How Bad Is A Default

A_Flock_Of_Sheep

I am having a bad time with my mobile phone operator and at the end of my tether.

It is now at the point where I have had enough and I now think I will not pay any more and tell them to disappear. Unfortunately I am in a contract with about 14 months to run.

I know mobile companies place defaults on credit files for non payment. This would be for about £490.

I have a bank account and debit card but I don't buy on credit or want it so I am not particularly bothered about having a default and the threats made about no being able to get credit. The way I am feeling is that a default is probably better than putting up with the rubbish service.

What I did wonder is can the default be changed into a charging order on your house leading to an order for sale? If it got to court I would obviously say why I am not paying - due to poor service.

Jon_01

Its not just credit. You won't be able to change gas or electric suppers for example. You'll have a major problem getting a mortgage if you need one in the next 6 years.

They won't put a change on your house, but they will pass the debt to a collections agency (who'll add their fee's) and they will send people round to collect.

I'd urge you to talk to your network and try to resolve whatever the issues are, you really don't want this to get to that point...

A_Flock_Of_Sheep

Jon_01 wrote: »

Its not just credit. You won't be able to change gas or electric suppers for example. You'll have a major problem getting a mortgage if you need one in the next 6 years.

They won't put a change on your house, but they will pass the debt to a collections agency (who'll add their fee's) and they will send people round to collect.

I'd urge you to talk to your network and try to resolve whatever the issues are, you really don't want this to get to that point...

It is hopeless. They ignore my letters and give me the run around on the phone.

The mortgage is paid off and we don't want another one. If anything the next move (if we are mad enough) will be to downsize and release money. I have actually spoken to the building society and they said that one default would not hinder an application with them should we ever need a mortgage with them again. But at our time of life we don't want any continuous debts really now.

Sorry - the collectors you mention - are they bailiffs?

We have only electric at the cottage. Not really bothered about changing suppliers. We are a bit passive (not MSEish) when it comes to things like that.

Most concern is can they put a charge on the home and if they do not then I am more relieved.

Can one default cause a lot of damage. Can you not place a correction notice saying why it is there. For example sub-standard service from supplier.

in_the_Cotswolds

Jon_01 wrote: »

You won't be able to change gas or electric suppers for example.

You can. I have a default thanks to Vodafone!!! I changed suppliers last year and had a loan. The only problem is you don't get a good rate.

4$£&*(£$&*(!

You do not want a default at any avoidable cost. I know someone personally who has applied for a mortgage this year and they had a delay on this because their default reared its head - they had a credit card default over 15 years ago.

A default usually results in a referral to a debt collection agency. They can then apply to the courts which will result in a CCJ. If you still do not pay at this point bailiffs get involved and they will turn up and take whatever they can to resolve the debt.

Use the regulator, use Otelo, get a solicitor's letter off to them, anything like that, but whatever you do this course of action you are talking about is very foolish. I really cannot stress the hassle this will cause you for years to come. You clearly do want companies to deal with you appropriately or else you wouldn't be fretting about getting the run-around with your mobile provider. Imagine deciding in the future your energy company has caused you a major problem, messed up your billing, it takes you months or maybe years to resolve, then you decide you have had enough and you're moving... but no-one will accept you because of your credit history.

I cannot stress this enough, don't mess about, dispute whatever you have to but sort out your issue a different way. Don't stop paying like this, you cannot imagine how many sleepless nights you will get if you go ahead with what you're talking about.

mobilejunkie

All very good advice. People never know when a default on their credit record may affect them; and the stress and potential expense of sticking your head in the sand and hoping it will go away is really not worth thinking about. If you can afford all that you can afford to pay them off if needbe - much as that may be galling, the alternative will see you likely end up far more angry. That's without the potential unknown problems in years to come. A clean credit record is vitally important to most people - regardless of what any mortage company may say NOW. Remember the credit crunch? All financial practices and most promises (for what they were ever worth) went out of the window faster than a flock of sheep being chased by a dog (and they didn't see it coming either, no doubt!).

No-one can ever be certain of their needs and options in the future - even in later years - OR what companies may or may not allow. Play safe - don't let it happen.

A_Flock_Of_Sheep

CitySlicker wrote: »

You do not want a default at any avoidable cost. I know someone personally who has applied for a mortgage this year and they had a delay on this because their default reared its head - they had a credit card default over 15 years ago.

A default usually results in a referral to a debt collection agency. They can then apply to the courts which will result in a CCJ. If you still do not pay at this point bailiffs get involved and they will turn up and take whatever they can to resolve the debt.

Use the regulator, use Otelo, get a solicitor's letter off to them, anything like that, but whatever you do this course of action you are talking about is very foolish. I really cannot stress the hassle this will cause you for years to come. You clearly do want companies to deal with you appropriately or else you wouldn't be fretting about getting the run-around with your mobile provider. Imagine deciding in the future your energy company has caused you a major problem, messed up your billing, it takes you months or maybe years to resolve, then you decide you have had enough and you're moving... but no-one will accept you because of your credit history.

