Can anybody help me I have just tried to upgrade my daughters phone as it's due but didn't pass a credit check so am not able to choose a freestyle contract. I have all virgin media services and 4 mobile contracts and have been a good customer for years so why am j not allowed to upgrade ? There is only one phone available on a standard tarried and that is ridiculous! I obviously passed to get the contacts on the first place and have always paid my bills so why can't they allow it. It's not like I'm trying to start a new contract with someone who has no idea whether I will pay my bills or not. when I phoned they seem like they are reading from a script, I am awaiting a managers call but don't hold out much hope as they never phone back. I have been a loyal customer and paid my bills so cannot go elsewhere as I now have an iva to pay from debts not associated with virgin but i feel like cancelling all contracts and services to go back to pay as you go as loyalty I'd clearly not rewarded. I will have a very disappointed daughter on her birthday now as I was relying on this as her main present.
the agreements Virgin setup are called "freestyle" which are basically two separate agreements. One for the handset and the other for the airtime (mins, texts and data).
The handset agreement is an interest free loan or credit agreement that is taken out over the period. As the agreement is a loan agreement then a credit check would have to be ran in line with the FCA guidelines (using Equifax I believe) which is an external credit file, no doubt noting your IVA.
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The IVA will have a severe impact on your ability to get credit for 6 years as that is how long it will show on your file. You can get credit for household necessities such as gas, electricity etc but there is a limit to other credit. As noted by a previous poster VM contracts are now in two parts and one part is in effect a loan repayable over 24 months, same with O2.