Company says I owe them £ but balance is "settled" on my credit report?

Question

I had a mobile phone contract with a company 3 years ago, and I settled my bills with them, and moved to another provider.

However, 3 years later, they have now decided to send me a letter (not even a bill, or any other communication) saying that I owe them money. It is not a large sum of money, but I grudge paying it out of my own pocket when I am sure I had settled all bills with them, and have not heard a whisper from them in the last 3 years until I received this threatening letter saying that the debt has been passed to a Debt Collection Agency.

Anyhow, I have a copy of my most up-to-date credit report, and under the details for this contract, the account is marked "settled" - i.e. I don't owe them anything/haven't missed any payments.

If this debt goes ahead to the DCA and I refuse to pay, can this affect my credit report when the balance is marked settled? The contract ended in November 2005, and I was subsequently cut off from them, so couldn't owe them anything further.

Answer 1

I would call the phone company and ask them what they say you owe for. Maybe it was a computer error and you don't really owe this money. Someone could have entered your final payment wrong.

Answer 2

Your credit report just reflects what the phone company told them 3 years ago.  If they've changed their mind, your credit report could change.

However, 3 years is an unreasonably long period of time to come back and start demanding additional money.  Start by asking them to substantiate their claim.  Insist they provide statements that show why you owe the money, and how they tried to collect it before resorting to a collection agency.

Here in the US, I would take up such a claim with the Better Business Bureau.  I don't know what's available to you in the UK.

Answer 3

You need to speak with your credit card company. They have dispute letters you will need to sign to send to them which they will send to the company to correct the errors.

Answer 4

Dear Sirs

I was surprised to receive your letter of 1st August informing me that I owed you £50 and that you had sold the debt to Fred Bloggs and Company.  Your records will show that I settled my account 3 years ago and that I owe you nothing.  Would you please ensure that your error is corrected without delay.

If I should hear from Fred Bloggs and Company, I will be seeking damages of £100 from you for each time I am inconvenienced.

Yours faithfully

Copy to Fred Bloggs and Company.