Debt Relief Order and O2

Hawjim

Hi - currently having a nightmare getting consistent advice from O2.  If anyone can help, that would be really appreciated.

I am now in a Debt Relief Order (DRO) and the handset loan part of my contract has been included in the DRO.  I am up to date with payments and have never missed a payment to O2.

I have heard that O2 disconnect customers who they find out are in a DRO, whether they are listed as a creditor in the DRO or not, so please can someone give me any advice as to if this is correct.  I have called Payment Management Team twice now and been given conflicting information - please can anyone help or any other O2 or previous O2 customers share their story with me?  Thank you.  (I have posted similar before, but now have gone into the DRO - best decision I ever made by the way, just need to get O2 side of things sorted now).

sourcrates

You have to break the terms of your contract to be disconnected.

Rules apply both ways.

If you have basically got a free phone, them I assume they will disconnect you, but you say you are still making payments, you can`t make payment to a debt in a DRO, you risk it failing.

Do you mean you are paying the airtime, but not the phone loan ?

If that`s the case you have complicated matters substantially, you should just have cut up that sim card and used a PAYG one instead.

Hawjim

sourcrates said:

You have to break the terms of your contract to be disconnected.

Rules apply both ways.

If you have basically got a free phone, them I assume they will disconnect you, but you say you are still making payments, you can`t make payment to a debt in a DRO, you risk it failing.

Do you mean you are paying the airtime, but not the phone loan ?

If that`s the case you have complicated matters substantially, you should just have cut up that sim card and used a PAYG one instead.

Thanks for the info there. I haven’t made any payments to O2 since the DRO was approved last Thursday.  I have cancelled the direct debit in respect of both the phone loan and the airtime.  The phone loan is included in the DRO but the air time was not and the Intermediary advised that O2 should cancel both airtime and phone loan once they are aware of the DRO. I just did not want to be left with an outstanding bill for the airtime when the phone loan was in the DRO!

fatbelly

There's been a recent email from the Insolvency Service re this:

There has been a recent trend, particularly with Tesco mobile phone contracts, to make one entry on a DRO application without first ascertaining the nature of the contract. This matter has been raised before and is detailed in the DRO A-Z Guidance. Tesco have complained to the Official Receiver about the unnecessary work caused and this is a sentiment echoed by the Official Receiver. 

 Some mobile phone contracts have two agreements – one for the handset and one for the airtime. If just one DRO entry is made in a case where the account has two separate agreements, the effect will be that the provider will close the entire account. AI’s must clarify with the debtor whether their mobile phone contract falls into this category.  

 Should a mobile phone account be at risk of closure, because the debtor/AI have not established whether there are separate agreement, the Official Receiver will not become involved and this will be a matter for the debtor/AI to discuss with the mobile phone provider.  

 The Official Receiver will, of course, be prepared to amend the DRO but only when the debtor/AI provides satisfactory evidence justifying the amendment. 

The DRO A-Z Guidance can be found at:  

https://www.gov.uk/guidance/debt-relief-orders-guidance-for-debt-advisers

Hawjim

fatbelly said:

There's been a recent email from the Insolvency Service re this:

There has been a recent trend, particularly with Tesco mobile phone contracts, to make one entry on a DRO application without first ascertaining the nature of the contract. This matter has been raised before and is detailed in the DRO A-Z Guidance. Tesco have complained to the Official Receiver about the unnecessary work caused and this is a sentiment echoed by the Official Receiver. 

 Some mobile phone contracts have two agreements – one for the handset and one for the airtime. If just one DRO entry is made in a case where the account has two separate agreements, the effect will be that the provider will close the entire account. AI’s must clarify with the debtor whether their mobile phone contract falls into this category.  

 Should a mobile phone account be at risk of closure, because the debtor/AI have not established whether there are separate agreement, the Official Receiver will not become involved and this will be a matter for the debtor/AI to discuss with the mobile phone provider.  

 The Official Receiver will, of course, be prepared to amend the DRO but only when the debtor/AI provides satisfactory evidence justifying the amendment. 

The DRO A-Z Guidance can be found at:  

https://www.gov.uk/guidance/debt-relief-orders-guidance-for-debt-advisers

Thanks fatbelly for this.  Really good to know.