Poor score - Rejected - Over £14!

Every.Little.Helps_2

I'll try to keep this concise


I applied for my first ever credit card (no loans apart from student debt) as I'm looking for some interest free credit to use on a holiday. After consulting the advice pages on this site I see Tesco offers a great card. I use Tesco weekly and have done for years (look at my username!), I was sure this was a match made in heaven.

REJECTED

Alarm bells. Ok, I remember reading that multiple rejections makes things even worse, so I need to check my credit score. Go through the rigmarole with Equifax (don't even ask) and eventually find out that apparently I have £14 outstanding with Orange since last summer. My 2 year contract ended last July, at this point I cancelled my direct debit. Turned out they charged an additional amount the next month that has affected me credit rating since.

I can't access my online account, as it's shut down. I can't call them up, as I don't have an Orange number. I visited an EE store, they gave me the same number. They called directly and gave me the phone. I was asked to give some characters from my password.... for them to access my account. However, they cannot give me access to my account because I'm not a current customer. Furthermore they admit to having no record of sending me correspondence telling me about this payment. To rub salt in the wound I'd have to pay them an additional £4 to receive the bill in the post!

So my main questions are:

1.) Is this charge legit? Apparently it was for transferring my telephone number to a new provider. I cannot check any details of my previous bills as they will not let me access my online account. I had no idea about it until now.

2.) How can I escalate with Orange? Neither the store or phone representative gave me details to escalate.

3.) Once paid or written off, how do I get my credit score fixed? How long does this take?

This is my first venture into the world of credit scores and I'm not looking forward to what the future holds. I've always been debt free and paid on time yet I can't even get a credit card!


Sorry for the wall of text and thanks for any responses.

The_Boss

You dont need to check your "credit score" if rejected (you dont have a "credit score" anyway), just the data on your report. If you cannot resolve the issue, the effects of the late payments lessen over time.

Usually I'd say you haven't damaged your credit file because of £14 - you have damaged it by late/missed payments since last summer (i.e. the amount is not relevant, but not managing the account is relevant).

BUT! I've seen this so many times from different people on this forum with Orange that it makes me suspicious that something at their end is contributing to it.

Every.Little.Helps_2

Well the one and only bit of data on the report that is negative is this non payment, affecting payment history, current payments, and credit obligations.

I was unaware of the charge having received no emails or letters and even If I decided I fancied looking into a historical phone contract's account I couldn't have done as they've made the account inactive!

The amount surely is relevant as I will be rejected over £14 I was unaware of in the same way that others who are £1000s in debt are rejected, hardly a sensible system.....

Every.Little.Helps_2

The worst bit is they couldn't take the payment as I cancelled my direct debit, for this exact reason (unexpected hidden fees!) I was charged an arm and leg over the course of my 24 month contract for various things that I had various levels of success in disputing!

I've heard similar stories myself from friends regarding Orange. Absolute swindlers.

The_Boss

Every.Little.Helps wrote: »

Well the one and only bit of data on the report that is negative is this non payment, affecting payment history, current payments, and credit obligations.

I was unaware of the charge having received no emails or letters and even If I decided I fancied looking into a historical phone contract's account I couldn't have done as they've made the account inactive!

The amount surely is relevant as I will be rejected over £14 I was unaware of in the same way that others who are £1000s in debt are rejected, hardly a sensible system.....

You would not be rejected over £14 - had it been £1400 even then your credit file would be as affected as it is now.

What you say in the middle paragraph I've heard several times before from others in the same position with Orange. I'd first of all complain to them and see what happens.

Every.Little.Helps_2

The_Boss wrote: »

You would not be rejected over £14 - had it been £1400 even then your credit file would be as affected as it is now.

What you say in the middle paragraph I've heard several times before from others in the same position with Orange. I'd first of all complain to them and see what happens.

That's exactly my point though, that a credit file can be affected the same by £14 and amounts orders of magnitude higher makes no sense..

The other factor I have to contend with is I have only 2 months until my trip. I wonder if my best course of action is to pay the £14 and then try to get it taken off the credit file so I can secure some credit. I have no idea how long this may take though!

GingerBob_3

Although it's no comfort to you at the moment, but the underlying problem is that the likes of Orange have this ability to cause any one of us enormous financial problems, as a result of trivial issues, and often as not, due to no fault of our own.

Orange and the rest don't actually lend us hard cash, but they report to the CRAs as though they do. These organisations need bringing to book. Tough regulation is needed, which would see organisations with a bad track record being banned from reporting to CRAs.

Every.Little.Helps_2

It's staggering to me that this system that affects peoples lives so fundamentally has such obvious flaws and inefficiencies.

However I work within the NHS so I shouldn't be too surprised unfortunately.

[Deleted User]

If you can't pay because the account is inactive, can't you send a Prove It letter, then use the details from the proof they send, to pay it?

Failing that, how about a SAR?

matttye

Every.Little.Helps wrote: »

That's exactly my point though, that a credit file can be affected the same by £14 and amounts orders of magnitude higher makes no sense..

The other factor I have to contend with is I have only 2 months until my trip. I wonder if my best course of action is to pay the £14 and then try to get it taken off the credit file so I can secure some credit. I have no idea how long this may take though!

It's usually the behaviour that spooks lenders rather than the amount. Not paying bills of any amount is undesirable.

Arguably it's worse if you fail to pay a bill for a lower amount given that it should be more affordable.

I'm speaking in general terms, not in relation to your situation. It seems Orange have cocked up here.

JKSandy

Email creditfilequery@orange.co.uk

Tell them the situation and see if you can get the negative marks removed.