O2 and IMEI block for iPhone 5

[Anonymous]

Hi guys,

I'm posting here for a friend, who I think is a bit of an idiot, but NVM.

He has an iPhone 5 which he purchased from O2 13 months ago. still has 11 months left on this contract. 

He is moving away to Australia indefinitely and is thinking of just cancelling his direct debits and taking the phone with him. He also recently had to get his iPhone replaced (direct by Apple) due to a fault with his original phone. 

The original phone was carrier unlocked, and the new phone is carrier unlocked. 

Now, moral and credit issue aside for him, what would actually happen?

Would O2 block the IMEI for non-payment? And if so, would the new iPhone's IMEI be blocked, as it wasn't the original phone supplied by o2? And finally would an IMEI block affect carriers in Australia? 

I'm hoping he just pays off the contract like a good human being would, but would appreciate the answers.

[Anonymous]

You're welcome.

[Deag]

If he cancels the direct debit they cannot force the payment to be made. A cancelled direct debit is a cancelled direct debit, it means his bank no longer have authority to give O2 any money. They could take him to the county court but they cannot force payment still.

[perksie]

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@gemz4the1 wrote:
 

O2 will keep pestering for the money back.  Cancelling the direct debits will not help as they could still force the payment to be made and therefore the bank account may go overdrawn.

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No they won't and Deag is right, they can't force a dd payment if it's been stopped.

O2 will pass the debt to a collection agency and forget about it after marking their credit down.

[Anonymous]

He has taken out a contract and therefore should just pay the 2 months off. If he can afford to move to another country he should be able to just cancel earlier.

[adamtemp64]

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@Anonymous wrote:
He has taken out a contract and therefore should just pay the 2 months off. If he can afford to move to another country he should be able to just cancel earlier.

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it is 11 months they have to pay!

[Anonymous]

Ok, either way they should keep paying. When people do runners from companies like O2 it's the rest of us that have to pay the price.

[Anonymous]

Here's what would happen:

The IMEI would most likely be blocked - this means can't be used in UK/NI.  However, could still be used in some countries.  If he sold the phone to someone before doing the runner, they'd have a nice, shiny new brick.  Morally wrong.

O2 would chase him for the money, and when they get bored of that they'd send his file to a debt recovery agency and place a default on his credit file, which would stay there for 6 years (maximum time allowed) before dropping off his credit file.  Only an issue for him, if he's coming back within 6 years, but still morally wrong.

Either way, sorry to say it, but your friend seems like a chancer!

[gemz4the1]

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@perksie wrote:

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@gemz4the1 wrote:
 

O2 will keep pestering for the money back.  Cancelling the direct debits will not help as they could still force the payment to be made and therefore the bank account may go overdrawn.

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No they won't and Deag is right, they can't force a dd payment if it's been stopped.

O2 will pass the debt to a collection agency and forget about it after marking their credit down.

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I apologise for wording it wrong - I did not intend for it to come across that the direct debit would still go ahead - I meant that the money would still be owed to O2 and cancelling the direct debit would not mean that he did not have to pay O2 anything - the bill will still be there.

[Anonymous]

For the record once a direct debit instruction is cancelled by the account holder at their band o2 are unable to take payments from the bank account.

Gemz4the1 and Perksie are correct that o2 will pursue the debt and report the default to various credit references agencies