AP markers vs Defaults

simeyb

Hi all - question that's starting to concentrate my mind as I head towards the end of my DMP and hopefully getting a better mortgage rate in future than the one I'm on now!

Although I have several accounts marked as Default on my credit file, these will all drop off during 2013 as they become 6 years old - fine.

However, Barclaycard and MBNA have put Arrangement to Pay markers on my file which will stay on for 6 years AFTER the account is settled i.e. could affect my rating for many years yet to come.

I'm thinking that, as with other lenders where I defaulted, I also defaulted on these accounts - I broke the terms of the agreements with them when I didn't pay and since haven't been paying interest, so they should have been marked also as defaults back in 2007 and would also drop off this year.

Has anyone any thoughts or experience of contacting the lenders and suggesting they should be old defaults and not current AP's? Any thoughts would be very welcome - thanks!

happy_bunny_2

Google 'ico default guidelines' as it talks about AP also.

Not black and white but you could complain about paying and not being in a worse position than someone who had made no attempt to pay.

Stewart_78

Barclaycard seem to do this to everyone. It's not right. I am currently in the early stages of a similar fight. I'm 3 years into a DMP but want my BARC account defaulted back in 2010 with the rest.

Stewart_78

Well I wrote to Barc and they have tried to call twice but I am unwilling to discuss on the phone. So I am going to write again, telling them I want a response in writing. I don't expect to get anywhere at this stage, just going through the motions. I expect I will have to complain to the ICO and FOS and this can take months. But I have plenty of time.

chanz4

Its a true reflection though the arrangement to pay flag is, thats just what a dmp is

Bettingmad

chanz4 wrote: »

Its a true reflection though the arrangement to pay flag is, thats just what a dmp is

Sorry but that's not correct.

ICO guidelines state

An ‘arrangement to pay’

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

and also

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.

Barclays to name but one continue to place ap markers for the duration which can run into years. Clearly against ICO guidelines which state it is a temporary short term measure (Up to 6 months)

Stewart_78

It's counter productive too. In 2016 all the rest of my defaults will fall off my report. At that point I may well be in a position to re-mortgage and pay off all cards etc. in full. If I have one account with AP markers on it still going, that won't happen so they won't get their money.

They should not be allowed to wreck your file for ever because you ran into problems many years ago.

kirstle99

I was wondering about this too. Barclays have been a bit of a nightmare creditor for me. Although we partially settled their 2 accounts in 2012, they never defaulted them (2 credit cards).

We started a DMP in 2007 and the whole time they have put AP flags on the accounts.

I wasn't aware that AP markers were only supposed to be for a short term. I have these AP flags from 2007-2012 on both accounts!

Do you think they will try to swerve placing the defaults at the correct date (for me somewhere in 2008) as I was sometimes told by Payplan that Barclays reviewed their accounts every 6 months, so were they in fact just re-starting the AP cycle over & over again?

Hhmm......:eek:

chanz4

but as comunication has not broken down, an arrangement was made it is correct

Stewart_78

Well in my case they obviously thought the thing had broken as they sold on my debt to Cabot. At the end of the day, all my other creditors have treated me very fairly and I appreciate that. I will try my best to pay them back. If Barclaycard won't do the right thing I will simply stop paying them and we'll see if they can find a copy of the credit agreement for an account opened in 1997! Two can play at their little game. Sure it gives me a certain default in 2013 and another 6 years until I'm clear but I'll save the 10 grand I owe them.

Barclays are the bank crowing about how they have changed and are going to be oh so fair. What they are doing is keeping people in debt for as long as they possibly can.

dannyfleetwood

Sorry to take over your thread but similar thing has happened to me with Lloyds TSB and Halifax. Had me down as AP for 3 years then decided to default me last month. Can't believe they are allowed to do this especially as all the defaults would be falling off in 3 years. Instead I now have to wait to 2018.

Be sure to let me know if you win this battle as I am currently fighting with Lloyds TSB and Halifax myself.

All the best!!