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.
