Were Orange illegal to let my son guarantee his under 18 mate?

Kittyjane

Hello, about 3 years ago my adult son let himself get talked into being the guarantee for an under age friend to take out a contract phone with Orange.

The next we heard was last November when a debt collecting agency sent a letter saying that bailiffs would be round next week if my son didn't set up a repayment plan for the £300 owed on the phone's unpaid bills. We learnt that Orange had cancelled the phone 2 years ago, and passed the debt to a collection agency, who recently sold the debt to the new agency claiming falsely that they had contacted my son to no effect.

The (ex)friend's parents have been hostile to any responsibility at their end and their son is now an adult.

So the question is, do we have any grounds for a mis-sale from Orange?

Thank you in anticipation.

grumbler

If your son was 18+ 3years ago, I don't see anything illegal and don't see any grounds for claiming mis-selling.

Buzby

In addition, your son was not Orange's customer and therefor not 'sold' anything. He acted as guarantor for his pal, which makes him legally responsible with this pal to repay should the pal default.

I'm assuming this in now an ex-pal? It would be up to your son to seek full repayment of the amounts he is obliged to pay from this guy, and if he did not pay up willingly, your son could take out a SC against him.

Yes, it would make sense for the DCA to do this directly, but they won't as they already have someone lined up to take responsibility.

The only good thing in all this, is that whilst the pa will have his credit file fried, your son will not have a blemish, as it is unusual for guarantors to be required to permit their data file to be amended because of the failing of the first party.

The responsibility will remain his until paid, but at least he's learned not to be so silly in future!

Herongull

If the bill is only £300 your son has got off lightly, and learnt not to be foolish enough to guarantee anyone else's loan or contract in future.

It sounds like he didn't understand the risks of being a guarantor.:eek:

Just as well he didn't guarantee his friend's mortgage.....

19lottie82

I've never heard of Orange letting under 18s sign up for a mobile phone contract with a guarantor? I'm pretty sure your DS would have had t have signed up for the contract in his name and passed the phone over to his friend.

Under 18s cannot get credit in their name, even if someone else signs for it as a guarantor?

Even if this was the case, I don't see how yoru son was mis sold?

macman

As above, the contract was not valid if the account holder was under 18 at the time, so I don't see how they can enforce any claim against the ex-pal or your son as guarantor. If they failed to verify his age then Orange have no claim.
If however your son agreed the contract in his name, then he is fully liable for all debts arising, and always has been, regardless of who's name the original DD was in.
Clarification needed from the OP.
I suggest that your son checks his credit record as a matter of urgency.

spacey2012

Start with a £10 Subject access request demanding all paper work and copies of signed contract Orange or their agents hold.
See what he signed first.
If he signed the contact then he may have a problem.
If it was a contract for an under 18 and he guaranteed it then both are invalid as the first contract was illegal.

Silk

Kittyjane wrote: »

So the question is, do we have any grounds for a mis-sale from Orange?

It's not a mis sold contract as you say your Son was an adult ie over 18.

What may be a case, although not my strong point, is it may have been mishandled.

As far as I'm aware notice of default should have been served to your Son a long time before the debt was sold on twice.

The creditor has a duty of care towards the guarantor which doesn't seem to have happened in this case.

For example at this late stage it may be difficult for your Son to recover the debt from the debtor but had he been served notice of the default at the time steps could have been taken etc etc

oopsadaisydoddle

Orane do not and have never offered guarantor agreements. It seems to me that your son agreed to the contract in his own right and then passed it to his friend. Who told him he was being guarantor? His friend or Orange?

He should have made sure he was aware of what he was agreeing to in the beginning. Harsh as it may sound, it is his responsibilty to be aware of what he was entering in to.

Also, there isn't always a signed agreement if taken online/over the phone so that won't necessarily help.

I don't think there's much he can do apart from pay up UNLESS he believes the account was taken fraudulently with no knowledge at all. That would then be a different matter.

macman

If your son knowingly helped his ex-pal to obtain a phone contract when he was under 18, then, he has he not potentially defrauded Orange himself?

Treading_Water

My daughter did this. Took on a phone for her friend who was under 18 on the advice of the dealer who told her that the friend could take it on as soon as she turned 18. As soon as I found out (when she got home) I sent her back down the dealers but it was too late. Instead my daughter took on an Iphone that she didn't need and lost a friend into the bargain. (After I explained to her about the potential damage to her credit rating).