Credit File much needed help with default & advice

Jordan777

Jordan777

Jordan777

Associate
Joined
13 Jul 2011
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288
Location
Cheshire
Hi there

In need of some help. Basically 3 years ago i lost my job and ended up falling behind on payments for my phone bill with orange and got cut off. Not so long after that around 3 weeks i rang cleared the bill and that was the end of the matter (owing £117) couple of weeks after i took a new contract out with them again once back on my feet with no issues. Last week i went to apply for a mortgage and got declined i thought how strange i work for Barclays earning 28k with a deposit of 15k. i knew this was the only issue i had with money 3 years ago so was a little worried. so i was advised to get my credit file and to take a look. Anyway turns as i thought orange put a default note on my account ... great !! I Contacted orange and this is what they have sent me.

ORANGE
Thank you for getting in touch with us about the issues you have had with your Orange account and the information on your credit file.

We have reviewed the account and we completely understand the distress this matter is causing you. However, you will appreciate the fact that we are bound by the terms and conditions of the credit reference agencies to maintain true reflection of a customer’s account at any given point of time. Unfortunately on this occasion we have been unable to make any amendments to your credit file. The default information will remain on your credi tfile until 2016.

Whilst we appreciate this is not the response you hoped for, we trust the above information is of assistance.

Thank you once again for writing to us.

Thanks

My Message to them last night 03/17/2013

Good Evening
After taking some advice on this i still would like this removed. Please can you understand that this is having financial impact where i can’t get a mortgage and still have 3 years remaining on my file for this default? I am one of your higher paid customers over the last 3 years where you have had thousands from me and that i even came back to you after the first issue getting a default and that i still disgusted that after i had sent previous emails to you before no one seems intersted but taking my money every month currenty .

Please understand at the time i had lost my job and was unable to pay at the time and did clear the account after i had found a job. Please look at my account under ********** as you can see i pay you on time every month and never miss a payment. I would like this removed ASAP otherwise please supply the below so i can take further.



After recently obtaining a copy of my credit file again from Credit Expert I was concerned to note that your company has placed a "Default" notice against me.
Further to this I have no recollection of ever receiving such a notice via post, and I therefore require you to substantiate this data at your earliest convenience.


1. You must supply me with a true copy of the alleged agreement you refer to. This is my right under your obligation to supply a copy of the agreement under the legislation contained within s.78 (1) Consumer Credit Act 1974 (s.77 (1) for fixed sum credit). Your obligation also extends to providing a statement of account.



2. You must supply me with a signed true and certified copy of the original default notice


3. Any deed of assignment if the debt was sold on


I would request that this data is provided to myself within the next 7 days, if you are unable to provide this data then I must insist that it is removed from my files as unsubstantiated.


Yours faithfully

This is what i got back today

Thank you for your response.

We acknowledge the comments within your original e-mail; however, we are unable to amend the details on your credit file as they are correct. They are recorded in accordance with the terms and conditions of Orange. I have reviewed your request to remove an Orange default from your credit file before the 6 year period concludes. Whilst I appreciate the disappointment caused, I am unable to make the amendment requested. The data held with the credit reference agencies is correct.

However, we would like to inform you that Orange do not retain copies of your original signed agreement. A mobile phone agreement is not a regulated agreement under the Consumer Credit Act as such we are not required to retain a signed copy of your agreement. When you connect to Orange you would have been asked to either sign a customer agreement form stating that you had read and agreed to the terms and conditions or, in the case of telesales, you would give verbal agreement to the terms and conditions over the phone and a hard copy would be supplied with the delivery of your phone. This is in compliance with the Consumer Protection (Distance Selling) Regulations 2000. In all cases the terms and conditions applicable to your agreement with Orange (The Contract) are supplied in the box with the phone. These will either be in a separate guide or in the back of your phone user guide.

For any further queries please contact our Customer Service team and they will be happy to help you. You can reach them at 07973 100150.

Also, as we at credit referrals only deal with the credit file queries we would request you to contact our Collections team for any copies of the signed and dated invoice/reminder/outstanding debt letters. You can reach them at 07973 100178.

We also note your request for a copy of the original default notice. We are unable to provide you with this as your Orange contract is not a Consumer Credit Agreement, therefore we are not obliged to send you a default notice as stated under the Consumer Credit Act. If you require further information regarding this please refer to section 19.2 of the terms and conditions that came with your phone.


I appreciate that this may not be your desired outcome but the credit file entries are a true and fair reflection of your Orange account.

Can anyone help me with this and to get it removed as i cant get a morgage and i dont want to wait 3 more years till it drops off

Cheers
 
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Well you could boost your credit score by using and paying off in full credit card. Check out moneysavingexpert.com for other tips to boost your rating. Must be frustrating though.
 
Did you miss a payment?

If so, I doubt there is much you can do beyond trying another lender or taking steps to improve your credit file. The record is a true reflection of what happened. Orange have simply reported it to the credit agency and the mortgage lender has used the information on the file to make a decision about whether they want to lend to you.

The credit file would be pointless to lenders if you could simply get things you didn't like removed from it.
 
Couldn't you have dealt with this better when you did lose your job and have trouble paying the bill? Surely this could have been avoided somehow?
 
