Incorrect £927 Early Termination Fee + Default – Please Escalate

Sickofthis38 — Thu, 02 Oct 2025 18:56:55 GMT

Hi all,

I really need urgent help with an ongoing billing issue that has now led to an incorrect default on my credit file.

04/04/2025 – Ordered phone and contract via Mobile Phones Direct (MPD), to be fulfilled by O2.
07/04/2025 – DPD failed delivery (sent to parcel locker, returned to sender).
09/04/2025 – I cancelled within 14-day cooling off via MPD because I needed phone before holiday. They confirmed cancellation and handset return.
11/04/2025 – I received written confirmation: “O2 have approved your request to cancel your contract.” The title of the email was literally ‘Your network contract has been cancelled.’
Same day – I got a replacement SIM in-store just to keep my number active. I was told this would be a rolling SIM-only plan and that I would need a PAC if I wanted to leave.
10/04/2025 – I was issued a PAC code. O2’s message said I had until 18/04/2025 to return my device or SIM, but since the handset had already been returned and cancellation approved, I understood this did not apply to me.
I was also told by MPD that if I didn’t use the PAC within 30 days, the line would remain active and I’d continue to be charged — so I used the PAC on 08/05/2025, after returning from travel.
At no point was I warned that using the PAC could reactivate a cancelled contract or trigger an Early Termination Fee.Same day – I got a replacement SIM in-store just to keep my number active. I was told this would automatically turn into a rolling SIM-only
05/05/2025 – I was billed £44 (which looked like a device + airtime charge to me). I paid this on 20/05/2025 in good faith, after being told this was the final bill. Literally says final bill on the email.
24/05/2025 – O2 suddenly applied a £927 final bill, despite my contract being cancelled and handset returned both of which I have proof of.
18/07/2025 – Debt sold to Lowell.
30/06/2025 – A default was filed on my credit file by Lowell, even though my O2 account shows Settled.

Lowell have contact O2 twice now. O2 claiming they never got the phone and because I used the PAC after the cooling-off period I owe the whole contract. This is absolute rubbish! There was no contract to terminate, it was already terminated. Additionally, £927 is nowhere near the amount of the airtime!!!!

I’ve since:

Had multiple complaints raised with O2 and MPD (with written proof of cancellation).
Been promised by O2 that Lowell wouldn’t contact me again.
Sent my credit file to the O2 Amendments Team (who told me on 05/08/2025 my account was clear).
Escalated to the Financial Ombudsman (awaiting outcome).

Despite all this, my credit file is now ruined because O2 sold an invalid debt. The cancellation was approved within the cooling-off period, so this debt never legally existed.

This situation has caused serious stress and financial damage, and I’m preparing to pursue this legally if it isn’t resolved.

Any advice or escalation help from O2 reps here would be hugely appreciated.

Thanks,

Chloe

Re: Incorrect £927 Early Termination Fee + Default – Please Escalate

MI5 — Thu, 02 Oct 2025 19:02:38 GMT

@Sickofthis38

You need to add a notice of correction to your credit file.

This will put doubt into the validity of the default and the credit agencies will be forced to question O2 about it.

https://www.experian.co.uk/consumer/guides/notice-of-correction.html

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Incorrect £927 Early Termination Fee + Default – Please Escalate

Re: Incorrect £927 Early Termination Fee + Default – Please Escalate