Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • niresearcher
    • By niresearcher 20th Sep 18, 5:25 PM
    • 5Posts
    • 0Thanks
    niresearcher
    Default/Satisfied Settled
    • #1
    • 20th Sep 18, 5:25 PM
    Default/Satisfied Settled 20th Sep 18 at 5:25 PM
    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!
Page 1
    • zx81
    • By zx81 20th Sep 18, 5:40 PM
    • 19,608 Posts
    • 20,982 Thanks
    zx81
    • #2
    • 20th Sep 18, 5:40 PM
    • #2
    • 20th Sep 18, 5:40 PM
    You were still in contract - it had just moved to a rolling monthly contract.

    Cancelling payment never cancels the underlying contract.
    • nic_c
    • By nic_c 20th Sep 18, 8:12 PM
    • 1,855 Posts
    • 966 Thanks
    nic_c
    • #3
    • 20th Sep 18, 8:12 PM
    • #3
    • 20th Sep 18, 8:12 PM
    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
    • #4
    • 24th Sep 18, 5:43 PM
    • #4
    • 24th Sep 18, 5:43 PM
    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
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • niresearcher
    • By niresearcher 13th Oct 18, 2:32 PM
    • 5 Posts
    • 0 Thanks
    niresearcher
    • #5
    • 13th Oct 18, 2:32 PM
    • #5
    • 13th Oct 18, 2:32 PM
    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
    • By welly_59 13th Oct 18, 2:59 PM
    • 137 Posts
    • 68 Thanks
    welly_59
    • #6
    • 13th Oct 18, 2:59 PM
    • #6
    • 13th Oct 18, 2:59 PM
    Who’s the provider? I had success removing a three mobile default via resolver
    • sourcrates
    • By sourcrates 13th Oct 18, 3:10 PM
    • 15,874 Posts
    • 14,921 Thanks
    sourcrates
    • #7
    • 13th Oct 18, 3:10 PM
    • #7
    • 13th Oct 18, 3:10 PM
    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.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • niresearcher
    • By niresearcher 13th Oct 18, 4:34 PM
    • 5 Posts
    • 0 Thanks
    niresearcher
    • #8
    • 13th Oct 18, 4:34 PM
    • #8
    • 13th Oct 18, 4:34 PM
    Who’s the provider? I had success removing a three mobile default via resolver
    Originally posted by welly_59
    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.
    • Gary_Dexter
    • By Gary_Dexter 13th Oct 18, 5:03 PM
    • 2,739 Posts
    • 1,560 Thanks
    Gary_Dexter
    • #9
    • 13th Oct 18, 5:03 PM
    • #9
    • 13th Oct 18, 5:03 PM
    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
    • By niresearcher 15th Oct 18, 1:36 PM
    • 5 Posts
    • 0 Thanks
    niresearcher
    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
    Originally posted by Gary_Dexter
    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.
    • Gary_Dexter
    • By Gary_Dexter 15th Oct 18, 1:47 PM
    • 2,739 Posts
    • 1,560 Thanks
    Gary_Dexter
    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.
    • niresearcher
    • By niresearcher 15th Oct 18, 2:30 PM
    • 5 Posts
    • 0 Thanks
    niresearcher
    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.
    Originally posted by Gary_Dexter
    Sorry, more accurate picture:

    Callcredit:
    - Account Status: Default
    - Default of £37, recorded on 13 December 2017
    - Default not yet satisfied

    Equifax
    - Default of £37, recorded on December 2017
    - Default satisfied date not reported

    Experian
    - Default of £37 from 13 December 2017
    - Default not yet satisfied

    - This all despite the account being settled with Three from 14 August 2018, now two months ago today. Yes I appreciate they are only obliged to show as satisfied/settled but they aren't even doing that. The likes of Experian is showing the last update from Three as 30 September 2018 with no change :-(
    • Gary_Dexter
    • By Gary_Dexter 15th Oct 18, 2:57 PM
    • 2,739 Posts
    • 1,560 Thanks
    Gary_Dexter
    OK

    So yes, Three have not updated the CRA's to show it has been paid off and closed.

    You need to continue to make contact with them to get them to update the account statuses, and if need, start an official complaint
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,185Posts Today

8,608Users online

Martin's Twitter