Default/Satisfied Settled

niresearcher · 20 September 2018 at 5:25PM

Hi All,

I am currently in dispute with a mobile phone company (via Resolver) over an account listed as Defaulted. I am assuming the likely outcome will be a 'Satisfied Settled' showing on my credit file, but that the Default will remain in place for 6 years.

A little background:

- I purchased a sim card, pay monthly for a 3G Dongle in January 2014.
- I used it often during the first year and a half or so but then I stopped using it as I could just tether off my phone etc so it became irrelevant.
- Stupidly, I forgot about the sim but when doing accounts (I'm self employed) I noticed in June 2017 that I was still paying £15 per month every month for something I didn't use so I just cancelled the Direct Debit at the bank and thought nothing more of it.

Follow-up:

- I became aware last month when doing a credit report on myself that the account was listed as Defaulted for £37.
- I phoned the company and paid the debt immediately, however I asked for written confirmation that the account was settled, and confirmation that it was a dormant account that was not in use prior to cancelling the DD.
- The company confirmed there had been zero usage on the account in the 18 months prior to me cancelling the Direct Debit and they acknowledged the account was not in use. They finally gave me written confirmation this week via Resolver that the account was settled, five weeks on but still no update on my credit file.

My contention:

- I bought the sim in January 2014 before cancelling the DD in June 2017. As a result, I do not believe I was still in contract over three years later. Have I grounds here?
- The company have confirmed there was zero usage on the account - effectively I paid them £300 over an 18 month period for a sim that wasn't in use. It was a dormant/defunct account that they still received a fair chunk of money on due to an oversight on my part.

Now, I know I should have contacted the company directly from the outset to cancel rather than cancelling the DD at my bank but is there any grounds in the above to have the Default removed? An automated system will class it as a Default and ultimately I am assuming it will become a satisfied/settled listing on my credit file but has anyone had success in lifting a default under similar circumstances? Have I any legal standing here regarding the contract period and my belief that I was 'out of contract'?

Waffled on sorry, but any feedback or advice here would be greatly appreciated. I am currently applying for a mortgage, I have no debt, no bad credit history outside of this. I am missing on a number of lenders over £37 which is now paid. My own naivety but clinging onto the hope that I have a case worth challenging. Thanks!

[Deleted User] · 20 September 2018 at 5:40PM

You were still in contract - it had just moved to a rolling monthly contract.

Cancelling payment never cancels the underlying contract.

nic_c · 20 September 2018 at 8:12PM

You were still in contract, many have a minimum term, e.g. 12 or 24 months but yours looks like it was past that period but still in a contract. Mostly you have to give 30 days notice to terminate, and as stated cancelling a DD does not end the contract. You don't say whan the monthly fee was, but thankfully it looks like they only charged you a month or so. Some carry on charging you until they default it six months after last unpaid bill.

National_Debtline · 24 September 2018 at 5:43PM

Hi there and welcome to MSE,

I am afraid I must agree with the other posters about the contract becoming a monthly rolling agreement once the original contract term ended. This means that the default is likely deemed to be correct, as you would've almost certainly needed to give some kind of written notice to end the agreement.

Only incorrect data can be removed from your file, and unfortunately, the default doesn't appear to be incorrect. Perhaps a bit 'over zealous' of the lender to register a default with just 2-3 missed payments and you could raise that as a complaint and see if they would consider amending it from a default to a late payment marker. If they refuse you can escalate the matter to the Information Commissioners Office and/or the Telecommunications Ombudsman.

Laura
@natdebtline

niresearcher · 13 October 2018 at 2:32PM

Thanks everyone for the feedback.

I am at my wit's end now over all this. The company in question are simply not updating credit agencies with any kind of update on the account at all. The result is I am showing as Defaulted for £37 when in reality the account is paid up in full and settled since 14/08/2018.

I appreciate they may choose to just list it as satisfied settled, that's fine, it would at least give me a short term improvement and enough to get a mortgage over the line but they haven't provided credit agencies with any update since January 2018.

Are they legally obliged to do this within a certain time-frame? Long and short of it right now, this company's lack of response/action is putting my whole long-term future and stability at risk,. I am still going through the Resolver process and it's ten days until I can escalate to the Ombudsman.

Gutted over this, I have always paid my bills, I have no debts, I have a 15% deposit for my new house sitting in the bank, I have a holding fee down yet I am being put through the mire over £37 which is paid. Can't get my head around it at all :-(

welly_59 · 13 October 2018 at 2:59PM

Who’s the provider? I had success removing a three mobile default via resolver

sourcrates · 13 October 2018 at 3:10PM

In the main, most companies update on a monthly basis, but some can be less often, looking on my credit report, i only have one or two creditors listed, bank accounts etc, but one has not been updated since August this year.

niresearcher · 13 October 2018 at 4:34PM

welly_59 wrote: »

Who’s the provider? I had success removing a three mobile default via resolver

It is indeed Three. Fingers well and truly crossed but I think I'm going to lose the house and holding fee because it's dragged on so long. I've put the builder off and off and they've been OK so far but I am well passed their deadline now and zero change to my credit score - this one element is killing it entirely.

I am just so frustrated and low over it now. No disrespect to anyone on here who has had genuine financial problems and fallen behind with arrears, repayments etc but an automated/computer system is treating me as just another number. There's no personal side anymore, there seems to be no common sense. It is utterly, utterly depressing.

[Deleted User] · 13 October 2018 at 5:03PM

Have you checked all 3 of your credit files?

Ignore any changes to your credit score - if anything it will drop again once the account status is updated

niresearcher · 15 October 2018 at 1:36PM

!!! wrote: »

Have you checked all 3 of your credit files?

Ignore any changes to your credit score - if anything it will drop again once the account status is updated

I use experian mainly but also signed up for checkmyfile last month.

Experian score is 494
Checkmyfile is 555

Using a mortgage broker, I asked him to go ahead and try to obtain a mortgage offer with providers who tend to lend to poor credit rating clients, however the first one he tried was Accord who don't leave a footprint - they came back with a straight no as the score was coming in around 500. Trying Progressive now but I don't hold out much hope.

If Three would just update credit agencies I wouldn't be going through this stress. So, so frustrating and trying to get hold of anyone relevant in Three is proving impossible so far, even via Resolver.

[Deleted User] · 15 October 2018 at 1:47PM

Again, ignore the scores.

I asked you to check your 3 files to see how the Three account is showing on there, not the made up numbers.

The "score" that Accord came back with would be their own internal scoring system, not the made up CRA scores.

Default/Satisfied Settled

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