Default on credit file (1st Credit Ltd), mobile in friend's name

Sky1982

Hi there,

A few years ago my friend needed a phone but couldn't get one as she hadn't been at her home address long enough. Silly, I know, but being the good friend I am (and also thanks to a very persuasive sales man!) we took it out using my name and address, using her bank details with her promising she'd switch to her name/address once she'd been there a few more months. At the time (2010) I didn't think it would affect my credit as it was her bank details, again, silly, I know.

However, having recently been refused a credit card from my own bank I signed up for Experian and found this defaulted payment of £505.00. This has knocked my credit score down, henceforth me being refused the card. I'm absolutely gutted and I feel stupid (so there's no need for the reprobation ) but now I've mentioned it she has admitted it's her fault by text message (so it's in writing) and she has said to tell them it's down to her and switch it so it's in her name and she will pay any owing money.

So, if I contact 1st Credit Limited now to advise them it's her debt and not mine and that she's agreed to settle, will they switch it over? Or will admitting this is the case, will this assume liability to me and will I then have to make payments? If that's the case, I could possibly wait two more years for it to be wiped off, but I'd much rather it was switched to her and have it taken off my credit score.

Thanks in advance for any advice Needless to say I will NEVER do this again!

Thrugelmir

You took the contract out. So your default. A costly mistake.

Anoneemoose

Sky1982 wrote: »

Hi there,

A few years ago my friend needed a phone but couldn't get one as she hadn't been at her home address long enough. Silly, I know, but being the good friend I am (and also thanks to a very persuasive sales man!) we took it out using my name and address, using her bank details with her promising she'd switch to her name/address once she'd been there a few more months. At the time (2010) I didn't think it would affect my credit as it was her bank details, again, silly, I know.

However, having recently been refused a credit card from my own bank I signed up for Experian and found this defaulted payment of £505.00. This has knocked my credit score down, henceforth me being refused the card. I'm absolutely gutted and I feel stupid (so there's no need for the reprobation ) but now I've mentioned it she has admitted it's her fault by text message (so it's in writing) and she has said to tell them it's down to her and switch it so it's in her name and she will pay any owing money.

So, if I contact 1st Credit Limited now to advise them it's her debt and not mine and that she's agreed to settle, will they switch it over? Or will admitting this is the case, will this assume liability to me and will I then have to make payments? If that's the case, I could possibly wait two more years for it to be wiped off, but I'd much rather it was switched to her and have it taken off my credit score.

Thanks in advance for any advice Needless to say I will NEVER do this again!

Unfortunately they will not transfer anything to her. As far as they are concerned, you are the account holder and it is you who is liable. It is also a true reflection of the payment history therefore the default will remain on your credit file for 6 yrs from the date it was applied. If you can get her to pay it, it will be slightly better, but not much.

There's nothing stopping you asking them of course and you have nothing to lose by doing so however, I think it highly unlikely that they will do anything

Sorry to be the bearer of bad news!!

PaulW922

I have to agree with the comments above, however there may be a chance to get this sorted out. Firstly I would suggest the debt needs to be settled. Once that is done you and your friend could write to the phone company and explain. It was after all the salesman who suggests this to you in the first place and credit records are supposed to reflect your credit history, not a friends. If the debt has been sold to 1st Credit you will need to deal with them which is bad news, but otherwise go to the original phone company.

If that fails, try the Information Commissioner. Ultimately the debt is in your name and you are responsible, but you might just get somewhere and you have nothing to lose. Do bear in mind though, that you are asking for a special case to be made

Sky1982

Anoneemoose wrote: »

Unfortunately they will not transfer anything to her. As far as they are concerned, you are the account holder and it is you who is liable. It is also a true reflection of the payment history therefore the default will remain on your credit file for 6 yrs from the date it was applied. If you can get her to pay it, it will be slightly better, but not much.

There's nothing stopping you asking them of course and you have nothing to lose by doing so however, I think it highly unlikely that they will do anything

Sorry to be the bearer of bad news!!

Thanks for your helpful advice; how do you know this, from experience? I know there's nothing to lose but it's absolutely daunting to say the least. Part of me would rather sit out out for the next two years...

PaulW922 wrote:

I have to agree with the comments above, however there may be a chance to get this sorted out. Firstly I would suggest the debt needs to be settled. Once that is done you and your friend could write to the phone company and explain. It was after all the salesman who suggests this to you in the first place and credit records are supposed to reflect your credit history, not a friends. If the debt has been sold to 1st Credit you will need to deal with them which is bad news, but otherwise go to the original phone company.

If that fails, try the Information Commissioner. Ultimately the debt is in your name and you are responsible, but you might just get somewhere and you have nothing to lose. Do bear in mind though, that you are asking for a special case to be made

How would I go about going to the ICO? They're only around the corner from where I work, funnily enough