difference between default dates and start of arrangment to pay on credit file

crazyhaggid

Ok about eight years ago I got made redundant and had problems paying my outstanding credit whilst unemployed, thanks to citizens advice I had arrangements to pay set up, two out of my three creditors raised defaults, the third didn’t. Fast forward to now I’ve paid off the balances of all my debts in full and the two defaults have fallen off my credit file, however on checking my Equifax report online using their free trial I noticed my credit agreements icon was red with the word ‘warning’ next to it. I phoned them up and they said it’s because I only satisfied my final debt (the one with the arrangement to pay) back in October 2010 so this will be on my credit file for six years after this date!

This is particularly annoying as the defaults have now gone yet it looks like this debt will be affecting my credit score until 2016.

Is this correct? Or should it drop off six years after the arrangement to pay started?

crazyhaggid

I did some more searching about this at lunch, as far as I can make out it would have been better if my creditor had defaulted me as this would have dropped off my account by now, where as the arrangement to pay only ended in October 2010, I have to wait till 2016 for this to be cleared.

Surely this can't be right? I feel like I'm being punished for trying to pay as much as I could afford rather than running away from my debts

happy_bunny_2

From what I know this is correct.

There are differing opinions on how bad arrangements are seen, from as bad as default to not that bad.

I have a current one and have got a new mobile contact and utilities such as gas with no problems/ Not applied for any credit, as I'm paying it off so dont want any.

I agree its not great, as it'll also take me a couple of years to pay it off so will also be on my report for 8 years where as a default would be gone in 6.

Have a read of this if you have time, page 9 talks about arrangements:
http://www.ico.gov.uk/upload/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.pdf

crazyhaggid

I've just paid Equifax for my credit score and this is dragging it down to fair.

I noticed that once I found another job I was actually paying more than the required minimum each month, should this still have been an arrangement to pay?

Is there any methods I can use to have it removed from my credit file? I've written a SAR letter, is there anything they need to prove to keep this on my credit file?

boogiemaster

I have a loan with Naylors finance and previous loans have always been paid on time but my last loan I paid less than the agreed amount so they put arrangement to pay markers on my credit file.


I'm going to ask them once I've paid the loan off if they can remove it from my file as I've always paid the loans off even though I've took a little longer than the agreement stated.

I've been with them over ten years so I'm hoping they will otherwise mine will be on till 2018

Once you pay the debt off it will stay on your file a further six years and some people say its better to have defaulted than to have it on your file all that time.

king100

An arrangement to pay is a supposed to be a short term agreement, it is a pain and creditor should have advised you concerning this. In terms of having it removed you can only ask the question but I would suggest that their answer would be no. I personally have an AP on my file and it hasn't really affected me getting credit, I have 4 credit cards all setup on DD to pay off minimum payments, some have high apr which they are paid off fully do this for maybe 2 years and the AP won't matter, as after 2 years i got a normal credit card with a normal apr.

happy_bunny_2

crazyhaggid wrote: »

I've just paid Equifax for my credit score and this is dragging it down to fair.

I noticed that once I found another job I was actually paying more than the required minimum each month, should this still have been an arrangement to pay?

Is there any methods I can use to have it removed from my credit file? I've written a SAR letter, is there anything they need to prove to keep this on my credit file?

Did you read the link in my previous post?

You could formally complain that they didn't tell you that the arrangement would be on your file, that its not been used for a short term as described in the ICO guidance, that they should have removed it once your payments increased etc. State that you are in a worse position because of this than if you had defaulted, which the ICO says should not happen.

crazyhaggid

Happy_bunny I took your advice back in January and have finally received a reply from MBNA. They have said they did not file a default as under Data Protection Technical guidance paragraph 17 "lenders should not file a default where there is a genuine and agreed variation in the payment schedule"

Therefore they will not change my credit file. I'm really annoyed by this as basically I'm going to have poor credit for another four years because I did the 'right thing' and tried to pay what I could afford rather than running from my debts and getting a default which would have expired in 2011.

happy_bunny_2

Did they say you can complain to the FOS if not happy with their response?

crazyhaggid

Thanks for the reply, yes they said I can take it to the FOS

crazyhaggid

Do you think I have a good case for the FOS?