Erroneously Referred to Debt Collectors by Plusnet - Can I Terminate Contract?

69jr

Apologies for the wall of text. I've been through an ordeal with Plusnet and would like to terminate my mobile contract without penalty. If anyone could advise me on my rights or what I'm likely to be able to get, I'd really appreciate it.

In July last year I signed up for a 24 month mobile contract with Plusnet via the affiliate website Direct Mobiles. I provided all the details required for my direct debit, however in August I received a letter from a debt collection agency for the amount of my first bill. I called Plusnet, they claimed there was an error in communication between them and the affiliate which caused my direct debit not be set up. I provided my details over the phone and they called off the debt collectors. In September the same thing happened again. I expressed my concern on each occasion about the effect this would have on my credit score, they assured me that it wouldn't affect it. In hindsight, I shouldn't have just taken their word for it.

In April of this year I had an offer accepted on my first property. I applied for a mortgage, but my application was swiftly rejected because of 2 missed payments appearing on my credit report - the 2 occasions on which Plusnet referred me to a debt collection agency. My mortgage broker advised me to obtain emails from Plusnet explaining that I was not to blame for these missed payments in order to get the mortgage lender to overturn my rejection. He also advised me that I would need confirmation from Plusnet on letter-headed paper for them to consider the application properly.

Here's a timeline of what happened:
- On the 17th of April I spoke to Plusnet on the phone to have them remove these from my credit file. I requested they email me that day with confirmation that it was their mistake and I requested written confirmation to be posted to me on letter-headed paper. They sent me the emails that day and promised the letter within 7 working days. I sent these to my mortgage broker and the application was in progress again, but couldn't be approved until letter-headed confirmation was received.

- On the 23rd of April I phoned Plusnet again to check on the whereabouts of the letter. I was informed that no letter had been sent and they had not made a record of my request. I was advised that a PDF would be quicker so I agreed to this, but was told I could wait up to 5 working days. Later that day I called again and spoke to a senior member of the customer service team who informed me that the letter had been sent that day and would be with me the following day. She didn't seem to know anything about the PDF I had requested, but since it was to arrive the following day I accepted the situation.

- On the 27th of April the letter had still not arrived. I spoke to an representative who assured me it has been posted on the 24th of April (the day after they told me it had been posted). They also informed me that the senior member of customer service I had spoken to previously should not have promised it would arrive the next day. They wouldn't tell me what postage had been used to send it. At this point I requested they send me a PDF copy of the letter by email again. They told me this could take 1 - 2 working days.

- On the 30th of April I contacted them again to chase the whereabouts of both the letter and the email, neither of which had arrived. I was given vague responses about how they were working to get it to me 'as soon as possible', but was given no guarantee of when it would be.

- On the 1st of May I called several times and finally received the email with PDF attachment at 17:00. Prior to this at around 16:00, I sent an email to their mobile department detailing my experiences and expressing my wish to terminate the contact without penalty immediately. Later that evening I received a call from customer service offering me 2 months free mobile service as a 'gesture of goodwill'. I informed the representative of the email I had sent and my intention to terminate the contract and that I did not want to accept the 2 free months in case it was construed as resolution of the complaint I had made. He assured me that this would not be the case.

To date, the letter they claim to have sent has not arrived.

It seems to me that my consumer rights have been breached on these grounds:
Plusnet failed to provide service with reasonable care and skill under s.49 consumer rights act in the following ways:-
-Failed to enter the correct direct debit details;
-Failed to notify me of the fact that the direct debit details were incorrect;
-Preemptively instructing a debt collection agency without first attempting to contact me;
-Gave false assurances that the error would be rectified on two occasions;
-Failed to deal with the complaint in a timely manner;
-Giving false information in relation to the posting of the letter

Their first response is that I will have to pay a termination fee. I have stated that I won't agree to any termination fee as I believe my consumer rights have been breached, and I have asked for my complaint to be escalated to a manager.

If you've made it this far, thanks for reading!

So, do you think I stand a chance? Any advice for me?

Castle

Getting out of the contract may be difficult but there seems to be enough evidence for a claim of damages under section 13 of the 1998 Data protection Act. (See Halliday V Creation Consumer Finance):-
http://www.bailii.org/ew/cases/EWCA/Civ/2013/333.html

69jr

Very interesting, this case bears a similarity to my situation.

[Deleted User]

They are right to a degree - your credit score/rating isn't affected since neither exist.

I don't think this is grounds for contract termination - I would take the 2 months free they are offering, and if necessary escalate it further

Louisdf

Did you pay the bill by card as soon as you knew the direct debit had not been taken?
Direct debit is simply a payment method, it is still your responsibility to ensure your bill has been paid.