Advice on defaulted payment

Jojole

Hi,

I took out a T Mobile contract for my son in August 2011, monies for which were paid from the joint bank a/c with my now ex husband. In April 2012 we separated and I removed myself from the same bank a/c but my ex said he would continue to pay for the contract. In December 2013 my son was unable to use his phone, I contacted my ex who said he was unable to pay and had not done so for the last 3 months and so use of the phone had ceased. He had not informed me of any of this up until that point.

I contacted T mobile immediately, explained the situation that I was no longer at the same address, asked for the total outstanding amount (approx £219) and simultaneously paid this amount over the phone on debit card and cancelled the contract - as far as I was then aware the situation was resolved.

In January of this year, via Equifax, I found that I was deemed to have defaulted on a payment as of August 2014 which related to T Mobile. I contacted T mobile and was informed that an amount of £11 was outstanding (now considered defaulted) and this amount was interest for the month of December 2013. I again explained the situation, how I had paid, in full, and had NEVER been sent any paperwork to my new address. If they had sent paperwork to my old address (which they should not have done having been made aware of the situation in December 2013) if was never passed on to me. Common sense would surely be that if I was willing to pay £219 in December, why would I be unwilling to pay £11 in January?

I asked Equifax to dispute this and, whilst it is on my account as settled, I am still classed a s a defaulter. The dispute raised was not resolved, contact with T mobile has been difficult (to say the least!) they do not have any telephone numbers for their credit dept (I rang this morning to be told this) it is all email communication only. I had tried this approach in January of this year and was informed that if I required anymore information to see my credit report via Experian or Equifax - their response (despite my detailed email outlining all the elements of the situation) referred to none of them and appeared almost computer generated

I joined Experian (cancelled Equifax) in March and my rating was 992, no trace of T mobile - I was very happy! Logged on today and T mobile is now on and has taken my score to a 'Poor' 664 - I am so upset. I was looking to apply for a mortgage, new life for my children and myself and now, thanks to the ineptitude and indifference of T mobile and the actions of my ex, I find myself in this position.

I have contacted the financial ombudsman and they say it is not an issue for them. I am 45 and time for applying for a mortgage is fast disappearing. I am in the process of devising a letter to T mobile in which I will again spell out all the circumstances, I will send it registered but I fear this will be unsuccessful and I will be stuck renting or only able to secure a mortgage with an extortionate interest rate - please advise me on how I can resolve this situation and soon as time is of the essence - many thanks

themonkey88

It's definitely worth giving it a ago with T-Mobile as its such a small amount.


With the mortgage don't give up hope. I was able to get a mortgage with a 2 year old default of £112 from precise mortgages. Interest rate was about 6% but just 2 years later I've got a mortgage with Halifax at high street rate (they were very good, and seemed understanding of issues like yours).

Jojole

Hi,

thanks for that - it's so frustrating because a) it wasn't my fault as they didn't make me aware of it and b) like you said, such a tiny amount - who'd think £11 would have such a huge impact? glad to hear you managed to get sorted in similar circumstances :-)

[Deleted User]

While a default is not good news, don't measure its impact by your credit score. This bears little resemblance to the infinite number of ways a lender may view your history.

Rocarro

Hello,
If that defaulted amount relates purely to interest then im not sure they're actually allowed to register that as a default according to ICO guidelines (ie it's not a default if the sum refers solely to fees or charges). There are a couple of docs you need to have a look at, both are ICO produced. One is entitled something like 'guidance on the registering of arrangements and defaults with the credit reference agencies'. The second one is similar but is actually a doc designed to give guidance to the CRAs and (I think) lenders .....I think it's produced by equifax but if you google the above doc you should find it comes up as one of the options. Have a look at a thread I posted on this forum about three weeks back....details are there. You need to write to all three CRAs asking them to put notes on your file explaining the circumstances (provide any documentary evidence you have), you also need to try and persuade the company to have the record removed from your credit file (they can do this) and, failing all else, do your research and then contact ICO to get them to sort it on your behalf.
It's a disgrace that companies can have such a disproportionately negative impact on people. Much of what goes on in respect of credit files doesn't seem to be in line with the underpinning principles that the use of the CRAs were supposed to be all about, ie helping lenders accurately determine people's credit worthiness.
Good luck!

Jojole

Rocarro wrote: »

Hello,
If that defaulted amount relates purely to interest then im not sure they're actually allowed to register that as a default according to ICO guidelines (ie it's not a default if the sum refers solely to fees or charges). There are a couple of docs you need to have a look at, both are ICO produced. One is entitled something like 'guidance on the registering of arrangements and defaults with the credit reference agencies'. The second one is similar but is actually a doc designed to give guidance to the CRAs and (I think) lenders .....I think it's produced by equifax but if you google the above doc you should find it comes up as one of the options. Have a look at a thread I posted on this forum about three weeks back....details are there. You need to write to all three CRAs asking them to put notes on your file explaining the circumstances (provide any documentary evidence you have), you also need to try and persuade the company to have the record removed from your credit file (they can do this) and, failing all else, do your research and then contact ICO to get them to sort it on your behalf.
It's a disgrace that companies can have such a disproportionately negative impact on people. Much of what goes on in respect of credit files doesn't seem to be in line with the underpinning principles that the use of the CRAs were supposed to be all about, ie helping lenders accurately determine people's credit worthiness.
Good luck!

Thank you for directing me to these docs, I will will certainly be persuing this. It is so maddening to think that their actions can impact so significantly upon my score plus, as you say, based on interest they have added on an amount that had previously been paid in full. Watch this space!

Jojole

Deleted_User wrote: »

While a default is not good news, don't measure its impact by your credit score. This bears little resemblance to the infinite number of ways a lender may view your history.

Hi,

thanks for this - I am worried as I want to persue a mortgage with Nationwide who, I know from preliminary inquiries, do use Experian. I was looking to apply over the summer and start to look for a property but daren't apply now as, if it gets turned down, it's yet another significant negative on my credit file - feel like I am going to have to wait an age to get this sorted through my own efforts AND if this is unsuccessful, be left with expensive options - really frustrated!

Smedders11

I really wouldn't worry. Get yourself a good broker who knows lenders' criteria and avoid ones that may have an overzealous automatic credit screen.

Some automated systems *may* see a hint of a late payment and automatically decline you, but plenty of lenders will look at your file in detail as well as your income and expenditure (which a credit score doesn't include--hence the comments about it being worthless) and rightly decide an explainable default for a meagre £11 telecoms bill isn't going to be much use in assessing your situation.

Talk to a decent broker.

Jojole

Smedders11 wrote: »

I really wouldn't worry. Get yourself a good broker who knows lenders' criteria and avoid ones that may have an overzealous automatic credit screen.

Some automated systems *may* see a hint of a late payment and automatically decline you, but plenty of lenders will look at your file in detail as well as your income and expenditure (which a credit score doesn't include--hence the comments about it being worthless) and rightly decide an explainable default for a meagre £11 telecoms bill isn't going to be much use in assessing your situation.



Talk to a decent broker.

Hi,

many thanks for taking the time to respond to my post. I've actually been in touch with 'Which Mortgage Brokers' and I'm waiting for a callback. You're right to highlight the fact that a meagre £11 should not be such a hurdle and if an actual human being assesses the situation, rather than a computer, then hopefully it can be sorted. I still intend to challenge T Mobile and make an official complaint as I want it removed regardless. Fingers crossed for both!

Ben8282

Do mobile phone providers actually charge interest on late payments?