Deposit demanded for mobile phone contract

mrsjelly

My friend, has found a deal through the car phone warehouse for a phone contract for £7.50 a month but last year he was made redundant and fell behind on payments for his credit card which has effected his credit rating.

He has now paid of the card and got a new job and just applied for this new phone contract but recieved an email yesterday from carphone warehouse saying the network operator want a £100 deposit up front which they will keep for 12 months because they feel he is a risk after checking his credit report.

Are they allowed to do this?

grumbler

Of course they are. Why not? Would your friend prefer just to get rejected?

mobilejunkie

Maybe they don't understand why we HAVE credit ratings! Or perhaps they should take risks with their shareholder's money like the banks and THEN we can have a go at them for that later when bills go unpaid as well!

mrsjelly

I only asked the question because i have never come across this before and in the past people have been helpful on here .:(

mije1983

mrsjelly wrote: »

I only asked the question because i have never come across this before and in the past people have been helpful on here but this time it seems not .:(

Your question was answered by grumbler so I don't see how you could accuse them of not being helpful :think:

Silk

mrsjelly wrote: »

I only asked the question because i have never come across this before and in the past people have been helpful on here .:(

It's quite common for a supplier to ask for a deposit if they feel it's required.
I don't see how anyone other than a credit ref agency could help to persuade a network to do otherwise let alone a member on here.
Your friend has the option to go elsewhere for a contract if they will accept them

Hermia

mrsjelly wrote: »

My friend, has found a deal through the car phone warehouse for a phone contract for £7.50 a month but last year he was made redundant and fell behind on payments for his credit card which has effected his credit rating.

He has now paid of the card and got a new job and just applied for this new phone contract but recieved an email yesterday from carphone warehouse saying the network operator want a £100 deposit up front which they will keep for 12 months because they feel he is a risk after checking his credit report.

Are they allowed to do this?

I had that happen to me when I got my current phone contract. They sort of did me a favour as I then sent off for my credit reports and discovered an error on them. I am with O2 and they just used the deposit to pay my bill for the first few months.

mobilejunkie

It also helps rebuild a credit report. If you are paid to provide a service to someone based on the credit YOU give them not many people would be happy to sign a blank cheque when the person hasn't paid their debts in full and on time in the last 6 years.

Mrs_Ryan

I hope its not with Vodafone... I paid them £150 deposit on a contract and when it came for them to return it they sent me a cheque for £25 to an address where I hadnt lived for 9 months and even they admitted wasnt my billing address on the system (luckily this was my Mum and Dad's house so I got the cheque fine but thats not the point) after a long protracted battle (in which they repeatedly admitted they had no reason to hold the money as all my bills had been paid in full and on time and I owed them nothing) they settled out of court on it but they dont like repaying you...