Cancelling contract - Credit issues

kremie

Hey, anyone know what happens if you sign up for a 2 year contract and get a free cellphone and then just stop paying i.e: cancel the direct debit on your bank acct, and unlock the phone and switch to another service? I know if you do that in the USA and other countries it could possibly affect your ability to get a loan later on in life if you have a poor credit record. Is there such a thing as credit rating in Ireland and do they check when you sign up for phones?

Solair

kremie wrote: »

Hey, anyone know what happens if you sign up for a 2 year contract and get a free cellphone and then just stop paying i.e: cancel the direct debit on your bank acct, and unlock the phone and switch to another service? I know if you do that in the USA and other countries it could possibly affect your ability to get a loan later on in life if you have a poor credit record. Is there such a thing as credit rating in Ireland and do they check when you sign up for phones?

Yes, of course it will impact on your credit rating.

You can expect the following:

1 phone co. will try to collect the debt themselves

2 if they don't succeed they will probably sell the account to a debt collector who will basically harass you.

3 you may end up in court.

4 your credit rating could be damaged.

I'd suggest that you negotiate your way out of contract or, find a loophole to get out.

tman

Yes, they check your credit rating when you sign up for a phone. Doing this will seriously **** up your credit rating for years to come, good luck ever getting a loan/mortgage etc if you try it.

What you're talking about is illegal, so I doubt you'll get much help here...

Solair

Actually, if you end up in court and they decide you have the money to pay and are just refusing to, you can end up in prison!

If you want to cancel your contract early, contact the phone co & explain why you need to leave etc.

You can often switch to the lowest tariff option after 6 months or so and then buy yourself out.

Alternatively, if someone's in financial trouble or, leaving the country sometimes networks will let you purchase the handset & leave.

Our man in Havana

Solair wrote: »

Yes, of course it will impact on your credit rating.

You can expect the following:

1 phone co. will try to collect the debt themselves

2 if they don't succeed they will probably sell the account to a debt collector who will basically harass you.

3 you may end up in court.

4 your credit rating could be damaged.

I'd suggest that you negotiate your way out of contract or, find a loophole to get out.

3 and 4 won't happen. They will not take someone to court for a few hundred as the costs are huge and are not recoverable even if they win.

Phone companies are not members of the ICB and therefore they cannot affect your credit rating.

angel01

Haddockman wrote: »

3 and 4 won't happen. They will not take someone to court for a few hundred as the costs are huge and are not recoverable even if they win.

Phone companies are not members of the ICB and therefore they cannot affect your credit rating.

They can take you to court That happened to me before some years ago. It got settled before the official court date.

Our man in Havana

How much did you owe them?