Advice please!

doll989

Hi

Not sure if Im posting in the correct place, but basically I would like some advice about a default.

Some years ago (2005) I defaulted on a mobile phone contract. I remember making payments to try to clear the debt, but I moved countries and it was eventually defaulted for the sum of £47. This is what is also recorded on my credit file.

I have recently moved back to the U.K and on looking at my credit file I decided to just clear the matter up. I contacted the phone company to arrange payment, but they have since sent me back a letter saying the amount I owe due "termination of contract fee" is now £271. Why are they now trying to charge me for whatever was left on the contract?
Does anyone think I have a case for just paying the original amount, and the one for which I was defaulted for?

Also just as a matter of interest, could they default me again for this new amount?

Many Thanks

Barricade

If your contract was terminated earlier than its lifetime (i.e. 18 months), then yes you are liable for the remainder of the line rental.
The default amount will just be the amount you owed at that time.

Not too sure whether they can default again now that its terminated. I think it'll just be sold on to a debt collection agency.
Additionally, since the default was in 2005, it will automatically drop off next year sometime. (6 years to the date of the default)

Tixy

If you are in a mobile phone contract then it is standard practice that you have to pay for the full length of the contract. So once your account was terminated they have a right to charge the monthly amount for each remaining month on the contract.

You usually get a default once your are 2-3months behind and this default will be for the amount you owe at the time. But as your contract was not terminated at the point the default was issued they obviously could only charge the £47.

Whilst legally you owe the full amount due to the age of the debt I think I would suggest offering a reduced full & final settlement to clear the debt in full, perhaps offer 30% or so to start - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

They cannot change the amount of the default now or add another default to this account. The default will disappear from your credit record 6years after it was entered, so sometime next year.

Edit - sorry Barricade you beat me to it!