Voluntary arrangements cancelled but still reporting on my credit file.

joleeds · 21 November 2009 at 5:39PM

Hi All,

I'm new to all this! So hope what a put down makes sense!

A couple of years ago I got myself in a bit of a pickle with credit cards, so I thought the best option was to get in touch with each company and let them know.

Most of them where brilliant. I went through an income and expenditure form, and they agreed to freeze interest and accept a reduced repayment. Brilliant I thought, I could eat again and put the heating on!

Now I have turned the corner, still owing some money on the cards but in a much happier financial position following a promotion, I contacted the banks to let them know. I asked them to put me back onto a normal monthly minimum repayment (which I overpay generously) and to start applying interest again. Honest of me I thought, after all they helped me I may need their help again in the future so best not take the mick.

Only thing is they are charging me interest, accepting my much higher repayments but still reporting on my credit file that I have a repayment arrangement which is completely black listing me. I recently wanted to switch mobile phones but was shamed out of the shop, I wanted to get car insurance and they loaded my monthly premium! What can I do to get them to correct this. I have rung and they have said for the passed 3 months that the credit reference agencies will eventually catch up. But 3 months of waiting and no such luck.

Advice please!

YorkshireBoy · 21 November 2009 at 6:11PM

No personal experience, but I wonder if the AP markers will remain until you catch up to where you would have been had you not taken the reduced payments/interest freezing help?

Or maybe, like other credit history, they remain for 3/4/6 years as appropriate? In which case only time can improve your situation.

I'm assuming you're communicating verbally with the creditors? If so, then maybe you'd get a more specific answer if you wrote to them?

joleeds · 21 November 2009 at 6:19PM

I've tried to write too but had no response, and every time I ring, polite as they are, my question doesn't fit the script they have so i get no where!
I'm hoping and praying it doesn't stay on file for years, I really feel they should advise you that's the case when I made the arrangements. I could've borrowed money from my parents if I had known, but I didn't want to do that if I could sort the mess out myself.

YorkshireBoy · 21 November 2009 at 6:24PM

joleeds wrote: »

I've tried to write too but had no response, and every time I ring, polite as they are, my question doesn't fit the script they have so i get no where!

Then the next time you write, head your letter 'formal complaint'.

It might also be worth writing to the credit reference agencies to get their take on the matter, ie what usually happens in such cases.

wayne99 · 21 November 2009 at 6:42PM

if they have placed a mark on your credit report called "arangement to pay" that would more then likely be the problem.
I dont know how long it stays on your credit file, but i have had one placed on there from barclays 4 years ago and it still shows.
An "arrangement to pay" on your monthly status can be viewed as a negative when lenders search you as it shows that you were unable to repay as contracted to do so, for example in financial hardship.
this does ring alarm bells with some lenders if not all.

I would write to the companies involved asking if they would consider the removal of said marker, i wrote to Barclays and asked but unfortunatly they refused.

TFD_2 · 21 November 2009 at 7:49PM

A credit file is there to assist companies making lending decisions. If I was to lend money to somebody I'd want all the facts presented to me, including if there was an arrangement to pay. I'm sure this will stay on your file for several years, and it will affect your ability to get credit. It shows that in the past you were unable to pay your bills, and if a lender therefore considers you risky, then it's their call to do this.

The credit file contains facts about your accounts conduct, and it should be assumed a voluntary arrangement would show on there. I don't agree they should have to spell this out.

izools · 21 November 2009 at 8:05PM

In my experience the credit card company will mark the account as "AP" (Arrangement to Pay) for the months you underpaid. The fact that the account was in an arrangement to pay for those months will remain on your report for six years.

When a creditor performs a search on you, they will see that the account(s) had been in an arrangement, and aren't any more. The more recently the AP ended the more it will affect your score. You may well find that once the AP is marked as ended and the account is still up to date you will still fail credit checks depending on their criteria.

The more time passes the more likely you are to pass a credit check as long as you continue to keep payments up to date

Voluntary arrangements cancelled but still reporting on my credit file.

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