Removing default status placed by o2

JAZZFUNK

Hi everyone,

I'm looking for some advice and I suppose reassurance on the following.

o2 placed a default on my credit file for £63 from 2007. I was an o2 customer before and after this point. I discovered the default whilst checking my credit file in 2008 and immediately settled it. I contacted o2 asking them to remove the default as I felt it was unjustified. I received no response. I have just checked my credit file again and the default remains, although with the caveat 'settled'.

o2 did not contact me regarding the outstanding debt.
They were happy to place me on a new contract without informing me of any debt.

I have contacted credit referrals department at o2 to seek removal of the default.

My questions are:

1. Are they obliged to contact me if they believe I owe them money before placing me as a default (I've only recently become aware of the severity of a default status)?

2. Should I be able to claim that I should have expected them to make me aware of it given my ongoing accounts with them?

3. Why would they give me another account if they also had me listed as being in default?

4. Should I be able to get the 'default' removed?

Does anyone have any answers of advice on how I can sort this? I've basically got no chance of getting credit for anything until I do, since this is the first thing creditors will see. Unbelievable given that they never even tried to contact me.

I'm more perplexed than angry, but as the severity of this sinks in (mortgage applications etc) I'm sure that will change.

Thanks,

Shaun