Home
Can't see the film? Watch it here.
Add your comment.
There are 74 million mobile phones in Britain. The owners of 26 million of them have signed up to a mobile phone contract.
As Lucy Siegle found out, there can be more to these contracts than you might expect. They could seriously affect your credit score because mobile phone contracts are actually credit agreements.
Lucy met Rachel Westbury. Rachel had tried to leave her phone provider, but they claimed she owed them £33.12 which she believed she had paid.
Because of this small contractual dispute, the phone company's claim that she was a bad lender was added to her credit record, and Rachel has been been refused credit with other companies.
Rachel: "I didn't think that an amount such as £33 for a mobile phone contract would have such an affect on my credit and mean that I can't get credit or can't get a mortgage or store cards. I just find it baffling and just appalled."
Lucy's advice: While Rachel tries to get the phone company to acknowledge that she wasn't a bad borrower, she can get the credit agency to put a note on her file explaining her situation. When the dispute is sorted out she could then ask for the file to be amended.
If you want to keep your file clean and remain on contract, Lucy's advice is to pay by direct debit, which should ensure that all of your calls are paid for.
See also: Credit record advice - Consumer Direct (external website).
Have you had difficulties with your phone contract? How do you keep your credit record clean? Can you pass on any hints and tips? Add your comment.
Comments
What you missed is that there are 3 main credit reference agencies but most comsnies only use 1 or 2 of them. So a bad rating with one agency will block you from loans which use them but you may be highly rated by companies which use the others. The info on who uses which agency is freely availble on the net and by the companies who will point you to the companies whioch use them.
Complain about this comment
How long is it going to be before someone takes a phone company to court for causing them to have a bad credit reference, and wins, with large damages paid by the phone company for defamation? In my opinion these contractual disputes should be sorted out before credit reference agencies are contacted.
Complain about this comment
I tried to get a phone contract for my son yesterday. To our embarrassment the contract had to be referred with no explanation. We have no credit rating as we have never taken out credit, we have never had a loan or a mortgage. How could this happen. Upon further investigation, our credit report stated "phone fraud". We had been a victim of identity theft in July last year and two very expensive phones had been sent to our address. We promptly sent them back and reported it to the Police but this comment remains on our report and suggests that we have been the fraudsters. Many phone calls later we have now ordered a phone but I would not like to repeat the experience!
Complain about this comment
I was listed by O2 online as "in default" when I ended my contract with them, even though I had a direct debit set up and was in CREDIT. Someone there had seen a non-zero balance and changed the status to "default", without looking at what the balance was.
I found out when I applied for a mortgage, and the bank let me know. It took over a month, and OFTEL getting involved before O2 sorted it out - and I got a cheque...
It is important to know that companies that do a credit search don't get to see your balances - just the status of your accounts. You are listed as a defaulter even if it's only for a few pence.
Stuart
Complain about this comment
Mobile phones can definately damage your rating and its not just in the current economic climate: 3 years ago Itried for a mortage and with a good salary and large deposit could'nt believe the difficulties all because Iwas disputing a bill with my mobile company. They had changed my terms and conditions which meant my bill increased by more than 10% so Iwas well within my rights to cancel the contract- didn't realise that because Irefused to pay the difference and they subsequently agreed to cancel my contract but at the same time put an 8 in my credit rating, NEVER get into a CONtract with a mobile phone company if you have a choice
Complain about this comment
last July I went to popular highstreet phone store to get a phone for my daughter. We were offered a contract and a free phone. When all details had been exchanged, the sales man appeared surprised that our free phone was not actually free but that we needed to pay £199. Obviously I complained and they offered a more expensive contract in order to get the phone free. As the phone company next door was offering the same deal as previously offered, I said unless they could give me what they'd originally offered I'd have to go elsewhere. After lot of discussion, they couldn't so we left and went elsewhere. They assured me they'd cancel the order. I confrmed this with the manager as I left. Three weeks later I get a bill from the service provider...they hadn't cancelled the contract. Even though they agreed it was their fault, they refused to sort this out and I was left to deal with the service provider my self. I didn't have the phone number of the phone as we'd never had it so the service provider initially would't deal with me as i had no phone number. I had to make a lot of calls to 0870 numbers to try and trace the phone and find out the number. When I got it after about three weeks I was to discover that the phone was still active but hadn't been used. By this time I was late paying my bill and had received a reminder. I was obviously worried about paying it as I had no confidence that i'd get the money back. It eventually took over two months to sort out and even though the phone company sent the service provider an email accepting responsibility they refused to pay it direct and insisted that I should pay and claim a refund. I have through this got a bad credit rating that was nothing to do with me and was given me by a company who were aware that it was nothing to do with me!!! I hold the service provider as well as the phone company equally responsible and feel they shouldn't be allowed to act in this way!
Complain about this comment
luckily for me I don't use my phone much, so I'm pay and go, but any one who uses the phone frequently for business, pay and go would be too expensive, and I don't envy the alternative after tonight's show. whenever it is proven that these phone companies have blackened someones name, by mistake, does no one sue them for defamation of character, I think they should see a solicitor, and take them to court, Vi.
Complain about this comment
Who was the very attractive Chelsea Pensioner presenting the piece on mobile phones?
David
Complain about this comment
Yes, Mobile phones can affect because your credit records, because they record those times if you don't pay your bills.
~Dennis Junior~
Complain about this comment
my son had amobile phone contract with t-mobile, which he cancelled in jan 2007. it had a clear balance. in nov 2008 he received a debt agency letter for £120 £40 of this being a out standing balance the rest fees. He contacted both companies, the phone company have read us all the dates that contact have been made i.e the phone contract was cancelled in jan 2007 but it was not cancelled someone took out a new sim for a reduced price of £15 mth. My son had a new contract with a different company, the t-mobile phone from jan'07 had never been used but was adding up debt !!! We have been in constant contact with the company and every adviser we talk to have a different interpretation of the contract we need help on who we can go to, to take up our complaint,we now have a solicitor writing to us saying he has 7 days to pay up or court action, he has every thing written down all conversations made between us please can someone give us the right direction .thankyou for taking the time to read this
Complain about this comment
This comment was removed because the moderators found it broke the House Rules.
I took 2 simcard contract in 2006 with a mobile phone dealer in East London. I received my contract after 2 days i looked at the contract i noticed there was a hanset included in my contract . I went to the dealer to request for my hanset but unfortunately they refused to give it to me. I decided to cancel these contract through the dealer.
Last Month i decided to apply for a mortage with Natwest but i was declined because of these 2 default which i was not aware .
I checked my credit report then i realised the 2 default came from Carephone Warehouse. I contacted Cardphone warehouse then i was diverted to E2Save.com then E2Save divert me to Orange and 3g. I spoke to these dealer they told me the account has been closed then i spoke to Cardphone Warehouse again ,they told me a diferent story.
I don't know where to go to remove these defaults on my account.
The Mobile Phone dealer which i took my contract in 2006 already shut his business.
I would be grateful if someone can helpme to sort out the matter.
Complain about this comment
I LIKE IT
Complain about this comment
View these comments in RSS