SMI recorded as an AR/Arrangement on credit file?

rubypercy

I will be setting up a standing order for my monthly £260 contribution, as instructed by my lender.

I’m not sure quite what you mean about agreeing a lower repayment... I haven’t made any sort of agreement with my building society directly. My mortgage hasn’t changed at all and I still owe them £480 per month. But I’m very much not an expert so any info you have would be so helpfu!

rubypercy

Sadly, the DWP won’t make SMI payments to me directly - I checked this with them today and it’s not possible.

molerat

I would raise a formal complaint and see where it goes, maybe then on to FOS.

boo_star

rubypercy wrote: »

I will be setting up a standing order for my monthly £260 contribution, as instructed by my lender.

I’m not sure quite what you mean about agreeing a lower repayment... I haven’t made any sort of agreement with my building society directly. My mortgage hasn’t changed at all and I still owe them £480 per month. But I’m very much not an expert so any info you have would be so helpfu!

I believe the SMI payment will now be being viewed as your agreed monthly repayment and what you're paying yourself is an overpayment.

As a result the BS has lowered your required payment to below the contractual one so you don't end start getting marked as in arrears and and AP marker is technically correct.

Albeit a bit harsh as I said.

rubypercy

You could well be right, although I have a letter from them saying that if I don’t make the additional £260 payments over and above the SMI then I will be in arrears and my house might become at risk of repossession. So it seems that they certainly *expect* the full £480, even if they have changed the payment amount.

rubypercy

Thanks - they’re due to ring me back this afternoon so I will ask them to treat what was a tearful query as an actual complaint.

The problem with trying to take this to the ombudsman is I know that will take a long time, and I have to decide in the next few days whether to cancel my SMI or not. Otherwise, the first AR will appear on my credit history in January, a further one the next month and so on.

BoGoF

Could it be because the SMI payment date differs from the payment you personally make. For example your mortgage payment is due on the 1st of the month, you pay your £260 on the first but the DWP amount comes through a week later?

Regardless of SMI your contractual payment is due on the 1st.

boo_star

rubypercy wrote: »

Thanks - they’re due to ring me back this afternoon so I will ask them to treat what was a tearful query as an actual complaint.

The problem with trying to take this to the ombudsman is I know that will take a long time, and I have to decide in the next few days whether to cancel my SMI or not. Otherwise, the first AR will appear on my credit history in January, a further one the next month and so on.

Might be worth asking on the mortgage board if any of the brokers there have dealt with a similar situation.

Given that lenders are a lot more flexible when it comes to mortgages than say loans and credit cards it's possible some or even many will disregard the AP markers if you can show you were still paying the full amount.

rubypercy

Thank you to everyone who helped out. The building society called me back and offered to informally resolve my complaint and not place any AR entries onto my file.

I’m still shocked that they’re doing this to all their other SMI claimant customers, but at least it won’t affect me.

I really appreciate all your help during the afternoon ☺️