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.

[Anonymous]

Well collections isn't my department but what I know is that the debt can be sold again if the company that initially bought it couldn't collect it but as it was mentioned it can be returned back to o2.

Nice job @Anonymous .Spot on!

[viridis]

So the debt IS sold on?

[Anonymous]

For clarity o2 do not sell the debt on. They pass the cases to the debt collection agency who will try to recover on o2's behalf but the debt remains with o2.

If debt is sold be a creditor to a debt collection company then the methods of collection can be much harsher. Not many companies in the consumer market sell debt as there is then no control re collection methods but the creditor company takes the backlash if the press get involved etc.

So no o2 don't sell the debt on.

[viridis]

Thankyou for the clarification @Anonymous

[Anonymous]

A very helpful thread  @Anonymous 

If you guys have any doubts or other questions about this I can try to get that information. Let me know

[Anonymous]

A very helpful thread  @Anonymous 

If you guys have any doubts or other questions about this I can try to get that information. Let me know

[Anonymous]

This is incorrect information you have supplied , o2 did sell my apparant " debt" to a company called Lowell - Lowell informed me the debt was indeed bought from o2 and o2 head of complaints dept advised they have nothing more to do with the account . Lowell advised they " purchased the debt with a default"

I just spoke to them this week

Certainly not Myth

[Anonymous]

I've heard of Lowell and most not good 😞

I think this needs further clarification ?

[Anonymous]

Like I've mentioned before, O2 do sell the debt to collection agencies, don't know what else to say either than that. And the company mentioned, although not one of the most used, is used by O2.

[Anonymous]

For clarification the debt is not sold to Lowell. Lowell are a debt collection company. Your details and debt information are passed to them to collect the debt. Lowell will then pay collected monies less their commission to o2.

The fact there is a default on there in terms of who is chasing the debt is broadly irrelevant.

[Anonymous]

Thing is @Anonymous I'm getting confused with this as rosadosc who is O2 staff has confirmed in two separate posts that the debt is 'sold' on.