Default placed on credit file from O2

chris.hoops78

I am writing this to document my efforts to have a default on my credit file removed. I hope that this will be of use to anyone in a similar situation.

First, some background: I have been pulling out all the stops to clear my debts, including some hefty credit card bills, over the last year or so. Unfortunately an outstanding balance of £164 to O2 went unpaid for a substantial period (please note - when dealing with debts you should not disregard even small accounts).

It transpires that O2 sold the debt on to Moorcroft Recovery in January of this year. However, they sent out of date contact details, and so all subsequent correspondance to me from Moorcroft went to the wrong address. Consequently I was not in receipt of any reminder letters or, crucially, a default notice (I don't yet know if one was actually sent).

I know that I should have made arrangements to pay the debt much sooner, however, as the default will seriously affect my ability to get a mortgage in the next six years I have decided to contest the default. After doing some research, it is my understanding that O2 are legally required to issue me with a default notice prior to registering the default with the credit reference agencies. I am hoping that one of the following are true:

1. O2 never issued me with a valid default notice.
2. That the default notice was delivered to the wrong address and therefore not valid

Note that O2 had correct address details for me for a substantial period prior to the debt being passed to Moorcroft, and I have bills and letters to prove it.

My first step will be to request a copy of the original default notice from O2. If they have it, it will have been sent to the wrong address and I will continue my challenge on this basis. If they don't have it, they are in breach of their legal responsibilities and hence I should be able to have the default removed from my credit account:


"Date: 14 May 2009
Dear Sir or Madam
Re. Mobile No. xxxxxxxxxxxx
After recently obtaining a copy of my credit file from Experian I was concerned to note that your company has placed a "Default" notice against an account in my name.
Further to this I have no recollection of ever receiving such a notice, and I therefore require you to substantiate this data at your earliest convenience.
1. You must supply me with a true copy of the alleged agreement you refer to. This is my right under your obligation to supply a copy of the agreement under the legislation contained within s.78 (1) Consumer Credit Act 1974 (s.77 (1) for fixed sum credit). Your obligation also extends to providing a statement of account. I enclose a £1 postal order in payment of the statutory fee, PO Serial Number xxx-xxxx
2. You must supply me with a signed true and certified copy of the original default notice.
3. Any deed of assignment if the debt was sold on
I would request that this data is provided to myself within the next 28 days, if you are unable to provide this data then I must insist that it is removed from my files as unsubstantiated.
Yours faithfully"

I will update on receipt of response.

jessibell

Thanks for this. I also have a default on my account from O2 appeared from no-where for £14! No idea what it's from cause I've been on contract with them for best part of ten year and never switched.

sporedude

Or you could wait 6 years for it to clear, You where right in saying it should have been paid off much sooner.

chris.hoops78

Sporedude: Thanks for that. I think actually I'll contest it, as is my right if O2 are in dereliction of their legal duties. I do not dispute that I should have paid it off sooner. Six years is, however, a long time, particularly given that the housing market is likely to be picking up again over this timescale. Is non-access to a good mortgage deal really a proportional 'punishment' given that I have a good income, and my outstanding debts are rapidly approaching zero?

ps any more naysaying saddos can get lost before they post - this is a constructive thread intended for people in a similar situation seeking advice on the process of default removal. I do not guarantee that i will be successful, but it should be informative either way.

Jessibell: i've heard of a few similar problems with O2, seems that they hand this things out like willy nilly. Not the best strategy for customer retention that i can think of...

mcmanlyn

Slightly different story from me...

I noticed a default on my file from Vodafone which I knew nothing about - wrote and asked them what it was for as I didn't even now what number it was for. Just a standard 'can you please tell me what this is for, if it's genuine then I'm happy to pay it' kinda letter.

Got a call about a week later from a lady who explained it was a 2 year old contract and I'd missed the final payment.

I asked if I paid it now over the phone to her (just £18) could they remove the default? She said yes & just 2 days later the default was removed I'm still left with a late payment on my record - but it's a helluva lot better now!

Chris - if contesting the default doesn't work and you're in a position to pay the outstanding I would try this as it might just do the trick!

chris.hoops78

mcmanlyn: I did offer to do so - however was advised the account had been passed to Morecroft and that there was no way they could remove the default. The difference is you were not aware of your debt - i have been aware of mine for some time (but because of other committments/stresses i let it slide, assuming that at crunch time, i would be getting letters through the post etc.)

I do not dispute the decision to place a default on the account, only that they were in dereliction of the requirement to provide me with a valid default warning letter, therefore affording me the statutory 28 day period to respond. This is a legal requirement and has nothing to do with wether i coulda/woulda/shoulda paid it off sooner.

thelawnet

chris.hoops78 wrote: »

I am writing this to document my efforts to have a default on my credit file removed. I hope that this will be of use to anyone in a similar situation.

First, some background: I have been pulling out all the stops to clear my debts, including some hefty credit card bills, over the last year or so. Unfortunately an outstanding balance of £164 to O2 went unpaid for a substantial period (please note - when dealing with debts you should not disregard even small accounts).

