Holiday Deposit - Contract not Signed

[magbags]

We paid a low deposit of £250 at time of booking our holiday. We have now had a change of situation and can't go. Our contract clearly says that full (higher) deposit would have to be paid on cancellation...HOWEVER...
I booked over the phone and did not sign the contract. (The contract says by signing here you agree to the following...)

My questions are:

(1) Is the contract legally binding if we didn't sign it? Or would paying low deposit by phone consitute a binding legal agreement?

and

(2) If we don't pay, can the holiday company refer this to a debt collection agency (this is what they have said). And as such affect our credit rating?

Many thanks for any advice.

Or would paying low deposit by phone consitute a binding legal agreement?

It would, unless cancelled in the cooling-off period.

If we don't pay, can the holiday company refer this to a debt collection agency

Yes.

And as such affect our credit rating?

Not unless they take you to court and win and you still don't pay.

Thank you Anchovy. Have paid it now.