AR/AP markers ruin credit file for friend.

Willing2Learn

According to checkmyfile, they use the following definition

An arrangement to pay marker shows that the lender has agreed to take a reduced monthly payment than originally set out in the credit agreement.
This arrangement to make reduced payments is often a short term solution, until the borrower can make the full payments again and clear any arrears which may accrue as a result of the arrangement.

If this definition is accurate, it implies your friend should not have been considered as being on an AP...as £150/month was not a reduced payment...(you said the minimum contractual payment was £100/month)

System

beany_bot wrote: »

Yes I've told him to do that. I'm shocked the exact same thing happened with 2 credit cards though. They seem very very keen to get people into AR?

Yes because the government demanded that credit card and loan companies offer more assistance to people who are struggling with money. Therefore if you phone them and say you're struggling to pay then they will go into an arrangement to pay rather than throwing the book at you, whacking on loads of interest and charges and making things and the debt much worse.

Your friend made a phone call to them saying he was struggling to meet his bills and could they help. They followed government guidelines and helped him.

System

Tarambor wrote: »

Yes because the government demanded that credit card and loan companies offer more assistance to people who are struggling with money. Therefore if you phone them and say you're struggling to pay then they will go into an arrangement to pay rather than throwing the book at you, whacking on loads of interest and charges and making things and the debt much worse.

Your friend made a phone call to them saying he was struggling to meet his bills and could they help. They followed government guidelines and helped him.

OK I just tell him to drop it. Seems fair. His credit file will be ruined for the next 5 years and he didn't fail to meet any payments or break any terms of conditions with his lender but it's all good. I'm sure he will see the funny side in 5 years.

System

Willing2Learn wrote: »

According to checkmyfile, they use the following definitionIf this definition is accurate, it implies your friend should not have been considered as being on an AP...as £150/month was not a reduced payment...(you said the minimum contractual payment was £100/month)

Correct, an no point did he pay less than the minimum payment. His only crime was to call them up in the first instance as he felt his finances squeeze. He didn't actually have to do this. (he sorted his finances and outgoings not 24 hours later by himself) but upon always reading "if in doubt speak to your lender" he thought he should try that first.

Verityspinelli

beany_bot wrote: »

Correct, an no point did he pay less than the minimum payment. His only crime was to call them up in the first instance as he felt his finances squeeze. He didn't actually have to do this. (he sorted his finances and outgoings not 24 hours later by himself) but upon always reading "if in doubt speak to your lender" he thought he should try that first.

Your friend should definitely not settle for anything less then having those AP marks removed. He did the right thing in asking the company what his options were if he could not make the payments, has he spoken to the company? sometimes they can be quite helpful. He definitely shouldn’t let it go though.

jpsartre

beany_bot wrote: »

"HAS to enter an agreement."
At what point did he HAVE to enter an agreement? He just called them to discuss his situation and they slapped him straight in an AR.

That's pretty speculative considering you don't know what was actually discussed or said in a conversation that took place a year ago.