on 30-05-2023 15:44
Hi - currently having a nightmare getting consistent advice from O2. If anyone can help, that would be really appreciated. I am now in a Debt Relief Order (DRO) and the handset loan has been included in the DRO. I am up to date with payments and have never missed a payment to O2. I have heard that O2 disconnect customers who are in a DRO, whether they are listed as a creditor in the DRO or not, so please can someone give me any advice as to if this is correct. I have called Payment Management Team twice now and been given conflicting information - please can anyone help or any other customers share their story with me? Thank you.
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on 31-05-2023 13:03
The approved intermediary should check the type of agreement, as some mobile phone contracts include two agreements, one for the handset and the second covering airtime (text message, calls and data allowances).
Generally, the agreement for the handset will be an unsecured loan. If this is the case, the remaining balance must be scheduled in the application. The debtor will need to check their agreement as non-payment of the loan could lead to termination of the whole contract.
In some cases, the handset may be subject to a hire purchase agreement. In these situations, AIs should apply the general hire purchase principles. See hire purchase agreements and conditional sale agreements.
If the handset is not subject to hire purchase, the phone belongs to the debtor and the value of the handset or device should be checked to make sure it does not breach the asset limit.
If the debtor is up to date with their airtime contract and there is no outstanding liability at the date of determination, then there would be no need to schedule this in a DRO.
The approved intermediary should assess whether the payments for the airtime meet the debtor’s basic domestic need and therefore be an allowable expense.
Debtors will also need to check their agreement for any insolvency clauses that could lead to the termination of their contract upon entering into a DRO.
Contractual payments made towards mobile phone contracts do not need to be reported as preferences.
However, if the client has made payments to clear any arrears, these should be reported on the application. The approved intermediary should include circumstances regarding the repayment.
on 30-05-2023 15:51
@Windsor988 We are all customers, and unless someone else here has been in a similar situation, anything you are told here would only be speculation. It's unfortunate that Payment Management is giving you conflicting information. The only suggestion would be to try speaking to them again to get clarification from someone in the department who knows what they're talking about.
on 31-05-2023 13:03
The approved intermediary should check the type of agreement, as some mobile phone contracts include two agreements, one for the handset and the second covering airtime (text message, calls and data allowances).
Generally, the agreement for the handset will be an unsecured loan. If this is the case, the remaining balance must be scheduled in the application. The debtor will need to check their agreement as non-payment of the loan could lead to termination of the whole contract.
In some cases, the handset may be subject to a hire purchase agreement. In these situations, AIs should apply the general hire purchase principles. See hire purchase agreements and conditional sale agreements.
If the handset is not subject to hire purchase, the phone belongs to the debtor and the value of the handset or device should be checked to make sure it does not breach the asset limit.
If the debtor is up to date with their airtime contract and there is no outstanding liability at the date of determination, then there would be no need to schedule this in a DRO.
The approved intermediary should assess whether the payments for the airtime meet the debtor’s basic domestic need and therefore be an allowable expense.
Debtors will also need to check their agreement for any insolvency clauses that could lead to the termination of their contract upon entering into a DRO.
Contractual payments made towards mobile phone contracts do not need to be reported as preferences.
However, if the client has made payments to clear any arrears, these should be reported on the application. The approved intermediary should include circumstances regarding the repayment.
on 31-05-2023 13:18
@Windsor988 As said in the previous post, this is a customer community. If you've been disconnected you need to speak to Payment Management.
on 31-05-2023 13:25
on 31-05-2023 13:25
Thank you, I understand that - it was a reply in case anyone on the community forum had a query like mine in the future. Thank you!