Incorrecr defaults on credit report

Dani890890890

Hi

I was refused an increase in my student overdraft due to having defaults on my credit report which I was unaware of. So after checking my credit report I found that I had two defaults againist me from Orange which I cannot understand. What happened was that about 16 months ago I opened up an internet dongle and a phone contract with them. However I had to leave my job due to staff cutbacks so was unable to afford the payments. I then agreed a payment plan with Orange after getting a few months behind with the payments. This was all set up In August 2009 and I've stuck to the payment plan without missing any payments what so ever. However when refused my extended overdraft I decided to have a look at my credit report which shown the two defaults againist me. However these defaults were issued in December 2009 after the arranged payment plan had been arranged. Could someone explain to me whether Orange were correct in doing this or are these defaults incorrect as I can't see how a default should be issued when an arranged payment plan has been agreed and stuck to.

Thanks in advance.

DarkConvict

Because your payments were below the minimum amount they are legally allowed to issue a default against you, the payment you arranged is informal and thus payments made are below the contractual minimum hence classed as a late/missed payment.
Get enough of those (~3 months) and they can issue a default, however there is some hope.

Defaults must be sent to you to give you time to put the account in order before the account is closed and a default placed, if you never received the letter you may have some slim hope of getting it removed. Slight problem is that they can issue defaults for upto 6 months so even if it is removed they could issue you a letter to get your account out of arrears or face a new default. If you can't afford to pay off the arrears all you will achieve is getting a default removed from Dec 09 and having it placed in April 09 or later. Defaults last 6 years from date it was placed so it puts you in a worse position if you move the default date forwards.

Example default notice - http://forums.moneysavingexpert.com/showpost.html?p=30208835&postcount=49