So, so nearly there...arrangement to pay

cluelessnurse

Hello,

I have posted here before and got lots of really good advice. So just seeing if someone out there might be able to help again with what is hopefully the LAST of my debt issues.

Past problems with debt due to low pay, family issues, etc...went into a DMP in 2012 and have now finally paid off the last of the installments!

I'm with 'check my file' so can see all the information on all 4 main credit agencies. Due to paying things off but also time (over 6 years) all the bad stuff has disappeared....except one.

I had a smallish loan with a credit union in 2012, which had to go into the DMP with everything else. I had stopped paying them for a while before that to be honest and so I assumed that this meant I had defaulted...i.e. as over 6 years ago it should not be reported any more.

The last installment was paid in December 2019, until this time they had marked the account as "arrangement to pay" with Experian only. It is now marked as settled but they say it will continue to affect my creditworthiness for the next 6 years.

I have asked repeatedly by phone and email for evidence of the default but no one there seems to know what on earth I am talking about.

Questions;

Is this really true? Will it affect any credit/mortgage applications for 6 years to come? (Buying a home is the dream).

Could it be that I never got a default in the first place? Is that possible given that I stopped paying them for a while?

How do I get them to respond appropriately? I would rather not get the financial ombudsman involved in what is basically a not for profit charity.

Thank you in advance!

Willing2Learn

cluelessnurse wrote: »

I had a smallish loan with a credit union in 2012, which had to go into the DMP with everything else. I had stopped paying them for a while before that to be honest and so I assumed that this meant I had defaulted...i.e. as over 6 years ago it should not be reported any more.

The last installment was paid in December 2019, until this time they had marked the account as "arrangement to pay" with Experian only. It is now marked as settled but they say it will continue to affect my creditworthiness for the next 6 years.

Questions;

Is this really true? Will it affect any credit/mortgage applications for 6 years to come? (Buying a home is the dream).

Could it be that I never got a default in the first place? Is that possible given that I stopped paying them for a while?

How do I get them to respond appropriately? I would rather not get the financial ombudsman involved in what is basically a not for profit charity.

Thank you in advance!

Hi cluelessnurse and happy new year.


If you want to find out the default date then you would have to submit a SAR to the original creditor. That is assuming the account was defaulted.


If the account was never defaulted then you would be relying on guidance to request they backdate the default, back to when you were 3-6 months in arrears of your original agreement.

Here is the guidance:

If you fall into arrears on your account, or you do not keep to the revised terms of an arrangement, a default may be recorded to show that the relationship has broken down.
As a general guide, this may occur when you are 3 months in arrears, and normally by the time you are 6 months in arrears.

There are exceptions to this which may result in a default being recorded at a later stage, such as secured or long term loans e.g. mortgages, or if the product operates in a more flexible way e.g. current accounts, student loans, home credit.

If an arrangement is agreed, a default would not normally be registered unless the terms of that arrangement are broken.

You would need to make the complaint and request to backdate in writing. If they do not agree to the default then the only option would be to either escalate to the ICO or let it go, because they are a charity...


As far as a mortgage is concerned, the AP or AR markers are pretty toxic. But you will still be able to get a mortgage with the help of a good mortgage broker who specialises in adverse data.

cluelessnurse

Thank you again!

I did write a letter but possibly not in the right way. Just found this example on the site.

https://forums.moneysavingexpert.com/discussion/1475553/sar-letter

Would this be the right letter to send?

Willing2Learn

Wow, that is one long letter. From May 2018, following changes to the law, a SAR request can normally be processed for free. (So no need to send them £10)

For the SAR, I always suggest that people use the template and guidance direct from the ICO website.
https://ico.org.uk/your-data-matters/your-right-to-get-copies-of-your-data/preparing-and-submitting-your-subject-access-request/

If you are referring to a letter that would be sent to the Credit Union to complain and request that they backdate a default. You would need to write the letter yourself. Your argument would be unfair treatment. You would be stating that they have treated you unfairly, when compared to someone who has ignored their debts completely, they would have been defaulted, whereas you have arrangement to pay markers because you did the responsible thing. But you have suffered detriment because you made an arrangement to pay.


Footnote: Thanks to sourcrates, as I essentially copied and pasted some of his advice in another thread, into this post. (The stuff about detriment and unfairness was his)