It transpires that O2 sold the debt on to Moorcroft Recovery in January of this year. However, they sent out of date contact details, and so all subsequent correspondance to me from Moorcroft went to the wrong address. Consequently I was not in receipt of any reminder letters or, crucially, a default notice (I don't yet know if one was actually sent).

Don't think this is particularly helpful actually. Mobile phone contracts are not Consumer Credit Act-regulated, and you don't need to have received the default notice. They haven't done anything wrong.

I know that I should have made arrangements to pay the debt much sooner, however, as the default will seriously affect my ability to get a mortgage in the next six years I have decided to contest the default. After doing some research, it is my understanding that O2 are legally required to issue me with a default notice prior to registering the default with the credit reference agencies. I am hoping that one of the following are true:

1. O2 never issued me with a valid default notice.
2. That the default notice was delivered to the wrong address and therefore not valid

Nope, neither are relevant.

"Date: 14 May 2009
Dear Sir or Madam
Re. Mobile No. xxxxxxxxxxxx
After recently obtaining a copy of my credit file from Experian I was concerned to note that your company has placed a "Default" notice against an account in my name.
Further to this I have no recollection of ever receiving such a notice, and I therefore require you to substantiate this data at your earliest convenience.
1. You must supply me with a true copy of the alleged agreement you refer to. This is my right under your obligation to supply a copy of the agreement under the legislation contained within s.78 (1) Consumer Credit Act 1974 (s.77 (1) for fixed sum credit). Your obligation also extends to providing a statement of account. I enclose a £1 postal order in payment of the statutory fee, PO Serial Number xxx-xxxx
2. You must supply me with a signed true and certified copy of the original default notice.
3. Any deed of assignment if the debt was sold on
I would request that this data is provided to myself within the next 28 days, if you are unable to provide this data then I must insist that it is removed from my files as unsubstantiated.
Yours faithfully"

I will update on receipt of response.

You've sent them the wrong letter, suggest you have a look here

http://www.consumeractiongroup.co.uk/forum/telecoms-mobile-fixed/70464-mobile-phone-companies-consumer.html

Also O2's contact details are: [EMAIL="creditfilereferrals@o2.com"]creditfilereferrals@o2.com[/EMAIL]

thelawnet

chris.hoops78 wrote: »

mcmanlyn: I did offer to do so - however was advised the account had been passed to Morecroft and that there was no way they could remove the default.

O2 removed my default within a week. It had been passed to Westcot Credit Services, but the default was wrong.

Basically I had two O2 accounts, they owed me money on one, and I owed them on the other. THey never sent me a valid bill and recorded on the credit record that I had defaulted on the one that they actually owed me money on. As a result they removed the default.

I do not dispute the decision to place a default on the account, only that they were in dereliction of the requirement to provide me with a valid default warning letter, therefore affording me the statutory 28 day period to respond. This is a legal requirement and has nothing to do with wether i coulda/woulda/shoulda paid it off sooner.

This is wrong, you need to pay off the debt and ask nicely. Also asking a copy for their records under Data Protection Act might reveal some errors you could work with. I would suggest you would have a stronger position vis a vis them being nice to you if you are an O2 customer.

chris.hoops78

Unfortunately you appear to be correct - mobile phone contracts are not covered by the CCA.

Strange, however, that mobile phone companies can still issue defaults against a credit file (just like a bank/credit company), yet are not regulated by the same rules.

I may do a little more digging to clarify this - and work out if there is anything i can do from here.

greenmantle

I had a similar experience to MacManlyn, but for a Virgin Media cable/landline account. They suddenly popped up last week on an online credit report (only one of them) which I've had for ages. Registered no default but an outstanding balance of 8 quid - I'd closed the account over two years ago and moved away from the address.

I rang them and asked what it was - apparently a final bill that hadn't been paid with the usual direct debit. I paid it without thinking about it, just to 'tidy up'. Then thought: hang on, is this going to be refreshed as a paid-up default now, rather than an innocent-looking tiny 'outstanding balance'?

It apparently hadn't been passed to a further collections agency, as it was such as small amount (so no one followed it up with me), but had, in the word of the Collections dept lady been 'written off' two months after the last bill, which she claimed meant that it *had* been registered as a default.

Just waiting to see what turns up in the refreshed credit report in a month or so... may have to engage in a pleading-battle to get a brand new default removed...

chris.hoops78

Well, aint this a b.

It seems that O2 were perfectly within their rights to slap a default on my account, despite not themselves being regulated by the CCA, and having also passed incorrect details to their collection agency hence given me no opportunity to respond to any collection notices.

I have read of a few genuine cases where O2 have eventually relinquished their position, and removed the notice, but only for people with a good case to present, and only after persistent badgering.

In my case, I don't think there's a lot I can do, and to be fair, the default is a true reflection of my behaviour on that account, so i guess i'll just have to suck it up. It does seem very unfair tho in terms of the impact it will have on me.