I cannot stress this enough, don't mess about, dispute whatever you have to but sort out your issue a different way. Don't stop paying like this, you cannot imagine how many sleepless nights you will get if you go ahead with what you're talking about.

It is really a matter of principle. My supplier has made a change (without my agreement) to my contract which means that I will possibly have to pay more than I agreed at the start. At the moment I have a web browsing limit of 500MB and if I go over they sent a message saying dont be naughty but then they do not charge any more. I don't go over by much - maybe 200MB tops.

In October they are now charging £5 if I go over the 500MB by even 1KB.

I wrote to them saying I do not accept this and in fact I only found out about this new charge by SMS when I approached my 500MB limit. It said from Oct 1st I will be charged. A proper letter would have been nice warning of this.

I have phoned to complain and to say I am not happy and written but I am getting nowhere with scripted idiots who cannot pass me to anyone more senior - so it seems easier to just stop the direct debit and call it a day - the idea being that when the supply of money stops I am sure they will be quick to get in touch.

So obviously if I got taken to court I would explain all this. At the moment it seems easier to just let it drift to court so I can get it sorted with a judge as the company is not responding and being most unhelpful.

I think it is disgusting that they can ignore people and then simply bully and intimidate people by bringing in debt collectors when you have a genuine grievance.

This isn't about buying a phone I simply did not like, losing a phone and wanting another or wanting less or more texts - it is about being charged more than I originally agreed.

boliston

A_Flock_Of_Sheep wrote: »

It is really a matter of principle. My supplier has made a change (without my agreement) to my contract which means that I will possibly have to pay more than I agreed at the start. At the moment I have a web browsing limit of 500MB and if I go over they sent a message saying dont be naughty but then they do not charge any more. I don't go over by much - maybe 200MB tops.

In October they are now charging £5 if I go over the 500MB by even 1KB.....

If this charge was not laid out in your original contract then I doubt they could legally enforce it.

I would be inclined to pay bills normally but strike out any surcharges and refuse ONLY to pay the uncontracted excess. If they try to take the excess by DD then BACS them instead. If they tried to take you to court for the excess then I doubt they would win. I don't think they can damage your credit rating if you have a genuinely disputed and documented charge that you are refusing to pay.

A_Flock_Of_Sheep

boliston wrote: »

If this charge was not laid out in your original contract then I doubt they could legally enforce it.

I would be inclined to pay bills normally but strike out any surcharges and refuse ONLY to pay the uncontracted excess. If they try to take the excess by DD then BACS them instead. If they tried to take you to court for the excess then I doubt they would win. I don't think they can damage your credit rating if you have a genuinely disputed and documented charge that you are refusing to pay.

Hi! I have found a thread on here with lots of people in the same boat it appears.

It is the Vodafone Desire Fair Usage Policy Thread.

4$£&*(£$&*(!

The problem is it is not a matter of principle for your provider. You pay them for a service, they cause you hassle, you feel they are singling you out and causing you bad service.

From their point of view, they want maximum revenue and they have a paid legal team. If you stop paying, it does not matter one jot to them as they'll instruct their legal team to get onto the matter. You will come off worse and companies do not care how long you have been a customer or how much you spend with them (apart from the mega-rich of course), to us minions we are merely lots of little dots on an overall balance sheet and it will not make much difference to them if you stay or go.

I take it you are talking about Vodafone. I have personally recently cancelled with them and managed to get out. At no point did I ever think of cancelling my debit with them. Additionally there is another matter, I take it you intend trying to cancel under clause 11.2 of the contract which is the 10% rule. Everyone who has been let go up to now is basically on a goodwill basis. You have not been charged until your October bill comes in so as of this moment in time, until 1/10 you suffer absolutely no detriment either financially or in the service you take from them. You will lose in court if you cancel now without being charged.

I fully agree Vodafone have been silly in how they have handled this, and you are speaking to someone who has had over 60 emails with them, recorded delivery letters and recorded phone calls too. They will have you served up for lunch in front of a court if you cancel your direct debit at this stage in proceedings though and you will lose. I'm not saying you may lose, I am putting my neck on the block and say you absolutely will lose at this stage in the process.

To get out of their service you must write to their Newbury address. You say you have written - is this by letter to Newbury? This is the way they say you have to proceed to cancel and it is published on their forum announcement about this.

Fully agree about leaving Vodafone with this change, but don't do something silly like cancel your DD as you will come off worse.

4$£&*(£$&*(!

A_Flock_Of_Sheep wrote: »

Hi! I have found a thread on here with lots of people in the same boat it appears.

It is the Vodafone Desire Fair Usage Policy Thread.

Yes and it has been going on since May. Take the advice in there, I have posted enough being successful in cancelling, but please for your sake say you will heed my advice and do not stop paying them whilst you dispute this, you do not have a leg to stand on at this stage until they try to charge you and you prove you have had no advance notice of the charge, but right now what you must do is get the written letter into Newbury.