BT default notice-please help! :(

lefluster2

Hi all,

If anyone an spare a few minutes to offer their advice, I'd be extremely grateful.

I was recently declined for credit, so I decided to obtain a copy of my credit report from Equifax to see what the problem was. Once I had done so, I was confused to see that BT had placed a default notice on my file dated November 2010, in relation to an address that I had vacated in June 2010.

In all honesty I wasn't 100% sure what a default notice was, so after researching on the net, I sent a letter to Ian Livingstone's office requesting further information about this and to ask for a copy of the notice of intention to default.

After several emails between a member of staff at the managing director's office and myself, I was still no wiser as to what had happened. The same member of staff has since rang me this morning and explained the following:

1. That a bill for was sent out for the month of May 2010, at the end of May. They then attempted to take payment three times for this bill via direct debit in June and July but were unable to do so each time. Following this, they then sent a red and blue (?) letter stating that the debt would be passed on if payment was not received.

2. The debt was then passed on to a debt collection agency who then attempted to recover the debt from the address that the previous bills had been sent to (the same one I vacated in June 2010). After several attempts to recover the debt, a default notice was placed then on my account.

The total debt is for £48.60 and is in relation to an address that I was not living at during the time payments were defaulted (I can prove this if necessary). I phoned BT to close the account and cancelled my direct debit just before I moved out (hence why they could not take further payments), but they have told me they have no record of this on their system and that their phone recordings do not go back that far- so it's pretty much my word against theirs where that is concerned.

So just to summarise:

- I was not living at the address during the months that payments were defaulted.

- They were only defaulted because I had cancelled my direct debit upon moving out (after phoning to close my account)

- I therefore never received a notice of intention to default and from what I can tell, one was not sent.

My questions to you are:

1. Do BT have to send a notice of intention to default, before they can place one on your credit file?

2. What do you think my next steps should be to try and get this resolved?

Apologies for the essay and if anything isn't 100% clear - I can clarify any points if need be.

Many thanks!

stclair

I would imagine even though you left the property in June 2010 they possibly attempted to collect the outstanding bill which lead to the default being applied in November 2010.

If you called to cancel your service you would have been sent a final bill detailing the outstanding balance left to pay on the account.

lefluster2

Thank you for replying so quickly

I phoned to cancel my account before this bill was issued so I assume that it must have been a final bill. However I did not receive a copy of this, as I had already moved out by the time it was sent and they did not ask for a forwarding address from what I can remember.

It's such a small amount that I would have had no problem paying - I just had no idea and now it's affecting my financial decisions

stclair

lefluster2 wrote: »

Thank you for replying so quickly

I phoned to cancel my account before this bill was issued so I assume that it must have been a final bill. However I did not receive a copy of this, as I had already moved out by the time it was sent and they did not ask for a forwarding address from what I can remember.

It's such a small amount that I would have had no problem paying - I just had no idea and now it's affecting my financial decisions

It a difficult one as the the onus would have been on you to notify BT you was moving address and provided them with a forward address to send the final bill.

Alternatively you should have kept the DD in place to enable them to collect payment.

You could ask them to remove the default as Gesture of Goodwill in exchange for payment.

You might want to view this threat for other posters experiences.

https://forums.moneysavingexpert.com/discussion/4412195

trencherpilot

They did this to us, when we moved, my wife notified them of the new address, and we heard nothing. Finally BT wrote to us at the new address in my wifes old name to ask why we hadn't paid the bill. They are complete muppets. We are now with Talk Talk and have no dealings with BT at all

stclair

trencherpilot wrote: »

They did this to us, when we moved, my wife notified them of the new address, and we heard nothing. Finally BT wrote to us at the new address in my wifes old name to ask why we hadn't paid the bill. They are complete muppets. We are now with Talk Talk and have no dealings with BT at all

It might be worth checking your Equifax credit report to ensure no adverse data has been registered against this account.

https://equifaxuk.custhelp.com/app/answers/detail/a_id/276/kw/bt

lefluster2

Yeah I see what you mean it was probably down to me to settle everything. Really kicking myself now as I was totally unaware until a few weeks ago!

I'll try a nice approach and see how that goes.. otherwise only another 3 years to go

Interesting that you say BT don't have to issue a copy of default notice.. I would have thought they were required to under CCA law

Thanks again!

lefluster2

trencherpilot wrote: »

They did this to us, when we moved, my wife notified them of the new address, and we heard nothing. Finally BT wrote to us at the new address in my wifes old name to ask why we hadn't paid the bill. They are complete muppets. We are now with Talk Talk and have no dealings with BT at all

I don't blame you at all, that's awful! It's so frustrating that I phoned to cancel, was advised this had been done (hence why I cancelled my DD) and then my credit file received a default months afterwards. I guess I should have double checked but when you are told by a company that your account is closed, I don't see why you'd think to do that? I hope in your case it had no further impact though.

stclair

lefluster2 wrote: »

Yeah I see what you mean it was probably down to me to settle everything. Really kicking myself now as I was totally unaware until a few weeks ago!

I'll try a nice approach and see how that goes.. otherwise only another 3 years to go

Interesting that you say BT don't have to issue a copy of default notice.. I would have thought they were required to under CCA law

Thanks again!

As I said before im not really sure about the CCA element of it however im sure other posters will be able to clarify.

I do not think BT issue default notices as such its just like a red bill demanding payment if I remember correctly.

fermi

Phone contracts are not regulated credit agreements, so not covered under the Consumer Credit Act. Anyway, that is all to do with issuing a "default notice" under s87 CCA1974, which has nothing to do with a default on your credit files. They just ufortunaley use the same name for both, which gives endless confusion on forums like this.

So two separate things.....

(1) Default notice = "default notice" under s87 CCA1974. 14 Days required to remedy.

(2) Notice of intention to file a default on your credit file = Warning that a default might be placed on your credit files. 28 days to remedy. Only required if you were not warned about reporting to CRAs when you opened the account.

On account where both apply they may coincide.

On phone accounts, only (2) applies, and only if you were not previously warned in any paperwork that they may report non payment to the agencies.

Joe2407

I have recently had a similar problem to this with Halifax over a £1 debt that they did not inform me of, but claimed I should have been aware of it through statements sent out, they reported me for over 24 late payment and put me in the red.

BT should have sent you a default letter by law. The red and blue letters would not have stated that failure to pay will result in your credit being affected. To resolve this the best thing to do is to send BT customer services a letter explaining no notice was served and they must inform Equifax of the mistake attach some sort of proof that you had changed adress, also send Equifax a letter explaining the situation. BT may ask for the debt to be cleared though first before clearing your credit report. Once the default on your account has been removed you may also be able to improve your rating by asking Equifax to remove any footprints that have been declined due to this error by BT.