Payment status set as arrangement to pay

Eurekaonide

Hi I have a loan which I took an arrangement with due to an accident and losing my income for 3 months. I’ve always paid the arrangement and back in feb 20 I resumed normal payments. I’ve offered to pay the arrears from not making full payments for those 3 months and asked they change my credit file patents from arrangement to pay to up to date and green status on each month but they are refusing? It’s not showing as defaulted or delinquent but they state it’s been charged off and no interest is being charged? I don’t know why or what that means. How do I get the payment status changed? Thanks 

[Deleted User]

You don't.

Your best bet may be to ask them to back date a default 

MinuteNoodles

Eurekaonide said:

How do I get the payment status changed? Thanks 

Go back in time and tell yourself not to make the arrangement. Your credit record is an accurate record of the facts. You made an arrangement to pay a reduced rate from that of the contract you signed up to therefore arrangement to pay is a true representation. 
You need to look at your finances and build up an emergency fund of at least 3-6 months living costs which you don't have or don't have to a sufficient amount. I had spinal surgery in August last year, lost all my income but because of an emergency fund I was able to continue to meet all normal spending. It's also because of that that had I been furloughed or laid off I'd have got through the current crisis just fine too.

Willing2Learn

@Eurekaonide

When you write to your creditor (don't use the phone), clearly state that you are attempting to repay your debt.  Also state that if your files are marked with an 'AP' then that negative data will be on your file for years longer than a default would have.  State that you are therefore suffering detriment when compared to a customer who makes no attempt to pay and whose account has subsequently been defaulted once the account is 3-6 months in arrears.  Go on to say that after all, the 'AP' marker could mean that the account remains on your credit file up to six years longer than an account which has been defaulted and that it would clearly be both an unfair and irrational interpretation of the applicable legislation.

sourcrates

Note, the above does not always work, it is entirely at the creditors discretion.

People enter payment arrangements without always being told, or realising, the full consequences of doing so.

So if you were not told it may harm your credit file, you may have a stronger case.

Willing2Learn

I really don't like the wording of the updated guidance.  There is no point in quoting it any more...

Willing2Learn

@Eurekaonide

The FCA Handbook CONC 7.3.2 states "When dealing with customers in default or in arrears difficulties a firm should pay due regard to its obligations under Principle 6 (Customers’ interests) to treat its customers fairly."

That might be worth quoting...

https://www.handbook.fca.org.uk/handbook/CONC/7/3.html