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  • FIRST POST
    noah271007
    Arrangement to Pay (AP)
    • #1
    • 14th Apr 09, 10:50 PM
    Arrangement to Pay (AP) 14th Apr 09 at 10:50 PM
    Hello guys!

    I'm back from a long break, how have you all been? I hope no one have been missing me!

    I will get the CRA's information updated as soon as possible, and start a new thread shortly. So Underground, just bear with me!

    I have started a new thread on the subject of 'Arrangement to Pay' that some lenders report to CRA's.

    AP has not been widely discussed so out of curiously, how damaging is AP on credit file? I know for a fact some lenders would accept payment plan to pay back debt like freezing purchase interest on account, but often do not discuss/inform to customer that accepting such plan would mean serious damage to their credit worthiness as a result.

    Is it on par with one late payment or more?

    Does it continue to affect credit worthiness for as long as 6 years?

    I used to have several of them with 02, but they have removed the default and data off my credit files so i am lucky.
Page 3
    • helpwouldbegreat
    • By helpwouldbegreat 18th Dec 15, 11:34 AM
    • 20 Posts
    • 3 Thanks
    helpwouldbegreat
    i have a AP on my credit for 1 month in 2014 and it wasnt even for the whole month it was for an extra 9 days,I was never told that this would effect my credit score nor was i told it would be reported to the CRA when i was offered it, ive now paid in full the remaining balance and closed the account, but still stuck with this ugly AP on report, is there anything at all i can do to get this taken off my credit report as like i said at the start i was never informed that it would be reported to the CRA: mad:
    thanks
    • grumbler
    • By grumbler 18th Dec 15, 12:11 PM
    • 51,388 Posts
    • 21,755 Thanks
    grumbler
    If it's a true fact, I don't see any reasons for it to be removed from the history. I don't think that lenders have any obligations to inform you about reporting facts, except, possibly, a default.
    We are born naked, wet and hungry...Then things get worse.

    .withdrawal, NOT withdrawel ..bear with me, NOT bare with me
    .definitely, NOT definately ......separate, NOT seperate
    should have, NOT should of
    .....guaranteed, NOT guarenteed
    • curve2722
    • By curve2722 20th Apr 17, 12:17 PM
    • 11 Posts
    • 0 Thanks
    curve2722
    Hi guys, sorry to bombard an old account but .....

    I was wondering what is best in my circumstances for example:

    I have an active payday loan (lending stream) sitting on my file from May 2014 when it went in to default (so stupid of me!). This loan is still active and still giving me red DF markers every month.

    What is the best situation i can do try and help myself obtain credit in the near future.

    The original loan was for 400 and is defaulted at 300 and speaking to the company directly they request 500 to clear it - which i dont have.

    My alternative is to call the debt people and go an AP.

    My question is, when it defaults in May 2014 and i go in to an AP April 2017, on to which date will it consider the 6 years before dropping off? (as long as AP is reported to CRA's and payments kept up to date).

    Thanks.
    • zx81
    • By zx81 20th Apr 17, 12:25 PM
    • 13,159 Posts
    • 13,476 Thanks
    zx81
    6 years from default.
    • curve2722
    • By curve2722 20th Apr 17, 12:42 PM
    • 11 Posts
    • 0 Thanks
    curve2722
    ive been told that if you keep a clean 3yrs on your file you can normally get a mortgage preferably with higher rates.

    Going through an AP lets say cleared by Aug 2017 and I apply for mortgage Aug 2018, will this AP have a negative affect?

    Way i see it is, either pay the company in full or try and avoid in paying (hoping no CCJ occurs) in order for a mortgage to go through for next year - since what ive read 3yrs clean file is normally ok for mortgage applications.

    then again, the mortgage provider may see outstanding debt over 3 years ago and consider this worse then an AP from a year ago.... still not sure what my better option is (except for paying in full).
    • zx81
    • By zx81 20th Apr 17, 12:48 PM
    • 13,159 Posts
    • 13,476 Thanks
    zx81
    The AP is irrelevant. The default is what is showing on your files.
    • eskbanker
    • By eskbanker 20th Apr 17, 12:51 PM
    • 5,466 Posts
    • 5,269 Thanks
    eskbanker
    Are your mortgage aspirations realistic anyway, i.e. if you're unable to raise 500 to pay this off in full, how would you intend to round up a mortgage deposit by next year (and then service the mortgage itself thereafter)?
    • Rah25
    • By Rah25 7th Jun 17, 11:10 PM
    • 2 Posts
    • 0 Thanks
    Rah25
    Lenders can make up their own rules?
    The whole AP scenario sounds like it is completely arbitrary and depends on how seriously each individual lender considers it to be, and every lender has their own criteria and the right not to disclose what their reasons are for refusing you credit.

