AR - settled last year - adverse effects?

patanne

I would definitely write & complain about being disadvantaged by having paid. I do suggest you write though as a phone call may just land up with them fobbing you off. Do come back and let us know how it goes.

Thrugelmir

sirwiggum wrote: »

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.

and if you get a CCJ on your file. What them?

Would it be worth the risk of trying not to pay for 6 years.

Only to end up with an even worse credit history.

ALIBOBSY

Thrugelmir wrote: »

and if you get a CCJ on your file. What them?

Would it be worth the risk of trying not to pay for 6 years.

Only to end up with an even worse credit history.

Someone who got a CCJ shortly after the default date would be better off than OP as well as the CCJ would drop off after 6 years even if unpaid. So basically the system currently would penalise someone who made the effort to pay, even though they couldn't pay the contracted amount, but benefit someone who made no attempt to pay.

Hopefully the lender sees sense and does the fair thing and inserts a default in 2007.

Ali x

sirwiggum

A CCJ or default and I'd currently be sitting here with a sparkling credit file.

Instead, like a chump, I had the arrangement to pay, which started off small chipping away, but towards the end when I was in a better situation was taking large chunks out of the total.

ALIBOBSY wrote: »

Hopefully the lender sees sense and does the fair thing and inserts a default in 2007.

From conversation, the proposed solution was to send updates to the credit agencies to remove the account.

I'm going to keep a close eye on this, noddle doesn't update til the 5th Jan so I'll know then.

I'll also send a letter, as above, but detailing the discussion made on the phone.

My financial situation today is radically different than that of 2006/2007, and I dare say will change again by 2018.
I'll be 35 and still getting penalised for debt I ran up as a student / recent graduate and getting into repayment difficulties.
(Though I'm likely to still be paying off the student loan...)

Yes, it's been tough at times with no access to credit facilities for the last 6/7 years, but it's learnt me valuable lessons, and I am now more reliant on income and savings than on the never-never.

sirwiggum

Looks like (according to Noddle), the account has been removed.

Credit file now looks clean, a current account, credit card and a closed account of a 'loan' - finance for a laptop a few years ago.

sirwiggum

So from a position of 2 years ago, when I was finishing up paying off my debt management plan.

To one year ago, when the defaults were falling off.

6 months ago, when I was declined a credit card (for expenses) by my bank (Santander)

To 2 months ago, when I pursued the AR markers and got them removed.

Now I've received 2 seperate communications from Santander that I'm automatically guaranteed credit cards.

What a turnaround in terms of credit worthiness!

kirstle99

I'm glad you got it sorted! I had pretty much the same problem as you & only this week have had a call from BC saying they are going to remove both of the accounts with the 6 years of AR markers on!

topcat9

I'm in a similar position to others on this thread - entered a DMP in late 2007 and whereas other creditors defaulted me within 6 months, Barclaycard placed me on Arrangement to Pay, which I eventually paid off last year. My defaults have either dropped off my credit record or will do so very soon; the AP marker will be on for 5 more years.

Phoned the number given by cooky2k earlier in the thread just now and spoke to a very pleasant advisor who showed every sympathy but told me Barclaycard wouldn't change my APs to a default as they couldn't change an accurate record and never did. I tried quoting all the arguments given here (ICO guidelines/unfair compared to someone who had defaulted etc.) but still no joy.

My only chink of hope is that I did call Barclaycard partway through the DMP and ask to come off the 'Arrangement to Pay' as I was by then making the minimum payments required anyway. The person who I spoke to then said that wasn't possible, which the guy I spoke to today thought was not correct and said if he could find a record of the call (any hope?) might mean they would look at my case.

I'm getting a call back tomorrow after he's investigated - any advice on how to press my case gratefully received!!

sirwiggum

I used email, which gave me an instant record of what was sent / received.

Got through to someone very useful at Barclaycard who understood the issue.

I was able to say that while my other Barclaycard (ex-Egg) had defaulted and was now removed from my account (after 6 years), the main card, while settled, would still show for another 5 years as it had been settled as part of the DMP the previous year.

I'd also made the point that the AR had left me in a worse position than if I had made no effort to pay and defaulted.
This point is best made if the original AR start was over 6.5 years ago - ie. it should've defaulted after 6 months, which would then be removed after 6 years.

Quoted the ICO guidelines as per previous comments, AR should be temporary.

While they didn't explicitly default the account, they did agree to remove it, which it later was.
The Barclaycard representative kept me updated of this and was very helpful. (To be fair, BC themselves were one of the more understanding creditors during the DMP).

A very satisfactory outcome, fair play.

topcat9

Very useful thanks. I did make the points you've outlined so maybe I just need to keep politely pressing my case. Plus I won't ask to be defaulted but simply ask them to alter my records to make the situation equitable with someone who had defaulted!

I will try, try again...