How damaged is my credit score?

Kilominium

I ended a two year mobile phone contract with Orange, and closed the account- so far, so good. However, they failed to provide a £22 credit I was owed to my account, despite contacting them twice and both times being told the credit had been applied.

Then in December I received a demand for payment from Orange for the £22. I contacted them on the 27th December - they apologised, told me the credit had been applied and I owed them nothing. I asked for a letter of confirmation that I was all paid up, and they confirmed via text. I asked if I needed to do anything else, as the letter warned the debt would be referred to a debt recovery firm if I didn't pay - again, they said no, no further action would be taken as I owed nothing.

I received a debt recovery letter on the 18th January for the £22. I phoned them and they confirmed I now have an unpaid debt mark on my credit record.

Since then, and after raising merry hell with several orange departments, I have now had the debt cancelled, but the debt recovery agency say all they can do is mark it 'settled'.

Should I accept this when there was no settling involved- the entire debt was a huge mistake. I have previously had a perfect credit record, have never missed a payment and never been refused credit. I am worried that 'settled' on my record will damage my credit record and affect me when I may need credit in the future.

forgotmyname

Forget the phone calls and write a formal complaint letter. Tell you you want the situation sorting and the false records on your credit file removed.

Tixy

Have you checked what is showing on your credit file in relation to this?

I'd do that first and see what it shows.

Then if it does show a missed payment (or more) I'd write a formal complaint to them.

GingerFurball_2

Will his credit record be up to date though?

Rather than wait two months I'd be inclined to complain now.

samtoby

Complain now - send the letter recorded delivery.

matttye

Marking it settled is fine but they must remove any adverse markers as well.

Formal complaint now but check what appears on your credit report in the meantime.

Kilominium

Thanks all for the advice. I had formally complained to Orange via a recorded delivery letter, but all I received back yesterday was a form letter saying your account has been closed, and you owe us nothing. No apology, no mention of the credit score. I only have the debt agency's confirmation of settled. I will try to find out how to look at my credit score, but in the meantime I think I will write to Orange again - it may be a negligible sum, but their incompetence in this matter is quite breathtaking. As is their lack of reticence it seems to me.

The_Boss

Kilominium wrote: »

Thanks all for the advice. I had formally complained to Orange via a recorded delivery letter, but all I received back yesterday was a form letter saying your account has been closed, and you owe us nothing. No apology, no mention of the credit score. I only have the debt agency's confirmation of settled. I will try to find out how to look at my credit score, but in the meantime I think I will write to Orange again - it may be a negligible sum, but their incompetence in this matter is quite breathtaking. As is their lack of reticence it seems to me.

You don't have a credit score, so there will correctly be no reference to this from Orange.

I'd get a statutory report from Experian (£2) and immediately escalate your complaint with Orange. Ideally you'll get a letter back where they acknowledge their error and what happened next (i.e. the collection agency bit) that you can photocopy and present to the collection agency when asking them to remove any entry that may be made on your report.