Asking o2 for compensation

Jamesingram1

Hi everyone

To simplify what’s happened, I took a phone contract out with o2, and didn’t like the service - so I cancelled within the 14 day cooling off. After this time, o2 took a years worth of the contract out my bank incorrectly which I clawed back on the direct debit indemnity scheme. Unbeknownst to me, o2 then put a default on my credit file. After admitting the error, o2 still haven’t removed it, this has now caused my bank to see me as a credit risk and they have dropped my credit card limit by £1000, which means my score is now even more affected because I’m utilising a higher proportion of my available credit. Am I able to ask o2 now for £1000 to compensate me for my loss, I use my credit card to pay my business expenses, this has really made my life tough now - they still haven’t removed it. I spoke to an advisor last week, who it seemed had sorted this issue and had emailed a team to get it reversed.  an email a couple of days later came from them stating 

“ Account (12345) shows as balance of £335.89. This was written off for internal purposes on 24/03/2023 and would need to be reversed. 

  

To discuss this further please contact O2 Payment Management on 0800 588 4123. 

”

I had already done this multiple times and am being passed from pillar to post 

im at my wits end. What can I do?

thank you all in advance. 

HampshireH

Put in a complaint with O2. They won't compensate you the £1000 reduction in your available credit

Jamesingram1

HampshireH said:

Put in a complaint with O2. They won't compensate you the £1000 reduction in your available credit

So that’s it? They ruin my finances, ultimately apologise then ride off in to the sunset? 

MattMattMattUK

Jamesingram1 said:

Hi everyone

To simplify what’s happened, I took a phone contract out with o2, and didn’t like the service - so I cancelled within the 14 day cooling off. After this time, o2 took a years worth of the contract out my bank incorrectly which I clawed back on the direct debit indemnity scheme. Unbeknownst to me, o2 then put a default on my credit file. After admitting the error, o2 still haven’t removed it, this has now caused my bank to see me as a credit risk and they have dropped my credit card limit by £1000, which means my score is now even more affected because I’m utilising a higher proportion of my available credit. Am I able to ask o2 now for £1000 to compensate me for my loss, I use my credit card to pay my business expenses, this has really made my life tough now - they still haven’t removed it. I spoke to an advisor last week, who it seemed had sorted this issue and had emailed a team to get it reversed.  an email a couple of days later came from them stating 

“ Account (12345) shows as balance of £335.89. This was written off for internal purposes on 24/03/2023 and would need to be reversed. 

  

To discuss this further please contact O2 Payment Management on 0800 588 4123. 

”

I had already done this multiple times and am being passed from pillar to post 

im at my wits end. What can I do?

thank you all in advance. 

Firstly, your credit score is meaningless, bankrupts can have maximum scores and billionaires low scores, ignore it. Your bank also did not care about utilisation in the way you think, that is a sales pitch from the CRAs to try and sell you a new product.  Banks review credit limits all the time, a default marker can reduce a limit, equally so can carrying a balance. 

The other issue is that the first issue is a consumer issue, the business issue is separate and also may present a bigger issue, you are potentially not even allowed to use the card for business purposes under it's terms and conditions.

You can raise a dispute with the CRA, that might help expedite the solution. You could also raise a formal complaint, then raise that with Ofcom if unresolved.

In terms of compensation you will not get any, you might get "a gesture of goodwill" in the £30-50 range.

Jamesingram1 said:

HampshireH said:

Put in a complaint with O2. They won't compensate you the £1000 reduction in your available credit

So that’s it? They ruin my finances, ultimately apologise then ride off in to the sunset? 

You need to get things in perspective, it is a minor inconvenience and it will get resolved, a £1,000 drop in a credit card limit can hardly be regarded as ruining your your finances. Raise a dispute either the CRA, raise a formal complaint with o2, work towards a solution rather than taking it personally. 

Jamesingram1

MattMattMattUK said:

Jamesingram1 said:

Hi everyone

To simplify what’s happened, I took a phone contract out with o2, and didn’t like the service - so I cancelled within the 14 day cooling off. After this time, o2 took a years worth of the contract out my bank incorrectly which I clawed back on the direct debit indemnity scheme. Unbeknownst to me, o2 then put a default on my credit file. After admitting the error, o2 still haven’t removed it, this has now caused my bank to see me as a credit risk and they have dropped my credit card limit by £1000, which means my score is now even more affected because I’m utilising a higher proportion of my available credit. Am I able to ask o2 now for £1000 to compensate me for my loss, I use my credit card to pay my business expenses, this has really made my life tough now - they still haven’t removed it. I spoke to an advisor last week, who it seemed had sorted this issue and had emailed a team to get it reversed.  an email a couple of days later came from them stating 

“ Account (12345) shows as balance of £335.89. This was written off for internal purposes on 24/03/2023 and would need to be reversed. 

