Debt Management Plan/Arrangement to Pay

Hatecreditors.com

Hi,



I’ve started a few threads on the impact of adebt management plan and the subsequent damage to your credit file.



My credit file has 3 accounts with Arrangementto Pay (AR or AP) markers being recorded for 4ish years. Also, there is one bank account which wasdefaulted in October 2009. My concernwas the ability to get credit in the future (mainly to remortgage). To assist in ‘rebuilding’ my credit, I thoughtI’d apply for a credit card. To my amazement,I was instantly accepted (with Capital 1).



So my question is; does a credit file withAP/AR really make that much of a difference? Perhaps it’s just a substantial amount of credit (mortgage, decent loan)that will be affected?



My plan is to buy essentials on the card andthen pay off the statement balance in full (by direct debit) so that if I doapply for a remortgage in the future, at least I have some form of (recent) ‘goodcredit’.



Would be grateful for your thoughts....

Monkeyballs

Hi,

I can't comment on how damaging AP/AR markers are as I've yet to find out for myself but...

The argument is that a default is no longer shown after 6 years of being logged whereas payment arrangements are for 6 years after the last one - in todays economic climate it's better to not have anything negative on your file as it will surely count against you

I seem to recall reading somewhere on the FOS website that these markers while being better than a default in theory should not be used for long term arrangements (I.e. anything over 6 months) so you could try challenging for a default to be back dated as it will no longer show on your file after 6 years

MB

Hatecreditors.com

Thanks MB. I've been there and it simply doesn't work. I've been the ICO and FOS and they don't uphold your complaint. They get round the whole 'short term up to 6 months' by reviewing the arrangement every 6 months.

So I'm stuck with APs for a while. The fact I've been accepted for a credit card is promising though.

Monkeyballs

Hatecreditors.com wrote: »

Thanks MB. I've been there and it simply doesn't work. I've been the ICO and FOS and they don't uphold your complaint. They get round the whole 'short term up to 6 months' by reviewing the arrangement every 6 months.

So I'm stuck with APs for a while. The fact I've been accepted for a credit card is promising though.

Really? Booo... Oh well, was worth mentioning still good to hear about the CC though

MB

Hatecreditors.com

Yeah thanks anyway.

My complaint was with an adjudicator and then an ombudsman.

I still maintain it's ridiculous. If I had of not paid a penny back the accounts would drop off my file next year. The fact I've paid all debt off in full means I'm penalised for another 6 years. Ludicrous!

Monkeyballs

Not sure if you've seen it but thought you'd be interested in this thread re. Barclaycard AP removals...

https://forums.moneysavingexpert.com/discussion/4910894

MB

Hatecreditors.com

Thanks but I have seen examples of these on MSE. The problem is they are far outweighed by examples of Barclaycard not agreeing and sticking to their original decision. The way I see it is if the handler at Barclaycard agrees with your complaint you're sorted. If they don't, you're screwed as the ICO and FOS will side with Barclaycard! !!!! system really

Monkeyballs

Hatecreditors.com wrote: »

Thanks but I have seen examples of these on MSE. The problem is they are far outweighed by examples of Barclaycard not agreeing and sticking to their original decision. The way I see it is if the handler at Barclaycard agrees with your complaint you're sorted. If they don't, you're screwed as the ICO and FOS will side with Barclaycard! !!!! system really

Yeah, I know... But I've still raised a complaint to the FOS lol, any chance to 'stick it to the man'

MB

Sazzie23

Hatecreditors.com wrote: »

Hi,



I’ve started a few threads on the impact of adebt management plan and the subsequent damage to your credit file.



My credit file has 3 accounts with Arrangementto Pay (AR or AP) markers being recorded for 4ish years. Also, there is one bank account which wasdefaulted in October 2009. My concernwas the ability to get credit in the future (mainly to remortgage). To assist in ‘rebuilding’ my credit, I thoughtI’d apply for a credit card. To my amazement,I was instantly accepted (with Capital 1).



So my question is; does a credit file withAP/AR really make that much of a difference? Perhaps it’s just a substantial amount of credit (mortgage, decent loan)that will be affected?



My plan is to buy essentials on the card andthen pay off the statement balance in full (by direct debit) so that if I doapply for a remortgage in the future, at least I have some form of (recent) ‘goodcredit’.



Would be grateful for your thoughts....

I think this is a real problem, I'm in the same sort of position with my DMP, I only have one default & 4 AP's. So basically they are penalising those that try to pay. I have no idea how/who to complain to since the FoS are clearly not interested, but maybe someone out there might know. I have thought of starting a 38 degrees campaign, but I have a lot of stuff going on at the moment (hence I've been awake since 3am -again), however, when I get past this difficult time, I'm really thinking of making a campaign of some sort.


One of the issues I have thought about is that lots of us are anonymous as we don't want to fess up to financial problems and the FoS are taking advantage of that knowing we can't make a fuss.



Oh rant over, good luck with it