30 day rolling contracts....Why credit check

Gonza

So this thread is just me venting about how riddiclous EE seems to me that they perform Credit checks on 30 day rolling contracts after paying for everything up front.

Currently live in house share with terrible internet, just finished my student life, and tryed applying for an internet dongle from EE so i could have at least decent internet where ever I move to, they perfom a credit check of which i obviously fail due to my past fun times. but it baffled me that on a 30 day rollign contract this even needs to be done. im payign for the device and the data UPFRONT! no credit/owing is being used here am i wrong? next month if for wahtever reason i couldnt pay £20, they cut my service....whats the issue? there is no debt i used what i payed for and paid for the device.

does this seem riddiclous to anyone else? if not why

bsms1147

Can you go over your data allowance using the dongle? If so, then they are giving you an 'unlimited' line of credit.

thebritishbloke

bsms1147 wrote: »

Can you go over your data allowance using the dongle? If so, then they are giving you an 'unlimited' line of credit.

It's never unlimited nowadays, it's always capped at £50-100 to begin with, you can then request more.

You're being credit checked because you are being provided with a line of credit. If you're unhappy about it, get it on pay as you go, I don't really see the problem here.

Anoneemoose

Gonza wrote: »

So this thread is just me venting about how riddiclous EE seems to me that they perform Credit checks on 30 day rolling contracts after paying for everything up front.

Currently live in house share with terrible internet, just finished my student life, and tryed applying for an internet dongle from EE so i could have at least decent internet where ever I move to, they perfom a credit check of which i obviously fail due to my past fun times. but it baffled me that on a 30 day rollign contract this even needs to be done. im payign for the device and the data UPFRONT! no credit/owing is being used here am i wrong? next month if for wahtever reason i couldnt pay £20, they cut my service....whats the issue? there is no debt i used what i payed for and paid for the device.

does this seem riddiclous to anyone else? if not why

Not ridiculous at all. It is classed as a pay monthly agreement, albeit on a rolling 30 day minimum term. As others have pointed out, there is the potential for you to run up a large bill before you actually pay for it.

And normally 30 day rolling contracts are generally easier to get than 'proper' ones so if you failed the credit check for that then I think your past might have been a bit more 'fun' than you thought!

Monkeyballs

Also, if it's a rolling contract (even if it is only 30 days) I'm guessing there is a notice period? So you may pay upfront for the first month but then after that presumably they will take funds by DD?

MB

Thrugelmir

Gonza wrote: »

next month if for wahtever reason i couldnt pay £20, they cut my service....whats the issue?

Companies are in business to make money. Setting up new customer accounts is expensive. So takes time to recoup the money and generate profit from a customer. Far better to decline at the outset on the basis of a credit check. Than chase someone for £20.