3 mobile default for £25 payment 1 month late! Mortgage hopes dashed :-(

clockwork12_2

Checking my experian credit file i noticed a default had been applied in Nov 2014. My file had been excellent up to this point having painstakingly repairing past poor credit history over the last 6 years to enable us to get a mortgage.
upon investigation this default was due to a late payment (of only one month - we were away over the xmas period) of my last bill to 3 mobile.
i had cancelled my contact with them after the term and advised them in good time, paid the november bill and was awaiting the last bill due dec. As we were away we didnt pay until jan. I did get a reminder but no warning of a default and so i am gutted to see that a default has been applied for a mere £26 ruining my credit file.
Upon querying i was told that it cannot be removed as it is a true reflection of my account.
The default was applied on 28.11.14 which was before i had even received the December bill? I cannot seem to get any sense from the non uk call centre either......I understand that they can do this and there is nothing i can do.
Very depressed, being 9 months pregnant doesnt help! Any advice much appreciated

fermi

They applied the default before you even got the bill?

ICO/SCOR principles on recording default require that they.

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.

I would email a strongly worded complaint to with the above to [EMAIL="Executive.Office@three.co.uk"]Executive.Office@three.co.uk[/EMAIL]

Emphasise that you will be taking them to the ICO and Communications Ombudsman if not resolved to your satisfaction.

clockwork12_2

Thanks fermi, i did not have that email address i will definitely send to them as i may get more sense than the generic call centre staff.
I admit i was late making the payment but according to my file the default was applied on 28.11 and the amount outstanding isnt on the nov bill but on the dec bill! I was told at money advice that if i am late they can apply default irrespective of how late and as it is a telecoms company they are not bound by the same notification terms as banks, catalogues etc.... Experian are contacting them as well to see what they can do. 3 tried to tell me that the late bill was from the month before but i have proof this was paid and the period is clearly shown on their statement. It just seems so fishy. If i hadnt cancelled my contract im sure i wouldn't be receiving this treatment

boo_star

fermi wrote: »

They applied the default before you even got the bill?

ICO/SCOR principles on recording default require that they.

I would email a strongly worded complaint to with the above to [EMAIL="Executive.Office@three.co.uk"]Executive.Office@three.co.uk[/EMAIL]

Emphasise that you will be taking them to the ICO and Communications Ombudsman if not resolved to your satisfaction.

There's no requirement to send a default notice for a mobile phone bill, they're not regulated under the Consumer Credit Act.

Defaulting after one missed payment seems incredibly hasty though, surely there's more to this story?

fermi

clockwork12 wrote: »

I was told at money advice that if i am late they can apply default irrespective of how late and as it is a telecoms company they are not bound by the same notification terms as banks, catalogues etc....

Complete nonsense from whoever told you that.

They (a) can't just do as they like, and (b) ICO principles cover any company that is to record a default as they are based on the DPA requirements on ALL companies.

fermi

boo_star wrote: »

There's no requirement to send a default notice for a mobile phone bill, they're not regulated under the Consumer Credit Act.

We are not talking about a default notice under s87 of the Consumer Credit Act here.

We are talking about a notice of intention to file a default with the credit reference agencies, which is a different thing and applies to any company that files defaults.

It's common to mix the 2 up though, as they both use the words default and notice, but they are not the same thing.

Default notice under s87 of Consumer Credit Act = Legal notice under a credit agreement giving 14 days to remedy the account before they end it and demand payment in full

Notice of intention to file a default with the credit reference agencies = Notice given in accordance with ICO principles and DPA giving you 28 days to pay or bring an account up to date before a default is recorded on your credit file.

Different notice.

Different requirement. 14 compared to 28 days.

Different legal or regulatory basis.

But can sometimes be sent together where both apply.

boo_star

fermi wrote: »

We are not talking about a default notice under s87 of the Consumer Credit Act here.

We are talking about a notice of intention to file a default with the credit reference agencies, which is a different thing and applies to any company that files defaults.

It's common to mix the 2 up though, as they both use the words default and notice, but they are not the same thing.

Default notice under s87 of Consumer Credit Act = Legal notice under a credit agreement giving 14 days to remedy the account before they end it and demand payment in full

Notice of intention to file a default with the credit reference agencies = Notice given in accordance with ICO principles and DPA giving you 28 days to pay or bring an account up to date before a default is recorded on your credit file.

Different notice.

Different requirement. 14 compared to 28 days.

Different legal or regulatory basis.

But can sometimes be sent together where both apply.

Do you have a link?

I've checked the ICO guidelines regarding defaults and they constantly refer to "lenders" which a mobile phone company isn't.

fermi

'Lenders' in that context means any product which relates to the provision of goods or services before they are paid for and which are reported as defaults on credit files.

boo_star

fermi wrote: »

'Lenders' in that context means any product which relates to the provision of goods or services before they are paid for.

There's an appendix at the bottom of http://www.scoronline.co.uk/files/scor/high_level_prinicples_document_final.pdf but that only refers to companies that can default you and doesn't refer to them as "lenders", the wording of the rest of it constantly refers to lenders. I'd expect them to at least clarify what a "lender" is.

clockwork12_2

I will try and complain anyway, i have nothing to lose :-(

I certainly received no notice of default, having painstakingly repaired past poor credit history and saving for a deposit so we could get a mortgage, i would have paid the £25! I would have paid it on 4th nov when i paid the other bill if they had been able to give me the figure at the time.

They lady i spoke to said there were other missed payments, however every month on my credit report clearly shows a green dot (paid in full on time ) for this account. The only reds were dec and jan and the default amount is for the amount of the final bill £26, default issued on 28.11.14? She had no answer to that.

Surely if i had missed previous payments these too would have been recorded on my files and a default issued earlier , account cancelled etc??

The difference i only assume is that i cancelled my contract and as they do not have my business anymore that they dont care!

fermi

They also refer to communications companies etc in the introduction and nowhere does it say they are excluded from the principles.

They are not.

Taking just one statement

"Lenders that supply data to the CRAs are required to ensure that the data is accurate, up to date and meets agreed quality standards."

That is not just a requirement set by the DPA on just lenders under credit agreements. It applies to all reporting.

Sadly they have used the phrase 'lenders' where another may have been less confusing.