Arrangement to pay - advice needed!

happy_bunny_2

neverbefore2011 wrote: »

that's the kind of snippet of information that I am looking for, but !!!!!! what does AP stand for?

Arrangement to pay

neverbefore2011

happy_bunny wrote: »

Arrangement to pay

Is there some definition of an 'Arrangement to Pay'? I recently 'Arranged to Pay' token payments to my credit card, but apparently there is nothing to be done (long-term) until I get into a 'Default Situation'

happy_bunny_2

neverbefore2011 wrote: »

Is there some definition of an 'Arrangement to Pay'? I recently 'Arranged to Pay' token payments to my credit card, but apparently there is nothing to be done (long-term) until I get into a 'Default Situation'

Follow the link in post #10 above. It describes an arrangement to pay. If your unlikely to return to normal payments then you are likely to eventually get a default. Maybe better to get sooner rather than later as on your credit file for 6 years.

neverbefore2011

happy_bunny wrote: »

Maybe better to get sooner rather than later as on your credit file for 6 years.

That's more or less what I intended to imply in post number 4

happy_bunny_2

neverbefore2011 wrote: »

That's more or less what I intended to imply in post number 4

Yes. Saw that. Good luck with what you decide.

nottoolate

http://www.ico.gov.uk/~/media/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.ashx


[QUOTE21 An ‘arrangement to pay’

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

• The original payment terms will still be shown on the credit reference file and arrears will accrue which will be shown on the monthly status record.
• The account will be marked by an ‘arrangement to pay’ marker (which distinguishes the account from one where the customer has behaved less responsibly).
• Where such an ‘arrangement to pay’ breaks down, a default may be filed when the total value of the arrears is equivalent to three monthly payments under the original terms. However, this should not result in the customer being placed in a worse position than someone who has made no effort to pay whatsoever.
• If a customer fails to return to contractual payments after an ‘arrangement to pay’ has expired, then the lender can file a default immediately, as long as this would not place the customer in a worse position than they would have been in, had they not made the arrangement.

Examples

1. If a customer makes an ‘arrangement to pay’ at a reduced rate but breaks that arrangement by making no payments for three months, the lender should only automatically file a default if

• the total value of the arrears is equivalent to three monthly payments under the original terms, and
• the lender would normally file a default at this stage in the arrears process.

So no default should be filed if the lender normally records defaults when accounts are six monthly payments in arrears and the customer has not yet reached that level of indebtedness, even though he may have missed payments under the ‘arrangement to pay’.

2. If a lender accepts an ‘arrangement to pay’ as an alternative to filing a default, and the customer fails to make any of the agreed repayments, then a default can be filed straight away. [/QUOTE]

neverbefore2011

nottoolate wrote: »

http://www.ico.gov.uk/~/media/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.ashx


[QUOTE21 An ‘arrangement to pay’


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

• The original payment terms will still be shown on the credit reference file and arrears will accrue which will be shown on the monthly status record.
• The account will be marked by an ‘arrangement to pay’ marker (which distinguishes the account from one where the customer has behaved less responsibly).
• Where such an ‘arrangement to pay’ breaks down, a default may be filed when the total value of the arrears is equivalent to three monthly payments under the original terms. However, this should not result in the customer being placed in a worse position than someone who has made no effort to pay whatsoever.
• If a customer fails to return to contractual payments after an ‘arrangement to pay’ has expired, then the lender can file a default immediately, as long as this would not place the customer in a worse position than they would have been in, had they not made the arrangement.

Examples


1. If a customer makes an ‘arrangement to pay’ at a reduced rate but breaks that arrangement by making no payments for three months, the lender should only automatically file a default if

• the total value of the arrears is equivalent to three monthly payments under the original terms, and
• the lender would normally file a default at this stage in the arrears process.

So no default should be filed if the lender normally records defaults when accounts are six monthly payments in arrears and the customer has not yet reached that level of indebtedness, even though he may have missed payments under the ‘arrangement to pay’.

2. If a lender accepts an ‘arrangement to pay’ as an alternative to filing a default, and the customer fails to make any of the agreed repayments, then a default can be filed straight away.

[/QUOTE]

But in the real world, so far as I can work out, once a debtor has made any kind of late, missed, or reduced payment, then he/she is completely stuffed

Hanky_Panky

Nearly_There wrote: »

Thanks for the posts people.

Currently the account isn't in arrears and has been since about 6 months after my payment problems. Currently the credit limit is roughly 8k and the balance is roughly 4k.

I'm still confused as what part of this arrangement is enforceable? I'd rather be removed from the arrangment to pay so the ap markers fall off and pay off the majority of the account and keep a small balance (hopefully updating my account with positive payment history)

The only other thing I can think of is that the whole balance has become due as you have technically defaulted on payments (even without an actual default notice) so possible whole balance due - making 'reduced' monthly payments at x = AP. When you spoke to MBNA what was their reason for keeping you on an AP. Have they indicated that you would be able to use the account again ?

As has been mentioned - an AP is much better on your credit file than a default so please ignore the trolls trying to encourage you not to pay - that will just make everything a whole lot worse.

Nearly_There_2

Thanks again for everyone's replys.

I was never given a reason, only that "things have changed here".

I think my best option is to write them a letter and ask for the card to be reissued and move back onto contractual repayments (I'll continue to pay my larger payments) if they refuse at least I'll have it in writing!

Nearly_There_2

Something I forgot to mention:

When I called them to ask if I could go back to contractual payments, the operator did ask if I wanted to use the card again. I did say no to this! Could be they base their decision on someone using the card and making them more money? Just a thought?