Default on credit file, help please

ljj1986

Not sure if this is the right place but I am currently working on rebuilding my credit history as I am hoping to buy my first home in about 4 years time. When I switched Broadband providers around a year ago I cancelled my direct debit for the old provider, however, they still tried to take it even though they were aware that I had switched. I did the stupid thing of ignoring it and kept receiving a bill each month with an extra charge of £20 added each month until it reached just short of £100 and they stopped adding the 'late payment fee'.

So my question, this amount shows up as a default on my credit file, would I be better off trying to argue it to get it written off rather than ignoring it as I currently do (stopped receiving letters now) or should I just pay it off? Also if I did just pay it off would this still show up as a default and affect my chances of getting a mortgage in a few years time?

Thank you in advance for the advice.

[Deleted User]

Pay it'd, unless you have evidence they acted incorrectly. However, most customers who cancel DDs do so too early.

It will show on your files for 6 years from default.

Arleen

One thing you can do is to call them, offer to make a payment in full right now (with all the fines) if they will remove the markers from your file. If they agree - pay it, i they don't - pay it anyway.

Chrysalis

Arleen's advise is good.

Geoff1963

they were aware that I had switched

Did you tell them you had switched, so no longer wanted their service ; or somehow assume they would know because you weren't using it ?

If you told them, then they have no business billing you ; if you didn't, you should probably pay, because they were providing a service which you didn't use.

ScaredWitless

If you had switched supplier, they are normally notified by the new supplier taking over, and thus automatically cancel your service.

I would personally make a formal complain to them in writing, give 8 weeks for the final response and then go to the regulator.

National_Debtline

Hi ljj1986

Usually you have to give notice when you want to cancel your service, can you remember doing this? If you served the notice period and only cancelled your direct debit after all payments due had been made you can make a complaint. Ask the company for their complaints procedure, which will include details of an alternative dispute resolution scheme you can contact if necessary.

If you did not give the correct notice period then you sound like you are going to be liable for the debt. Paying it off will mean your credit file is updated to show the debt is satisfied (which will look better for future credit applications) but the default will remain for 6 years.

It’s unlikely you will get the default removed if the service provider was not in the wrong but you could add a notice of correction (up to 200 words) to your credit file to explain what happened. Contact the credit reference agencies to add this.

Susie
@natdebtline

Chrysalis

A lot of people get overly keen on cancelling DD's, one must remember the DD guarantee exists, meaning if unauthorised payment is taken it can be refunded instantly.

If I switch broadband provider I tend to leave the DD active for at least 2 months after I have migrated.

PixelPound

Chrysalis wrote: »

A lot of people get overly keen on cancelling DD's, one must remember the DD guarantee exists, meaning if unauthorised payment is taken it can be refunded instantly.

If I switch broadband provider I tend to leave the DD active for at least 2 months after I have migrated.

People should read DD guarantees. If you get charged in error, go straight to your bank, they will give you an immediate refund and then claw it back from whoever the DD was payable to.