MBNA agreed to reduce my minimum payment

dazla

Following the recent rise by MBNA of the minimum payments, as i couldn't afford to pay the new rate I asked MBNA if they could reduce it. They said yes for both my MBNA & Virgin cards, although they will place an arrangement to pay marker on my credit reference file which will stay on there for 11 yrs. I have no option but to do this, as the new rate would drive me into a dmp anyway. How serious is an 'arrangement to pay' marker/ Has anyone ever got credit with one of these on their credit ref file?

YorkshireBoy

dazla wrote: »

stay on there for 11 yrs.

Account history is maintained for 6 years.

How serious is an 'arrangement to pay' marker

Would you lend money to someone with an AP marker on their file for an 'active' account?

You may be considered for credit elsewhere if the AP marker was, say, 2-3 years old, or the account had since been settled.

But if you're up a creek, so to speak, you don't have much choice really.

chattychappy

Ironic really. Since MBNA are requiring more cash off people, perhaps they should be the ones with a marker!

Sorry to hear you've been forced into this. Agree with YB. though it hasn't happened to me, everything I've read here suggests your credit record will be stuffed for a while.

I would keep all your notes/correspondence about this just in case there is a legal challenge further down the line. Unlikely in my opinion - as no "responsible" consumer body would want to be seen arguing that people should be make smaller repayments.

dazla

The woman i spoke to at mbna definately confirmed that it would be 11 yrs

CLAPTON

dazla wrote: »

The woman i spoke to at mbna definately confirmed that it would be 11 yrs

maybe she meant that is would take 11 years to pay the debt off if you pay such a low sum each month

chattychappy

CLAPTON wrote: »

maybe she meant that is would take 11 years to pay the debt off if you pay such a low sum each month

And on that basis would be on the record for 11 yrs....

m00m00

or 5 years to pay the amount, account then closed and marked as settled, and AP markers then remain on file for an additional 6 years, as they will.

izools

YorkshireBoy wrote: »

Account history is maintained for 6 years.Would you lend money to someone with an AP marker on their file for an 'active' account?

You may be considered for credit elsewhere if the AP marker was, say, 2-3 years old, or the account had since been settled.

But if you're up a creek, so to speak, you don't have much choice really.

Depends on the rest of your credit profile.

My mother had a Barclaycard in an AP from May 2003 - June 2010. She took the account out of an AP in June last year after clearing some other cards and freeing up some money. The account is still open with an outstanding balance.

In January she successfully opened a First Direct Bank Account (#500.00 OD) and First Direct credit card, as she was with RBS and didn't like what was happening with Santander. She also successfully borrowed #3,000.00 for a new car when the head gasket went on her Pug over christmas, albeit this was from Black Horse at 19.9% APR.

However, it is the only account on her credit file she's ever had any trouble with, and there isn't a single late or missed repayment recorded against any of her accounts, ever. Some of her accounts have been open for 25+ years according to the CRAs with no missed payments, which obviously counters the AP that was on her Barclaycard.

So, might affect you for six months after it come off, might be longer. Depends on the strength of all other aspects of your credit file and circumstances.

dazla

m00m00 wrote: »

or 5 years to pay the amount, account then closed and marked as settled, and AP markers then remain on file for an additional 6 years, as they will.

Yeah, thats what she meant

Degenerate

Do you have promotional balances on the card or is everything at standard purchase rate? How do you pay for your daily living costs? It depends on the rest of your finances, but you could possibly get around it by paying the new minimum then spending again on the card.