Remove Default from Mobile Phone Company

andwan0

I was reading that it's virtually impossible to remove a default from a mobile phone company.

http://www.learnmoney.co.uk/credit-file/mobile-defaults.html

I got a default from O2 without knowing about it in 2011. During the time of switching mobile phone companies I had moved flats and hence didn't get my final bill of £6.35. I believed I had cleared it. I payed the outstanding balance hoping it would clear the default.

I written a letter to O2 asking them to remove the default. They reply:

I would like to inform you that your credit file is marked as settled after 40 days from the date payment is made. However, as far as the default is concerned since its valid we won't be able to remove it.

For your information, O2 are legally bound to load an accurate record of the payment history of an account and if a bill isn't fully paid within two weeks from the bill date, late payments will load automatically, leading to a default after six months. These details remain on the credit file for six years from the date of the settlement or default whichever occurs earlier.

Is this fair?

supermassive

It's in no way fair, and it's why the credit referencing industry is a joke. Beyond a joke, actually.

This can easily stop you getting a mortgage - but why? Why should it? Even if you never paid it ever, why on earth would a £6 debt to a mobile phone company be anything that relates in any way to paying for a roof over your head, or a vehicle for that matter?

The entire industry is a misrepresentation of events that are logged in order to keep people squashed under the feet of big business.

Candyapple

andwan0 wrote: »

Is this fair?

Well it's a factual record of your payment history which is the purpose of credit reporting.

Did you not bother to check your online account to make sure that:
a) you didn't have any final bills/payment?
b) the account was closed?

You've only got 2 years left until it comes off your file so if they won't remove it, a 4 year old default shouldn't affect you too harshly if you needed to apply for a credit card. And if you were wanting a mortgage, a mortgage broker would probably be able to find you a lender, albeit it might not be the best rates on the market.

GingerBob_3

Candyapple wrote: »

Well it's a factual record of your payment history which is the purpose of credit reporting.

Did you not bother to check your online account to make sure that:
a) you didn't have any final bills/payment?
b) the account was closed?

You've only got 2 years left until it comes off your file so if they won't remove it, a 4 year old default shouldn't affect you too harshly if you needed to apply for a credit card. And if you were wanting a mortgage, a mortgage broker would probably be able to find you a lender, albeit it might not be the best rates on the market.

But all too often in these cases it isn't a factual record, it's a lie.

As supermassive points out, the credit reference industry is nothing more than a large, blunt blackmailing tool. It's high time it faced some sort of enquiry to bring it onto the straight and narrow.

Candyapple

I hear you GB, however there appears to be an all too regular occurrence of people having problems with their credit file only noticing them when they are declined for credit, which usually comes from either moving addresses and not checking to see if their lenders have their new details, and/or paying off 'final' balances/bills assuming that said accounts are closed magically, without having it recorded in writing and also obtaining copies of their credit reports to make sure the accounts are in the closed section of their files.

No point in moaning about the fairness/unfairness of it all, all you can do is self-regulate and monitor your files with some regularity and make sure that all data is correct and act upon anything which is untowards.

supermassive

Candyapple wrote: »

I hear you GB, however there appears to be an all too regular occurrence of people having problems with their credit file only noticing them when they are declined for credit, which usually comes from either moving addresses and not checking to see if their lenders have their new details, and/or paying off 'final' balances/bills assuming that said accounts are closed magically, without having it recorded in writing and also obtaining copies of their credit reports to make sure the accounts are in the closed section of their files.

No point in moaning about the fairness/unfairness of it all, all you can do is self-regulate and monitor your files with some regularity and make sure that all data is correct and act upon anything which is untowards.

In an ideal world it would be simple, it would be free, it would be convenient. Unfortunately, in real life, it's just not something that's possible on the day-to-day. Infact, it's pretty useless checking it all the time anyway, because when you find something wrong, they take over 6 months of "prove you haven't got debt" bull before they do anything anyway.

Ideally, everyone would be constantly checking their boiler for gas leaks - most people have it done annually, but what if it starts to leak the day after a check?

Ideally, most people would have their car MOT'd daily. Unfortunately that's not the case, and you get people driving around dangerous vehicles.

The difference is that people use these things daily as they are a part of every day life that cannot really be avoided. Credit ratings are a hindrence, inaccessible to most people unless they're clued in to how it all works.

What makes it worse is that really, nobody (other than MSE people) thinks to check their credit record because they assume that it's a fair an accurate representation of their credit history, which 9/10 times it's not.