Default on Car phone Warehouse Direct Debit

ikcdab

I support a lad who took out a new 24 month contract for an ee phone with car phone warehouse last Thursday. It is £20 per month. He ought to be able to pay this but (to cut a long story short) through his own irresponsibility he won't be able to pay the first direct debit next week. His bank balance is zero and he does not have any overdraft facility.
I assume the direct debit will get refused. He is unlikely to have any money until his next benefit is paid in mid July.
What will happen when he defaults on the payment?

[Deleted User]

They'll probably chase him up with a reminder and disconnect him if not paid.

If they report to CRAs, there may be a late payment marker.

Dobbibill

His bank may also charge him for a missed DD if that is their policy.

ikcdab

Thank you for your replies.

Ben8282

Could you not, on this occasion, lend him the £20?
Would save a lot of problems.

Kentish_Dave

He could sell the phone on eBay, which would probably get him enough to pay for a good few months.

D_M_E

If he is on benefits and has nothing left after living expenses, why is he committing to the EE contract?

Far better to return the thing and go SIM only which he can and should do if still in the cooling off period.

[Deleted User]

D_M_E wrote: »

If he is on benefits and has nothing left after living expenses, why is he committing to the EE contract?

Far better to return the thing and go SIM only which he can and should do if still in the cooling off period.

Only if it was purchased online

https://selfhelp.carphonewarehouse.com/SelfHelp/request.do?view()=c%7B11a18a50-bcb7-11de-e56d-000000000000%7D

Candyapple

ikcdab wrote: »

His bank balance is zero and he does not have any overdraft facility.
I assume the direct debit will get refused.

Dobbibill wrote: »

His bank may also charge him for a missed DD if that is their policy.

The DD might not get refused, the bank has the discretion to allow the payment through (they usually do this for low amounts) and then he would be in an emergency overdraft and any fees associated with that. Which bank is it?

You said his next benefit won’t be paid until mid-July, assuming the DD does not get paid – will he have enough then for 2 lots of line rental (£40) or will he be struggling every month to clear the arrears?

SnowTiger

ikcdab wrote: »

I support a lad who took out a new 24 month contract for an ee phone with car phone warehouse last Thursday. It is £20 per month. He ought to be able to pay this but (to cut a long story short) through his own irresponsibility he won't be able to pay the first direct debit next week. His bank balance is zero and he does not have any overdraft facility.
I assume the direct debit will get refused. He is unlikely to have any money until his next benefit is paid in mid July.
What will happen when he defaults on the payment?

According to Vodafone:

You are likely to incur a late payment charge of £5 if your bill is not paid within seven days. Late payments may also impact your credit score. We may also charge you interest on any money owed to us after your payment date (charged daily at 2% above the base rate of Barclays Bank).

You may also need to pay any administration costs that result from the late payment of your bill.

If I were you I'd lend him £20 for a week.

redux

Direct debits have to have a notice period built in before the first payment is taken, so depending on what you mean by last Thursday (5 or 12 days ago now?), there may be a few days leeway still available.

Sounds like a loan for now, as already suggested, and some support advice about getting organised for subsequent months.