@o2 o2 and Default on credit file

[Jessica87]

I am writing this on behalf of a friend who I am trying to help out, sorry it's a bit wordy.

 

They had a pay monthly phone with o2 (online) and took out a new contract with o2 (store), around May 2010. After a month or two, they called up o2 to cancel the online account. They recall being advised no further payments would be due and proceeded to cancel their direct debit. Since then, they have heard nothing.

 

Fast forward to Christmas 2012, they decide to check their credit reference file and a default had been placed in November 2010 for £36. It seems the advice given by o2 was incorrect and he shouldn't have cancelled the DD.

 

He wrote to o2 to query this as he believed it to be an error. o2 confirmed he did owe the £36. He wrote to them again and stated that he doesn't believe the default was justified and it was unfair as they hadn't informed him it would be placed, nor that he owed them money. They stated in writing, that they would clear his credit reference file upon payment. So he called them up, made the payment but was told on the phone while making said payment, they wouldn't be removing the default after all. He wondered if he should make the payment but decided it was the right thing to do and wrote to them again, this time to the Complaints review team.

 

They have since written back and stated they won't remove it as they are legally required to give a true reflection of his payment history.

 

He had been a customer since 2003 and had no payment issues. He was not warned that any money was owed by phone, email or letter. Nor of their intention to place a default or that they had gone ahead and done so. He only became aware of the outstanding amount because he checked his file of his own accord. He has been given duff advice by o2 twice, first that no payments were due and second that they would be happy to clear the credit file after payment.

 

I have checked ICO guidance and it seems this behaviour could be considered unfair. For such a small amount it doesn't seem justifiable, especially as it was incurred at the exact time the contract and DD was cancelled and he was not given any opportunity to rectify the problem.

 

Where do I take it from here?

 

Thanks so much.

[BRIGADIER2JCS]

Hi, the problem here is going through so called customer service departments, generally speaking complaints sent to these never get seen by anyone able to make a decision.

 

So your friend should make a FORMAL COMPLAINT to O2, staing clearly all that has occurred and what they want done to remedy the matter.

 

A company has 56 days to answer the complaint and give them a final response.

 

Then this can be taken to the relevant regulators if the response is favourable.

 

The complaint should be addresssed to the Data Controller at O2 head office address.

[dx100uk]

thats not very fair.

 

IMHGO i would SAR them

specifically asking for the comms log or call log

then see if there is record of being advised to cancel the DD.

 

dx

[Jessica87]

Thanks Brig, I think he followed the o2 Complaints procedure thinking that was the right way to go but I'll advise him to do this instead.

 

Thanks dx100uk, I will ask him to do so. I hope his memory is correct as it is such a shame to have a default for such a small amount.

[Jessica87]

Quick note, is there any guidance on this issue I could be quoting? Is it to do with the DPA, or is it something the ICO has provided guidance on?

[BRIGADIER2JCS]

Google the ICO Technical Guidance on Defaults.

[Jessica87]

Will do, thanks

[dx100uk]

here

[Jessica87]

So a complaint was brought to the Ombudsman, who got back to him last week.

 

They are siding with o2 because o2 produced evidence that letters were sent out, even though none were received.

 

Does anyone know what I can do next?

 

It seems in a he said/she said situation, the Ombudsman gives the company the benefit of the doubt not the customer.

 

Is there anything I can be quoting or referring them to?

 

I can't think of any more evidence to provide plus it was so long ago, I doubt any exists.

 

Any help appreciated.

[TM123]

They stated in writing, that they would clear his credit reference file upon payment.

 

Does he still have this letter in which they say they will remove default on payment.

[Jessica87]

Does he still have this letter in which they say they will remove default on payment.

 

Yes, both o2 and the Ombudsman have had sight of and hold copies of this letter, though o2 said he shouldn't have been told this, essentially they made a mistake and the Ombudsman doesn't think it is of any importance.

 

To be honest I got the impression the Ombudsman had decided in favour of o2 before they had even read the complaint fully.

Edited May 28, 2013 by Jessica87

[Jessica87]

Anyone have any ideas? Any legislation or guidelines the Ombudsman would need to follow in decided this case?

[BRIGADIER2JCS]

You can ask FOS to get a more senior adjudicator to review the decision, which about as far as you can go at present.

[Jessica87]

Thanks Brig, this was the Ombudsman Services rather than FOS but I'll ask if something similar is available.

 

Would the letter from o2 stating they'd clear the credit file stand up in court if it came to that?

 

There is no dispute that the debt was owed (and is now paid) but it just seems unfair for a simple misunderstanding.

[BRIGADIER2JCS]

:madgrin:FOS = Financial Ombudsman Service Jessica:lol:

[locutus]

with o2 their "Alternative dispute resolution" (or ADR) is Ombudsman Services: Communications which is who Jessica is referring to I think. (and IMO a toothless qango)

[BRIGADIER2JCS]

with o2 their "Alternative dispute resolution" (or ADR) is Ombudsman Services: Communications which is who Jessica is referring to I think. (and IMO a toothless qango)

 

Ahh that lot of time wasters, pathetic!!