Arrangement to pay marker

ross1994

Hi All,

First post here so please be gentle

A few months back I came home from being on holiday to find a letter from Nationwide Building society stating that they wished to reduce my overdraft on my current account from £1500 to £1000 inline with there responsible lending practices etc.

Which would have been fine, had I not just returned from holiday. I contacted Nationwide and explained that I could not make the payment by the deadline which was 2 days if I recall correctly and was advised that I could gradually reduce the overdraft facility by £100 p/m until the overdraft was reduced to £1000.

I agreed to the above which all seemed fine, Having now checked my credit file I am now seeing that they have marked the status of my current account as "Arrangement to pay"

The entry says the following
Monthly term: £0 @ 0
Start balance: £0
Default balance: £0

Does anyone know how much of an impact this has on future mortgage applications etc

some other sites seem to suggest this is almost as bad as a default?

Are there grounds to ask Nationwide to remove this as I was never told that it would leave a mark on my credit file ?

Cheers,
Ross

[Deleted User]

A short term AP is far better than a default. Only if it runs for a much longer period would a default be preferable.

There would be no grounds to remove it, as it's a factual report of your account status.

Thrugelmir

ross1994 wrote: »

A few months back I came home from being on holiday to find a letter from Nationwide Building society stating that they wished to reduce my overdraft on my current account from £1500 to £1000 inline with there responsible lending practices etc.

Why did they single you out for an overdraft reduction?

ross1994

Thrugelmir wrote: »

Why did they single you out for an overdraft reduction?

I’m not actually sure my best guess is a recent decline in credit scores due to recent change of address and above normal use of credit to fund new furniture etc.

I’ve been a Nationwide customer for 15+ years and hold a number of products with them and use this particular current account as my main account with my salary being paid in etc.

Deleted_User wrote: »

A short term AP is far better than a default. Only if it runs for a much longer period would a default be preferable.

There would be no grounds to remove it, as it's a factual report of your account status.

In regards to my question around grounds for removal this was based on the fact, I wasn’t told it would affect my credit rating. Had I known this I would have used other funds to pay the requested amount and not entered the “arrangement”. I was under the impression that my overdraft would be reduced by the amount X month and that was all.

I’ve tried to phone them, but the department is closed on Sunday’s. I’m going to tell them that I was not aware of the affect this would have on my file and ask that they remove the agreement and reduce the overdraft with immediate affect and correct my credit file history.

Cheers
Ross



Cheers
Ross

sparkey1

That is exactly what you should do. Dont take no for an answer.

DCFC79

It may have affected your credit score but only you can see this, your credit history is what lenders see.

Willing2Learn

DCFC79 wrote: »

It may have affected your credit score but only you can see this, your credit history is what lenders see.

I think the OP was saying it has been recorded on his credit file as an 'AP'...

ross1994

Willing2Learn wrote: »

I think the OP was saying it has been recorded on his credit file as an 'AP'...

Yep that’s correct