  

To discuss this further please contact O2 Payment Management on 0800 588 4123. 

”

I had already done this multiple times and am being passed from pillar to post 

im at my wits end. What can I do?

thank you all in advance. 

Firstly, your credit score is meaningless, bankrupts can have maximum scores and billionaires low scores, ignore it. Your bank also did not care about utilisation in the way you think, that is a sales pitch from the CRAs to try and sell you a new product.  Banks review credit limits all the time, a default marker can reduce a limit, equally so can carrying a balance. 

The other issue is that the first issue is a consumer issue, the business issue is separate and also may present a bigger issue, you are potentially not even allowed to use the card for business purposes under it's terms and conditions.

You can raise a dispute with the CRA, that might help expedite the solution. You could also raise a formal complaint, then raise that with Ofcom if unresolved.

In terms of compensation you will not get any, you might get "a gesture of goodwill" in the £30-50 range.

Jamesingram1 said:

HampshireH said:

Put in a complaint with O2. They won't compensate you the £1000 reduction in your available credit

So that’s it? They ruin my finances, ultimately apologise then ride off in to the sunset? 

You need to get things in perspective, it is a minor inconvenience and it will get resolved, a £1,000 drop in a credit card limit can hardly be regarded as ruining your your finances. Raise a dispute either the CRA, raise a formal complaint with o2, work towards a solution rather than taking it personally. 

Thanks for your reply. I forgot to mention this, but when I first got the default I raised it with transunion who just told me my appeal was “unsuccessful” 

Brie

Jamesingram1 said:

when I first got the default I raised it with transunion who just told me my appeal was “unsuccessful” 

sounds like the default "tell them no so they go away" type of answer.  Raise it with them again and the rest of the complaint process as suggested.  

Have you talked to your CC provider?  Explained the situation and that you need a higher limit due to business use?  Is your employer able to help by providing a business use only card?

sourcrates

Have you submitted an official complaint to 02?

If you haven`t done so, then that`s what you must first do.

If you are unhappy with their response, you can ask them to review it here -

O2 Complaints Review Service
PO BOX 694
Winchester
SO23 5AP

Only once you have exhausted the 02 complaints procedure, can you escalate the matter to the communications ombudsman.

You can visit the Communications Ombudsman website, or you can call the Communications Ombudsman on 0330 440 1614 or write to them at:

Communications Ombudsman
PO Box 730
Warrington
WA4 6WU

The service is a free one.

As your complaint involves default removal, this is something that is not normally done, except if it was issued in error, as appears to be the case with you.

You may have to get the ICO involved, as its there job to oversee data protection issues, which is what this partly is, you can contact them here if you need to -

Information Commissioner's Office (ICO)

MrFrugalFever

Jamesingram1 said:

MattMattMattUK said:

Jamesingram1 said:

Hi everyone

To simplify what’s happened, I took a phone contract out with o2, and didn’t like the service - so I cancelled within the 14 day cooling off. After this time, o2 took a years worth of the contract out my bank incorrectly which I clawed back on the direct debit indemnity scheme. Unbeknownst to me, o2 then put a default on my credit file. After admitting the error, o2 still haven’t removed it, this has now caused my bank to see me as a credit risk and they have dropped my credit card limit by £1000, which means my score is now even more affected because I’m utilising a higher proportion of my available credit. Am I able to ask o2 now for £1000 to compensate me for my loss, I use my credit card to pay my business expenses, this has really made my life tough now - they still haven’t removed it. I spoke to an advisor last week, who it seemed had sorted this issue and had emailed a team to get it reversed.  an email a couple of days later came from them stating 

“ Account (12345) shows as balance of £335.89. This was written off for internal purposes on 24/03/2023 and would need to be reversed. 

  

To discuss this further please contact O2 Payment Management on 0800 588 4123. 

”

I had already done this multiple times and am being passed from pillar to post 

im at my wits end. What can I do?

thank you all in advance. 

Firstly, your credit score is meaningless, bankrupts can have maximum scores and billionaires low scores, ignore it. Your bank also did not care about utilisation in the way you think, that is a sales pitch from the CRAs to try and sell you a new product.  Banks review credit limits all the time, a default marker can reduce a limit, equally so can carrying a balance. 

The other issue is that the first issue is a consumer issue, the business issue is separate and also may present a bigger issue, you are potentially not even allowed to use the card for business purposes under it's terms and conditions.

You can raise a dispute with the CRA, that might help expedite the solution. You could also raise a formal complaint, then raise that with Ofcom if unresolved.

In terms of compensation you will not get any, you might get "a gesture of goodwill" in the £30-50 range.

Jamesingram1 said:

HampshireH said:

Put in a complaint with O2. They won't compensate you the £1000 reduction in your available credit

So that’s it? They ruin my finances, ultimately apologise then ride off in to the sunset? 

