Unjust Impact On My Credit Score Due to Miscommunication on Outstanding Balance!.

[MartinHuxtable]

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. 

[japitts · Accepted solution]

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.

[MartinHuxtable]

Thank you for the insight and for bluntly explaining that I messed up. Had I been notified that I had £11 outstanding and had to pay this another method than Direct Debit I would have paid immediately who is going to miss such a meaningless amount? - I am by no means saying that that outstanding amount was incorrect - to be honest I have not had the time to look into the finite details of why I owed this anyway.   I had no idea this put 2 late payment records onto my Credit File until a month later putting that meaningless amount having quite a large impact! I do not pay for credit monitoring, I use the free once-a-month snapshot. 

If there is nothing I can do then, I guess I will take it on the chin.

Reminds me of a saying a mentor said to me once -
"Doing the right thing at the wrong time is just like doing the wrong thing".

[Matthew_ML]

Hey MartinHuxtable, thank you for reaching out and I am sorry to hear this.

We understand this is frustrating and sorry for any trouble caused, we can of course raise  a complaint for you if you want?

You can also raise on your self here  but we would also be happy to do so.

Do let us know.

[用心棒]

Consider contacting your bank to see if any attempt was made to claim the £11 via direct debit or if there was any issue with it. If Virgin Media made no attempt then seek further advice from Citizens Advice and / or the Financial Ombudsman Service.

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