Arrangement to pay - best way to deal with this PLEASE HELP

babinaba

Hello,

A few years ago, I got myself into a bit of a mess with defaults etc. I had quite a few in 2008 and 2009 - most of which have now fallen off my credit report. I have one that is settled but still showing which defaulted in July 09 and one that's still active (one which I've only recently just found out about and dispute) and not being paid which defaulted in September 2009. So they will both be gone towards the end of the year.

However, back in 2009 when I was having all my problems, I had an arrangement to pay set up with Barclaycard. I now know that getting a default for this would have been the best possible solution.

Details of the AP are:

Current balance is £190
Start date is 11/08/2005
Start balance is £0
Default/delinquent balance is £0
Date updated £18/05/2015
Payment amount £5

I have AP status every month from June 2011.

Can someone please advise me the best way to go about dealing with this? What is the quickest way for it to be removed? I can get the funds from a family member to pay the total amount off, or do I just leave it?

My boyfriend and I were hoping in a couple of years to get a mortgage after all my debts etc were paid off and finding out that APs are just as bad as defaults, it's upset me a bit.

Is there anything else I can do to help boost my credit score while also having the AP? I currently have good and up to date payments (for a number of years) showing for 2 RBS accounts (one with an overdraft), 1 Ikano account, 1 EE phone account, 1 Barclays home insurance (not sure why that shows up - they class it as a loan and it's paid off each month - didn't know they did it like that), 1 EE Home phone account.

Please can someone help with the AP - do I pay it or not, that's my main focus at the moment.

Thank you

:( (crying emoji!)

National_Debtline

Once the debt is paid in full the status should change to ‘settled/satisfied’, this may not instantly improve your score but once all of your debts are settled you can start to rebuild your score over time. You will struggle to make any real improvements to your file until all the debts are cleared.

Credit files take time to improve, there are a few things you can do to help – such as make sure you are on the electoral role, financially disassociated with anyone who may have/ had a bad score, etc. Check out our factsheet for more details - https://www.nationaldebtline.org/EW/factsheets/Pages/05 EW Credit reference agencies and credit reports/Default.aspx

Laura
@natdebtline

babinaba

Sorry, I don't know if that actually answers my question. Do I pay off the debt on the AP? This plus the disputed default are the only bad markers left on my file (plus a settled default that'll disappear next month). Everything else is up to date, green markers for 3+ years. I'm on the electoral register and have been doing everything properly for years and now I find out this arrangement to pay could hinder my good progress for another 6 years??? Anyone got any tips on asking the company to change it to a default with the offer of full payment - I've heard this is possible but don't know the logistics. I will add that I was never told the damage an arrangement to pay could cause to my credit file when it was put in place which I think is unfair, if I'd allowed it to default instead of trying to sort the situation it wouldn't be on my record any more.

Tixy

What does the entry show for the monthly updates from 2009 to June 2011?

You could try asking barclaycard to enter a default backdated. If they agree to backdate it to June 2011 then it would as you know drop off your file in June 2017.

If they would agree to backdate it to an earlier date then it would drop off sooner.

If they won't agree to backdate the default then the best option is to pay off the debt asap. As the sooner the account is settled the sooner it will drop off your file.

If you get a default added then your file arguably looks worse for the next couple of years, but gets totally clean sooner.

If you decide you want to try to get it backdated, its usually advised to write to them, state that you think the entry is unfair and not in accordance with the ICO guidelines on issuing a default that were in place at the time.
It may be harder to get it switched from an AP to a default than it can be to go from late payment markers to a default.

babinaba

Thank you.

I can't see anything from before June 2011

I spoke to them today and they said the AP came into effect on 8th June 2009. I'm guessing 2009-2011 is too far in the past for it to be shown?

In the first instance I'll write to them and seek a default. Should I use the date they gave me in 2009 as the requested default date? Also, am I better to offer full repayment at this time if they back date a default or just leave it? I kind of want to give them an incentive to back date a default.

Thanks again

20aday

Hello there. Please see this thread which helped me to remove two Arrangements to Pay with HSBC and Capital One last year:

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

Let me know how you get on.

babinaba

20aday wrote: »

Hello there. Please see this thread which helped me to remove two Arrangements to Pay with HSBC and Capital One last year:

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

Let me know how you get on.

Oh, that's just fabulous! Thank you!! Letter being sent tomorrow. Will keep you updated!

Thank you again!!!!!

20aday

babinaba wrote: »

Oh, that's just fabulous! Thank you!! Letter being sent tomorrow. Will keep you updated!

Thank you again!!!!!

No problem; happy to help.

babinaba

Just to update, letter wrote and sent first class yesterday, they called me up today and it's all sorted. Spoke to a really really nice man who has sorted everything for me - whole account is going to be wiped from my credit file as the potential default date has passed. Very happy. Thank you 20aday for pointing me in the direction of the thread with the template letter. MSE forums are great!! THANK YOU!!

20aday

So pleased to hear about your result...

I've been helped many a time here on MSE so it's only fair I return the favour (when I can!)