Over 20 defaults on one account

purplestripe

Hi

I took out a contract dongle from 02 back in 2009, the dongle was only working for a few weeks and suddenly stopped working. I called customer services at the time and was told to go in store for further support. I did go in store but they referred me back to 02 customer services who then in turn referred me back to store. After several weeks with no internet, I called customer services notifying them that I wanted to terminate my contract due to the service not working and that I would no longer pay my monthly payments. That was the last I had heard of it until I gained access to my credit file and after digging, I found out that 02 have passed the debt to an agency who have issued me over 20 defaults on my file. I have not received any letters from them notifying me the account was in 'default'.

After contacting 02 again this week, they told me that they did not have any notes on the system to say I had called them and told them that I would be terminating the contract as the account is over 4 years old. I then decided to email them asking to remove the defaults as I had never received a single default notice from them and there had been a breakdown of communication. I then received a phone call from 02 explaining that it was my word against theirs and they did not have enough evidence to remove the defaults from my file. I was told I would not get much further with the Ombudsman.

Can anyone offer any advice to where I stand with this please? I took the contract out when I was a student and I am trying to sort out my credit file to be debt free.

Thank you!

Buzby

Sadly, you can only sit and wait it out until the are removed due to the 6 year limit.

You cannot arbitrarily terminate with no penalty - by telling the network you plan to do this was nice, but does not mean - as you appear to believe - ends your liability. If you ceased paying you would automatically have multile late payment flags, culminating in a single default on termination.

There is also no issue with not being advised a default was bring contemplated as there is no requirement for his to happen (it isn't a regulated credit agreement, for example).

Even if you paid what they said you owed, still would still show the default but not as unpaid - some would argue this is hardly anncrnyive to repay, and I agree with this.

What did you do with the dongle? If you returned it and have proof, there a some wriggle room, but not much, to seek a re-evaluation of the default.

purplestripe

To be honest it was that long ago I cannot remember what I done with the dongle. Will the defaults stay on my file from the last issue which was last month or does the 6 year limit start from the date of the first default?

Sorry, still trying to get my head around how this all works.

Thanks

happy_bunny_2

Stays on for 6 years from default date, paid or not.

Why you got 20? Should only be 1

purplestripe

I have had 20 (comes up month and month). I take it that it is just classed as 1 default and the rest are informing that the account is in default.

MoneySaverLog

purplestripe wrote: »

I have had 20 (comes up month and month). I take it that it is just classed as 1 default and the rest are informing that the account is in default.

Yes they are updating it monthly, the original default date will be the important date. It's that which is used as the 6 year date.

nicp60

purplestripe wrote: »

I have had 20 (comes up month and month). I take it that it is just classed as 1 default and the rest are informing that the account is in default.

Yes, it's just one default. On the entry there's a default date - it will drop off your file 6 years from this date, although you'll still owe the money.

roonaldo

Its only 1 default

Gold_bullion

Mobile phone companies are in my experience potentially difficult adversaries when it comes to CRA records.

I had a similar thing with an Orange contract I took out many years ago and it wasn't until I started checking my CRA files regularly that it came to light. They had placed a default notice on my file which was unwarranted. I complained, and after a few months it was removed, even though I never paid them anything more. So I don't believe "default notices" stay on your CRA file for six years - they don't if the lender removes them themselves after mutual agreement.

The worst thing you can do with mobile phone companies is just say that you are not paying. All they will do is continue billing you for the entire term, and then chase you for the whole debt. You need to engage them on the issue and not let go until it is resolved at the time.

However, how much are we talking about here? Dongles in those days maybe £5-£10 a month? Yes you could you could go down the SOL route and seek to avoid your debt after 6 years of phone calls, nasty letters and maybe visits to your house by debt collectors, but you could also write them a carefully worded letter (not admitting any debt), explain the situation, and engage their complaints procedure. Even if you do end up with some liability, if the amount is relatively modest then you could pay it, or negotiate a reduced bill. I've found O2 to be reasonable once you get passed the initial front line CS layer.

Some of the sentiment on this board seems to be to avoid paying debt if you can possibly avoid it, but at the end of the day people have all the benefit of what the debt provided and seem to think it is their right to avoid it if at all possible. In some circumstances this may be the only option, but often there is a compromise arrangement that will keep the wolves from your door and make you feel a whole lot better about the situation.

Bear in mind we are talking about a hypothetical debt probably - the sim was probably never used after the first month or so and was deactivated, so the "debt" may not even be real. Shame to put your mortgage plans on hold for 6 years because of what amounts to O2 placing an erroneous "default" on your file. Worth a few letters I'd suggest? The issue you had may well have been an issue they had with several other customers long since resolved and so could be sorted relatively quickly.

purplestripe

Thanks Gold bullion!

The debt stands me around 200 pounds, I will start composing a letter tomorrow and send it of recorded delivery.