Arrangment to pay?

AAMB

Good Morning

I am just curious to understand Arrangement to pay as I've just checked my credit report and there is one with lending stream from 2018, I don't ever recall an arrangement to pay so quite miffed however 

This is taken from checkmyfiles and when I hover over the symbols

(April 2018)
"There is an arrangement to pay registered on this account, The payment status has been reported as in default."


I had 5 with lending stream at the same time - all defaulted barring that one that above 

They are all paid up in 2021 when I finally got to grips with everything.

Does anyone know how long an arrangement to pay can actually last without paying anything toward it? such as I never paid anything from April 2018 to May 2021 but it says "AP" 

No that its revelant but I was going through some difficult personal issues at the time

sourcrates

Occasionally when you start debt management too soon, a creditor will mark your credit file as "AP" (arrangement to pay) this is because the debt was not allowed to default first.

The word "default" has at least three separate meanings in the financial world.

You can have "default sums in arrears" when you are behind on your contractual repayments.

You can be "in default of your agreement" when you are between 3/6 missed payments in arrears and the creditor has decided to end their financial relationship with you, thus closing the account.

You can also have that "default" registered on your credit file, as an indication of how you conducted your account.

Creditors will mark your file either "in default" or  "AP", some are quicker to update than others, the AP arrangement can continue as long as the creditor wishes.

AAMB

Thank you for that information 

I understand the AP could go on as long as I live etc but isn’t there a limit on when the arrangement to pay should end considering nothing being paid toward them each month until a few year later?

Like I say I can that it says march 2018 defaulted (but with the AP) they can do both? 

Last of all can they put an AP without making it clear of the conquences ? I genuinely didn’t realise I had any arrangements with them.

thank you Sourcrates for your help

fatbelly

If they were paid in full in May 2021 then the entry stays until May 2027.

If the entry shows a default, it stays until 6 years after the default date.

It's why we often recommend doing nothing till you get a default

AAMB

Hi Fatbelly

This is why I'm slightly confused - I have 4 other lending streams and they were all defaulted - two of them the same month as the AP one so I'm miffed to why they are all defaulted and that one isn't?

Obviously it be easier to ask them which I have just done so. 

AAMB

Sorry me again (!) 

I’ve just looked again on checkmyfole and see it also says 

“Reported until March 2024” so I am now more convinced it will come off then (fingers cross)

thanks again