Agreement to pay - inaccurate information?

BeccaJoanne

Hi,

So I have a loan with savvy loans, i was due to pay the monthly repayment on the 13th of September. I'm self-employed and had been unwell for a couple of weeks, I thought I'd be okay for the payment but money had gotten tight so I contacted the company to ask to move my direct debit date to the 30th of the month instead.

They said that was fine, I'd need to cancel my direct debit at the bank and they would take the payment on the 30th. I thought everything was fine until an 'AP' showed up on my credit file, I went into my savvy account and I'd been put with the collections team and it stated that the 'company had agreed to a payment plan'.

I didn't consent, ask to, or agree to enter any form of a payment plan, and I certainly didn't have any idea an 'AP' would arrive on my credit file. My account was up to date, not in arrears, and as far as I was concerned I just changed the payment date by 2 weeks. Also, this all happened in September, and this is showing up in August.

Speaking to the company they fall between saying either 'we didn't report an AP on your file' OR 'you've broken the terms of your agreement'. I point out (endlessly) that I asked if I could change my payment date, of which they had agreed. If they couldnt do so; and had to send it to collections then they should have told me this, and asked if I agreed to a payment plan being set up.

As far as I'm aware an 'AP' usually means entering into a reduced monthly payment, and a 'payment plan' signifies the same thing. I've spoken to citizens advice and they are dumb-founded, they agreed that changing a direct debit date should not have any bearing on my credit file. Has anyone had an experience like this? am I right in thinking an AP is for reduced payments?

They're refusing to remove it, refusing to let me speak to the compliance team, refusing to give me a copy of the conversation. I'm at a total loss!

[Deleted User]

Technically it's correct, as you broke the terms of the agreement in moving the payment date back.

However, they should have advised you of the impact. If you've exhausted their complaints procedure, you could go to FOS.

[Deleted User]

Well technically you entered a payment arrangement.
Whether it be for a reduced amount or the same amount, you made an arrangement to pay at a later date.

BeccaJoanne

Thank you so much for your reply,

I wonder if you know what 'agreement to pay' means? as online, all I can find is that it means you agree to reducing the amount you pay? I'm not entierly clear if this also applys to changing a payment date?

Also, to enter into an agreement to pay would they not have needed to tell me that I would be entering into a 'payment plan' (how they put it when i logged in online)? My intention when I asked was simply to move my DD date in line with my income date, as they agreed that they could change the date, I was totally unaware of collections, payment plans, or any note being put on my credit file.

An AP (150 points lost, 6 years on file) for changing 61 pounds to 2 weeks later when they would then recieve the same amount back to normal dates the next month and onwards, seems very extreme!:eek:

BeccaJoanne

As far as I was aware I was changing the DD date, as I would with my internet provider or any bill, if my income dates changed. I was not aware that changing a payment date has an adverse affect on a credit file, nor was I made aware that this was to be taken as an agreement to pay, rather than simply changing my direct debit date. Obviously I changed with other companies too, none of them did this they just changed my direct debit by a few days.

[Deleted User]

BeccaJoanne wrote: »

I wonder if you know what 'agreement to pay' means?

It means that you're unable to make the contractual payment and come to another agreement - such as moving your payment date back.

As I say - you may get some goodwill with a complaint, or get FOS to side with you.

Don't worry about your 150 points. They were never really there to begin with. And worst case scenario, a one off AP will fade with time. Just don't do it again.

YorkshireBoy

From their FAQs...

You should be aware that if you...do not repay your full contractual repayment as and when it falls due, we share this information with credit reference agencies...This may make is harder for you to obtain credit in future.

Probably also in their T&Cs?

BeccaJoanne

You say don't do it again, but no-one can guarantee they aren't going to get ill, or work isn't going to pay them late. I did not intentionally fall ill for two weeks, and I did the correct thing in contacting the lender. A late payment would have been better than an AP. The person on the online chat surely had the responsibility to say no we cant change the DD but we can put an arrangment to pay in place for the 30th but this may affect your credit file?

I have found this through the FOS regarding this situation:

"Should a temporary reduction in the payment amount be jointly agreed between you and your lender, this ‘arrangement’ will be recorded at the CRAs.
This may also occur if there is a temporary change in terms (that is not part of the product) such as a payment holiday or change to interest only."

I do not fall under any of these examples, I assume we're taking 'temporary change in terms' as changing the payment date (As I do not fall under reduced payment, payment holiday or change in interest online) which are the listed terms

"It is important that you are made aware when such arrangements are made and maintained, that it will show on your credit file and that whilst arrears may accrue and increase, a default will not be recorded."

I do not think I was made fully aware that the arrangment was made or would affect my credit rating

BeccaJoanne

So, when I asked them if it was possible to change the payment date, they probably shouldn't have replied that they could, but instead replied with this? in which case I would have known my options. When I ask an advisor of a company if something is possible, they should reply with transparant and accurate information.

[Deleted User]

BeccaJoanne wrote: »

You say don't do it again, but no-one can guarantee they aren't going to get ill, or work isn't going to pay them late. I did not intentionally fall ill for two weeks, and I did the correct thing in contacting the lender.

I don't recall saying you did any of that intentionally.

I suggested going everything you can to avoid have to miss payments. Perhaps that means building up an emergency buffer so you're not reliant on any one month's paycheck.

BeccaJoanne

I'd like to add: I was told by the citizens advice debt line that asking to change a DD is not the same as entering into an agreement to pay