Help with [accidental] default on credit report.

Ceniza

I need some help/advice.

A couple of years ago, I made the mistake of getting an o2 mobile phone contract out for my brother-in-law. In October of last year, he was tempted out of his contract by another mobile phone company, and they paid off his remaining contract, however, as you know they give you the cash, rather than settle the account. It was in October 2009 that this final payment was meant to be made to o2 to clear the account and close the contract.

It turns out, for what ever reason, that this final payment never cleared. Since the contract was in my name, o2 attempted to write to me, asking for the money, however, I had moved addresses since then, and as a result, their letters did not make their way to me, and they were not forwarded either. O2 had my contact details because I had another two contracts with them, but they didn’t contact me at my new address, and as a result, they instructed a debt collection agency to come get me.

Somehow, the agency sent the chaser letters to my fathers address, and fortunately as soon as he told me a letter had arrived for me there, I was able to pay off the debt to o2.

Here lies the problem, my credit file now shows a default. This was in no way a deliberate error, but it was my error as the contract was in my name. I accept responsibility for that, however, what I need to do is to try and clear my name. Can anyone offer any help and advice to me?

Thanks.

DarkConvict

Since the debt has already been paid off you don't have any power to negotiate.

You could try and argue with 02 that they had a duty of care and they knew your current address and even 2 alternative phone numbers but failed to make contact with you by these means. The problem maybe if these are separate accounts the only linking information maybe your name, and that's not to say there are not other people with your name so a collections agent may not have been able to work out you had other accounts. At the end of the day 02 sent bills and default notices to the last known address on this account, they received no reply or repayment so issued a default.

Since they have done what was required of them, you are going to have to play on the goodwill gesture approach. Write a letter to the complaints office at 02 and put in what you have written here and ask for the default to be removed on the grounds that 02 had current contact details, and as soon as a mistake was realised you promptly made final payment. If they refuse there is nothing you can do but wait 6 years.
You could always ask the credit reference agencies to put a note of correction against the default, explaining what happened in a short sentence.

Ceniza

Thank you for taking the time to reply. I wrote to o2 credit reference team on Sunday explaining the situation to them, and that it was a genuine error, so hoping they can do this for me.

I'm guessing if they agree, the default is removed and my file is cleared again?

Thanks

DarkConvict

Yeah, if they agree to remove it you just need to wait upto 60 days for it to be removed. 30 days to report it, 30 days for the report to be updated. Although it can happen much quicker.

clang_uk

Also on this thread, I've had a similar problem and would appricate any advice. I missed a CC payment of £20 I paid it on 20th instead of 18th. I;m guessing the CC co. would have put a default on my file? How much does this matter if it's the first one I've missed? I paid off the CC in full and their penalty is it worth chasing the firm to get them to remove the default (if they have submitted one)?

Thanks

DarkConvict

To miss a payment you would only get a late payment marker, a single late payment is nothing to worry about so along as it is paid. The issue is when you miss 3 or more and they issue a default notice.

Basically you pay what you owe plus the £12 late payment fee. A single late payment does little to no harm so i would not worry about it.
Defaults do not just go away by simply chasing there needs to be a good reason behind it as they are very serious and can only be placed subject to certain conditions.

clang_uk

Thanks for your help - much appreciated - I can sleep better now!

Ceniza

Just thought I would report back.

I spoke with o2 (finally got a reply to my original email), and they've agreed to remove the default from my credit file. I check Experian today, and it's no longer there!! My credit file is clear of this default!

Thank for your help and advice

DarkConvict

That is great news!