Requesting a MAC

Hello,

I'm posting here on behalf of a friend. He's locked into a 12 month contract with Sky. He has phone line, ADSL and Sky TV until August 2015. He took Sky's offer of free broadband for 12 months if you take Sky Sports, last year.

In January, he lost his job and is in the process of bankruptcy, and so far has defaulted on 3 months worth of payment and Sky have switched off all of his services until his account is settled.

He said the other day that he doesn't miss Sky TV but really needs his broadband and would like to switch providers to get a cheaper deal. I blurted out that Sky probably have a cease on the line and won't authorise a MAC but reading the Ofcom rules I'm not so sure now.

Can he request a MAC from Sky even if he has an outstanding balance?

Edited by deleted (Thu 16-Apr-15 15:00:13)

In reply to a post by hopeless:

Can he request a MAC from Sky even if he has an outstanding balance?

He is free to move to a new supplier, but of course he is still liable for fees due to the old supplier.

Most people on Sky don't need a MAC, just place a new order with the new supplier.

Hello Oliver,

Many thanks for your reply. I will pass this info on to him.

Cheers

Your friend may have problems switching to a new provider if they have an unbundled line with Sky as it will mean a "new line" install because the phone line is not a BT line and this is usually credit checked. I learned this from experience 5 years ago.

Their best bet would be to try and get the money to settle with Sky, if it's not too late, and get it switched back on and then just keep the phone line and broadband.

I preface these comments by saying that I am no expert in insolvency law, as I have no personal or legal experience of this area. What follows is tentative, and may well be worth running past those with more experience, such as those in the relevant part of the MoneySavingExpert forums.


There is a need to be careful here, as doing a deal with Sky risks being construed as preferring one creditor over another. Preferences created within a certain time frame before going bankrupt (I think it's six months) can be set aside by the court.

However, there is an argument that a phone line and a basic Internet package is an essential of life that would likely cost more to reinstate in bankruptcy (if it is possible at all, considering the lack of creditworthiness) than to preserve now. This arguably heads off the argument that a preference was created in detriment to other creditors. I would also argue that the risks of a creditor complaining about a few months of phone and broadband costs are low compared to the size of what must be substantial debts to be contemplating bankruptcy.


As such, if the person can get the money together to pay off the broadband and phone line arrears on top of other essential expenditure and getting together the fee for bankruptcy, it may be worth offering Sky the broadband and phone line arrears in return for resumption of broadband and phone line service.

Sky probably will try to press for clearance of all arrears, but it is worth stressing that this arrangement leaves them better off than if the entire debt falls into the bankruptcy, as it guarantees Sky recovery of all of the non-TV part of the debt in order to restore essential services. I would stress that with bankruptcy pending, funds are not available to clear the TV debt, that there is no intention to resume multi-channel TV service with Sky or any other provider and that clearing debt relating to non-essential services risks creating a preference that cannot be justified.

It might also be worth the person volunteering for an outgoing call ban if they have another way of making calls or asking for a ban on out-of-bundle calls if they feel the need for a reasonable call bundle. This, together with offering to pre-pay a month if funds allow, would limit Sky's credit risk in restoring service.

In hindsight, my previous statement "of course he is still liable for fees due to the old supplier" may not have been applicable in a bankruptcy situation where the debt was accrued prior to bankruptcy.

I does seem "cleaner" to me to start afresh with a new provider and write the Sky debt of in the bankruptcy (if possible). This does pre-suppose his new ISP is willing to take him on with a poor credit history.

It also pre-supposes that MPF providers are obliged to release a line in this instance. We all know the rules around MACs in this regard, but I'm not sure about, for instance, an ISPs right to prevent an MPF to WLR3 transfer.

Internet is available at libraries. Who makes the "essential" decision?

Many thanks for the replies. I will print this thread out for him.

What he'd like to do is get BT Basic landline and broadband - if he ever receives his P45 and then make a claim for JSA. At the moment he's stuck in limbo with no income.

I think Sky have closed his account because he said he received a text saying 'Sorry to hear you're leaving us' and then got a flyer through his door with an offer from Sky to clear "up to 100%" of his outstanding balance, providing he comes back for a further 12 months on the same package.

I'm not sure if he's mentioned bankruptcy to Sky or if they've decided to write off the debt already or if they're going to send in the bailiffs. I will need to catch up with him.

i forgot about the library. He can look for work and get his CV printed off there. I think benefit claims are done online now too.

He's in a bad place at the moment, so any help he can get is appreciated and thank you all for your advice.

There's always the option of mobile broadband (dongle or smartphone) too, PAYG, no contracts. Fine for job searches, e.g. light browsing and email.

Good call! I didn't think of that. It probably is best option for him at the moment.

Thanks.

Edited by deleted (Sat 18-Apr-15 20:14:08)