How will this affect my credit history/rating?

kirstiem

I had a debt collection company, buchanan clark and wells harrassing me for £300 which they said i owed to them because of a missold broadband with 02. It happened in about June time and when i phoned them up to explain the situation ( i wasnt at fault) they were soo horrible/nasty. The conversation ended with me screaming u aint getting my money and hung up.

Anyway they kept sending me letters but i was determind they were not getting my money i know its stupid but i was trying to sort the situation out with 02 themselves.

Then today i got a letter from them which said they would reduce the debt to £140 if i paid it today in full. So i done it because it was causing me so much worry and upset.

Just wondering what my credit file will look like now? I know i was in debt but i have paid it so how will this appear? Really bad or not too bad?

Thanks to anyone with an answer!:T

mr.ton

Stop speaking to them on the phone & refuse to answer security questions if they phone you.
They want you to get irritated and angry - they will see that as job done.
This wont be covered by a CCA - however they still need to prove that you owe the debt.
The letter you got today was a desperation tactic on their part.
Tell them to get lost & report them to the OFT/trading standards if they dont.

bottleofred

Hi Kirstie,

If you get a copy of your credit file, you should be able to see what is on it. Did you get any correspondence regarding a default on the 02 account? It's good that the debt is now settled, but it may harm your ability to get credit for a total of 6 years. Many people recommend getting a copy of your credit file from all 3 companies to compare it. There is Experian, Equifax and I always struggle with the last one, but think it's creditcall, but if I'm wrong someone will correct me shortly. You can get free copies with Experian and Equifax via their websites, but you have to use a credit/debit card to sign up to the original trial and as soon as you've received the copies, you should cancel the trials immediately in case you forget and then get charged.

Good luck in getting it sorted out

Tixy

When did the debt first arise? or when did you stop paying for the broadband?
Its almost certain that you will have a default registered on your credit file and this will stay on your file for 6years from the first date it appeared. It will affect your chances of future credit, especially for the first 3-4 of years. You may be able to get some credit but probably not at the best rates.

Usually when you pay a reduced amount like that your credit file will be updated to show that the debt has been partially settled, that is that you didn't pay the full amount but that you no longer owe a balance. However BCW are not always great at updating your credit file to show this, and people have had to chase them in the past.

If you haven't already I would check your credit file to see what it shows (free trial or £2 per credit reference agency).

kirstiem

The debt started in June. I never made a payment on the broadband becuase it was mis sold and i wrote to them and asked them to cancel it because of this and they never replied and then finally i got letter from them saying i owed them £300 but i never because i cancelled within the cooling off period but they didnt seem to understand this. I have tried to check my credit file but ive already had the free trial and experian is £7.99 which i cant even afford at the moment lol boohoo. So was just wondering what you guys thought the outcome may be. I dont even mind for the time being.. im in uni for the next 3 years but its after that when i get a job and want a mortgage im scared i wont be able to get one bcos of this damn broadband!

kirstiem

The debt started in June. I never made a payment on the broadband becuase it was mis sold and i wrote to them and asked them to cancel it because of this and they never replied and then finally i got letter from them saying i owed them £300 but i never because i cancelled within the cooling off period but they didnt seem to understand this. I have tried to check my credit file but ive already had the free trial and experian is £7.99 which i cant even afford at the moment lol boohoo. So was just wondering what you guys thought the outcome may be. I dont even mind for the time being.. im in uni for the next 3 years but its after that when i get a job and want a mortgage im scared i wont be able to get one bcos of this damn broadband!

Tixy

You can get your credit file for just £2 from any of the agencies - you need to order the statutory credit report from their websites (not the fancy one they try to direct you to).

Do you have any other credit at the moment? cards or catalogues or anything? If so then one bit of advice I would give at this stage is to try to keep a positive credit history with one of 2 credit products. That is always make the minimum payment each month, and if you have open credit but no debts then put an occasional purchase on there and pay off the next month (to avoid interest).

For future reference (or for anyone else reading), the best advice is not to talk to debt collectors on the phone, and not to pay them over the phone.
Did you have any proof you has cancelled the contract? did you do it in writing and if so did you send recorded - again that would be a useful tip for the future.

At a guess if you are a Uni for another 3 years its likely that by the time you want/could afford a mortgage this default may well have gone from your report anyway.