Default with phone company

[psman]

Hi all,

 

I recently discovered, after I had a mortgage application rejected, an unsettled debt of 30£ with a mobile phone company.

 

In 2006, my cell phone on a monthly plan with O2 broke down. I was long due an upgrade, my first ever, so I went to a shop to get a new mobile. I got one. It transpires now that at that time a new account was opened while the old one was not closed. That, clearly, was not my intention nor was that situation clearly communicated to me. At around that time, I moved from the address linked to the old account after breaking up with my former fiancé. A little over a year later, I had the phone stolen. This was reported to the police and O2. Again, since I was due an upgrade I got again a new mobile in a monthly plan with O2. A few months later, by Autumn 2007, I noticed an anomaly in my bank statements that I haven't noticed before (my lack of sufficient care in these matters). There were two different direct debits from O2. At the time, I thought that perhaps this had something to do with the stolen phone. I approached O2 customer services about it, first by email (and have copies of it, where I also raise a problem accessing my online account) and eventually (because of lack of response to this particular concern) by phone. I could not get a clear response at the time as to why I was being charged for the mysterious second direct debit, so I cancelled that direct debit. Although at the time I thought this was linked to the stolen phone, it turns out that O2 were charging me for over a year (early 2006 to late 2007) and profiting from a contract I was led to believe at the time was simply being upgraded. I don't believe this was done intentionally, but the fact remains that as a consequence of this serious miscommunication I have now been placed in a rather precarious situation, with my credit score ruined and unable to buy a house for my family. I have remained a loyal customer of O2 since I first purchased a cell phone. Over the last 73 months of the existing contract opened in 2006 I have never defaulted or missed a payment. Since January 2011 it is also O2 who provides the internet service to my household. Indeed, my first response to discovering this debt was to pay it immediately, rather than contesting it. I appreciate that O2 (and the companies to which it later transferred this debt, back and forth) may have attempted to contact me by postal mail to the address linked to the old contract. But I left that address in February of 2006 and those letters could never have reached me. I don't think it is very persuasive to argue that O2 had no other means to reach me (they continued to have dealings with me and provided me phone services), but they have hinted as much so far. I'm still waiting for resolution of this matter that is now with their Credit File team. I also wrote to the CEO hoping this would help and was told the issue would be assessed.

In the meantime, I wonder if anybody has any helpful tips or advice on how to proceed.

[BRIGADIER2JCS]

Hi, I'd wait for the responses before doing anything else.

As background it the default sum large??

[psman]

Hi, I'd wait for the responses before doing anything else.

As background it the default sum large??

 

Just 30 quid, which I already paid them.

[BRIGADIER2JCS]

Just 30 quid, which I already paid them.

 

I am looking at your comment on buying a house in my opinion

a mobile phone default of £30 is not really going to have any effect

on credit ''scoring'' which is a Myth in its self, and is just a day to day

guide of how your prospects of getting credit are seen.

I would think that for £30 that has been paid anyway they may well

remove the default, unfortunately this will not quickly or dramatically

improve your credit picture.

[psman]

Only it does....

 

My credit score with two of the credit rating companies is excellent. Only the one where this default is noted is affected and the score on that one at the moment is "extremely low". Fair enough, that's before it was settled, but still. I hear that the way the score is computed takes into account primarily the existence of the default not the amount or whether it was settled. Because the lender I went to used this particular credit agency I got the mortgage application turned down. They argue it was primarily turned down on the basis of this default. My mortgage broker advices that with this default in my record is not possible to get credit (I can only fork a 10% deposit).

[BRIGADIER2JCS]

Which CRA shows the the default??

Strange that it is not on all others.

[psman]

Call Credit. I've been very very unlucky. Most lenders, I believe, don't use their services. But now even if I use a lender that uses a different credit rating company I would need to own up to the fact of having had one mortgage application turned down and explain why.

 

I know, it's peculiar it doesn't show in the others. Although I am not going to complain about that!!! My understanding is that they all work in slightly different ways, so I guess it's just that.

[BRIGADIER2JCS]

You right CC is not used very often, and seem to

be lagging behind on comparison with the two main agencies.

Is it possible that the default was placed for a short time on the

other CRAs but have been removed what it the default date

shown??

As this occurred in 2006 it is possible that the 6 year

period for the default removal has been reached and CC

have failed to remove it, in which case you can think

of taking action as the failure has caused you an identifiable

problem, as said CC are not upto date.