Default when I have arrangement set up prior

Georgepuddingandpie

Hi, virgin media have added a default on my account. I was surprised as I’d already set up an arrangement to pay them. I left because they increased their prices and they produce a final bill in December. I hadn’t realised I’d have to pay a closing balance, when I got a notification in Feb, I agreed to set up and arrangement (of which I’ve not missed one payment). Then a few months later I checked Experian and there it was… a default dated April saying I missed four months payment? I had thought the arrangement would have prevented this. I’m super frustrated and emailed them numerous times and they will not remove it! I even spoke to an advisor on the phone who said if I paid it all off they would remove it and so I did thinking they would keep their word and left myself out of pocket. I just really wanted the default gone though. Now they won’t even honour their word and are saying they’re legal required to report to credit reference agencies. 

Mark_d

So Virgin media increased their prices and you decided to leave them.  At the end of your contract, you always have to pay for charges incurred during that final month.  Why didn't Virgin media continue to take the money by direct debit like they had been doing?

MattMattMattUK

Georgepuddingandpie said:

Hi, virgin media have added a default on my account. I was surprised as I’d already set up an arrangement to pay them. I left because they increased their prices and they produce a final bill in December. I hadn’t realised I’d have to pay a closing balance, when I got a notification in Feb, I agreed to set up and arrangement (of which I’ve not missed one payment). Then a few months later I checked Experian and there it was… a default dated April saying I missed four months payment? I had thought the arrangement would have prevented this. 

It does not.

Georgepuddingandpie said:

I’m super frustrated and emailed them numerous times and they will not remove it!

They will not as it is a factual statement.

Georgepuddingandpie said:

I even spoke to an advisor on the phone who said if I paid it all off they would remove it and so I did thinking they would keep their word and left myself out of pocket.

I think you might have possibly misunderstood. It would show as outstanding until paid, then up to date, but the default would still be correct on the date it happened.

Georgepuddingandpie said:

I just really wanted the default gone though. Now they won’t even honour their word and are saying they’re legal required to report to credit reference agencies. 

You cannot have the default "gone", it happened, it is factually recorded. They are legally required to report truthfully to the CRAs when they report data, so they cannot remove it.

Whilst it might be frustrating take it as a learning point and move on. It will have little impact in a few months, time heals all, even defaults. 

Georgepuddingandpie

I would have thought they’d have to make me aware that I would still get a default even if an arrangement was set up. 

MattMattMattUK

Georgepuddingandpie said:

I would have thought they’d have to make me aware that I would still get a default even if an arrangement was set up. 

They can default after a period of non-payment, usually between three and six months, sometimes more, sometimes less. They do not need to make you aware and being in an arrangement to pay does not alter getting a default. 

sourcrates

Unfortunately anything other than full contractual payment can, and likely will result in a default, it will be advised in the terms and conditions of any credit/service agreement.