What happens to a default when company refund and credit account?

Stefanieroxx

Hi all, I'm new here and I need some advice. I had a contract with O2 that I ended early due to very poor network service. I was advised in store to return the devices and put my request in writing. Having done this, I heard nothing and O2 ended up sending my account to a debt recovery company which resulted in a default.

Thankfully, after weeks of emails back and forth, I managed to prove to O2 that I have returned my devices and they confirmed there was very poor signal in my area. The long and short of it is they refunded me all the money I had paid towards my devices and credited the remaining balance of the contract. They also withdrew the account from the debt recovery company and I have since received a letter stating my balance is zero and I got a refund in my bank.

The department I was dealing with did advise that the defaults will be removed within 14 working days but so far this hasn't happened and we're about 20 days since they made this promise. My worry is that I got the ombudsman involved as I was getting nowhere at the beginning and when they investigated they sided with O2 and stated I was lucky to get a refund as O2 didn't have to do this. Apparently I signed a contract that agreed I wouldn't have a fault free service. They also said that the defaults should remain as I didn't make the payments.

So, I have received my refund which has given me confidence that the defaults will be removed but I would just like some advice on the event that they don't remove them. I've asked the ombudsman to stop investigations now. Thankfully, I already have confirmation that the account balance is zero. Now that O2 have refunded the money I have paid and credited the balance (also accepted liability that this is kind of their error) will the defaults come off?

Can you even apply a default if the company has agreed the missed payments should never have been made and credited and refunded the account?

Any advice is massively helpful. Thank you.

[Deleted User]

The default is separate to any refund or goodwill.

Now that you have had a ruling by the Ombudsman, you will struggle to have the defaults removed.

Do you have anything in writing from O2 that the defaults would be removed?

Stefanieroxx

Hi, yes. I have it all in writing.

O2 apologised for all the issues I was experiencing and initially tried to offer me a £50 credit to the account.

The ombudsman haven't made a ruling, they have just written a proposal and the guy I spoke with said O2 can do what they want to. After speaking with him it was clear that O2 had not even admitted they had promised to remove the defaults. He wasn't aware of it until I informed him. O2 had agreed to do all of this before his proposal. He will now close the case down based on my request and me having reached a satisfactory resolution with O2 myself

Candyapple

What date did the 14 working days start from? i.e. if it was say 3 April, I would say 20 April would be the 14th working day.

Have you allowed time for the Bank Holiday?

If they've gone to the effort to refund you and you also have it in writing that they'll remove the defaults - perhaps a reminder in letter form sent by recorded delivery to said department is in order.

Stefanieroxx

It was the 12th of April. The 14 working days would have been Friday just gone (including the bank holidays) I spoke with Experian to check they had received an amendment request and they hadn't. They did say they could potentially send the amendment request on a 4-6 weekly basis, when they usually send credit file updates. I asked Experian to go to O2 directly to get the defaults removed based on the information I was given, that they will be removed and O2 replied stating I should contact O2 directly if I have issues with what's been reported. I think that they must just send this email as an automatic response when a credit reference agency gets in touch.

Since the Onbudsman sent me their proposal, I have been in contact with O2 to ensure that the defaults will be removed (without mentioning the Ombudsman) and again they confirmed it will be removed.

I'm just a bit worried because it's gone passed the time scales and now I've been offered a job in a bank based on the emails from O2 promising the defaults will be removed.

I have until the end of June before I start working there so there is plenty of time before I start panicking. I will send them a letter with the a copy of the emails if nothing has happened with this month's update.

Thank you for your response :-)

Candyapple

Have you checked to see if it's been removed from the other 2 CRAs as well?

Experian: https://www.moneysavingexpert.com/creditclub
Call Credit: https://www.noddle.co.uk
Equifax: https://www.clearscore.com

If you have a job offer riding on this removal, it depends on how far you want to take this. You could seek legal advice and get the solicitor to write a letter on your behalf seeking further compensation if you lost your job offer over their mistake - that might give them the swift kick they need to remove the default. Choice is yours, end of June is only 6 weeks away and remember you have to allow them time to reply and then send out the updated amendment to whichever CRAs they report to.

Good luck either way, please keep us updated as it's always nice to hear how a story ends

Stefanieroxx

Thanks candyapple,

I am constantly checking my credit report with all three CRA's. I'm a member of all of them. I know that the bank that have offered me the job only check Experian and they seem to get the most regular updates from credit companies.

My plan is to wait for the next update which is due this week, and if nothing has changed I will then contact a solicitor.

I'm wondering whether the defaults will just be marked as 'satisfied' but I haven't paid them, they've been credited, so I'm not sure how it works.

Thankfully, I do have confirmation that the defaults will be removed in writing. I have a lot to back me up and I'm confident that they will be removed I just need it to be sooner rather than later. I was also concerned that O2 would change their mind after the initial ombudsman investigation but I don't know if they can once they've credited and refunded the account??

Thanks for all your advice. I will let you know the outcome.

Candyapple

Stefanieroxx wrote: »

I'm wondering whether the defaults will just be marked as 'satisfied' but I haven't paid them, they've been credited, so I'm not sure how it works.

The default should be removed entirely - meaning that there will be no record showing anywhere in your files of an o2 account. It would be wiped as if it never happened in the first place.

If they just marked the default as satisfied, all that means is the balance had been paid. The default would still remain on your files for 6 years from the date it was applied. This is definitely not what should happen.

Incidentally, when was the default applied?

I just think it's an oversight on their part as to why they haven't removed the data (probably a case of one dept. not talking to the other), silly really given the seriousness of the matter and they know they have messed up hence the offer of compensation and removal of default. o2 and most other mobile phone providers would never normally do that unless it was a major error at their end.

Stefanieroxx

Thanks again for your advice.

The default was applied in January and I only realised it was there when I was rejected for a job because of it in February. The contract was cancelled in June 2016.

Given that the account balance is now £0.00 and I was refunded all the money I paid, I did think the entire credit agreement would just be wiped like it never happened. I did make sure the default being removed was part of it.

I didn't even request a refund, they did that as part of the 'returned' contract but I was very pleased with it.

So far they have fulfilled their promises so I'm confident that I'll get my unblemished credit report back. You're right though, it usually is just a case of waiting for someone to open an email or forward something to the relevant department.

I've no doubt O2 would prefer to get this resolved rather than deal with the bad press of someone missing out on a job because of their error.

Thanks again for your help. My mind has been put to rest but I will let you know what happens :-)

Stefanieroxx

Just to update everyone. Defaults have been removed! Thanks for all the advice offered.

Candyapple

Fantastic news! Thanks for updating the thread and good luck in your new job