Arrangement to pay on credit file

lukeyb79

Hi all,

please for give me its my first post and I'm self confessed snooper.

In 2007 I got into a bit on financial difficulty (too much debt) and started to work with paypal to sort my finances out. I read a lot about DMP’s and thought these arrangements would be better than defaults (I did have 2 defaults but now have been over 6 years). During the DMP I regularly checked my credit score which obviously wasn’t high. I also made the decision to deal with Barclaycard directly after a few years and deal with them directly. I was also paying way over the minimum amount.

I have now finished my DMP (early this year) and all the defaults have come off my credit file. Hurrah!

I have checked my Experian score which is 999

But my Equifax one is 301!!

Looking at the Equifax account there is still an arrangement to pay on the Barclaycard which I am still paying back a direct debited amount each month way over the minimum amount.

I have a few questions so please forgive me:
I have read conflicting information, some say an arrangement to pay is worse or the same as a default. If that’s the case shouldn’t I have just taken the hit 6 years ago and not done something about it at the time as it would be clear by now?
Don’t Barclaycard have to review this and take me off the arrangement to pay when I can afford to pay the amount back a few years ago?
Would the arrangement to pay end as soon as I dealt with Barclaycard directly and not continue for 6 years whilst I pay it off?
How long will the arrangement to pay stay on my file? If its another 6 years after paying it off that hardly seems fair. (means credit file effected 12 years in total!)

I have spoken to Barclaycard who are looking into it and I have put a note on my credit file

Also why are the two credit file scores so different?

I’m ever so sorry for all of the questions and I thank you in advance .

Any help much apreciated

Thanks
Luke

You-kip

Your score of 999 don't mean a thing they're meaningless numbers brought in by Experian for profits only,just carry on paying debts on time and that's it.
As for the DMP not 100% sure about that.

rizla_king

You shouldn't be on an arrangement to pay for 6 years. :eek: That is taking the pi ss

6 months max, after which the accounts must either be brought completely up to date or a default issued. Barclays abuse APs as they know they screw your file for longer.

Thrugelmir

rizla_king wrote: »

6 months max, after which the accounts must either be brought completely up to date or a default issued.

No such rule exists. Debt can be repaid under an ARP for years.

Quite correctly the account on the credit file is marked as being paid under an ARP.

This is a deterent to stop people abusing the ARP. It's in the borrowers interests to clear the debt as quickly as possible. Not treat the debt as an interest free loan. Which many people do. Saving a deposit for a mortgage instead of repaying the debt is a common theme.

rizla_king

ICO guidelines.

21 An ‘arrangement to pay’

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

happy_bunny_2

Complain in writing then refer to FOS if needed.

Companies get around the 6 month rule (well RBS anyhow) by renewing the arrangement every 6 months. I had about 3 renewal letters before realising a default would be gone quicker and save a bucket load on interest.

Crazy system, but that's the way it is and banks a use it as much as they can get away with.

Miss_Marple_2

I had the same - my DMP got to the point with Barlaycard that I was paying more than the contracted minimum payment. At this point they also started charging standard interest. I phoned to speak to them about something else and the advisor pointed out that I was still classed as arrangement to pay and that this would be having a negative impact on my credit report - they changed it.

At that point I never thought I would get credit again so I wasn't too fussed, but going through the mortgage process recently, I wished that i had kept a closer eye on things.

lukeyb79

thanks guys for the comments..

so what is seen better by lenders ARP or default? very angry about this as i have been paying interest at the normal rate.

will this stay on my file for 6 years? or will it go when i pay it off?

what would be my next stage? write to barclays.. if no joy then FOS?

You-kip

lukeyb79 wrote: »

thanks guys for the comments..

so what is seen better by lenders ARP or default? very angry about this as i have been paying interest at the normal rate.

will this stay on my file for 6 years? or will it go when i pay it off?

what would be my next stage? write to barclays.. if no joy then FOS?

What is seen better AP or default we'll TBH mate they both look from a lenders point of view that you're liability who can't keep up repayments.

Thrugelmir

lukeyb79 wrote: »

so what is seen better by lenders ARP or default? very angry about this as i have been paying interest at the normal rate.

Many view them same as it's the inability to pay your debts that matters.

happy_bunny_2

Default is worse, but gone sooner.

Complain to Barclays, then FOS if needed. Doesn't take long and you have nothing to lose.