EE defaulted my account without notice?

gloryninja

Hi all,

I basically have done an early upgrade at the EE store 6-7 month back and paid all the extra fees to the employee etc. I asked him if there would be any other charges and he goes no. 2 month later, i get letters from debt collectors asking for me to pay them £70 (was £35) or face consequences. I refused to pay as i thought i was being cheated on especially when i was told there would not be any other charges. Apparently, this is the last month bill which i need to pay.

Eventually i gave in after i check my credit report to see that EE/debt collectors has defaulted my account after issuing the request to pay back the amount. I did not get any letter or anything of that such from EE or any debt collectors regarding a default reminder. Is there anything i can do to remove this default from my credit file?

This has literally put my credit score down to poor for only £70.

I do take responsibility for not paying when i should but i defended my statement as i felt it was wrong.

Here is a screen shot of exact date it been defaulted.

s30.postimg.org/pnjwpodj5/chart.jpg

fermi

https://ico.org.uk/for-organisations/finance/

Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies

4. If you fall into arrears on your account, or you do not keep to the revised terms of an arrangement, a default may be recorded to show that the relationship has broken down.

As a general guide, this may occur when you are 3 months in arrears, and normally by the time you are 6 months in arrears.

There are exceptions to this which may result in a default being recorded at a later stage, such as secured or long term loans e.g. mortgages, or if the product operates in a more flexible way e.g. current accounts, student loans, home credit.

If an arrangement is agreed (see Principle 3 above), a default would not normally be registered unless the terms of that arrangement are broken.

Apart from being 3 or more months in arrears there are other circumstances which may lead to the recording of a default:

1.Property such as a house or vehicle has been repossessed or handed back with no indication to pay a remaining balance.
2.The provider takes steps to cut off a service.
3.The account is in arrears and the provider receives an indication that you have left your address without notifying them.
4.Evidence of fraud.
5.The account is or has been included in a bankruptcy, CCJ, Individual Voluntary Arrangement (IVA) or similar.

The lender must have notified you of their intention to register a default against you at least 28 days before doing so, in order to give you time to make an acceptable payment or reach an agreement with them on an arrangement. This also applies in cases 1 - 3 above.

However, in 4 - 5 the lender or provider does not need to provide a notice and can file a default as soon as they become aware of the situation.

Lenders will report the default amount and the default date to the CRAs.

The current balance then shows the actual amount due (which may include interest and charges) and must be updated over time until the account is satisfied (settled).

A default will remain on your credit file for 6 years from the default date.

A default should not be filed:

• If you make a payment, in time, that fully meets the terms set out in the default notice
• If jointly with the lender an agreement is reached for an arrangement and you keep to the terms of that arrangement
• If the amount outstanding is solely made up of fees or charges
• If a lender is given evidence that a customer is deceased (for example a verifiable death certificate, probate or letter of administration)

The date of default recorded on the file would normally be the date on which a decision to file a default becomes effective, e.g. 28 days from the date of the default notice.

The default amount filed should normally be the balance amount as quoted on the default notice. However, if any payments or charges apply in the interim period, the default balance reported may reflect the outstanding balance at that time.

The current balance should be updated regularly and reflect any charges added and/or subsequent payments received whether direct to the lender or via a third party organisation (debt collection agency) or, for example, as a result of the sale of a repossessed asset.

Malmo

Hi gloryninja,

I had issues with EE some months ago, which through their incompetence, had resulted in adverse information being shared with the credit reference agencies and a debt collection agency. It took some time to completely resolve and despite numerous phone calls with their representatives, I ultimately had to resort to emailing a detailed description of my issue to EE's CEO & their Chief of Customer Service, which had the right effect as their Executive Office eventually responded and dealt with the matter, including the removal of any negative information at the credit reference agencies.

EE have a Credit Referrals Team, which deals with the sharing and updating of account information with the credit reference agencies. I went through their Executive Office (executive.office@ee.co.uk), which facilitated and managed the case I raised. If you don't get anywhere through the usual channels, drop an email to the executive office but make sure you provide detailed factual information along with your EE account details to them.

Good luck!

moonklash

Hey Malmo,

Thanks for guiding me tot this thread - so it isn't just me that's lost their credit rating due to an Orange billing mistake. I seriously regret the day I ever signed with Orange and EE - useless organisation!

Interesting advice about Executive Office - I'll give that a try. Did you manage to fully recover your credit rating?

Malmo

moonklash wrote: »

Interesting advice about Executive Office - I'll give that a try. Did you manage to fully recover your credit rating?

Yes, my credit file with all 3 agencies was eventually updated and the rogue phone account that EE erroneously opened (for which they fraudulently debited my bank account) was removed from my records.

moonklash

That's good news, and positive to hear that they are perhaps eventually able to take some responsibility, albeit after complaints and persuasion.

I've just written to the three addresses I have for Orange (sent recorded delivery) and adapted my letter into an email to send to their executive office. If they don't deal with this I'll look at what legal angles I can take.

Thanks for all of your help :-)

supermassive

Going through this at the moment.

I suspect they did send a letter - but they sent it to the address I held with them when I started the contract (that's what it says on the default), rather than to the address I updated them with 6 months earlier... after having updated them with another address 6 months before that.

It's an up-hill battle for certain.

nesa

Hi,
I am having trouble with 1st credit. I found last month a default on my credit file. I asked them. They say they bought from Marks & Spencer. I am not aware of this debt. I asked for copies of default notice. 1st credit say they haven't issued the default, but they think original Creditor may have issued. I asked if they have a copy. They haven't haven't got a copy as well. They say they bought this from m&s on good faith. What can I do? Plea advice

Lungboy

Nesa, you should probably make your own thread to ask that question.

nesa

Sorry, this is the first time I am here