Arrangements to pay

johno1978

Hi

I have just checked my Equifax report and have arrangements to pay which don't have a default is this correct, I assumed it would automatically show as a default.

I also have default for an overdraft where the date doesn't look correct.

These accounts are all showing as settled.
Does this sound correct
Many thanks for your replies

rizla_king

An arrangement to pay is a short term agreement between you and the lender as an alternative to defaulting the account. So by definition an AP marker would only apply to an undefaulted account.

nicp60

An Arrangement to Pay should also only reflect an arrangement in place for up to 6 months. If your situation is ongoing and long term, then they should have defaulted the account. Some institutions are notorious for using APs instead of defaulting accounts, as APs can actually be worse than defaults on your rating.

What's your actual situation with these debts?

Thrugelmir

nicp60 wrote: »

An Arrangement to Pay should also only reflect an arrangement in place for up to 6 months.

Arrangements to pay have no fixed time period. In essence they will run to the arrears are paid or the debt is entirely settled. An ARP marker will be recorded against the account.

matttye

Thrugelmir wrote: »

Arrangements to pay have no fixed time period. In essence they will run to the arrears are paid or the debt is entirely settled. An ARP marker will be recorded against the account.

http://www.ico.org.uk/for_organisations/sector_guides/~/media/documents/library/Data_Protection/Detailed_specialist_guides/default_tgn_version_v3%20%20doc.ashx

"Arrangements to pay
21 An ‘arrangement to pay’
This involves a temporary, short-term (up to six months) arrangement where the lender agrees to accept reduced payments."

rizla_king

nicp60 wrote: »

An Arrangement to Pay should also only reflect an arrangement in place for up to 6 months. If your situation is ongoing and long term, then they should have defaulted the account. Some institutions are notorious for using APs instead of defaulting accounts, as APs can actually be worse than defaults on your rating.

That is correct.

http://www.ico.org.uk/for_organisations/sector_guides/~/media/documents/library/Data_Protection/Detailed_specialist_guides/default_tgn_version_v3%20%20doc.ashx

Arrangements to pay

21 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.

happy_bunny_2

RBS get around the 6 months by sending a letter every 6 months saying we agree to extend your AP for another 6 months.

Devious, evil, whatever else you can think.

In my opinion, rather have a default. Gone in 6 years. Especially if you have others.

As in my case, APs for 2 years, then default. Screwed for 8 years. Some folks get much longer than this.

matttye

happy_bunny wrote: »

RBS get around the 6 months by sending a letter every 6 months saying we agree to extend your AP for another 6 months.

Devious, evil, whatever else you can think.

In my opinion, rather have a default. Gone in 6 years. Especially if you have others.

As in my case, APs for 2 years, then default. Screwed for 8 years. Some folks get much longer than this.

I don't think that gets around it. I'm sure the ICO would have something to say about that kind of behaviour!

happy_bunny_2

matttye wrote: »

I don't think that gets around it. I'm sure the ICO would have something to say about that kind of behaviour!

Yeah, that's why I stopped paying in the end. They tell you it looks good as trying to repay your debts. I could still send the complaint to FOS I think. May well do that just to cost them the fee.

Not my latest or only default otherwise I would have made much more of a fuss

I hate RBS...

johno1978

Thanks everybody for your replies.

All debts are settled in full, so just thee long climb back to worthiness.

nicp60

In that case the accounts will drop off your file 6 years from the settlement date. If it took you a while to pay these off, then you'd have a case to write to them and ask them to change it to a default on x date.

I did this and got 2 of my default dates changed, as they'd only defaulted them 2 years after I'd actually defaulted.