O2 recurring late payments

Viper911

Hi all,
To cut a long story short, I stopped paying my phone contract with o2 (refresh) in December 2014. The contract is due to finish in October 2015.
On checking my credit report on noddle it shows laye payments from January onwards. What will happen in october? Will the late payment markers stop or am I trapped with a bad credit rating forever?

Zyx

It will not be stop as the report is supposed to give future creditors an idea on what kind of person you are. However you can improve your rating later on.

Tixy

If not paid then it is likely they will soon enter a default on your credit file.

Defaults are typically issued when a debtor is around 6 months behind with payments.

A default will stay on your file for 6 years from the date the register it and usually is viewed as worse than missed payment markers by any other potential lender searching your file..

Viper911

Ive been sent a default notice some time ago. Is it best to pay now if possible? Or just let it run its course?

Tixy

Better to pay before a default is added to your credit file than after if that is possible.

Especially if you don't have other defaults.

Once a default is registered on your file it will make it hard to get any credit for a few years and affect you getting really good deals for the whole 6 years it is on file.

macman

What do you mean by 'let it run it's course'? The debt won't disappear in October just because that is when the minimum term contract ends. The contract will continue to run until you or the provider terminate it.

boo_star

Viper911 wrote: »

Ive been sent a default notice some time ago. Is it best to pay now if possible? Or just let it run its course?

If a default notice has been issued already I would expect this months (or possibly next months) updates to include a default on the account.

I would try and pay it all off and negotiate over the default entry, it would be unreasonable for them to remove the late payments.