Help - Is this Default Correct? Confused..

westminstergirl

I have an 18 month contract with Orange taken out in oct 2009. Within weeks of getting the phone it broke, taking months to repair. Around Jan/Feb I stopped paying, stupid I know. I never heard anything from Orange after April 10.

In August 10 I checked my credit file. There were two updates from Orange. The first said:

Name: .....
Address:.....
DOB:....
Company Name: Orange PCS
A/c Type: Communications
Started: 28/10/2009
Current balance: £153 (this was correct)
File updated to: 15/08/2010
Status History: (5)

When I saw this I paid the debt in full and the line has now been reconnected and I continue to pay the monthly charges.
The contract expires in April 11.

Today I looked at the second alert

Name:
DOB:
Co:
A/c Type: Communications
Started: 28/10/2009
Current Balance: Settled
Settled on: 01/08/2010
File updated to: 12/09/10
Status history (8)

My question, can the status just jump to Default after the debt has been settled. The first Alert was on the August 15, the second on September 19.

Any help would be really appreciated.

jonjamie1970

When did you receive the notice of default through the post ? This also shows 5 missed payments up to August 2009 so a year later its defaulted.

westminstergirl

Hi,
I didn't receive anything through the post from Orange or any third party. Orange statements stopped around April. I checked my credit report online (Experian) back in August 10 and when I saw the no. of months in arrears I contacted them. They gave me the details of a third party (debt collectors) to call and make the payment to them, which I did. I checked my credit file again today, and see that the update that was five months in arrears (Aug) seems to jump to eight months and defaulted after the debt was settled. I'm not sure how to tackle this. Ideally I'd like it removed as from reading other posts I see its going to be a nightmare trying to get credit for the next six years.....
Help appreciated.

jonjamie1970

Can you get hold of your proof of payment to the dca ? Its sounds as if you may have already been approaching default when you rang them and then gave up trying, defaulted you and then passed the debt to the agency.
They don't have to keep going from 5 missed month to 8 to default, 8 is just a user digit representing a default. 5 months would be enough to default you if you didnt contact them or arrange payments etc.
They do however have to provide you with a letter to tell you they are going to default you, you will need to find the template on here and ask them to prove that they sent this to you. If they have this on file then the default stands, despite settling its very difficult to remove defaults and they stay on your file for 6 years.

westminstergirl

Sorry, I've just seen my mistake, the first Alert update should have read 15/08/10, I've corrected it now.

jonjamie1970

My reply remains the same I am afraid, they have had enough after 5 missed payments, and defaulted you. 8 is just the industry standard figure for a default.

EDIT: I'm not sure about the reconnection though now you mention it ?

MrsTinks

Well you might get them to correct the details but from what you say then yes there should be a settled default on your account... You had a credit agreement... you defaulted (by not paying) and then you settled it... correct?
If the number of months it was in default is wrong then you can ask them to correct this as well as the date it went into default... but I strongly doubt you would get them to remove the defualt unless you can prove that they failed to uphold their end of the contract and none of their loopholes get them out of failing to give you the handset working in x time frame etc...

jonjamie1970

OP says the phone had been reconnected though which I find difficult to understand.

dreamdreamer

Because the OP is still in contract now and still paying monthly line rental? It's odd they didn't shut the whole account down but presumably since the account is still active and the OP is paying for a service they're obliged to provide that service for the remainder of the contract. Quite weird though!

westminstergirl

What I'm finding odd is that they have acknowledged receipt of payment on the 1 Aug 10 on their second update yet defaulted it. I was hoping that they would update their first Alert to show that I had actually paid the bill. First update is to the 15 Aug.

DVardysShadow

As I understand it, they cannot default you without first giving you a default notice and time to pay. If they did not send you a default notice or you paid within the deadline, this is grounds to get the default removed from your credit record.