AP Markers rather than Default

Firsttimebuyers

I had a loan with my bank, Natwest - in 2012 I had an accident which meant I was off work on SSP for a while, I contacted Natwest regarding this, and they agreed to lower payments for this period. All good.


They then didn't set up the lower payment, and despite numerous calls they didn't take the agreed payment until 3 months later - complained and got £50 as compensation.


I'm looking at getting a mortgage now, and have realised that they applied AP Markers rather than a Default, so even though after 6 months of lower payments, I increased my payment to over the usual repayment amount to clear arrears - then refinanced with them to clear arrears fully in 2014 - the markers mean that this is staying on my credit file a lot longer.


If I'd been defaulted in 2012, then this would leave my credit file next August - instead, I have AP Markers from August 2012-Feb 2014 which will stay there until 2020.


This seems insane to me, as I'm being punished for doing the right thing - and I can see that it happens quite often.


Is it worth contacting Natwest to retrospectively default me and remove the markers?


I see on the Financial Ombudsman website that there are past cases where the markers have been removed as the bank failed to explain the consequences of making an arrangement to pay on the clients credit file and ordered to remove them.


I now have no debt with Natwest, but still bank with them - am just aggrieved that had I just defaulted, then the record would be gone much sooner

sourcrates

Hi,

Send a written complaint to Natwest, detail why you believe the AP markers to be unfair.

Tell them how you want this resolved.

If they don't respond to your satisfaction, or 8 weeks have passed, without resolution, take it to the FOS.

National_Debtline

Hi Firsttimebuyers


Sometimes having an arrangement in place marker seems a lot better than having a default registered. In the longer term though the default may have been preferable as the debt would have been removed 6 years after it was registered, rather than 6 years after the date the account was closed.


The Information Commissioner's Office (ICO) guidance states 'As a general guide, [a default may be recorded] when you are 3 months in arrears, and normally by the time you are 6 months in arrears.'. Natwest may argue as it was their mistake payments were not taken for the first 3 months they did not register the default.


As sourcrates says, you can certainly try complaining. If Natwest won't change your credit file you can escalate your complaint to the Financial Ombudsman Service (FOS). Good luck with it all.


Susie
@natdebtline

Firsttimebuyers

Thank you both - it's definitely worth a try I think.


You think you're doing the right thing by paying your debts, just seems so unfair to be worse off for doing so.

20aday

Good afternoon,

Some years ago I ended up with AP markers on my credit files after entering financial difficulties and ending up on a DMP.

About three to four years ago I happened to stumble upon a very useful thread here on MSE (search for something like Barclaycard AP marker removal) and there’s a very helpful letter template.

Used that myself and both HSBC and Capital One removed the markers for me.

Firsttimebuyers

Thank you, I'll take a look for that one now.


Other than that my credit file is clear, so it's really frustrating to know that it could be completely clear in August 2018 rather than February 2020!