Arrangement To Pay?

MadMargo_2

My bank are still refusing to allow me an account that allows me to withdraw cash from any other bank other than their own and I can't get a phone contract in my name. I have been advised that this is because of recent adverse credit. I have been on a debt management plan since 2007, missed no payments and all my creditors issued defaults dated February 2007. The only adverse credit I have is an arrangement to pay issued by Barclaycard - this has shown on my account from 2008 to current date (as per my credit file dated last week).

My defaults will come off my file Feb 2007 (a total of 6 years), my arrangement to pay should be paid off by Feb 2014 and so will come off in Feb 2020 (a total of 12 years). Given the length of time this appears on my file and the effect it has on my ability to gain credit I'm wondering if I would be better to stop making payments to Barclaycard until they issue a default against me which would be dated approx March 2013 but would fall off in 2019 (a year earlier than the arrangement to pay)? I could then use the £418 I would have saved to clear off two other creditors. Once I do start making payments to Barclaycard again I could pay them my usual £70 per month plus the £148 I would have been paying my other two creditors.

I'm slightly confused as to why they still have the arrangement to pay on my file as I've been paying more than the required amount, more than the minimum and am being charged interest but I can't find anything online that states what the legalities are about an Arrangement To Pay and would of been better off not paying anything in 2007 until they issued a default then!

Should I stop paying until they issue a default? Is the Arrangement To Pay correct and can anyone tell me where I can find the legal rules about them?

fermi

Info on arrangements to pay, DMPs and defaults here:

https://forums.moneysavingexpert.com/discussion/3172602

Which bank to you have your account with?

Some will only allow you to withdraw from their own cash machines with a basic account (Lloyds for example), but others certainly will let you. May be worth switching to another bank's basic account?

MadMargo_2

Thanks Fermi - I am with Lloyds as it happens. I did try a basic account with Coop but couldn't use the card for some purchases like food shopping.

Thanks for the link - are these just guidelines or are they rules that banks should adhere to? Section 21 describes an Arrangement To Pay as: This involves a temporary, short-term (up to six months) arrangement where the lender agrees to accept reduced payments. My arrangement to pay has been on my credit file for 4 years! Not really sure what to do as don't really want to stop paying but the only way I can see to get this arrangement removed is to either default or pay the debt in full which I'm not in a position to do.