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Nationwide Arrangement Overdraft

razza100
razza100 Posts: 17 Forumite
edited 2 August 2012 at 1:58PM in Budgeting & bank accounts
Hi,

I have a £900 overdraft with NW but in the next week they are reducing this down to £500. I phoned them up to see if they could keep it the agreed £900 level - they insist it has to come down.

I explored various options with them on the phone and they suggested I can put in place an "arrangement". I need to pay £50 per month which I'm happy to do to get down to the £500.

I expressed concern, but I would be happy to do this as long as it is not viewed as negative to my credit report. The chap on the phone said it would not have a negative impact on my credit report, unless I missed the payments of £50 each month and didn't remain in my reducing limit.

I would just like to check on here with some wise heads that he is correct with what he is saying. Obviously I don't want this impacting on my credit file. Thanks.

Comments

  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You need them to confirm in writing that they will not enter an 'arrangement to pay" (AP) marker on your credit file, because I suspect they will.

    You'd probably be better off asking them for a loan (with affordable payments, so choose the duration carefully).
  • moatmeister
    moatmeister Posts: 332 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    edited 3 August 2012 at 9:54AM
    I had a similar thing with NW they wanted to reduce my o/d. Manage to agree a "monthly reducing balance" od that had no negative impact on credit file over a period of 12 months. Got it down from £1800 to £1000. After 12 months they then wanted to wipe it out overnight. Tried hard to renoegotiate but to no avail. Best they would offer was the situation you are in now, with some arrangement that would have impacted on my file. I said I would pay it off in full,but needed time. She gave me an extra month. I paid it off as agreed, they still marked it as a default, claiming the system had not picked up the new agreement. They did at least acknowledge it was there mistake and removed the adverse credit but it took some time. I have since closed the account in protest. Its a shame because itwas convenient.

    "I think an reducing balance o/d" and an "arrangement to pay" are two differnt things but be wary.
  • BASFORDLAD
    BASFORDLAD Posts: 2,418 Forumite
    If its an arrangement it will definately show on your credit file and will be negative!
    For everthing else there's mastercard.
    For clampers there's Barclaycard.
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