Hi, Thanks for the replies. The contract is for a mobile phone, rather than home phone/broadband. They're still claiming that they have provided the service for the six years, despite there being no activity on the account, or contact from me. As for the cancellation letter, they're saying that they never sent me one, so it's difficult to prove that it was cancelled without my hard copy of the letter...

Hi All, Earlier this week, I received a letter from a debt collection company called Wescot Credit Services, claiming that they were owed £42.34, on behalf of O2. I have both my home broadband and mobile phone through O2, so I contacted them to see if there was any outstanding balance on either account, but they confirmed that both were up to date. After contacting Wescot, and a bit more digging about, it seems this balance is in relation to a contract that was cancelled in 2006. I was told by a customer services rep at O2 that the account had never been 'properly' cancelled, and that they had been taking £21 per month from my bank account ever since, up until August 2012. When their attempt to claim money in September 2012 failed, they cancelled the contract and referred it to a debt collection agency to claim. Looking back through some old bank statements, they had been taking money from the account every month. I will be the first to admit that I should have noticed the discrepancy, but as payments already go out to O2, it never seemed out of place. When I cancelled the contract in 2006, I received a letter confirming that it had been cancelled, but that has long since fallen victim to a house move. A manager at O2 has told me that they will cancel the £42.34 balance and cancel the account, but that if I don't have the letter (of which they obviously don't have a copy), they won't refund any of the £1500 or so that they have taken since it was cancelled. As there has been no activity at all, nor contact with myself, it seems baffling that they're still trying to claim that this is a legitimate contract. Any ideas if there's anything I can do? O2 are trying to wash their hands of it, and they won't even confirm in writing that the debt management company will stop pursuing me. I appreciate that I should have noticed the money leaving my account and raised the issue sooner, but I don't really feel as though they should just get away with it...