Will mobile phone company offer a repayment plan?

Greg89

I used up many many minutes of premium numbers.

I am on Asda mobile and they do have a section if their is trouble, you can contact customer service, which I will.

I know other companies offered a 6 month repayment plan.

I racked up around £500. 300 minutes of £1.50 premium rate plus £0.15 non standard calling.

I'm not contract holder, just pay as you go, I renew myself if i wish to every month. Not an actual contract holder.

I don't know if it is a legal requirement for a phone company to offer a repayment plan, failing that,  pass onto a debt recovery company?

If it does go to a recovery company, would I be defaulted? Even if I can pay it off?

MattMattMattUK

Greg89 said:

I used up many many minutes of premium numbers.

Have you stopped using these numbers now so that this issue does not reoccur? 

Greg89 said:

I am on Asda mobile and they do have a section if their is trouble, you can contact customer service, which I will.

I know other companies offered a 6 month repayment plan.

I racked up around £500. 300 minutes of £1.50 premium rate plus £0.15 non standard calling.

I'm not contract holder, just pay as you go, I renew myself if i wish to every month. Not an actual contract holder.

How have you run up a debt if you are on PAYG, surely when you run out of credit it will not allow you to make calls?

Greg89 said:

I don't know if it is a legal requirement for a phone company to offer a repayment plan, failing that,  pass onto a debt recovery company?

They are under no obligation to offer a repayment plan, though they may be willing to, with interest.

Greg89 said:

If it does go to a recovery company, would I be defaulted? Even if I can pay it off?

That depends on the specifics of the debt. If you can pay it off then why wouldn't you?

cymruchris

Greg89 said:

I used up many many minutes of premium numbers.

I am on Asda mobile and they do have a section if their is trouble, you can contact customer service, which I will.

I know other companies offered a 6 month repayment plan.

I racked up around £500. 300 minutes of £1.50 premium rate plus £0.15 non standard calling.

I'm not contract holder, just pay as you go, I renew myself if i wish to every month. Not an actual contract holder.

I don't know if it is a legal requirement for a phone company to offer a repayment plan, failing that,  pass onto a debt recovery company?

If it does go to a recovery company, would I be defaulted? Even if I can pay it off?

As above - some of what you've said doesn't quite make sense.

If you're on pay as you go, how did you manage to run up a debt of £500?

Or has it been run up on a credit card?

Greg89

I top up £15.

It maybe a rolling contract, but I change data every month. I don't think it's an actual contract.

I have stopped using the numbers.

If they don't offer and I can't pay straight away, what could happen?

cymruchris

Greg89 said:

I top up £15.

It maybe a rolling contract, but I change data every month. I don't think it's an actual contract.

I have stopped using the numbers.

If they don't offer and I can't pay straight away, what could happen?

Still a bit confused.

Do you use it - top up - use it - top up etc.

Or do they take a monthly amount from your bank account by direct debit?

You say you top up £15 - so how did you get a £500 debt from only topping up £15?

Greg89

I am confused myself and thank you all for the answers.

Let's say they don't offer me a repayment plan, what happens then? I'm sure it's passed onto a debt collector.

It's the rate plus network access charge.

Desmond_Hume

You really need to clear up how you accumulated this debt on a PAYG contract. 

cymruchris

How have you paid for your previous use? Do they take a monthly direct debit from your bank account?

How did you get your sim-card? Did you buy it in a shop over the counter? Or online from the network?

I'm not sure who the debt you're talking about is with, as I don't know who you've been paying and how.

The basics though - if you owe them money - and can't pay it - they'll likely suspend your mobile phone service until you've settled the bill. Only they can tell you what they will or won't accept in terms of how it's paid off. If you can't reach an agreement with them though, then yes, most mobile networks would likely pass an unpaid bill over to a debt collection company.

Although you've said 'Pay as you go' - the fact you have a debt makes me think you've got a contract.

If you default on the contract - it'll likely harm your credit history.

Have you got access to your credit history through the likes of Clearscore, Credit Karma, MSE Credit club? If so, is there an account on any of those that show your mobile phone?

Greg89

I brought my SIM over the counter.

They usually take the payment out of my bank account every month, however I do not think it's a fixed contract.

Thank you for the insights.

If it is passed onto a debt collection agency, does it mean they'll default it straight away? They'll usually ask for a income, expenditure, budget first 

cymruchris

Ok so it looks like you do have a contract of some kind if you’re making a monthly payment. Possibly a short rolling one of something like 30 days - but hard to say without knowing what you’ve actually signed up for at the time of purchase. 

So yes - if you’ve run up a large bill - unless you try and talk to them asap - I imagine they’ll try and take the payment as usual on the due date. When is the next payment supposed to happen? I’m guessing there’s not enough money in the account to pay for it ? 

If that’s the case, the bank will likely reject the payment and things will start to move - I imagine they’ll disconnect you and then demand payment (if you haven’t already spoken to them).

Defaults vary by company - but usually happen after a number of successive missed payments. If you do manage to speak with them and set up some kind of arrangement to pay, they likely won’t default. If you ignore them all completely - pay nothing - then a default would likely be placed around 6 months down the line. 

Is your intention to try and pay it back as soon as you can to minimise the impact on your credit history ? Or is your intention not to pay it at all whereby your credit history will be likely impacted considerably? 

sourcrates

If you have run up a debt, you are not on PAYG are you, it must be a contract.

One of two things will happen, if payment fails, it may be rolled over till the next billing cycle, or your account may be suspended until its paid.

Continued non payment will see your line be disconnected and the debt sent to a debt collector.

Mobile networks do not offer payment plans, if you don`t pay, you don`t get to use it, simple as that I`m afraid.