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Family faces losing their home after credit rating blunder by mobile phone firm
Last updated at 10:24am on 08.09.08
Blunder: Phone firm O2
A businessman says he could lose his home after a mobile phone firm wrongly told credit reference agencies he had not paid his bill.
John Peters believes the blunder by O2 ruined his credit history and triggered a chain of events that threw his finances into turmoil.
As a result, the 42-year-old, who runs an internet business, fell behind on his mortgage payments and he, his wife and two young children now face being evicted.
The problems began two years ago after he was given an upgraded handset by O2.
An error with his account meant the company could not collect monthly payments by direct debit, so instead he paid manually each month.
But when he applied to his bank for an £8,000 business overdraft to advertise his firm, he was shocked to be turned down.
NatWest told him 'a telecoms company' had placed a negative note on his credit file, meaning other creditors and companies would consider him to be a high-risk customer.
'I immediately went online and got my credit reports from Equifax and Experian, and sure enough it was there - even though I was completely up to date with my payments,' he said.
He later found out his mobile account had been deemed ' pending' - and that had been enough for NatWest to turn down his application.
Mr Peters says O2's customer services eventually sent an email telling the bank his bills had been paid, but NatWest refused to change its mind.
It later emerged O2 had placed 11 months of missed payments on his credit file, which he says resulted in his losing a vital remortgaging deal on his home in Wakefield, West Yorkshire.
He fell behind on his repayments, and now the family home is to be repossessed unless he can find some money soon.
Mr Peters brought an action against O2 in July at Huddersfield county court under the Data Protection Act and claimed £100,000 in damages.
O2 did not defend the claim and a date has been set when a judge will decide the amount of compensation.
O2 said it had only recently become aware of the legal action by Mr Peters and added that it had not received a claims form.
A spokesman added: 'We are currently looking into the matter and are considering whether to make an application to set aside the default judgment.'
Reader views (2)
Exactly the same thing happened to me with Vodafone. As a consequence I am now paying a much higher rate for my mortgage, as I was unaware of the error on my credit file!
- Sarah, London, UK
Never mind the error by O2, Experian et al are completely unregulated and feely publish disputed alleged debts under the justification that the victim has consented. The victim never knows until a credit application has been turned down. The OFT and the Information Commissioner claim to have no control over what the credit reference agencies publish.
- Bj, London