You need to get things in perspective, it is a minor inconvenience and it will get resolved, a £1,000 drop in a credit card limit can hardly be regarded as ruining your your finances. Raise a dispute either the CRA, raise a formal complaint with o2, work towards a solution rather than taking it personally. 

Thanks for your reply. I forgot to mention this, but when I first got the default I raised it with transunion who just told me my appeal was “unsuccessful” 

I went round and round in circles with Transunion over a dispute with a creditor and some incorrect dates, Transunion kept refusing to update my report saying that the dispute was unsuccessful. Eventually I had to raise a formal complaint with the creditor themselves and remind them of their legal obligation to adhere to the specific dates that where in question. They soon got their act together.

As with any complaint, it appears best to exhaust the own companies complaints procedure, being clear about what has happened and how this has affected you, then involve a regulator/ombudsman if the final response is unsatisfactory.

I know of someone who had to take legal action against a utility company who had wrongfully given them a default just at the point of a mortgage being processed, subsequently nearly losing his house purchase. The solicitor and regulator etc got the default removed and credit report repaired but unfortunately just a 'gesture of goodwill' was all that was offered for the inconvenience.....

sourcrates

MrFrugalFever said:

Jamesingram1 said:

MattMattMattUK said:

Jamesingram1 said:

Hi everyone

To simplify what’s happened, I took a phone contract out with o2, and didn’t like the service - so I cancelled within the 14 day cooling off. After this time, o2 took a years worth of the contract out my bank incorrectly which I clawed back on the direct debit indemnity scheme. Unbeknownst to me, o2 then put a default on my credit file. After admitting the error, o2 still haven’t removed it, this has now caused my bank to see me as a credit risk and they have dropped my credit card limit by £1000, which means my score is now even more affected because I’m utilising a higher proportion of my available credit. Am I able to ask o2 now for £1000 to compensate me for my loss, I use my credit card to pay my business expenses, this has really made my life tough now - they still haven’t removed it. I spoke to an advisor last week, who it seemed had sorted this issue and had emailed a team to get it reversed.  an email a couple of days later came from them stating 

“ Account (12345) shows as balance of £335.89. This was written off for internal purposes on 24/03/2023 and would need to be reversed. 

  

To discuss this further please contact O2 Payment Management on 0800 588 4123. 

”

I had already done this multiple times and am being passed from pillar to post 

im at my wits end. What can I do?

thank you all in advance. 

Firstly, your credit score is meaningless, bankrupts can have maximum scores and billionaires low scores, ignore it. Your bank also did not care about utilisation in the way you think, that is a sales pitch from the CRAs to try and sell you a new product.  Banks review credit limits all the time, a default marker can reduce a limit, equally so can carrying a balance. 

The other issue is that the first issue is a consumer issue, the business issue is separate and also may present a bigger issue, you are potentially not even allowed to use the card for business purposes under it's terms and conditions.

You can raise a dispute with the CRA, that might help expedite the solution. You could also raise a formal complaint, then raise that with Ofcom if unresolved.

In terms of compensation you will not get any, you might get "a gesture of goodwill" in the £30-50 range.

Jamesingram1 said:

HampshireH said:

Put in a complaint with O2. They won't compensate you the £1000 reduction in your available credit

So that’s it? They ruin my finances, ultimately apologise then ride off in to the sunset? 

You need to get things in perspective, it is a minor inconvenience and it will get resolved, a £1,000 drop in a credit card limit can hardly be regarded as ruining your your finances. Raise a dispute either the CRA, raise a formal complaint with o2, work towards a solution rather than taking it personally. 

Thanks for your reply. I forgot to mention this, but when I first got the default I raised it with transunion who just told me my appeal was “unsuccessful” 

I went round and round in circles with Transunion over a dispute with a creditor and some incorrect dates, Transunion kept refusing to update my report saying that the dispute was unsuccessful. Eventually I had to raise a formal complaint with the creditor themselves and remind them of their legal obligation to adhere to the specific dates that where in question. They soon got their act together.

As with any complaint, it appears best to exhaust the own companies complaints procedure, being clear about what has happened and how this has affected you, then involve a regulator/ombudsman if the final response is unsatisfactory.

I know of someone who had to take legal action against a utility company who had wrongfully given them a default just at the point of a mortgage being processed, subsequently nearly losing his house purchase. The solicitor and regulator etc got the default removed and credit report repaired but unfortunately just a 'gesture of goodwill' was all that was offered for the inconvenience.....

Its just sloppy due diligence, and the worst culprits are mobile phone service providers, and water companies.

At a time when the FCA are encouraging the financial industry to be more lenient with customers in financial trouble, and avoid defaulting accounts, no such guidance has been issued to the above service providers.

Incorrectly defaulted accounts can cost people a great deal on occasion, and the recompense offered for such a lax approach is pitiful.