I can't imagine 1 slight default, subsequently paid, from 3 years ago was the reason for the mortgage application being declined, knowing what my report looks like and how quickly (within 6 months) that I was back to the top rating with experian.

Do you have much else credit, cards etc?

Your current situation of amount of available credit/how much being used is quite a big factor on your rating.
 
The default would still be there though, which is a big red flag for a serious credit application like a mortgage application..

I thought it had to go to court and (CCJ) for it to be a default but I'm not sure.
Consumer action group forums, or money saving expert might be a good place to start with out knowing the specifics of why they marked it as a default rather than a late payment/now settled.
 
You earn 28k and have a 15k deposit.

At even a generous 4x salary, a maximum mortgage is £112k on a ~90% LTV mortgage.
 
[TW]Fox;24556873 said:
Did you miss a payment?

If so, I doubt there is much you can do beyond trying another lender or taking steps to improve your credit file. The record is a true reflection of what happened. Orange have simply reported it to the credit agency and the mortgage lender has used the information on the file to make a decision about whether they want to lend to you.

The credit file would be pointless to lenders if you could simply get things you didn't like removed from it.
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I believe there's a difference between a late payment of and defaulting on a debt. And that's what will happen be the make or break point. They did after all give him a new contract. That said mobile phone companies can be a little heavy handed when it comes to marking your credit score, certainly worth investigating as to weather they were too harsh.
 
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mattyfez said:
I believe there's a difference between a late payment of and defaulting on a debt. And that's what will happen be the make or break point. They did after all give him a new contract. That said mobile phone companies can be a little heavy handed when it comes to marking your credit score, certainly worth investigating as to weather they were too harsh.
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And that's also different from a CCJ.

creditexperianhelp.JPG
 
Instead of buying things on a debit card use a credit card instead and pay it of every month, also register yourself on the electrol register if you haven't already. As far as your business with Orange theres nothing yiu can do once its on you credit file it can't be removed.
 
Unfortunately you are unlikely to be able to get this removed.

Orange are correct in that they are not regulated to the same extent as say a credit card provider so do not need to follow the same rules however they would be expected to prove that the debt existed and that you were given reasonable chance to pay before being placed in default.

You need to head over to somewhere like consumeractiongroup and ask on there, you will also need to start dealing in writing only from now on, no more emails.

A default from a mobile company will be treated by your bank as any other default ( slightly unfair I agree) so don't go firing in loads of applications. Get all your credit files and see if its registered on them all, if not find a lender who only searches Equifax or experian as appropriate.

If your deposit is 15% or more then a good broker is likely to find you a deal with a small default like that
 
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Freddie1980 said:
Instead of buying things on a debit card use a credit card instead and pay it of every month, also register yourself on the electrol register if you haven't already. As far as your business with Orange theres nothing yiu can do once its on you credit file it can't be removed.
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It absolutely can be removed if it is incorrect, it's a hassle though. Check out consumer action group as the poster above said -mobile phone contracts are quite notorious for this, for example people cancelling contracts and switching provider, the old company will quite often bill you in error and then mess up your credit score if you don't pay for a non existent contract.
 
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[TW]Fox;24557093 said:
The OP implies in his first post that it's not incorrect.
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It maybe he needs to make a formal complaint to the ombudsman/FSA to force oranges hand..


"falling behind on payments for my phone bill with orange and got cut off. Not so long after that around 3 weeks i rang cleared the bill"

This would suggest a late payment rather than a default, if the contract was fully settled after the three weeks.
 
Indeed, OP states it is correct, they confirm it is correct, it won't be removed.
Find another lender who doesn't care, there are some.

Northern Rock turned me down on a buy to let mortgage once as my wife wasn't on the electoral register, she couldn't be, she isn't an EU citizen. I even had an ISA account with Northern Rock for half the amount being asked for, simply no way around it.

Went to my own bank they immediately gave me the mortgages, the rate wasn't as nice as I would have liked, and unfortunately absolutely nothing I could do in respect of that, but once it drops from their 'deal' rate to the SVR I'll be much happier.

Find another lender OP.
 
mattyfez said:
It maybe he needs to make a formal complaint to the ombudsman/FSA to force oranges hand..


"falling behind on payments for my phone bill with orange and got cut off. Not so long after that around 3 weeks i rang cleared the bill"

This would suggest a late payment rather than a default, if the contract was fully settled after the three weeks.
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He said he paid it off 3 weeks after being cut off. So presumably he handy been making payments for sometime before that 3 weeks as well.
 
Jono8 said:
He said he paid it off 3 weeks after being cut off. So presumably he handy been making payments for sometime before that 3 weeks as well.
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It depends, if he simply missed 1 payment for 3 weeks, and then settled the contract, he could get it removed from his credit score.

If he hasn't paid the bill for 6 months and they eventually cut him off, that is maybe a different matter.

I know some phone companies will cut you off immediately, or within a day or two if the one direct debit fails.. that wouldn't be grounds for a default.
That's why he needs to get more info I think, CAG or MSE would be a good place to start.
 
The cut him off. You don't get cut off for a minor late payment?

If the information is correct why would Orange be compelled to remove it?
 
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