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Defaulted Vodafone account on my credit file

marekk
2: Seeker
2: Seeker

Hi,

 

I have recently applied for a mortgage and to my surprise the application was declined. Reason - credit check fail. The thing is that I have never missed a payment on anything and so my financial adviser told me to get my credit report from experian and find out what is causing the issue. What I discovered is that Vodafone recorded a default on my account that I believed has been closed in November 2012 (the default is for huge £14). The contract has run out at that time and so I contacted Vodafone and told them to close the account and that I'll be moving my number to O2 and so I did. As far as I was concerned my Vodafone account was settled. Vodafone never contacted my about the £14. If they did I would have paid it. Even if the payment was to be one month late it would not damage my credit profile. Is it even legal to default my account without some sort of communication to let me know? 

Straight after I got my credit report I called Vodafone and paid the £14 over the phone. (the account will soon show as settled but the default will stay) I asked them if I can get the default removed from my credit file and they couldn't tell me so they asked me to wait and that they will be in touch within 5 days. Yeah right... I called them again after 5 days and asked them to remove the default. I was told that it cannot be done because I did not pay my bill for 10 months. I was furious after the phone call. How can I pay for a bill that I dont know even existed?

 

I would really appriciate some help with this matter. I know that some people have been successful with getting the default removed.

 

 

459 REPLIES 459

biffo1963
16: Advanced member
16: Advanced member

This sort of issue seems to arise rather often.  The cause is usually a lack of understanding of the termination process on the customer's part allied to a lack of explanation of said process on Vodafone's part.  What actually happens ( assuming, for the sake of simplcity, that there is no ETF to pay ) is this :-

- The customer ports out via PAC, closing his/her Vodafone account.
- The next billl is generated as normal at the usual date; this will include any charges up to the date of termination
   and also any refund of line rental that may be due ( line rental is charged in advance. )  This bill should be sent
   to the customer by post as online access is no longer possible.
-  If the resultant bill is negative, i.e. the customer owes Vodafone money rather than the other way around, then
   the payment is due at the normal date. If the bill is positive then the customer must apply to Vodafone for the
   excess to be refunded.

-  The following month a final bill will be generated and posted, this should be for £0.00 if everything else
    has worked !

So, because of the above, the customer should NOT cancel their direct debit until the final bill for £0.00 is received and the customer should also NOT assume that, once the account has been closed, no more payments are due. Otherwise it is very easy to end up owing Vodafone a few pounds and getting a default notice on your credit file if it is not paid.  Obviously Vodafone should pursue these amounts before applying the defaults, but they often do not !

Thanks a lot for the info. 

The thing is that I've never received a paper bill from them and so I didn't know that I owed them anything. They can't possibly expect me to pay them if they do not tell me to do so. I genuinely thought that the account was settled. I've had no communication from them what so ever.
It's just a bit unfair that I get a default on my credit profile for £14 and it has pretty much the same effect than £5000 default. It doesn't only affect me but my family as well. I will not get a mortgage from a high street bank if the default stays on my profile.

All I am trying to say is that if they asked me to pay, I would have done so. But instead of telling me, they put a default on my profile.

Retired-James
Moderator (Retired)
Moderator (Retired)

Hi marekk,

 

If you follow the instruction in my last post, I can get this checked by the team.

 

James

Hi James,

 

I followed the instructions and already sent the message with additional details. Sorry, I forgot to mentioned that in my previous post.

 

Thanks

 

Marek

Hi,

 

Thanks a lot to everyone involved in getting the default removed. Vodafone have removed the default from my credit file.

Hi.how are you.i am.in the same boat i owed Vodafone 460.pound.i didn't pay it off for couple months which then they sent me a notice to pay it.i payed.it.off last week and.i still have default on my credit file i am.only 25 years.old i am looking to get a morgage as well this situation has really stressed me out i don't know what to doo...

AnnS
17: Community Champion
17: Community Champion

@Faiz786 wrote:

Hi.how are you.i am.in the same boat i owed Vodafone 460.pound.i didn't pay it off for couple months which then they sent me a notice to pay it.i payed.it.off last week and.i still have default on my credit file i am.only 25 years.old i am looking to get a morgage as well this situation has really stressed me out i don't know what to doo...


You need to ask yourself whether or not you owed the money and paid it off late.  If the answer is yes, it will be a genuine default and just because you have settled the debt, does not mean the default will be removed.

 

 

It was a genuine default, and as a warning to your other creditors on how you handle your affairs, the default will remain in place for 6 years with the debt now being marked as settled on your credit file.

 

@Faiz786

 

If you have only just paid this amount, it can take a while for your credit file to be update to show as settled.

 

The best thing to do is to contact Experian.  They are there to give help and advise.

 

 

Ok will do...I have paid off the debt...it was my own fault I have myself to blame I have messed up own future now..no chance of a mortgage...why did I take out a sim only deal..:smileysad: This default on my account will be the major problem now

Account started 03/06/2014 Default Date 10/12/2015 Default Balance £436