Arrangement to pay - impact on credit file

Crystal_Pixie

so - I am just about to get 4 defaults removed from my credit file and all my debts were paid off since 2015.


However, I noticed that Barclaycard and NRAM have not defaulted me but put arrangement to pay on my file from 2011 to 2014.


Is this right? Can I contest this? According to information on Experian the arrangement to pay could affect my credit score until 2020!


ICO states in its guidelines that any person should not be penalised for attempting to pay back debt. However, this feels like I am being penalised for going onto a DMP.


Can I make a complaint about this to the relevant companies?

[Deleted User]

So.

You could put in an argument that it should have been a default and see how you get on.

National_Debtline

Hi Crystal_Pixie,


It may depend on how quickly you set up these arrangements to pay as part of the DMP. If they were done before a default could've reasonably been entered then the arrangement to pay markers could be justifiable. You can complain if you believe this is not the case, emphasise that you feel this is putting you at a disadvantage and quote the relevant parts of the ICO Guidelines to help your argument.


If the banks refuse to change their mind you can escalate the matter to the Financial Ombudsman Service and the ICO, but their decision will be final. Best of luck,


Laura
@natdebtline

Crystal_Pixie

Yes I do wonder if some of these arrangements were made prior to the 6 month deadline for a default.


I went straight onto a DMP when I knew I couldn't cope with the debt on my own.


Its quite harsh to be penalised for doing what you think is the best thing.


However, I did notice in the ICO guidelines an arrangement to pay should be for a short term. Not the 3 to 4 years. Am I interpreting that correctly?

National_Debtline

Hello again,

I am afraid this is all subject to interpretation and the best thing you can do is raise this point in your complaint and highlight that you feel the creditor is putting you at a disadvantage for making an arrangement that both parties agreed to, but that this is causing more damage to your file than if you had allowed the account to default.

I worry they may refer to this section of the guidance that states: -

"Depending on the period and amount of the arrangement, arrears may continue to be reported. Such temporary arrangements may last for some time but are generally expected to revert to the contracted terms at some future point. For such accounts arrears may continue to be calculated in accordance with the contracted terms."

I am afraid there are no guarantees in a complaint. The best thing you can do is refer to the aspects of the guidance that best support your argument and if it cannot be resolved, then escalate it.

Laura
@natdebtline