before the money is taken? People I have spoken to say cancel the direct debit, then write to O2 explaining why you have done this, you are appalled at the way you've been treated and you won't pay the charges. Is it worth doing this or will it result in a default on my credit file and the issue dragging on for months?

I had my phone stolen whilst on a night out and in the time it took for me to have the sim barred the thief ran up a £400 bill of international calls to Iraq! The money (now stands at £483 due to VAT) is due on the 22nd September and at the moment it looks like I am paying it. Just wondered if anyone had any advice for me in getting the charges wiped off or reduced in some way? Is it worth cancelling my direct debit and trying to negotiate and reach an agreement with O2? I am not on a 18 or 24 month contract, I am on the O2 simplicity deal which is a rolling month-to-month contract so is it worth cancelling the contract??? I am unsure as to what to do, I don't want to pay these charges as they were not made by me and were unauthorised calls, I do have a police crime number if that helps. Any help/advice from anyone is much appreciated.