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Is there anything in writing to show that payment was to be by card, or that she would be entitled to a credit. In an ideal world there should be records of the phone calls made, but if ntl have not handled the account in the way expected, i.e. applying credits, issuing payment cards, then it's quite possible the calls and therefore the conversations have not been recorded.
Going to court, needs to be a last port of call, and someone must be absolutely certain of their grounds. It's agreed that services were installed, payment will be due. Costs will be added by prolonging the matter, making things harder to swallow, and court judgements, or even bad debts do nothing to help credit worthiness.
I'm not saying that ntl are in the right here, just that as a mere punter the big boys can have all the clout. Bottom line, when taking any services, get it agreed in writing, despite a call centre's insistence that you don't need to, otherwise it just comes down to unprovable talk.