O2 Debt Collection - Dispelling The Myths

[Anonymous]

We have seen numerous threads on here from members who say they didn't realise they owed o2 any monies after their contract ended.

Some said they weren't aware.
Some said they weren't contacted.
Some had defaults on their Credit File.
Some thought bailiffs would come a knocking.

So to dispel the myths, here is what actually happens when someone ends their agreement with o2 but doesn't clear the debt. .......

Firstly it is important for people to understand that o2, like most major companies dealing in consumer markets, update credit files every month with your payment history. This helps to reduce fraud and losses. If you don't pay your bill on time (or within a few days) your credit file will show this.

At the end of your agreement:

O2 will first issue a final bill and that will be sent by the same format as previous bills, usually electronically.

In the event of non payment, o2 will try to contact the debtor by the method the customer requested at the beginning of their agreement i.e. by email or by letter. O2 will try up to 4 times to contact the debtor.

Due to the volumes, o2 will not chase small debts by telephone. The cost to do so would be enormous and born by ongoing customers.

In the event of non payment, like most companies who offer services on any form of credit or under contract to consumers, o2 will update the payment records with the major credit reference agencies.

When consumers like you and I seek to borrow money or start a new contract for goods or services, a credit check may be taken. If a debtor has default(s) on their credit file this will show up. It is then up to the company to decide if they want to supply you or not.

O2 may, if the outstanding debts warrant this, pass the debts to 3rd party debt collection companies. These companies use a variety of methods to contact the debtor and try to reach an acceptable payment plan. Note these companies are not bailiffs. Nor do they have bailiff powers.

Ok so now we know what o2 do, let's dispel some of the myths. Let's see what o2 DON'T do. .....

O2 do not employ bailiffs.
O2 do not sell the debt.
O2 do not instruct bully boy doorstep debt collectors.
O2 do not destroy credit files.

Remember, if you owe the debt, pay it. Leave your direct debit in place until the final payment has been collected. If you can't afford to pay the final balance in one go, talk to o2 and discuss a payment plan. But please, don't ignore it. It won't go away and as we have seen before it can result in problems later down the line which will cause the debtor stress and hassle which could do easily have been avoided.

[blissgirl]

Good adivce thanks for posting that

[Anonymous]

But at least one poster claimed never to have received notification of a £6 outstanding payment, which is a bit strange.

[gemz4the1]

A very helpful, clear and concise thread - thanks @Anonymous 

[Anonymous]

Hi @Anonymous

Regarding this excerpt from your awesome post.

"O2 may, if the outstanding debts warrant this, pass the debts to 3rd party debt collection companies. These companies use a variety of methods to contact the debtor and try to reach an acceptable payment plan. Note these companies are not bailiffs. Nor do they have bailiff powers."

If the 3rd party company cannot secure a repayment programme with the customer ,then what happens next.

I ask because although not connected to O2 I know the owing debt if not sorted can then be passed then onto another collection agency (although sometimes they are still part of the same company but use a different name )

Or Do they pass the debt back to O2 to try and sort out again ?

[Anonymous]

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@Anonymous wrote:

But at least one poster claimed never to have received notification of a £6 outstanding payment, which is a bit strange.

---

One of the things we have to be very wary of is trying to decipher the story. 

I.e. where people say they didn't receive any notification:

Have they changed email address?

Have they moved?

Did they receive it but delete it? Did they think it was such a small amount it wouldn't matter?

Did they just forget? 

Did o2 actually send it / them?

We won't ever know for sure. We take the OP's word for granted. .... because o2 cannot tell us. 

[Anonymous]

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@Anonymous wrote:
Hi @Anonymous

Regarding this excerpt from your awesome post.

"O2 may, if the outstanding debts warrant this, pass the debts to 3rd party debt collection companies. These companies use a variety of methods to contact the debtor and try to reach an acceptable payment plan. Note these companies are not bailiffs. Nor do they have bailiff powers."

If the 3rd party company cannot secure a repayment programme with the customer ,then what happens next.

I ask because although not connected to O2 I know the owing debt if not sorted can then be passed then onto another collection agency (although sometimes they are still part of the same company but use a different name )

Or Do they pass the debt back to O2 to try and sort out again ?

---

As a general rule the debt collection agency would follow a process agreed with o2. I don't know the exact o2 process @Anonymous but a typical contract would be like:

Refer to debt collection agency

Agency send up to 4 letters. 

Agency tries telephone calls to number(s) supplied to them by o2.

Depending on the contract the debt collection agency, if they cannot achieve payment, will either return the case to o2 OR apply to the Small Claims Court in behalf of o2. 

It should be noted that this route is time consuming and has further costs which are usually added to the debt. 

It should also be noted that companies such as o2 are unlikely to apply to the Small Claims Court for small amounts like the £6 mentioned above. 

[Anonymous]

Somehow I expected more of a debate on this thread given the number of threads previously about how o2 have destroyed credit files etc.

[Anonymous]

So did I to be honest.

Any idea who could clarify the question I asked previously. Maybe @Anonymous if such information is allowed to be shared on the forum from an employee.

[MI5]

As you say, we only get one side of the story so it's difficult to debate esp when it hasn't effected one personally......