How to rid unfair default on my credit record?
Discussion
Hi all, feeling a bit anxious about this so need help if anybody can offer it...
Basically, I had a dispute with vodafone back in 2015 over a bill for data which I felt had been charged excessively, I also coincidentally closed my vodafone account and went with 3 mobile for a sim only deal. I then moved home several times over the course of time, but finally got around to updating my permanent address in all the important places (electoral roll etc) about two months ago. I also got on to Experian to check my credit score, as the girlfriend and I decided we'd like to buy a home together some time in the next 8-12 months. My experian score was good.
Last month, I received correspondance from a company called Lowells, regarding the unpaid vodafone debt. Truth be told, through the ups and downs of life, I had completely forgotten about it. Despite the fact I disputed owing the debt in the first place, I decided I would just set up a payment plan to rid myself of the hassle. However, Lowells have then reported that Vodafone defaulted the account in July of 2017. This has resulted in my credit record taking a serious dive. From 920 down to 480.
I have emailed Lowells, and asked them if they can remove the default from my record as I wasn't aware that the debt was being pursued. I sent them a screenshot to prove my credit score just before they reported the default and to show I keep on top of my payments and debts. I'm now waiting for them to reply. I have a feeling they're not going to be particularly helpful with this. In fact, i'm not even sure if I need to be asking Lowells or Vodafone to remove it from record. Either way I feel its very unfair that this should affect my record for the next 6 years, given that I had no idea I was being asked for payment at any time until last month, when I duly set up a payment plan.
Please tell me there's a way to fix this? It could seriously affect me and my girlfriend, at a time in my life when I finally felt like things were going well.
Basically, I had a dispute with vodafone back in 2015 over a bill for data which I felt had been charged excessively, I also coincidentally closed my vodafone account and went with 3 mobile for a sim only deal. I then moved home several times over the course of time, but finally got around to updating my permanent address in all the important places (electoral roll etc) about two months ago. I also got on to Experian to check my credit score, as the girlfriend and I decided we'd like to buy a home together some time in the next 8-12 months. My experian score was good.
Last month, I received correspondance from a company called Lowells, regarding the unpaid vodafone debt. Truth be told, through the ups and downs of life, I had completely forgotten about it. Despite the fact I disputed owing the debt in the first place, I decided I would just set up a payment plan to rid myself of the hassle. However, Lowells have then reported that Vodafone defaulted the account in July of 2017. This has resulted in my credit record taking a serious dive. From 920 down to 480.
I have emailed Lowells, and asked them if they can remove the default from my record as I wasn't aware that the debt was being pursued. I sent them a screenshot to prove my credit score just before they reported the default and to show I keep on top of my payments and debts. I'm now waiting for them to reply. I have a feeling they're not going to be particularly helpful with this. In fact, i'm not even sure if I need to be asking Lowells or Vodafone to remove it from record. Either way I feel its very unfair that this should affect my record for the next 6 years, given that I had no idea I was being asked for payment at any time until last month, when I duly set up a payment plan.
Please tell me there's a way to fix this? It could seriously affect me and my girlfriend, at a time in my life when I finally felt like things were going well.
To summarise, you disputed the charge, no resolution was achieved, you then forgot about it, now you accept the debt exists and are paying it off.
The default should be recorded as 2015 not 2017.
I suggest you offer to pay the debt in full on the basis that your credit record will be updated as settled.
The default should be recorded as 2015 not 2017.
I suggest you offer to pay the debt in full on the basis that your credit record will be updated as settled.
OP, I don't think this thread is going to go well. It looks like the credit scoring system is working exactly as it should. You had a contract with Vodafone, there was a disputed bill & instead of sorting it out you disappeared & defaulted. Now you have a score which reflects your actions & informs future lenders what sort of risk you may present to them. Why is this unfair? I'm not trying to get at you, but in real life actions have consequences.
