Late payment marker on credit file - effect on mortgage application?

allotmentprincess

Hi all,

I took out a sim-only contract with Orange via Phones 4 U back in March. I filled out a direct debit form and my debit card was run through their machine to check authorisation or whatever it is they do. All OK, or so I thought until I got a text message from Orange towards the end of April saying my payment was now overdue.

I checked my account immediately and found it was in two months' arrears. I redid the direct debit straight away, paid the outstanding amount and thought no more about it.

However, I decided to check my credit report online as I am hoping to buy a house next year and I wanted to see if there were any issues with it, and found the late payment marker from March. I called Phones 4 U to ask why the direct debit hadn't been set up, but they were hopeless (and had gone into administration the day before), so I called Orange, spoke to a very helpful chap in China who gave me an email address to find out what was going on. Orange/EE replied basically saying it is my fault and there is nothing they can do. I disagree - my account has always had sufficient funds to cover the direct debit, they just failed to set it up.

Having checked with my bank, they never received a DD request from Orange when the account was first opened, only the one that I set up on discovering the issue. Phones 4 U have washed their hands of it, and the store I went to has since closed.

Any advice?

allotmentprincess

Sorry, failed to ask the all-important question - my credit report is otherwise good. Is this likely to screw up my mortgage application?

stator

Put a Notice of Correction on your credit file explaining the circumstances. Hopefully a human being will read it and take it into account.

thebritishbloke

I don't think you'll get anywhere unfortunately, especially since Phones 4 U has gone under.

allotmentprincess

I shall try Orange again, saying the DD was never set up with my bank, and appeal to their better judgement as all payments have been taken without problems since, and ask them to remove it as a gesture of goodwill. I really don't want to screw up my chances of getting a mortgage, given how difficult it is at the moment anyway.

It is partly my fault for not checking that the direct debit had been set up, but I have never had problems before and stupidly assumed that the payment would just be taken. Lesson learned.

allotmentprincess

Still no joy with Orange - they keep saying "it's in our T&Cs" but have failed to answer my question as to why the direct debit was not set up. I'm going to keep on at them, and if it's not resolved I'll take it further - going to try the Guardian's consumer champions to see if they can do battle on my behalf.

So angry.

allotmentprincess

And having done a quick google I find that the message they've sent me is almost word-for-word the same as this response quoted here:

https://forums.moneysavingexpert.com/discussion/4921505

Gah.