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You Are Here: Home > Personal Finance > Credit File Help > How to remove a mobile phone default
Mobile Phone Defaults

How to try and remove them

Last update : October 2013
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Page Summary:
Mobile phone companies are often vicious when it comes to issuing defaults. This article contains some ideas and strategies to try to get a default removed.
Sadly the Mobile phone companies are not covered by the same Consumer laws as the banks and credit card firms.

This means that scandalously they don't have to send out a pre-default warning letter before they actually issue a default against a customer. For example -

  • If you owe £1,000 to Barclaycard and don't pay for several months the law states you must be sent a pre-default warning letter
  • This official correspondence will clearly state that a default will be issued against your name if you don't pay within 28 days, or make a deal with them (perhaps pay the money owed over several months)
  • So if you pay up or make a deal within the 28 days there will be no default
But a mobile phone company does not have to send such a letter, resulting in many people being issued with a default without them even knowing.

Then, when they try to apply for a new credit card or mortgage they'll normally get refused. On checking their credit file they're horrified to see a default lodged against their name by T-Mobile/Vodafone/Orange etc.

So what to do - 2 ideas/strategies
Sadly, if you have a default issued by a mobile phone company there are only 2 options that I know of which can offer some help, but they're no way guaranteed. The success rate is therefore low, I'd put it about 20% maximum.

Still, it's worth a try and you're far better trying to do something rather than nothing at all. Doing nothing will of course guarantee the default stays on your credit file for the full 6 years.

Idea 1 - Base your argument on Contract Law
Argue on contract law, be persistent and consider sending the following letter. I have heard of people getting a result but sadly only a few.

If I had a mobile phone default and sent the letter but got an unfavourable reply I wouldn't give up. What I'd do is try to think up a new angle to use because as I've said many times persistence is the trait that separates people who have got defaults removed over those that haven't.

Your Address

Mobile Phone Companies Address

Date

Mobile number and Account number

Dear Sir or Madam

I am writing in relation to a default that XXXXXX issued against me dated XXXX. Normally when a default is issued the lender is required by law to send a pre-default warning letter. This gives the customer a final 30 days to pay up, and also explains exactly what a default is and how it might affect access to credit in the future.

I gather the Mobile Phone companies are not regulated by the Consumer Act 1974 and therefore are not required by law to send an official default warning letter.

However, there was an official contract in place between XXXXXXX and myself and this therefore is covered by Contract Law. Clearly there was a 'breach of contract' and therefore XXXXX was lawfully obliged to send notice of this breach, and to have given a reasonable amount of time for the breach to be remedied.

Clearly XXXXXXX has not followed the official guidelines set out by Contract Law and therefore the Default is unlawful and should be removed.

I look forward to your reply and I thank you for your time.

Yours faithfully

Your name

Idea 2 - The sympathy angle
Most defaults with the mobile phone companies are for small amounts of between £50 and £500.. And for such a paltry amount serving 6 years in financial purgatory seems pretty tough.

So if Idea 1 didn't work I'd use the sympathy strategy (see the link below) but I wouldn't waste my time writing to anyone in Customer Services, unless it is to the head of department. Instead I'd go right to the top - the CEO (Chief Executive Officer) - Google to find out who that is.

Details on the Sympathy strategy can be found on these 2 links -

LearnMoney comment:
A default issued by a Mobile phone company is tough to remove because the companies don't fall under the same laws as the banks do.

But think positive because it's not impossible to get one removed. People have been able to do so in the past, although the odds are against you. Use the 2 ideas/strategies listed above and rely heavily on persistence, as that in my option is the key.

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