Payday loan payment plan- showing up as not paid on credit score?

[Deleted User]

So like many others, I stupidly took out a loan with QuickQuid some time ago, and the interest rates spiralled and I couldn't afford to keep up with the payments. Eventually they agreed to enter into a payment plan whereby I pay them £50 a month until the loan is paid off.

Today I went onto my credit score for the first time in a while, and I've noticed that under the 'CashEuronet' part of my loan history, it is showing me as having not paid them for 6 months! The money goes out of my account every month, they send me a statement which confirms it, and the amount on the loan is going down each month on my Experian report- so why would it show up as not paid?!

My credit score is poor and I don't understand how it's supposed to get better if they register me as not having paid when I am paying what I can every month to try and dig myself out of the hole.

Do you think they've made a mistake, or are they allowed to register my non-payments in this way? Any advice appreciated please.

Clive_Woody

[Deleted User] wrote:

So like many others, I stupidly took out a loan with QuickQuid some time ago, and the interest rates spiralled and I couldn't afford to keep up with the payments. Eventually they agreed to enter into a payment plan whereby I pay them £50 a month until the loan is paid off.

Today I went onto my credit score for the first time in a while, and I've noticed that under the 'CashEuronet' part of my loan history, it is showing me as having not paid them for 6 months! The money goes out of my account every month, they send me a statement which confirms it, and the amount on the loan is going down each month on my Experian report- so why would it show up as not paid?!

My credit score is poor and I don't understand how it's supposed to get better if they register me as not having paid when I am paying what I can every month to try and dig myself out of the hole.

Do you think they've made a mistake, or are they allowed to register my non-payments in this way? Any advice appreciated please.

I suspect when your account is paid in full it will show as account settled, but if you are not paying them back in accordance with the original contract then I suspect that they are within their rights not to update the account each month showing your reduced payments.

Also please stop paying for a credit score as this is a worthless number that banks/lenders do not see. Review your credit report and check for any errors, but save your money and don't pay for a credit score as this is just a marketing ploy by the Credit Agencies.

[Deleted User]

Hi Clive, I was asked to send my Experian credit report to my mortgage advisor- and I am glad I did pay for it now, as I can see what QuickQuid have been up to!

I don't understand how if I am paying them every month they are allowed to register a non-payment, certainly not without making me aware of this in the first place. I am trying to get a mortgage and this has totally wrecked me, I'm devastated.

[Deleted User]

Agree. If you're not paying the original agreed amounts, then it's not going to be shown on your report that you are.

InsideInsurance

As above, its based on the original agreement which you have failed to meet hence it showing that.

It is showing the reduced balance outstanding which is correct and it will show as settled once it hits 0. You can only "correct" it by taking out a new loan with monthly repayments agreed up front and using it to pay off the QQ one and then repayments would show as being made though if you can get a loan/ if that helps your score at all is another matter.

[Deleted User]

What a nightmare. I realise it makes sense now you've said it, but I really feel they could have been upfront about that when I took out the payment plan.

If I somehow pay off the outstanding amount in full, how long should it take to show up on my credit report?

CHR15

[Deleted User] wrote:

What a nightmare. I realise it makes sense now you've said it, but I really feel they could have been upfront about that when I took out the payment plan.

What difference would that have made? If you can only afford £50, then it's going to happen. If you could have afforded the full payments, you should have been making them.

If I somehow pay off the outstanding amount in full, how long should it take to show up on my credit report?

at least a month but could be up to three, sometimes they don't bother at all.

Clive_Woody

[Deleted User] wrote:

What a nightmare. I realise it makes sense now you've said it, but I really feel they could have been upfront about that when I took out the payment plan.

If I somehow pay off the outstanding amount in full, how long should it take to show up on my credit report?

If you can afford a mortgage then I suspect you can afford to pay this off quicker and I would strongly suggest that you do so that your credit file can be updated to show the debt as paid off. No idea how long this will take but you can hassle them to update your credit file once the debt is settled.

I am no expert but the fact that you had to agree a payment plan on a payday loan may be a big red flag for mortgage lenders who you would be looking to borrow a lot more off over a much longer term.

[Deleted User]

Regardless of my personal circumstance, I feel that lenders have a responsibility to be upfront. No it didn't change the fact I could only afford £50 a month, but it would have meant I'd at least be aware of it rather than only finding out when going to apply for a mortgage for the first time, which has been embarrassing and distressing.

Yes I am going to pay off the amount in full now, as you are quite right if I am applying for a mortgage I can now afford to. However I was asking for advice on how long it may take to show as settled on my account, I wasn't asking for an opinion on what mortgages I will be eligible for- my broker (who actually knows my salary and personal circumstance and isn't just going off one forum post on the internet) has advised this won't be a problem once this debt is settled.

Advice is appreciated, judgement is not. Thanks.

happy_bunny_2

Has the account defaulted? Does it have a default date?

Or is it showing as an arrangement?

Or, just late payments?

Drunk_Monkey

You want a mortgage but can't pay off a payday loan debt??

Lol ...