AR - settled last year - adverse effects?

sirwiggum

I finished paying off a Debt Management Plan last year, which started way back in 2007 due to circumstance at the time.

Looking at my noddle report now:

A couple of defaults fell off accounts that are settled.
Arbitrary score is 4/5.

So my credit file looks like this:

Open:
- Current Luma card (all greens)
- Current account (all greens)

Closed:
- HFC 'loan' - weekly payments for a computer from a few years ago, long settled (all greens - never AR or defaulted)
- Barclaycard - constant ARs from 2007 until settled in March 2012.

It is this Barclaycard AR that is worrying me.
How badly will this affect getting credit?
I'm getting married soon, and was hoping to add myself to my fiance / future wife's mortgage - could I get refused?
If I ever needed credit eg. to change the car - would this be refused?

I've read on the forum of some people going through barclaycard complaints.
Should I ask for a default marker be retrofitted in 2007?
(My last dealings with them in 2012 were at my last address, in case they did wish to correspond back)

I didn't realise that this will affect me until March 2018.

National_Debtline

Hello there.

It's likely to have an impact to a certain degree. That said, the fact that you have other agremeents which have been perfectly adhered to and/or up-to-date should go in your favour.

Your credit history only plays a part when it comes to a potential lender's decision making, you can find out more via our fact sheet on credit referencing:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=05_credit_reference_agencies

It is possible to source credit if you have missed payments and/or have had defaults, you may end up paying a higher interest rate. Do ensure that, when the time comes, you should around to get the very best deal.

Best wishes,

David @ NDL.

sirwiggum

Thanks David - I'm aware that it is possible to source credit with adverse history - I got a Luma card when I had default markers on my account.

However, I thought that the defaults being dropped from my account would be a clean slate.

It is something of a disappointment to instead find that I'll have adverse markers for another 5 years due to AR markers under a DMP being treated as black flags.

I'm thinking of sending something similar to the following? Or do I not have a leg to stand on?:

Ref: Arrangement to Pay Data on Credit Reference File:

Formal Complaint:

Re: Account No. xxxxxxxxxxxxxxxxxxxxxxxxxx

Sir/Madam,
I refer to the above mentioned Barclaycard Account which is being reported on my credit reference files.

Barclaycard has been reporting arrangement to pay markers (APM / AR) on this account since 01/06/2007 - over 6 years and 6 months ago, which places me in a disadvantage compared to a debtor who has had an account defaulted.

The last payment to this account was made in 2012 and therefore will continue to appear on my credit file until March 2018, it would appear that Barclaycard has used arrangement to pay markers in place of a default on the account, it is understood that the ICO does not agree with this Unfair practice.
I believe therefore it is against ICO guidelines for this debt not to have been defaulted on or before 01/12/2007.

I ask therefore that you place a default date of 01/12/2007 with all 3 credit agencies. This will bring it in line with my other debt with Egg/Barclaycard reference xxxxxxxxxxxxx which had a similar payment history and a default date of 08/05/2007.

These AP/AR markers are likely to cause considerable problems to me financially as the account should have been defaulted in 2007 and the default removed in 2013, this data will be displayed nearly 5 years longer than necessary.

I look forward to Barclaycard sending a prompt and proper reply.

Regards

sirwiggum

sirwiggum

I'm not holding my breath.

From what I can gather, some people say that AR rings alarm bells as it is basically an admission of Default.

Others say that so long as the account doesn't have any missed payments, defaults etc. then it at least shows responsible lending.

It seems extremely absurd that someone can go into default and 6 years later have a clear account, then another person can make the effort to arrange to pay, spend 5 years paying then have an AR over their head for the next 6 years!

Seems like the sort of anomaly that could and should be raised by an MP relating to banking conduct. Has anyone reached out to anyone official about this scenario?

cookyy2k

Yes, you should complain to Barclaycard and get them to put a default at the correct time instead of a load of late payments. Ring 0800 015 0451 and complain to them, there are a few on that number who know what they're talking about and should be able to sort it for you. The

ICO guidance on defaults states: A record showing a series of payments as six months in arrears when this does not reflect the real payment history should not be used as an equivalent of a default.

Thrugelmir

With DMP on your file. You are potentially looking at 3 years clean subsequent history with mainstream lenders for a mortgage. Also a significant equity stake in the property if you are thinking of buying .

rizla_king

Barcllay should not have recorded an arrangement for that long. They should have defaulted in late 2007/8. It would nearly be off your report completely by now if they had.

Read here https://forums.moneysavingexpert.com/discussion/4841071

sirwiggum

Thanks all for your helpful replies.

Rizla - I'd encountered that thread via google soon after posting, though they're waiting til January to see their credit file, I was wondering what the actual implications of having the AR on there were going to be.

In fairness to Barclaycard, I got through to somebody very helpful who understood the situation and that the AR was in place as I did wish to repay it in full, albeit initially at reduced amounts, however that this has left me in a situation where a marker will remain on file for another 5 year years, whereas a default would already have dropped off (as it did for the other account on the DMP).

They went and investigated the account and got back to me later.

It may not be the same for everyone, but as I did make the AR payments, including seriously increasing the amounts in the last 18 months of it, they have proposed removing the account from the 3 agencies.

I shall keep an eye on this and report back...

patanne

OK I freely admit that I don't know much about this, but I was under the impression that "they" should not leave you in a worse position if you have paid than you would have been if you hadn't paid. So if you hadn't paid it would be gone by **/**/** date so if you are paying it should also have gone by that date. Seems to make total sense to me as it doesn't make sense to punish someone more for paying, as anyone in difficulties just wouldn't pay anyone at all and be both financially better off & credit wise better off sooner. Worth checking out I think!!

sirwiggum

Thrugelmir wrote: »

With DMP on your file. You are potentially looking at 3 years clean subsequent history with mainstream lenders for a mortgage. Also a significant equity stake in the property if you are thinking of buying .

Where would I see DMP on file?

Currently, the only pointer that I was once DMP is the Settled Barclaycard account full of green ARs.

The property was purchased by my fiancee, the mortgage is in place, I was looking to be added but didn't want to bring any adverse affects

sirwiggum

patanne wrote: »

OK I freely admit that I don't know much about this, but I was under the impression that "they" should not leave you in a worse position if you have paid than you would have been if you hadn't paid. So if you hadn't paid it would be gone by **/**/** date so if you are paying it should also have gone by that date. Seems to make total sense to me as it doesn't make sense to punish someone more for paying, as anyone in difficulties just wouldn't pay anyone at all and be both financially better off & credit wise better off sooner. Worth checking out I think!!

Exactly!

That was the main crux of my complaint to them.

So a situation could unfold with 2 seperate debtors as follows:
Debtor A owes 5000 pound in 2007. Makes no effort to pay, gets a default notice in 2007 which is then removed in 2013, they are left with a clean credit file.

Debtor B owes 5000 pound in 2007. Is in difficulties and sets up an Arrangement to Pay. Pays off 100 quid a month for 5 years, settling in 2012. AR is on his file until 2018 - 11 years after the original difficulties!

The whole setup is a bit of a shambles.