Unfair Default on Credit Report- 3 Mobile- how to remove?

Tink_00

Hi all,
I have just joined the site as I am dealing with an declined bank account application (I run a business which is significantly in credit with the same bank! plus I banked with them from the age of 18 to 35 personally with an perfect record) due to 3 Mobile having registered a default and passing me over to a debt collection agency back in 2010 whilst I was dealing with a customer dispute with them! I had a dongle for internet back then which was rubbish and wasn't working but despite complaining I was told I had to see out my contract. At £8 a month I did this as I was busy setting up my business, but at the end of the contract period I wrote the required letter to cancel and then cancelled my DD. The upshot, in spite of several conversations which were apparently not logged on the records, and several letters of cancellation- again no records at their end, they passed a debt for £28 to a debt collection agency and refused to answer my calls any more! I obviously paid this amount off because I was advised by the debt collection agency there was no way to appeal and if I didn't pay it would affect my credit rating. The irony being that 5 years on I can't open a new bank account because of it! I have nothing else negative on my credit report, and registering a complaint with 3 mobile has got me nowhere, they are like automatons on the phone, simply saying they can't do anything because they closed the account and passed it on to the debt collecting agency. The debt collecting agency are much more polite and sympathetic but say that because 3 Mobile registered the default, not them, they can't do anything either.
I am trying to open my second business now for Jan 1st and despite explaining all this to my HSBC bank manager and her being totally sympathetic having had the same issues with 3 Mobile, I am still no better off.
I am aware that 3 Mobile were fined £250k by Ofcom for their terrible customer complaints procedure during the time I am referring to, but having spoken at length to their complaints department today it seems they have not made any improvements. No one told me back then that I could escalate my complaint, and no one offered me that today- I had to say I was going to the financial ombudsman because they hadn't even offered to pass it up the line, at which point they said they would, but really, if anyone has successfully been through this process please could you advise? I can't believe I am in this situation, I have never owed money or defaulted on anything.

Thanks in advance for any advice on how to get this removed from my records!

Hutch100uk

Hi, I have a similar situation with a late payment on an old British Gas bill from 3 years ago. Their customer service has been rubbish and they just tell me its correct and refuse to remove it from my file. If you have an Experian account, you can raise a query through them. They will contact 3 for you to check the accuracy of this. If this still gets you nowhere, try the ombudsman. This is the route I've had to take with British Gas. I've only just submitted my complaint today so can't update you on how its going. I do believe this will come off your credit file after 6 years though.

Tink_00

Thanks for your reply Hutch100uk, sorry to hear you are having a similar issue. I went through Experian and they got the same standard "no" response from 3 Mobile. I am now looking into the relevant Ombudsman. I can't wait another year to open a business bank account (that's how long before this will be removed from my Experian report) so I need to get a resolution sooner. Good luck with your complaint!

Any further advice or templates for wording of letters/who to talk to/ how to get them to take action, gratefully received!

slink85

I highly doubt a single default from 5 years ago will have any kind of baring on getting a business account.

meer53

How do you know it is the default from 3 mobile that is causing the problems ? Banks usually don't confirm what information they use to decline an application, they usually use a generic response regarding information on your credit file. I too think it's unlikely that a satisfied default for £28 from 5 years ago would have any effect on an application. Banks can override default information on credit files, depends on how much the default was and how long ago. There may be some other reason.

Hutch100uk

My financial advisor seems to think my default will cause me problems with my mortgage application even though it was 3 years ago. I think these things can make a difference.

Ben8282

You run a business and have a business account with HSBC which is significantly in credit. That does not mean that it is always in credit or that it is being satisfactorily maintained.
You maintained a personal bank account with them from age 18 - 35. Your 35th birthday could have been last month or back in the days when they were still called Midland Bank. This fact is meaningless.
As others have said, it is unlikely that you would have been declined a bank account on the basis of the existence an isolated 5 year old settled £28 default from a mobile phone company. What sort of account was it by the way? For example, it it was a Premier account do you meet the eligibility criteria?


Your action in writing to cancel the 3G contract and then immediately cancelling the direct debit was unfortunately a foolish move and one that I would never advise. From a common sense point of view it is obvious that there will be a final bill at some point. I would normally wait until a direct debit has been inactive for quite some time before actually cancelling it from my account.
3 mobile presumably informed you of the failure of the direct debit for your final bill. Why did you not just pay then instead of ignoring it for a sufficient length of time for a 1 month late payment marker to become a default?