AP on Equifax

LA_EK

Hi all, long time lurker, first time poster.

My husband and I are looking to buy a house within the next six months or so. Thought I'd start getting things in order by looking at our credit files. I've discovered that my equifax file has an AP marker on my Santander credit card entry in March 2012. When I called them to query it, they told me that the payment was a few days late and they'd called me to request that I set up a direct debit. ( I was previously calling up and paying via telephone banking every month) I had no problem setting up a DD and did so. This is classed as an arrangement to pay but it makes it look much worse that it is! Am I right in assuming that this is worse that a [1] appearing? They said they can't change it and its not as bad as it looks and I've just to explain to potential lenders why its there. Is this really going to affect our chances of getting a mortgage?

Tixy

They could change it if they wanted to.

It appears that their use of the marker is incorrect. As telephoning hasn't worked then you could try writing to them and state that you believe the entry is inaccurate and unfair and that they should have recorded a missed payment marker just for that month.

Is that account still open or closed?

As to whether it will affect your chance of a mortgage, one of the brokers who post on these forums could probably advise best, and will hopefully offer an opinion. I'd think it is possible it could slightly limit which lenders would consider lending to you.

LA_EK

Hi Tixy, thanks for your reply. The account is still open. I am going to write to them and ask them to change it. I understand an "agreement to pay" as being allowed to make a payment of a different amount for an agreed time. This is not what happened here, I made the regular payment on the phone there and then albeit a few days late and set up a regular dd for every month thereafter. I believe I've been put in a worse position that I would be if I'd just continued to make telephone payments as I had been doing. Would I be better off if the AP changed to a [1] ?

Malmo

A missed payment indicator would be less worse than an AP indicator and you should challenge this in writing to Santander.

20aday

I second the advice posted above.

I was subject to 'Arrangements to Pay' a few years back when I'd gotten into a mess financially. I'd entered into a Debt Management Programme and was repaying at a reduced rate.

So Santander were incorrect to mark your late payment on your credit file. I'm assuming your Experian and Callcredit reports have it down as (1)?

LA_EK

Experian have it down as a [1] I haven't checked Callcredit yet. I will definitely be writing to Santander to dispute it. The more I read about APs the more worried I am. Glad I checked and found out about it now rather than having it flagged when applying for a mortgage.

LA_EK

Thought I'd update this in case others find themselves in the same situation. Just had a call from Santander advising me that they will not change the AP to a 1. The chap was very sympathetic and agreed that it was unfair but that it was at the discretion if the credit team and they wouldn't budge. Apparently it wasn't the setting up the direct debit that constituted the Agrrement to Pay but the fact that I gave the payment over the phone when they asked for it. He agreed that had I ignored the call and made the payment myself via phone/internet banking or in-branch it would've been recorded as a "non contact" and logged as a missed payment. I argued that the AP could have a disastrous effect on my ability to obtain credit and gives a very misleading impression. He agreed but said they wouldn't change the marker as they have to report accurately and in their opinion I had agreed to a payment arrangement. He advised me to make a notice of correction on my credit file and to complain to the Ombudsman. He added however that others who had been in the same situation had complained to the Ombudsman but had not had their complaints upheld.

I know it's my fault for missing the payment but this just seems so unfair!!

Tixy

Did you write a complaint to them to trigger this call from them?


If not then I would write headed up as a formal complaint.

LA_EK

Hi Tixy,

Yes, the call I received today was in response to the formal written complaint I sent to them last week. The guy I spoke to today said they would send me their response in writing but he wanted to call and let me know that the outcome was not in my favour. I got the feeling he disagreed with the credit team's decision and wanted to give me a heads up and apologise. I appreciate the gesture and the sympathy but it doesn't help my situation!