02 is demanding payment for a contract that ended in Oct.2011. They continued taking monthly payments on the direct debit when they should have cancelled it even though the contract had ended and a new contract for an upgraded phone was set up. When I discovered this I contacted my bank to recall the payments. 02 send out a letter demanding payment and a threat to disconnect the line (it doesn't exist) and I phoned them and they confirmed that no such money is owed. I then receive another letter threatening me with a CCJ.

It seems 02 struggle to earn their money without trying to cheat their customers out of money.

You say you upgraded your phone. Are you sure the direct debit you recalled wasn't the one for the new phone?

After a contract period ends I believe they roll over to monthly. Did you actually formally cancel your agreement with them when you left? I presume you didn't port the number to another network and just started fresh with a new provider and new number?

Mistakes like this can happen, as on their system they may still think they are providing a service, hence they kept billing you. If they are not getting paid they eventually sell on the debts to collection agencies.

The contract was definitely cancelled and when I phoned about it after I'd received the demand letter, the person said it had been cancelled and that I should not be charged. Also the new contract is with 02 and that payment is ongoing direct debit, not cancelled. I think they just try to get away with grabbing as much money from customers as they can even though they know the situation. It's on their records that I had cancelled. My bank investigated this and agreed that I'd done everything correctly on my part which is why they recalled the direct debit payments. All the evidence is there for 02 not to keep demanding this money and yet they continue to demand and now threaten me.

Ring them up again and if they tell you the same story about it being cancelled, get the name of the person you're speaking to and ask them to send you a letter or email confirming what they've told you in case it goes to court.

I've spoken to someone who confirmed that no money is owing and that it was a computer generated letter sent out in case money was still owed. I should have thought they could stop such letters being sent out when it has already been resolved. The letters are scary.

OP,i feel sorry for you having to go through this. I had an issue with o2 once where they sent an email stating I can have double mins and texts for 2 months (this was back when networks fought hard for customers). Problem is, when I got my bills they'd charged me for all the mins, texts and internet up to a huge amount of £400. I complained and complained and it got me nowhere. They wouldn't accept a copy of the email as proof via email and I have to FAX it in. However they always claimed they never got the FAX I sent on several occasions. I would never deal with such an incompetent company like of again, or one of their MVNO for that matter as it's not like they offer good coverage for my area anyway.

Rik.