Help Removing TINY £26 default

Veritykrall

Hi all,

Hopefully someone can help me. I've always been very conscious of managing my credit score however recently I checked it and noticed a default on there.

Around 2/3 years ago I took out a pay monthly SIM card with Three @ £7.50 per month. It was a rolling 30 day contract, cancel any time. Paid it for 2 years no problems. My other half got me a new iPad for Christmas so I went ahead and cancelled my direct debit after several attempts being stuck on hold in queues etc. I felt I was within my rights to do so as I was no longer using that iPad or SIM card.

Fast forward a few months and I received a letter out of the blue from a DCA stating that the company were issuing a default and threatening legal procedings for a debt of £26.40!! As soon as I received it I immediately settled it online (same day) via online payment system.

I had received no correspondence in the interim asking me to pay any outstanding amount. They have given me no opportunity to settle the account. Obviously this is going to mean I can't obtain any credit for the next 6 years. This to me seems ridiculous as I obviously have the means of paying the sum and would have done so at the earliest opportunity had I been provided the means to do so! However I was never informed nor given this option.

I have been reading up about what to do so plan to request a SAR from Three to see what attempts at correspondence they have made, and to see a signed copy of my contract with them. However they state on their SAR form they cannot provide me with a signed copy of my contract.

I'm feeling pretty desperate to be honest as this pretty much negates my chances of moving in with my partner or getting a mortgage for the next 6 years, over a £7.50 a month rolling contract which I obviously had the means to pay. It seems mobile phone companies are vicious at reporting defaults - what's everyone's thoughts on my chances of getting it removed from my credit file? It's keeping my up at night and really affecting my day to day life.

I really hope someone can offer me some help or advice. Thanks in advance.

Verity

forgotmyname

It doesnt mean you cannot get credit for 6 years. It just means the companies that require a squeaky clean record may not offer you credit. Or it maybe at a slightly higher rate.

Vicious phone companies? You stopped paying them without giving them a reason.

GingerBob_3

forgotmyname wrote: »

It doesnt mean you cannot get credit for 6 years. It just means the companies that require a squeaky clean record may not offer you credit. Or it maybe at a slightly higher rate.

Vicious phone companies? You stopped paying them without giving them a reason.

Not quite. He did attempt to contact them but couldn't get through to their typically useless operatives.


But there's a wider issue here. It's becoming increasing apparent by reading this type of thread, that some companies now operate a policy whereby if you cancel a DD they assume non payment and start the CRA blacklisting process. Surely if you cancel a DD and there's an outstanding amount they should invoice you for it. Why don't they?

MEM62

Veritykrall wrote: »

Hi all,

Hopefully someone can help me. I've always been very conscious of managing my credit score however recently I checked it and noticed a default on there.
You cannot manage your score as it's a randomly made up number sold to you by CRA's. Managing your finances well and keeping an eye on your credit history is a good idea though.

Around 2/3 years ago I took out a pay monthly SIM card with Three @ £7.50 per month. It was a rolling 30 day contract, cancel any time. Paid it for 2 years no problems. My other half got me a new iPad for Christmas so I went ahead and cancelled my direct debit after several attempts being stuck on hold in queues etc. I felt I was within my rights to do so as I was no longer using that iPad or SIM card.
Your assumption was incorrect. Of course you have the right to cancel the contract but you cannot just stop paying with doing so. Did you not consider writing to them or did you just give up when you could not cancel by phone?

Fast forward a few months and I received a letter out of the blue from a DCA stating that the company were issuing a default and threatening legal procedings for a debt of £26.40!! As soon as I received it I immediately settled it online (same day) via online payment system. Good idea.

I had received no correspondence in the interim asking me to pay any outstanding amount. They have given me no opportunity to settle the account. Obviously this is going to mean I can't obtain any credit for the next 6 years. This to me seems ridiculous as I obviously have the means of paying the sum and would have done so at the earliest opportunity had I been provided the means to do so! However I was never informed nor given this option.
I would expect that some form of payment request was made before the account was handed over to a DCA. Was it an actual DCA or a Three internal department. (Some companies use such methods to make you think that the matter has been escalated outside of their own organisation) Have they threatened a default of actually recoded it??

I have been reading up about what to do so plan to request a SAR from Three to see what attempts at correspondence they have made, and to see a signed copy of my contract with them. However they state on their SAR form they cannot provide me with a signed copy of my contract.

I'm feeling pretty desperate to be honest as this pretty much negates my chances of moving in with my partner or getting a mortgage for the next 6 years, over a £7.50 a month rolling contract which I obviously had the means to pay. It seems mobile phone companies are vicious at reporting defaults - what's everyone's thoughts on my chances of getting it removed from my credit file? It's keeping my up at night and really affecting my day to day life.
As you have settled this IF the default has been recorded it might not have a massive impact on your ability to get a mortgage - if this is the only blot on the landscape.

I really hope someone can offer me some help or advice. Thanks in advance.

Verity

You need to remember that, when you enter into a contract you are bound by its terms and conditions and you cannot just stop paying for the service and assume that this terminates the arrangement. The T's & C's will have advised you on how the agreement should have been terminated.

bobbydub

This happened to me and found out that i had default in my name with three and it was like £30+ i emailed them to a high level and good enough they removed it, they can do it! They are to quick to place defaults on and such a little debt can screw ur credit rating up.

Jennifer_Davey

Hi!

Who did you contact at three? I'm in the same boat with one for £30 that was from an ex partner that i settled as soon as it defaulted! But because i don't have any of the account details they are reluctant to put me through security over the phone!

Thanks,

Jenn

Thrugelmir

Veritykrall wrote: »

I felt I was within my rights to do so as I was no longer using that iPad or SIM card.

You have no rights. Under the terms of the contract you signed. There would have been clear instructions as to how to cancel the contract. Normally this is done in writing. As then there's no dispute.

agarnett

Very useful post Tusserjob!

Of course we have rights - the right to do what we can to put a very wrong world right being a principal right among them.

darkidoe

I managed to get a default removed by 3 about a year ago. They sold me a mobile broadband whilst I renewed my sim only mobile plan, failing to either inform me the mobile broadband will be a separate account which will require separate payments, which I thought was ridiculous when I found out. This was complicated by me moving house and cancelling the service within 14 day cooling period as the signal was poor.

I wrote in the complaint also noting in the fact they did not try to get in touch with me earlier to obtain the payment as they shown they could as they phoned me up one day to ask for payment AFTER defaulting my account. No mention of it whatsoever either during the call.

Try writing a letter to the complaints department. It might just work.

Brooker_Dave

Thrugelmir wrote: »

You have no rights.

Indeed, it seems any large company in the UK can put someone on one of these blacklists, thus preventing them from buying or even renting a home.

But, these blacklists and the companies who punish people like this face no genuine regulation, and everyday people who's lives are ruined by this have to tollorate it.

Why do we put up with this??

takman

Brooker_Dave wrote: »

Indeed, it seems any large company in the UK can put someone on one of these blacklists, thus preventing them from buying or even renting a home.

But, these blacklists and the companies who punish people like this face no genuine regulation, and everyday people who's lives are ruined by this have to tollorate it.

Why do we put up with this??

There is no such thing as "blacklists" a credit report is just a record of how responsible you are with credit.

The OP signed a contract and agreed to pay for a service. Three provided the service but he chose to cancel the direct debit and not pay for the service. I have never had any trouble getting in contact with three so he didn't try very hard.