Help! Natwest Destroying my Credit File

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matttye wrote: »

Arrangements to pay are supposed to be short-term arrangements of up to 6 months.. they can't last for 2 years, which is how long the OP has been in a DMP.

It would actually be worse if they displayed AP markers for 6 months and then a default, as it would mean the default would stay on the OP's credit files for 6 months longer.

......Huh. I genuinely didn't know that. I thought once they put AP on your file it was effectively an amber light, meaning you weren't clear of it but it wasn't defaulted on repayments either.

matttye

Powered_By_Pies wrote: »

......Huh. I genuinely didn't know that. I thought once they put AP on your file it was effectively an amber light, meaning you weren't clear of it but it wasn't defaulted on repayments either.

This is what the Information Commissioner (ICO) says about arrangements to pay:

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).
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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
Version 3 Defaults: A guidance note
02.08. 2007
10

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.

http://www.ico.org.uk/~/media/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.ashx