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O2 Debt – Do You Have to Pay? 2022 Laws

O2 Debt Collection

For free and impartial money advice and guidance, visit MoneyHelper, to help you make the most of your money.

If you can’t pay your O2 contract this month or have received a debt letter about an old O2 debt, you’ve come to the right place. We explain your options when you have O2 debts and don’t know where to turn.

Whether your O2 debt started this week or ten years ago, we have solutions that you need to know about.  

Who Are O2?

O2 is a telecommunications company in the UK and has the second-largest customer base as of 2020. They sit in second place behind EE and in front of Three and Vodafone. If you use Giffgaff or Tesco, you are also an O2 customer as these are subsidiaries of O2. 

Why Might You Have O2 Debt?

Most people get into debt with O2 because they take out a contract for one of their smartphones. They agree to make repayment each month to buy the phone along with packages for calls, texts and data. 

As these contracts are usually long-term with some lasting as long as 24 months, people hit difficulty at some point and fail to make their payments. Thus, entering into O2 debt. Or they simply miss a payment because they forgot to add money to the account they pay from.

Another commons scenario is an individual signing an O2 contract on behalf of someone else, such as a partner, who then stops paying for the phone after a break-up.

The O2 Debt Repayment Plan

If you find yourself in arrears with O2, you can contact a specialist team that will discuss a repayment plan. They will take into account your situation and try to agree on a repayment plan that doesn’t cause you financial distress and eventually clears the debt over time.

If you agree to a repayment plan and still have an O2 contract active, or a second O2 contract, there is a chance that O2 will block you from accessing further services from them so you concentrate on making repayments and don’t get into more debt. 

How Can I Contact the O2 Debt Repayment Team?

The O2 Debt Repayment Team are free to call on 0800 902 0217. They are open on weekdays between 8am and 8pm. And on weekends they are open on Saturday between 8am and 6pm, whereas Sunday their lines are open from 9am to 6pm. 

You might feel worried about calling the O2 Debt Repayment Team, but these people are trained to deal with your sensitive circumstances and are usually very friendly. 

But, What About Old O2 Debt?

There are times when your O2 debt doesn’t get paid and it catches up with you in a few years. Take this forum user’s experience as an example: 

In 2005 I had a problem with my o2 mobile phone contract, so I ended the contract early and I was left with over a year of line rentals to pay in one lump sum. Well to cut a long story short, I was 19 and didn’t pay. I didn’t hear a thing from them until recently where I have had a letter saying the debt has been sold from o2 to a debt company and that litigation proceedings are going ahead for £506.96.

[Money Saving Expert Forum]

If you don’t pay your O2 debts, it is known that O2 will use debt collection agencies to chase you for the money. They would rather sell your debt for small amounts that use the time and resources to track you down themselves.

One of the debt collection agencies they have been known to use is called Moorcroft. You could be contacted by others. 

First, Send a Prove the Debt Letter

Now that your O2 debt has been passed on, you must deal with the debt collection agency who are probably asking for full payment or threatening court action.

The first move you can make is to request they provide proof that you owe the debt. They must provide you with a copy of the O2 contract you singed. Do this even if you know you owe the money because:

  1. It buys you time to assess your options
  2. If they don’t provide it you won’t have to pay (it makes them work!)
  3. Helps identify mistakes on their side

Keep a copy of your prove the debt letter but don’t sign it. If the collection agency continues to ask for payment without supplying the proof, you can report them to the Financial Ombudsman for harassment.

Use this prove the debt letter template to save time!

Or, Send a Statute Barred Letter

The only time you don’t need to send a prove the debt letter is when you need to send a Statute Barred letter instead.

Statute Barred is a legal loophole that prevents old debts form being judged in court. To ease the pressure on the courts, any debt which is/has:

  1. At least six years old
  2. Not been paid in part in the previous six years
  3. Not been acknowledged in writing in the past six years
  4. Never had a CCJ issued on it

Are Statute Barred and cannot go to court. In the end, you can never be forced to pay. So instead of asking for proof of the debt, simply send a Statute Barred letter (can be downloaded from debt charity websites) and you shouldn’t hear from them again.

They Provided Proof, What Now?

If they provide proof of your O2 debt with an O2 contract in your name, it is time to make arrangements to pay. Don’t let the debt go to court as this could end up in the debt getting bigger and you may even have to face bailiffs that take your possessions to pay off the O2 debt.

You can get support on the ways to pay your debt more comfortably by contacting UK debt charities for free advice. 
And you can learn more about the ways to make debt affordable by visiting Money Nerd.


Are you struggling with debt?
Are you struggling with debt?
  • Affordable repayments
  • Reduce pressure from people you owe money to
  • Stop interest and charges from soaring