Incorrect amount on default notice

crazymoney77

Does anyone know, if a default notice has been placed on your credit file for an incorrect amount, do I have legal grounds to insist it is removed?

here are the boring and sordid details:
I made a compliant to iD mobile (via Resolver) as I had been trying to cancel a £10 monthly sim (out of contract).

I cancelled direct debit 12th August and raised a formal complaint on 7th September. The last payment they had from me was 6th August 2020.

Despite me sending my name, email, address, account number, a contact phone number they wanted evidence it was me (I did not realise this until December!)

I sent them another email and asked them to call me as I was shielding with a baby. I got no call and was chased. They charged me September, October, November then put a formal default on my credit file 13th January 2021 for £39.

I have escalated to the ombudsman, who agreed I had given notice on the 7th September but as I had not paid the bill iD mobile has every right to make the entries on my credit file. 

In summary, as the ombudsman agree it should have been cancelled, the bill at default stage was around £10, not the £39 they were asking for?

Where do I stand? I can’t get a remortgage with this default (for an incorrect amount!)

crazymoney77

Note i raised a formal complaint to the ombudsman prior to them putting the default on my credit file. So it was clearly a disputed account.

I hope someone can give me some advice on consumer credit law etc

Batesy1976

You can insist the default is recorded accurately, you can't insist it is removed completely (as that isn't an accurate record of what happened.)

It's not clear why the £39 isn't accurate but it doesn't matter much if the Ombudsman agrees that the default status is correct.

crazymoney77

Thanks for your comment.

I think my point is also that they did not action the closure of the account when asked to do so (ombudsman have agreed this fact) had they have done this they would have informed me then of a smaller amount owning and it would have been easily settled.

They simply refused to communicate with me.

I am willing to go to the High Court if I have to!

Puddles83

crazymoney77 said:

I am willing to go to the High Court if I have to!

Are you really though? Not sure spending what would likely be £1000s in legal fees over a £39 debt is really sensible... but each to their own... let me guess, it’s the ‘principle’ right?

Get the debt settled, move on with your life and talk to a broker about a remortgage.

sonofmerton

crazymoney77 said:

I am willing to go to the High Court if I have to!

they wouldn't be interested. you don't go to the high court for disputes over a £39 default notice.

as others have said, if the default is true then it will stay be it £10 or £39.

if the ombudsman has ruled that the default is correct then you would fail at that hurdle approaching any decent solicitor.

if you were stubborn and took it to a court using a less than decent solicitor it would be immediately thrown out due to the ombudsman agreeing the default is a true record of the facts.

swallow your pride, grit your teeth and move on from this or it will eat you up and cost far more than a two figure default.

Batesy1976

crazymoney77 said:

Thanks for your comment.

I think my point is also that they did not action the closure of the account when asked to do so (ombudsman have agreed this fact) had they have done this they would have informed me then of a smaller amount owning and it would have been easily settled.

They simply refused to communicate with me.

I am willing to go to the High Court if I have to!

The Ombudsman doesn't just consider the law, they also consider "fairness."  A court only considers the law.  If you couldn't convince the Ombudsman, you haven't got a cat in hells chance in court.

crazymoney77

I earn a 6 figure salary so yes I will spend £1,000’s.

As it stands, I have cancelled a contract and they have continued to charge me for 3 months. So unless the amount is rectified why should I allow them to do this?!

The ombudsman just keep saying I gave 30 days notice so I defaulted by one month, and ignoring the fact they continued to charge me for a further 3 months after notification.

So call it principle or stubbornness or whatever I don’t see why I should just grit my teeth and get on with it.

zzyzx1221

crazymoney77 said:

I earn a 6 figure salary so yes I will spend £1,000’s.

As it stands, I have cancelled a contract and they have continued to charge me for 3 months. So unless the amount is rectified why should I allow them to do this?!

Because there's little point wasting time and energy getting a £39 default changed to a £10 one if the reason for all this is to get a remortgage.  Either a lender is going to be OK with small value defaults (in which case it matters not whether it is £10 or £39) or they're not, and if they're not you have no grounds for this default being removed anyway.