    I think it's criminal that the best you might get from a lender before them putting you on an AP is "this may affect your credit rating", considering what a long term and damaging impact it can have! They are covering their asses and the borrower is agreeing to it without knowing what this means but has no comeback. Amazing that this is legal in today's society of demanding transparency in everything. "Buyer beware" still applies, clearly :/

    I am interested to hear that the Notice of Correction can itself have a negative impact!!! What if you lost your job or something 3 years ago so all of your finances were affected temporarily but you have since regained employment, proved yourself and got back on track with a great record?

    If you ask for a Notice of Correction this could actually look WORSE, and make you seem even less trustworthy, like "the dog ate my homework" scenario??!

    On the one hand I'm hearing that the most recent (say last 36 months) information is the most crucial and relevant for lenders but that historical "blips" can seriously affect your score EVEN if you made the effort to manage them at the time with an AP.

    Is the bottom line that lenders can do whatever they want as they are the ultimate decision maker?
    • chattychappy
    • By chattychappy 8th Jun 17, 9:15 AM
    • 6,297 Posts
    • 3,298 Thanks
    chattychappy
    I think it's criminal that the best you might get from a lender before them putting you on an AP is "this may affect your credit rating", considering what a long term and damaging impact it can have!
    Originally posted by Rah25
    Nonsense. Everybody knows that when you borrow money, you agree to pay it back on time. If you don't stick to the agreement, then lenders can sue you and (ultimately) take any assets you have, get an attachment to earnings etc.

    An AP is a concession where you say you cannot stick to what has been agreed, and you come to some sort of arrangement to delay payments and/or reduce the interest. Why shouldn't the fact of this arrangement be recorded? Why shouldn't other lenders be able to take into account the fact that having borrowed money on agreed terms, you then run into difficulty?

    I suppose if it wasn't recorded, then people could run up more debt and you would complain about irresponsible lending or misselling? Meanwhile others would have to pay more to borrow as risk assessment isn't so well informed.
    • Crystal_Pixie
    • By Crystal_Pixie 8th Jun 17, 12:28 PM
    • 47 Posts
    • 18 Thanks
    Crystal_Pixie
    Nonsense. Everybody knows that when you borrow money, you agree to pay it back on time. If you don't stick to the agreement, then lenders can sue you and (ultimately) take any assets you have, get an attachment to earnings etc.

    An AP is a concession where you say you cannot stick to what has been agreed, and you come to some sort of arrangement to delay payments and/or reduce the interest. Why shouldn't the fact of this arrangement be recorded? Why shouldn't other lenders be able to take into account the fact that having borrowed money on agreed terms, you then run into difficulty?

    I suppose if it wasn't recorded, then people could run up more debt and you would complain about irresponsible lending or misselling? Meanwhile others would have to pay more to borrow as risk assessment isn't so well informed.
    Originally posted by chattychappy
    The debate is more about being penalised for paying a debt rather than not.


    Barclaycard put me on a payment arrangement for four years. I cleared the debt but I will have this information on my file until 2020 because I paid this in 2014. If I had defaulted and not paid this information would have been off my file this year.


    I am happy for the correct information to be on my file - but if I had known I would have asked Barclaycard to default me instead.
    • redux
    • By redux 8th Jun 17, 2:28 PM
    • 17,101 Posts
    • 21,655 Thanks
    redux
    The debate is more about being penalised for paying a debt rather than not.


    Barclaycard put me on a payment arrangement for four years. I cleared the debt but I will have this information on my file until 2020 because I paid this in 2014. If I had defaulted and not paid this information would have been off my file this year.


    I am happy for the correct information to be on my file - but if I had known I would have asked Barclaycard to default me instead.
    Originally posted by Crystal_Pixie
    Speak to Barclaycard complaints team about this.

    They can alter the removal from credit files to 6 years from the start of the arrangement.
    • King Willy
    • By King Willy 14th Sep 17, 5:26 PM
    • 1 Posts
    • 0 Thanks
    King Willy
    AP to default - not 6 years but 10
    In 2013 I took out a loan with PDExpress, paid the loan and then had to take out another.
    Failed to make 1,2 or 3 payments and then an AP appeared on my credit file.

    August 2017: ClearScore informed me that my report had been updated. Prac Financial opened a credit file, Prac Finacial have filled a default on your credit file, Prac Financial have closed your credit (all in the same month). Prac Financial took over for PDExpress and have now marked my file as defaulted which now means that instead of the PDExpress loan and amount coming off in 2019 it won't come off until 2023.

    The fact that an AP can been placed on your file then at any point, even year 4 or 5 they decide to default you you more less start again with another 6 years (default) to wait for the same loan. Terrible, seems there is nothing I can do. With AP's you can now be defaulted with the same loan for up to 12 years.
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