result of ignoring small debt?

Hi


I had big debts a few years ago but paid them off bar a few exceptions which were for less than £80 because I got advised on here that debts that small wudnt be chased too much (it worked, never heard anymore about them)


anyway, around 13 months ago I got a £13 per month 2 year mobile sim only contract. I called them up shortly after to cancel, 1 month ago I noticed I still had £13 a month coming out my account after all that time. I cancelled my direct debit and explained that I hadn't used a single minute or text since I got the sim.


I then got an email asking for £38 (£25 late fee + £13) which I expressed it was unreasonable but never got anywhere. now I have a letter through the post asking for £155 - what will happen if I don't pay any money? it's not like I have anything of theirs, they've cancelled the service
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Comments

  • FireWyrm
    FireWyrm Posts: 6,557
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    You entered into a contract. You dont say, but it seems that you did not infact cancel the contract within the 14 day mandatory cooling off period. You also dont say how long the contract has let to run. In short, you are still in contract and until you resolve the issue, you are required to pay it. You will continue to get pounded with late fees and penalties until what should have been a measly £312 is inflated beyond reason to many more hundreds than that. What is the status of the contract now? What are the dates that you took it out, cancelled it, received confirmation of that cancellation etc?
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  • its a 24 month contract - I paid the first 13 month, then stopped paying 1 month ago. so I should have circa 10 months left.


    I don't understand how its suddenly went from £13- £25 - £155, you think there is much chance in them forgetting the extra payments if I pay the remaining balance?


    would such a balance affect credit score?
  • FireWyrm
    FireWyrm Posts: 6,557
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    wideboy09 wrote: »
    its a 24 month contract - I paid the first 13 month, then stopped paying 1 month ago. so I should have circa 10 months left.

    You are bound by a contract. You cant just stop paying!
    wideboy09 wrote: »
    I don't understand how its suddenly went from £13- £25 - £155,

    It sounds like a £25 penalty charge for missed payment, but I am unsure what the other £155 is. You are well within your rights to demand an explanation.
    wideboy09 wrote: »
    you think there is much chance in them forgetting the extra payments if I pay the remaining balance?

    Unlikely. However, you may be able to buy your way out of the contract. Whatever you do, get it in WRITING that it is cancelled, the contract was settled and you owe them NOTHING.

    wideboy09 wrote: »
    would such a balance affect credit score?

    I'm not sure that mobile phones report to credit reference agencies.
    Debt Free! Long road, but we did it
    Meet my best friend : YNAB (you need a budget)
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  • wideboy09
    wideboy09 Posts: 108 Forumite
    edited 21 September 2014 at 9:58PM
    I don't mind paying the extra £25 but the extra amount is unreasonable


    The first letter was from life reguarding the £25 but this new letter is from DLC debt collections (their figure says £155)


    I do understand I entered the contract but I just thought they be understanding since I've paid circa £133 and never once used the service
  • FireWyrm
    FireWyrm Posts: 6,557
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    wideboy09 wrote: »
    I don't mind paying the extra £25 but the extra amount is unreasonable

    In your opinion.
    wideboy09 wrote: »
    The first letter was from life reguarding the £25 but this new letter is from DLC debt collections (their figure says £155)

    Ah, a debt collector adding a penalty.
    wideboy09 wrote: »
    I do understand I entered the contract but I just thought they be understanding since I've paid circa £133 and never once used the service

    Did you speak to them about this before you stopped paying? You entered into a contract, whether you have used the service is immaterial, the contract is there for a reason, to guarantee a minimum return for their efforts. What about responding to the numerous letters your would have recieved prior to debt collection starting? Did you respond to those and if so, what did you say?
    Debt Free! Long road, but we did it
    Meet my best friend : YNAB (you need a budget)
    My other best friend is a filofax.
    Do or do not, there is no try....Yoda.

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  • I actually only received 1 letter before getting this letter from them.


    the previous letter I discussed via email and obviously persisted that I will have to pay late fee.


    if I paid the £155 would I have to pay anything else to life or would that essentially be me buying out the contract?
  • theoretica
    theoretica Posts: 12,256
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    wideboy09 wrote: »
    its a 24 month contract - I paid the first 13 month, then stopped paying 1 month ago. so I should have circa 10 months left.


    I don't understand how its suddenly went from £13- £25 - £155,

    I think as you are in default they may be charging you now for the rest of the contract - it will have been in the small print somewhere. £13 x 10 + the £25 penalty.

    Can you prove you asked to cancel the contract immediately?
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • theoretica wrote: »
    I think as you are in default they may be charging you now for the rest of the contract - it will have been in the small print somewhere. £13 x 10 + the £25 penalty.

    Can you prove you asked to cancel the contract immediately?



    I cannot prove it as it was over the phone, that's what I asked them via email.


    £155 seems reasonable if it means no more payments.


    I've emailed them to ask for a breakdown of that sum.
  • You signed up to a 24 month contract. If you had an inkling you weren't going to keep using their service, you should have signed up to a shorter contract (months, six months, a year etc.).

    Mobile phone contracts are typically a fixed long term if they include the phone as well - the price of the hardware is spread out over the length of the contract. You might have a slightly better case as it's only a sim-only contract, where the justification for such long contract terms is rather iffier.
  • FireWyrm
    FireWyrm Posts: 6,557
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    Armorica wrote: »
    You might have a slightly better case as it's only a sim-only contract, where the justification for such long contract terms is rather iffier.

    The OP states it was a sim-only contract

    Regardless, the OP paid for 13 months out of 24 and then (as far as they are concerned) simply stopped paying for no reason. Even if the OP had wanted to exit the contract, the only legitimate way is to buy your way out for the balance of the contract amount.

    As for where the £155 came from is anyone's guess. I suggest he ask for clarification from the network provider before deciding how to proceed.
    Debt Free! Long road, but we did it
    Meet my best friend : YNAB (you need a budget)
    My other best friend is a filofax.
    Do or do not, there is no try....Yoda.

    [/COLOR]
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