WARNING! o2 Default credit error stopping our mortgage!

[Anonymous]

O2 have placed a 'Default' mark on my now wife's credit history without us knowing anything about it. We have agreed to buy a new build home under the governments NewBuild scheme and have paid our initial deposit, however, when proceeding with the mortgage the lenders rejected us stating that it was "too much of a risk". It was only when we checked our rating and did some investigation that we found out it was because o2 have placed a default on her file. What makes it worse is she has just got a new job which is the reason for buying the house, she may now end up losing the house and her job!
 
This default is for a total of £10.69 and is looking like it will now stop us from buying a £250,000 house. The contract ended in 2011 and according to o2 "was fully paid off", however, there seems that there was actually £10 remaining on the account. O2 made absolutely no attempt to contact us to inform us of this and have instead just passed it off to a 3rd party debt collection agency. This agency also made no attempt to contact us and have subsequently marked it off as a default. This is obviously illegal as no notice of default was issued. Common sense would say that if they had contacted us for the remaining £10 charge, this would have been paid without even a second thought.
 
We have tried to contact o2 as we have only until the 8th August to exchange contracts on the house which it now looks as though we will lose. However, we are not able to make direct contact with anyone and we keep getting fobbed off with feeble excuses and email address' to contact and no one directly to speak to.
 
I thought you would all like to know about this as it is outrageous! O2 seem to be able to place defaults against peoples credit files without actually attempting to inform the customer of their intent. This can then wreck their lives!
 
We will be following up with legal action against them but I thought you would be interested to know on this o2 customer forum. We have also been in communication with a couple of national newspapers so you will no doubt read about it soon.

O2 your customer service is shocking and we need this rectified IMMEDIATELY! This could end up costing you way more than £10.69 unless you act!

[Anonymous]

That is really terrible I hope you get it sorted

[jonsie]

Unfortunately as this is a customer to customer forum you are unlikely to get a response from O2.

Quite a few people have had this problem and you might want to read through them in order to proceed with whatever course of action you choose to take.

http://community.o2.co.uk/t5/Discussions-Feedback/O2-PLACED-A-DEFAULT-ON-MY-CREDIT-FILE-WITH-ABSOLUT...

http://community.o2.co.uk/t5/Discussions-Feedback/credit-file-affected-due-to-18-bill-no-letters-sen...

http://community.o2.co.uk/t5/Discussions-Feedback/Default-Notice/m-p/93974/highlight/true#M4511

[Anonymous]

Thanks for your reply, yeah we're basically trying any means possible to get in touch with o2 and get them to sort this out.

[Anonymous]

Good luck guys

[Rycal]

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@Anonymous wrote:

Thanks for your reply, yeah we're basically trying any means possible to get in touch with o2 and get them to sort this out.

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I seriously hope you can get this sorted.

[Anonymous]

Sorry, I need to play Devils Advocate here.

Are you saying the the only problem with the credit reports for both you and your wife were a single default from O2 for £10?

And your mortgage company rejected you for that single default? Both of you have otherwise impeccable credit histories? 

I find that hard to believe I'm afraid (not saying its true, just that its hard to believe), and also that the debt collection agency made no attempt to collect the debt. Having been in debt myself I know the lengths that debt collectors will go to to get in contact with you.

Have either or both of you moved house alot? Are you both on the electoral register where you live? Do you both have credit history? Have either of you had debt in the past?

I am not doubting that O2 have placed this default there but there are other issues other than a single default that would stop anyone getting a mortgage!

[Anonymous]

Pay the outstanding balance and then contact the Credit Reference Agency to inform them the debt has been paid , although I believe the default remains for around 6 years.

Or you could dispute the default and ask for it to be removed all of which takes time which sounds like you don't have much of it.

I'm amazed that a Debt Collection Agency would want to buy such a small debt ,as the recovering costs would probably out weight the initial debt !

It does seem the mortgage company is being rather overkill about this if the rest of your Credit Files are clean.

Perhaps going to another mortgage company and ask for an extension to the deadline with the seller. The seller won't want to lose a buyer such as the housing market as it is.

Good luck.

[Anonymous]

Yup, my credit score is excellent and so was my wife's until this with not even so much as a slightly late payment, however, this has now dropped her credit score by hundreds of points. Apparently a default is as bad for your file as a CCJ regardless of the amount in question. This has then dropped it out of the lending criteria of the lender. The issue is that we are doing the NewBuy scheme so we only have a choice of a couple of mortgage lenders.

Clearly what's happened is that's it's such a small amount that o2 and the debt collection people have said that our will cost them more in postage or calls so have not bothered and written it off not for one second concerned with how it would affect the customer. Disgraceful.

We need the default totally removed from her credit file as it was clearly an error in there process.

So far we can't get through to o2 but we have been contacted by the BBC who are keen to help us.

[Anonymous]

Thanks for updating your thread.

I assume the Credit Reference Agency is unable to assist without input from 02 ?