Arrangement To Pay Market With BG

starsky27

Hi,
I've recently gained a copy of my partners credit file from Experian as we will be applying for a mortgage soon.On it is a marker showing an arrangement to pay from two years ago with British Gas. This marker is from the point we moved out of a property and the final bill came back with us owing £200. Up till this point we had been paying for both gas and electricity by DD every month for two years without ever missing a payment. The DD was cancelled and by phone she came to an agreement to pay of the amount owed on a monthly basis by phone. It was never explained that this would be entered on her credit file as a negative factor.

Will this affect our mortgage application ?

Are BG allowed to enter this type of debt payment as an ' arrangement to pay ' ?

It's very frustrating as my partner has previously had credit issues which she has worked hard at clearing . This is a bit if a kick in the teeth .

Any advice would be appreciated.

Mark

Thrugelmir

starsky27 wrote: »

Are BG allowed to enter this type of debt payment as an ' arrangement to pay ' ?

A credit record is to warn other companies of an individuals behaviour if the need arises. People too often view stringing out payment as an interest free loan. When it fact they have defaulted on a contractual agreement to pay. So BG have merely recorded a statement of fact.

starsky27

Thanks for the reply.

It was never our intention to ' string out ' the payments or see it as a interest free loan. As previously mentioned the accounts were paid on time every month prior to this. It was only after we moved and the final bill came in that this problem arose. My partner contacted BG straight away to arrange payment and as the bill was over four times what the normal initial DD was she agreed to pay back the amount over four monthly payments ( which still was more than the original DD)

I've noticed on her file it only says arrangement not arrangement to pay , is this the same thing ?. Also for some reason the dates are only between the 4/11 and 5/11 ??.

If it an agreement to pay marker then I thought that this would only be entered if you couldn't afford to pay your contractual agreement due to I'll health or drop in income. Neither of these applied to us.

Thanks,
Mark

Thrugelmir

starsky27 wrote: »

If it an agreement to pay marker then I thought that this would only be entered if you couldn't afford to pay your contractual agreement due to I'll health or drop in income. Neither of these applied to us.

Credit records are a reflection of how an individual manages their personal finances. Defaulting on any debt suggests that an individual does not the financial resources to weather a change of financial circumstances. Lenders are looking for affirmation that a mortgage will be paid satisfactorily for 25 years, month in month out. Struggling to meet a utility bill will not instill confidence.

Lenders can choose their customers. Filtering applications by previous history is the initial step. Business in general will wish to reduce the risk of a bad payer. Has been the way of the commercial world for many years. Personal finance is now entering the same degree of scrutiny.

starsky27

We never ' struggled ' to meet a utility bill as I've already mentioned. My partner was given the option to pay monthly ( at an amount more than she was previously paying) . If it been put to her that this would impact negatively on her file then she would have paid the outstanding amount( Or I would have).

Who said we defaulted ??

Anyway thanks for your advice, very helpful.

Mark

bigadaj

You can add a note of correction to your file, though this is unlikely to help very much.

Thrugelmir

starsky27 wrote: »

We never ' struggled ' to meet a utility bill as I've already mentioned. My partner was given the option to pay monthly ( at an amount more than she was previously paying) . If it been put to her that this would impact negatively on her file then she would have paid the outstanding amount( Or I would have).

Who said we defaulted ??

Anyway thanks for your advice, very helpful.

Default is a technical term. For non-payment of a debt in accordance with contractual terms. Best advice is always to settle as promptly as possible.

If you feel misled. Then as suggested before request a correction notice to be put on file. Though operators normally follow preset routines. So the offer of installments may have been made in response to a negative reply when asked if payment could be made in full. People often forget the full conversation they've had at a later date.

Dave_Ham

It will depend upon the detail of the case and the lender selected whether this is an issue.

I agree she should have been informed, although you could fight it with them and I would say you have a small chance of them amending it.

Technically, you owed the debt for usage and technically you stepped outside the terms of your agreement when you did not settle in full. They can put a marker as an arrangement to pay as technically it is.

I can see how this is frustrating, although as said either challenge with BG formally in writing or ensure you select a flexible lender.

All the best

starsky27

Thanks for your replies and advice much appreciated .

I will contact BG.