Default added to Credit File over hilariously small amount

web_nerd

TLDR; An assumed wrongly-added default added to credit profile over a meagre £35.00.

Hi All,

Just a bit of background on this (apologies for the length):

I had a mobile phone contract with Orange (renamed to EE about half way through) which came to an end at the beginning of 2012. About three months prior to the contract ending, I had the obligatory call asking whether I was looking for an upgrade. I replied "no thanks", to which the agent seemed fine with and mentioned she'd leave a note on my account which meant it would be closed by the customer retentions team at the end of my contract. Great, less hassle for me! So after the final month's payment, I cancelled the direct debit on my online banking account.

I recently started using Credit Expert after somebody had managed to gain access to my bank account (unrelated to this), and had a quick look on there to make sure nothing untoward was going on. I noticed my credit score was at 750 and listed as 'Fair'. This was weird as I've never missed a payment on anything. It turns out that following the end of my contract, Orange had somehow calculated that I owed another £35, and had passed this on to a debt collections agency whilst also adding a 'default' notice to my account. Bear in mind this was only within the last couple of months and that this contract ended two years ago.

I've sent a letter of complaint to EE insisting that they show proof of me owing money and that they might remove the default notice from my credit file.

Have I missed something? Is there anything else I should/could do to help my case here? I just find it strange that a large corporation would miss £35.00 so much that they would financially cripple my chances of a mortgage/loan with a default lasting six years.

Thanks in advance,
Adam

happy_bunny_2

If for some reason you did owe £35, mobile companies are very poor at sending you a letter. they normally say they texted your contracted number, which is usually disconnected!

What is the default date, sounds like it ought to be 2 years ago, even if its only recently just appeared.

A complaint as you have done is the best way to start.

Yes, there are many stories of defaults for low amounts like this.

Ignore your credit score, its a waste of time. You should still be able to get a mortgage with a small default.

HB

pitanorf

Is the £35 you owe equivalent to one months rental?

Also did you get confirmation that the note they put on your account was actually your notice to cancel, saying no to an upgrade is a bit different than cancelation?

Usually your t&c would state that you would need to give a notice period (typically 30 days) for your termination, if you want out exactly on the date your contract expires you would time it to give notice a month before hand, and some people would also ask for a PAC at this point to port their number.

Could you have unwittingly owed EE another months rental as your cancelation was late and took your agreement into a 25th month and due to your canceled DD they didn't get the payment?

web_nerd

It is entirely possible that they didn't manage to cancel my account due to not seeing the note. I would have thought after having 24 months of £35 from me though they might have just waived the fee rather than selling it on to a collection agency - quite low of them. Although just business I guess.

Hopefully my complaint with some sympathy hints in there will do the trick and they can remove the default from my account. It's horrible being proud of your finances but something like that preventing so many things.

McKneff

If it is a legitimate debt, you have zero chance of getting a default. Its a true record of your credit history.


Like you say, its business, Ive seen defaults for a lot less than the 'hilariously' low amount of £35.


Good luck with it though, hope it works out for you.

nubbins

I had this from O2 for £24 a few years a go, basically I had an online cnversation with an agent to cancel an account. It wasnt until I did a credit check on myself I noticed the default. I lodged a complaint and after I got the "computer says no" email reply I sent a reply copying in the writer of this piece http://www.theguardian.com/money/2008/sep/06/debt.internetphonesbroadband , my MP, the O2 UK boss and as many people I could think off and just kicked off. Don't let them get away with it, fair enough if you haven't paid and refuse to then you should be chased for the money but if there is a simple mistake somewhere along the line these companies should not be able to register a default which can basically ruin families/people needing/wanting to move, get loans etc. Something needs to be done.

I got it removed. don't let them get away with it!

Nasqueron

It's not a matter of "getting away with it" - the default is probably an automated thing and people incorrectly assume cancelling a direct debit ends a contract. If it's a genuine mistake they might remove it if you kick up a fuss but they may stand their ground

web_nerd

I must say I disagree with you McKneff, this is not a fair representation of my credit history at all. I might not have directly requested a cancellation of my contract, but I was assured by a representative of the company that my contract would terminate 3 months following our conversation, therefore I should not have been expected to intervene.

Nubbins - That's great to hear. I'd rather just pay the £35 and settle it for good and not have a tainted history.

web_nerd

Nasqueron - Yep, fair enough, I shouldn't have assumed everything to go so smoothly. However, as I mentioned; I was told my contract would terminate and therefore wouldn't expect that it be auto-renewed.

Nasqueron

web_nerd wrote: »

Nasqueron - Yep, fair enough, I shouldn't have assumed everything to go so smoothly. However, as I mentioned; I was told my contract would terminate and therefore wouldn't expect that it be auto-renewed.

Only thing I can suggest is trying a SAR to the operator (will cost you £10) and see if they have a call recording which would clarify what you were told - a note on the account may not mean you were actually cancelled but if you were told it would end after the last bill you may have some leeway - depends if they record it and if they still have a copy.

Unfortunately it is a warning to everyone not to just cancel a DD and assume a contract has ended, it may even have been a final bill that they wanted to charge

Thrugelmir

web_nerd wrote: »

I was told my contract would terminate and therefore wouldn't expect that it be auto-renewed.

Your contract would by default continue on a month by month basis on the existing terms. Unless you terminated the service in the prescribed manner. Which normally requires formal notification by letter.