I don't feel I was given a fair opportunity to
a) dispute the charge in the first place
b) to pay the debt
Vodafone had my mobile number as I kept it once the contract ended, why wasn't I contacted that way if mail was not being responded to?
I accept partial responsibility for moving and forgetting about it, but I don't think the blemish on my credit record is fair.
If settling the debt is my only option I will do it, but I want to explore other options first, to save any chance I have of getting a mortgage, which i'm guessing will be unlikely verging on impossible with this default account on my record...? Can anyone shed any light on that? And how long would it take to build my score to a respectable level again, if I do everything right?
a) dispute the charge in the first place
b) to pay the debt
Vodafone had my mobile number as I kept it once the contract ended, why wasn't I contacted that way if mail was not being responded to?
I accept partial responsibility for moving and forgetting about it, but I don't think the blemish on my credit record is fair.
If settling the debt is my only option I will do it, but I want to explore other options first, to save any chance I have of getting a mortgage, which i'm guessing will be unlikely verging on impossible with this default account on my record...? Can anyone shed any light on that? And how long would it take to build my score to a respectable level again, if I do everything right?
PurpleMoonlight said:
To summarise, you disputed the charge, no resolution was achieved, you then forgot about it, now you accept the debt exists and are paying it off.
The default should be recorded as 2015 not 2017.
I suggest you offer to pay the debt in full on the basis that your credit record will be updated as settled.
depends on Vodaphones process and when they sent the debt to default. Surely it would be on your credit file as late payments since 2015 so has been impacting you since then!The default should be recorded as 2015 not 2017.
I suggest you offer to pay the debt in full on the basis that your credit record will be updated as settled.
A default will only be added once the debt is sold to the recovery agents, in this case the people who are now contacting you
I would contact vodaphone and put a complaint in, forgetting as much as its true isn't a excuse that can be used sadly. You will need to go through the complaints process and if you are still unhappy can go to the ombudsman over this. I would also speak to Experian or Equifax to see what advise they offer.
You should forget your score, and certainly not pay for it. It is not a number that lenders use or even see, it’s just a money-spinner for the credit agencies. You see recent bankrupts with 999, for example, and people rolling in cash with. I need for any debt being rated a couple of hundred.
That being said, the record itself clearly does matter. There are two normal routes to getting it changed. One is to argue that it is not a true reflection of the facts, and ask for it to be removed, following the complaints process with Vodafone and then going to the ombudsman; the other is to ask if Vodafone would remove it if you paid up in full.
If they believe it to be true they are very unlike,y to remove it for any other reason.
That being said, the record itself clearly does matter. There are two normal routes to getting it changed. One is to argue that it is not a true reflection of the facts, and ask for it to be removed, following the complaints process with Vodafone and then going to the ombudsman; the other is to ask if Vodafone would remove it if you paid up in full.
If they believe it to be true they are very unlike,y to remove it for any other reason.
My understanding is that once your debt has been sold to a debt recovery company, then Vodafone have nothing to do with it anymore and indeed you no longer owe anything to them, but to the recovery company. Therefore chasing Vodafone will likely be a waste of time.
By setting up a payment plan you have acknowledged the debt, and will now be chased for it. If you didn't acknowledge the debt/ignored the letters and threats then likely nothing would happen, although your credit score would remain tarnished until the default becomes statute barred after something like 7 years.
Either way, even if you settle I think it stays on your report (although I'm not 100% sure on this).
By setting up a payment plan you have acknowledged the debt, and will now be chased for it. If you didn't acknowledge the debt/ignored the letters and threats then likely nothing would happen, although your credit score would remain tarnished until the default becomes statute barred after something like 7 years.
Either way, even if you settle I think it stays on your report (although I'm not 100% sure on this).
danllama said:
I accept partial responsibility for moving and forgetting about it, but I don't think the blemish on my credit record is fair.
