O2 default - what are my options?

[BartSimpson]

Hi All,

I would really appreciate your help with this.

I have a £100 settled default on my credit file from O2. I wasn't aware of this until this year when I was refused a credit card. I understand this was because O2 alleges that I did not return my mobile phone at the end of the contract even though I did. I disputed the charge but paid it after six months scared by the threatening tone of their letters. I still don't believe I was in default as I had returned the phone.

I understand the mobile phone companies are not covered by the Consumer Credit Act. I understand the phone companies are still covered by the Data Protection Act and guidance on default reporting to the CRAs? Is it possible to remove this settled default from my credit file?

What are my options?

Many thanks

[ncf355]

Re: O2 default - what are my options?

Hi,

Do you have any proof of returning the phone to O2 (such as recorded delivery/courier receipt)?

I'm assuming the entire £100 is a penalty charge for not returning the phone and doesnt have any other element to it?


Also, when did all this happen - as in, when did you return the phone to them? (month and year)

[Hurricane Puffrose]

Re: O2 default - what are my options?

Hi there,
so I can help you further, I need to know a few things, firstly, you say you were charged for non return of a phone, was this at the start or end of your contract?

What kind of contract did you have?
Was it by any chance a Lease contract?

What proof did you have that you sent the handset back?

When was the default placed on the account?

[BartSimpson]

Re: O2 default - what are my options?

Hi ncf355 and HUrricane Puffrose,


Many thanks for getting back to me. The answer to your questions are below. Hope this helps.


1. Do you have any proof of returning the phone to O2 (such as recorded delivery/courier receipt)?
This was the one mistake I am still kicking myself for! I posted the item but in a rush, totally forgot to ask for recorded delivery. I would be out of trouble if I had proof of delivery. :tinysmile_cry_t:


2. I'm assuming the entire £100 is a penalty charge for not returning the phone and doesnt have any other element to it?
That is correct.


3. Also, when did all this happen - as in, when did you return the phone to them? (month and year)
The phone was returned in July 2010. The default was applied on February 2011.


4. So I can help you further, I need to know a few things, firstly, you say you were charged for non return of a phone, was this at the start or end of your contract?
The mobile equipment and services contract was bought in April 2010. O2 agreed to terminate the agreement in July 2010 as I was mis-sold the contract.


5. What kind of contract did you have? Was it by any chance a lease contract?
I believe I was sold the phone as part of the service contract so I guess it wasn't on lease. However, the contract states that if the services agreement is cancelled the equipment contract will be void too and the equipment must be returned. I think these are the contract T&Cs: http://www.o2.co.uk/termsandconditio...s-october-2010


6. What proof did you have that you sent the handset back?
As mentioned above, this was the one thing that could have exonerated me from this default. As much as I wish I had sent the phone by recorded delivery and kept the receipt, I didn't.


7. When was the default placed on the account?
The phone was returned on Jul/Aug 2010 and default was placed on Feb 2011.

Regards,
Bart

[ncf355]

Re: O2 default - what are my options?

Hi,

OK, a few comments:


1) Not having the receipt will prove a major problem - that you obviously realise from your comments above



2) The actual default date is out of sink, there is no way this should have taken them (effectively) 7 months to place, though this of little help at the moment as Defaults last for 6 years

3) OK, so the £1000 is their penalty charge for non return of the phone -

i) how have they arrived at this (this is rhetorical Q justt designed so we can suss out the validity of this default)?

ii) Did the contract you had with them actually give the right to charge this £100?

iii) If it did, is that cost actually their true cost?

iv) Did they actually have a right to process the data in any event?

[ncf355]

Re: O2 default - what are my options?

Also,

I find the fact you had to return the phone quite odd - did you end the contract early?

Normally the phone is yours once the contract is complete?

[ostell]

Re: O2 default - what are my options?

O2 seem to want things back. I had to return my modem/router when I finished my broadband contract with them. Most unusual.

[BartSimpson]

Re: O2 default - what are my options?

Hi ncf355,

Thank you for your reply. Unfortunately, I can't do much about the courier receipt. Here are my answers to your questions:

3) OK, so the £1000 is their penalty charge for non return of the phone -

The penalty charge was £100 and I can't find any mention of the £100 cost in the T&Cs however it does say "If you do not return the Equipment we may charge you the costs that we incur in collecting it which may be substantial." http://www.o2.co.uk/termsandconditio...s-october-2010

i) how have they arrived at this (this is rhetorical Q justt designed so we can suss out the validity of this default)? No idea. The T&Cs do not provide any guidance on this.

ii) Did the contract you had with them actually give the right to charge this £100? The T&Cs do mention that charges may be applied if the equipment is not returned.

iii) If it did, is that cost actually their true cost? No idea.

iv) Did they actually have a right to process the data in any event? The T&Cs do state "Details of how you conduct your account may also be disclosed to credit reference agencies, law enforcement agencies and other telecommunications companies"

v) I find the fact you had to return the phone quite odd - did you end the contract early? I terminated my contract early (within 3 months) as I was missold the phone and O2 agreed to cancel the contract.

[ncf355]

Re: O2 default - what are my options?

Right,

Given this wasnt that long ago, I think the way forward here is a Subject Access Request under the Data Protection Act 1998:












----------------------------------------------------------

Subject Access Request under Data Protection Act 1998, Section 7


Dear Sir/Madam

Account number: XXXXXXXXXXXXXXXX

I wish you to provide me with the following information via the above act:

1) A copy of the original signed agreement between us

2) A copy of all transactions made on the account from inception to closure

3) A copy of any and all communication tthat has passed between us

4) A copy of any and all screen notes made by your staff in regards to my account

I enclose £10 as the required fee for such a request and remind you that you are required to provide the requested data within 40 days.

Yours faithfully,


X

-------------------------


Sign with a computer font, send recorded/registered post.

[BartSimpson]

Re: O2 default - what are my options?

Thanks ncf355 - I will do that now.

[Hurricane Puffrose]

Re: O2 default - what are my options?

hi sorry i havent been back, working 12 hour shifts at present.

Just to clarify, if you do a early termination on a mobile phone account, you are automatically asked to return all equiptment back, was your contract on a business or a consumer tariff, which handset did you take out.. and how much was the line rental.

If, as I suspect, you took out a lease contract, you will have agreed via email to a CCA (yes, these are bound to CCA!) and if you have no proof you returned the phone but didnt pay the phone charges, it looks like the default was added correctly

[BartSimpson]

Re: O2 default - what are my options?

Hi Hurricane Puffrose,

Thanks for your reply and really appreciate your help.

The contract was a consumer contract and phone was a blackberry. The reason why the contract was terminated is that I could not use it to connect to the corporate email. The line rental was c.£45 per month.

Not getting the receipt for posting the phone was a terrible mistake but something I can do nothing about. And unfortunately, it severely affects my ability to get a decent mortgage. :tinysmile_cry_t: