Refused Credit for a Phone Contract - o2's Business Policies...

gord · 19 Apr 2011 at 18:31

Hello all,

Not usually a big thread starter in GD but this has got me stumped as to my next move. Essential info:

I've been refused a 1 month rolling mobile contract from o2
I'm 24 and never missed a debt payment in my life
I have had a 3 year Three mobile contract from 18-21
I use a trading account which has a credit facility of £5K
I have a maxed out credit rating according to Experian
No debts elsewhere, I live with my parents

So, the chap who says I can't have a phone because I've been refused credit puts me in touch with their credit risk management, after I ask him to as this is ridiculous from my financial position. I fire off a nice email asking for the reason and this is the response:

Thanks for your letter about your recent application for a contract with O2.

As well as our credit scoring system, we use business policies to assess all new applications. On this occasion you didn’t meet our criteria so we’re unable to accept your application.

As our business policies are commercially sensitive then I am unable to discuss the specific reason why we rejected your application.

So what are my options? Do I have no legal right to know why I have been refused this contract?

Any help from the legal eagles or people with insight would be much appreciated.

toon_mad · 19 Apr 2011 at 18:37

you live with your parents still?!

you should be loaded

why not try another network anyway?

PapaLazaru · 19 Apr 2011 at 18:38

Unfortunately, you cannot force them to do anything, They said no. That is it. Sounds a bit ridiculous though.

You could just get a rolling SIM only deal? Rolling contract with a decent handset is very high risk for them.

TheMagicPirate · 19 Apr 2011 at 18:39

are you on the electoral register?

Energize · 19 Apr 2011 at 18:40

You could just use a decent mobile network? The fact that they refused your custom already demonstrates their incompetence.

Sho · 19 Apr 2011 at 18:44

Try some other network?

Aero · 19 Apr 2011 at 18:44

MY mum had a similar problem and it was due to the electoral register. check that.

Craig1981 · 19 Apr 2011 at 18:44

Not really much you can do about it. Its their loss if they wont take your cash.

Go for another network instead. Vodafone perhaps?

gord · 19 Apr 2011 at 18:58

PapaLazaru said:
Unfortunately, you cannot force them to do anything, They said no. That is it. Sounds a bit ridiculous though.

You could just get a rolling SIM only deal? Rolling contract with a decent handset is very high risk for them.

Ah, sorry I didn't make it clear. This application was for a SIM only deal, I bought my 3GS outright last year. I will be moving my custom back to Three.

TheMagicPirate said:
are you on the electoral register?

I am, just got my voting referendum forms through so I don't think there is an issue there. Is there a free way to check?

What aggrieves me more is I was specifically told to get a credit check. Which I paid for, only to find out I have the highest rating possible AND that none of their checks showed up on my credit profile. Now I've moved it forward they simply cannot give me an answer? I feel like I'm being fobbed off.

Cheers for the responses so far.

Voltjunkie · 19 Apr 2011 at 19:05

gord said:
What aggrieves me more is I was specifically told to get a credit check. Which I paid for, only to find out I have the highest rating possible AND that none of their checks showed up on my credit profile. Now I've moved it forward they simply cannot give me an answer? I feel like I'm being fobbed off.

This would suggest that they declined your application for whatever reason before viewing your credit report. That's a good thing as far as your credit rating goes but as to why they've declined you it simply rules out it being based on your credit history.

With regards to finding out the actual reason, they are under no obligation to disclose why they rejected your application.

Seft · 19 Apr 2011 at 19:06

O2 won't necessarily check Experian - they could use Equifax and/or Callcredit too. Worth checking that there isn't any odd information on any of those files. Get the £2 statutory reports.

Unfortunately there's not much you can do - only thing I can suggest is check that your name/address was correctly keyed on your application - it's possible that their system couldn't find your file and declined you for that reason.

TheMagicPirate · 19 Apr 2011 at 19:08

gord said:
Is there a free way to check?

Just call your local council and they can let you know. I noticed I'm the only person in my house not to get my voting forms today so gonna have to look into that myself!

Cleeecooo · 19 Apr 2011 at 19:09

Tesco use the o2 network - use them

gord · 19 Apr 2011 at 19:36

Cleeecooo said:
Tesco use the o2 network - use them

This is actually with Tesco. They referred me to this dept.

Frankly I wouldn't blame Tesco. Their service has been acceptable and the offer I got my 3GS on was good (despite using mums billing information for the contract because this very same thing happened a year ago, but it was xmas and I wanted my 3GS).

But if they/o2 will not give me a contract and I also have no right to knowing why I was declined then I shall take my business elsewhere. Simples.

Cheers for the input guys. This thread has pretty much run its course.

Al Vallario · 19 Apr 2011 at 19:42

gord said:
But if they/o2 will not give me a contract and I also have no right to knowing why I was declined then I shall take my business elsewhere. Simples.

Then do. A company doesn't have to justify itself in not wanting your custom.

Having a contract with O2 is not exactly a human right

aaron · 19 Apr 2011 at 19:43

I work for o2 and just letting you know we use equifax for our credit checks.

Only things that i can think of that commonly come up regarding declines, is there at least £1 in your account. Secondly is your bank details and everything registered to the same adress you gave them?

Its just that it sounds like you maybe failed on the identity check rather than the credit check.

Pawnless Endgame · 19 Apr 2011 at 19:45

In 2004, I attempted a contract through one of those "middle men"-type shops (Phones 4 U) and got refused. I tried a few weeks later with Orange and succeeded.

Something similar happened with my first credit card attempt too. I was refused a credit card and their reason was "third party withdrawal". Wow, that's a helpful reason... not. Another credit card provider that I tried shortly after took me on no probs.

meghatronic · 19 Apr 2011 at 19:45

Al Vallario said:
Having a contract with O2 is not exactly a human right

Personally I want O2 had up on crimes against humanity for their poor signal around here

gord · 19 Apr 2011 at 20:54

Then do. A company doesn't have to justify itself in not wanting your custom.

This is not about them not wanting my custom. Far from it, a company would/should be delighted to have me as a customer. I make very few enquiries and there is always the money to pay for the service.

aaron said:
Only things that i can think of that commonly come up regarding declines, is there at least £1 in your account. Secondly is your bank details and everything registered to the same adress you gave them?

Yes, there is always money in my account, I don't have an overdraft. And yes, everything has always been at the family home, even when I went to uni, as far as accounts go.

Anyway, I'm now a Three customer once again and £10 the richer every month for it!

Russinating · 19 Apr 2011 at 21:10

Have you applied for a credit card recently? I got refused a T-Mobile contract with similar stats to you and I put it down to having applied (and been accepted for) an Amex card 2 months prior.