You "forgot" to pay a debt which you knew you owed (or at least was in dispute) and have failed to pay it - or respond to correspondence about it - for several years. If you don't think this is a fair reason to reduce somebody's credit score, what is?
davek_964 said:
danllama said:
I accept partial responsibility for moving and forgetting about it, but I don't think the blemish on my credit record is fair.
You "forgot" to pay a debt which you knew you owed (or at least was in dispute) and have failed to pay it - or respond to correspondence about it - for several years. If you don't think this is a fair reason to reduce somebody's credit score, what is?
Anyway, thanks everybody for the replies. Have gone back and forth with Lowells and to be fair they've been as nice as pie and helpful as possible, but the basic fact is Vodafone recorded the default, Lowells only reported it. However, I am going to complain to Vodafone that I never received notice of their intention to default the account, and also that the date of the default is incorrect, as I believe it should be recorded earlier than 1 year after last contact. If they won't remove it, I will at least make sure it is dated correctly, and they will never have me as a customer again (bear in mind I spent £3k with them whilst I was a customer). I am not holding much hope dealing with a mammoth like Vodafone, so will likely take it to the ombudsman on the grounds that they didn't make enough effort to contact me or notify me on the default, which they are legally obliged to do.
danllama said:
It was unintentional.
Anyway, thanks everybody for the replies. Have gone back and forth with Lowells and to be fair they've been as nice as pie and helpful as possible, but the basic fact is Vodafone recorded the default, Lowells only reported it. However, I am going to complain to Vodafone that I never received notice of their intention to default the account, and also that the date of the default is incorrect, as I believe it should be recorded earlier than 1 year after last contact. If they won't remove it, I will at least make sure it is dated correctly, and they will never have me as a customer again (bear in mind I spent £3k with them whilst I was a customer). I am not holding much hope dealing with a mammoth like Vodafone, so will likely take it to the ombudsman on the grounds that they didn't make enough effort to contact me or notify me on the default, which they are legally obliged to do.
How do you know they didn't notify you? Did you notify them of your new address?Anyway, thanks everybody for the replies. Have gone back and forth with Lowells and to be fair they've been as nice as pie and helpful as possible, but the basic fact is Vodafone recorded the default, Lowells only reported it. However, I am going to complain to Vodafone that I never received notice of their intention to default the account, and also that the date of the default is incorrect, as I believe it should be recorded earlier than 1 year after last contact. If they won't remove it, I will at least make sure it is dated correctly, and they will never have me as a customer again (bear in mind I spent £3k with them whilst I was a customer). I am not holding much hope dealing with a mammoth like Vodafone, so will likely take it to the ombudsman on the grounds that they didn't make enough effort to contact me or notify me on the default, which they are legally obliged to do.
Unfortunately this kind of thing happens a lot. My mum closed down a credit card which somehow got re-opened again when a random £15 fee of some kind was applied to it. She contacted the bank who agreed that it shouldn't have happened and that they'd take care of it. Fast forward five years and mum is trying to apply for credit of some kind to be told that it was impossible because of a default. The £15 fee had somehow picked up five years worth of interest and non-payment fees and eventually got passed off to debt collectors. The bank claimed they had no record of her ever closing the account (although they did agree that the balance had been reduced to zero on the date when mum said she'd closed it. So they basically washed their hands of any involvement in the whole thing and left mum to suffer. As a result she was unable to get a BTL mortgage on a second property and now her record is back to perfect, is still unable to because of her age.
vsonix said:
Unfortunately this kind of thing happens a lot. My mum closed down a credit card which somehow got re-opened again when a random £15 fee of some kind was applied to it. She contacted the bank who agreed that it shouldn't have happened and that they'd take care of it. Fast forward five years and mum is trying to apply for credit of some kind to be told that it was impossible because of a default. The £15 fee had somehow picked up five years worth of interest and non-payment fees and eventually got passed off to debt collectors. The bank claimed they had no record of her ever closing the account (although they did agree that the balance had been reduced to zero on the date when mum said she'd closed it. So they basically washed their hands of any involvement in the whole thing and left mum to suffer. As a result she was unable to get a BTL mortgage on a second property and now her record is back to perfect, is still unable to because of her age.
