result of ignoring small debt?

A question about : result of ignoring small debt?

Hi

I had big debts a few years ago but paid them off bar a few exceptions which were for less than Ј80 because I got advised on here that debts that small wudnt be chased too much (it worked, never heard anymore about them)

anyway, around 13 months ago I got a Ј13 per month 2 year mobile sim only contract. I called them up shortly after to cancel, 1 month ago I noticed I still had Ј13 a month coming out my account after all that time. I cancelled my direct debit and explained that I hadn't used a single minute or text since I got the sim.

I then got an email asking for Ј38 (Ј25 late fee + Ј13) which I expressed it was unreasonable but never got anywhere. now I have a letter through the post asking for Ј155 - what will happen if I don't pay any money? it's not like I have anything of theirs, they've cancelled the service

Best answers:

• You entered into a contract. You dont say, but it seems that you did not infact cancel the contract within the 14 day mandatory cooling off period. You also dont say how long the contract has let to run. In short, you are still in contract and until you resolve the issue, you are required to pay it. You will continue to get pounded with late fees and penalties until what should have been a measly Ј312 is inflated beyond reason to many more hundreds than that. What is the status of the contract now? What are the dates that you took it out, cancelled it, received confirmation of that cancellation etc?
• its a 24 month contract - I paid the first 13 month, then stopped paying 1 month ago. so I should have circa 10 months left.
  I don't understand how its suddenly went from Ј13- Ј25 - Ј155, you think there is much chance in them forgetting the extra payments if I pay the remaining balance?
  would such a balance affect credit score?
• I don't mind paying the extra Ј25 but the extra amount is unreasonable
  The first letter was from life reguarding the Ј25 but this new letter is from DLC debt collections (their figure says Ј155)
  I do understand I entered the contract but I just thought they be understanding since I've paid circa Ј133 and never once used the service
• I actually only received 1 letter before getting this letter from them.
  the previous letter I discussed via email and obviously persisted that I will have to pay late fee.
  if I paid the Ј155 would I have to pay anything else to life or would that essentially be me buying out the contract?
• You signed up to a 24 month contract. If you had an inkling you weren't going to keep using their service, you should have signed up to a shorter contract (months, six months, a year etc.).
  Mobile phone contracts are typically a fixed long term if they include the phone as well - the price of the hardware is spread out over the length of the contract. You might have a slightly better case as it's only a sim-only contract, where the justification for such long contract terms is rather iffier.
• Mobile phone providers do report to credit reference agencies
• Hi,
  The Ј155 will be the cost of the remaining months + a DCA fee on top, I had a few contracts when I went into my DMP and when I cancelled I got a small reduction in overall total (some random %age) as I was no longer using the service and was buying myself out.
  If you sign a 24 month contract then you are tied in for the 24 months whether you use it or not.
  If you speak to the DCA and ask for a settlement balance you might be able to get a 25% reduction but don't agree to anything over the phone and ask for it in writing confirming the reduced F&F figure and that the balance will be written off and not sold on or requested at a later date.
  MB