Unjust Impact On My Credit Score Due to Miscommunication on Outstanding Balance!.
I have been a loyal Virgin Media customer for both TV and broadband services since 2019. In December 2023, I made the difficult decision to discontinue my services. I formally communicated this decision through an official letter, acknowledging my willingness to cover any early disconnection fees and followed all procedural guidelines provided by Virgin Media. I was assured that my account would be handled appropriately and was advised against cancelling my direct debit to facilitate any final charges so I kept everything active.
Unfortunately, I encountered an unforeseen issue that has significantly impacted my financial standing. In February 2024, I received correspondence from Virgin Media indicating an outstanding balance of £11.90. I was previously unaware of this charge and promptly settled the amount upon notification.
However, I have recently discovered that this incident has adversely affected my credit score, with two months marked as late payments for the aforementioned amount. This decline in my credit rating from 999 to poor could not have come at a more critical time, as I am in the process of securing a new fixed-rate mortgage. The consequent damage to my credit score is likely to result in considerably higher interest rates, costing me thousands.
This situation, resulting from a lack of communication on an outstanding charge I was initially unaware of, has placed me in a precarious financial position. It's especially disheartening considering my prompt action to rectify the situation once informed.
Provide guidance on how to prevent such issues in the future and ensure better communication with customers regarding outstanding balances.
I have noticed that other customers have had the same issues and something needs to be done.
Your prompt attention to this matter is crucial for me to mitigate the financial implications this has caused. I trust Virgin Media values its customers and will take the necessary steps to rectify this situation.
I have contacted OfCom / Citizens Advice and Experian.
To begin with, your "credit score" is largely meaningless beyond that of particular CRA's marketing & sales departments, and whatever "credit monitoring" products you are paying for. What matters is the entries on your free, statutory credit file.
Secondly, you mention about settling an overdue amount after being notified - you have potentially done the worst thing here, by conceding the debt was correct and paying it. Your credit file will show a settled default, and this cannot be removed. If the debt was invalid, then you should have contested it with a view to it being removed. By paying it, your credit file will now show potential lenders that you had an outstanding debt, you agreed it was due and paid it late. In other words - default, settled.
I don't see there's anything you can do in this scenario.