That is really awful. She should look into hiring a solicitor I think.I did fail to update my address, but people make mistakes, and I don't think its beyond belief that a telecommunications company could contact me by telephone...
I am definitely going to complain to Vodafone that I never received a notice of intention to default the account. My understanding is they are legally obliged to supply this, and also to provide a copy of that notice if requested. My main concern now is that the default should be moved to a much earlier date, as it seems to have been recorded a year after my last contact with them.
danllama said:
I accept partial responsibility for moving and forgetting about it
So if you only accept partial responsibility for you moving and forgetting about it, who do you think should share that responsibility with you?danllama said:
It was unintentional.
Intention doesn’t come into it. If you “intended” to pay the money but you didn’t, that makes your credit worthiness just as bad as if you hadn’t intended to pay. Paying (or not paying) is what matters.Edited by Dr Mike Oxgreen on Wednesday 18th July 18:31
This is a painful read.
You should have dealt with it. With your various moves were you hoping that they would not be able to find you and give up? And Lo, they haven’t.
And now you may need a mortgage so suddenly it could be an issue.
I would suggest you contact Vodafone direct, forget all the “do you know who I am and how much I have spent with you, and I am taking my custom elsewhere 4 evah” rubbish and explain how you mistakenly ran up the debt and can you come to an agreement. If they are looking to just get the thing resolved then there could well be some sensible middle ground.
You should have dealt with it. With your various moves were you hoping that they would not be able to find you and give up? And Lo, they haven’t.
And now you may need a mortgage so suddenly it could be an issue.
I would suggest you contact Vodafone direct, forget all the “do you know who I am and how much I have spent with you, and I am taking my custom elsewhere 4 evah” rubbish and explain how you mistakenly ran up the debt and can you come to an agreement. If they are looking to just get the thing resolved then there could well be some sensible middle ground.
limpsfield said:
This is a painful read.
You should have dealt with it. With your various moves were you hoping that they would not be able to find you and give up? And Lo, they haven’t.
And now you may need a mortgage so suddenly it could be an issue.
I would suggest you contact Vodafone direct, forget all the “do you know who I am and how much I have spent with you, and I am taking my custom elsewhere 4 evah” rubbish and explain how you mistakenly ran up the debt and can you come to an agreement. If they are looking to just get the thing resolved then there could well be some sensible middle ground.
Absolutely not, I was hoping to negotiate with them as I felt the charges were unfair. My moving around over the next few years was nothing to do with a silly mobile bill but changes in personal circumstances.You should have dealt with it. With your various moves were you hoping that they would not be able to find you and give up? And Lo, they haven’t.
And now you may need a mortgage so suddenly it could be an issue.
I would suggest you contact Vodafone direct, forget all the “do you know who I am and how much I have spent with you, and I am taking my custom elsewhere 4 evah” rubbish and explain how you mistakenly ran up the debt and can you come to an agreement. If they are looking to just get the thing resolved then there could well be some sensible middle ground.
I will contact Vodafone though and see what, if anything, they can do.
Thanks all.
danllama said:
Absolutely not, I was hoping to negotiate with them as I felt the charges were unfair. My moving around over the next few years was nothing to do with a silly mobile bill but changes in personal circumstances.
I will contact Vodafone though and see what, if anything, they can do.
Thanks all.
Switch it around then - owing money to Vodafone is nothing to do with whether you move or what your personal circumstances are.I will contact Vodafone though and see what, if anything, they can do.
Thanks all.
It was unintentional, we have all made mistakes here and there, but this one is entirely fair and you are entirely responsible. It may be unfortunate and undeserved, but that's a different matter for debate.
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