Legal requirements for an 'arrangement to pay'

[Deleted User]

Hello - could you help?

Do banks and other lenders have any legal rules by which they are bound when applying an 'arrangement to pay' on an account.

Is there any formal definition of what an 'arrangement to pay' is - and who sets the guidelines as to when one might be applied?

[Deleted User]

I found this:

http://www.ico.gov.uk/upload/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.pdf

It states:

This involves a temporary, short-term (up to six months) arrangement where the lender agrees to accept reduced payments.

I have had an 'arrangement to pay' applied to my account from Abbey even though I have made full payments in-time, so just wondered if this could be a grounds for requesting the arrangemnet to pay to be removed.