Phone Contract Default Notice

[jessica.]

Please can anyone help me understanding the Consumer Credit Act.

I took a phone contract out with O2 which closed in May 2014. The first I heard that I had a small outstanding debt after of £24, after contract closure was in March 2015 after I received a letter from a debt collection agency (o2 had sold the debt over after 8 months). I received no correspondence or invoices from o2 via post, email or phone and so was unaware of this debt. I paid the debt immediately after being contacted by the debt collection.
If I had been informed immediately after contract closure that there was a debt then I would have paid it.

Can anyone offer me any legal advice (quotes? sections of law? etc) that will support my case to get the unfair defaulted account removed from my credit file. please help! where do I stand?

[nemesis45]

Re: Phone Contract Default Notice

Please can anyone help me understanding the Consumer Credit Act.

I took a phone contract out with O2 which closed in May 2014. The first I heard that I had a small outstanding debt after of £24, after contract closure was in March 2015 after I received a letter from a debt collection agency (o2 had sold the debt over after 8 months). I received no correspondence or invoices from o2 via post, email or phone and so was unaware of this debt. I paid the debt immediately after being contacted by the debt collection.
If I had been informed immediately after contract closure that there was a debt then I would have paid it.

Can anyone offer me any legal advice (quotes? sections of law? etc) that will support my case to get the unfair defaulted account removed from my credit file. please help! where do I stand?

Good evening, welcome to LB.
The Consumer Credit Act 1974 (as amended) does not apply to telephone service contracts.

This means that " default notices" are not required.
O2 would have sent a " demand " for payment one of the few things it does get right.
There is no " law " to be quoted here. It is the ICO's view that credit files must show
an accurate and up to date picture of the conduct of an account, so your entry should
now show as " satisfied".

Getting a default entry removed is therefore extremely difficult .

Your only option is to appeal for a gesture of goodwill from O2 as it
placed the default, stating what you have said here and getting the
debt collection agency /debt purchaser to confirm that the debt has been paid.

There is no guarantee of success.

nem

[jessica.]

Re: Phone Contract Default Notice

Hi Nem,

Thank you for your reply!
O2 have replied with this email to my appeal.

"I’m afraid it’s not the responsibility of O2 if you don’t check your account and we are not obliged to issue postal bills or reminders for online accounts, although on this occasion there were text, emails and letters sent advising of the arrears. There is no proven error as we invoiced you correctly.

Unfortunately as the arrears are valid, we will be unable to instruct Lowell to remove the default.

Please note also that we are not governed by the Consumer Credit Act 1974 for fixed term credit (as we do not offer fixed term credit), and as such do not have to issue a notice of default."

I never received any letters, texts or emails as they state and so I believe that it was defaulted unfairly because I wasn't given any warning? Surely I must be informed before an outstanding debt is defaulted or passed to debt collection. I received nothing!

Any advice on where I stand with this?

[nemesis45]

Re: Phone Contract Default Notice

Hi Nem,

Thank you for your reply!
O2 have replied with this email to my appeal.

"I’m afraid it’s not the responsibility of O2 if you don’t check your account and we are not obliged to issue postal bills or reminders for online accounts, although on this occasion there were text, emails and letters sent advising of the arrears. There is no proven error as we invoiced you correctly.

Unfortunately as the arrears are valid, we will be unable to instruct Lowell to remove the default.

Please note also that we are not governed by the Consumer Credit Act 1974 for fixed term credit (as we do not offer fixed term credit), and as such do not have to issue a notice of default."

I never received any letters, texts or emails as they state and so I believe that it was defaulted unfairly because I wasn't given any warning? Surely I must be informed before an outstanding debt is defaulted or passed to debt collection. I received nothing!

Any advice on where I stand with this?

Unfortunately i's more or less a standard reply i.e. computer says NO!

An appeal to the CEO May have more effect customer (dis) service and complaints departments have their standard company scripts to quote and no authority to act.

nem