Arrangement to Pay

msp212345

I previously applied for a Barclay credit card where I was given 0% interest promotional offer. When this period ended I called Barclays to ask if can be extended and I didn’t want to pay interest. I was making above the minimum payment required but wanted to pay it off quicker. They said the only way to have 0% interest is if we put you on a payment plan and you won’t be able to use the card again. The minimum payment required was around £200 or under but I chose to pay £350. I then paid it off the remaining in full 6 months later. It is showing as ‘AR’ on my credit file and is causing a decline in my mortage application. I never missed a payment before/after the discussion was made and it was not clear that the payment plan was an ‘arrangement’. I have explained to Barclays that this is the situation and EVEN the advisor does not understand why I was put on an arrangement plan when I was making above the minimum payment. Please can someone help on how to go about this. Thank you

fatbelly

It sounds like an arrangement to me as you were not paying under normal terms and conditions.

The fact that you chose to pay a certain amount does not mean that you were subject to the normal terms.

Your complaint, if you want to make one, should be made in writing and the final response requested in writing. The ICO  can be involved if you still feel your file was marked incorrectly.

As you have now cleared the balance, the entry will drop off six years after the debt was settled.

Clive_Woody

You got to the end of 0% period and asked to be put on a payment plan to avoid being charged interest. This was an arrangement that you requested to avoid paying interest, and presumably because you weren't in a position to make full repayment when the 0% offer period ended. When signing up for the 0% offer you would have agreed to either make full repayment by the end of the offer period or to be charged interest on the balance moving forward. You made an alternative arrangement and this is reflected on your credit file and will impact future borrowing.

msp212345

The simple response from Barclays advisor should have been no we can’t extend the 0% interest unless you take an arrangement plan. I was able to make the monthly payments and the interest wasn’t very high. I would have been able to pay it off. If I was aware of the extent of what I was entering I never would have taken it. 

DullGreyGuy

msp212345 said:

I previously applied for a Barclay credit card where I was given 0% interest promotional offer. When this period ended I called Barclays to ask if can be extended and I didn’t want to pay interest. I was making above the minimum payment required but wanted to pay it off quicker. They said the only way to have 0% interest is if we put you on a payment plan and you won’t be able to use the card again. The minimum payment required was around £200 or under but I chose to pay £350. I then paid it off the remaining in full 6 months later. It is showing as ‘AR’ on my credit file and is causing a decline in my mortage application. I never missed a payment before/after the discussion was made and it was not clear that the payment plan was an ‘arrangement’. I have explained to Barclays that this is the situation and EVEN the advisor does not understand why I was put on an arrangement plan when I was making above the minimum payment. Please can someone help on how to go about this. Thank you

Its an arrangement to deviate from the standard terms, your lucky they agreed to do it before you'd had any missed payments etc. They dont just waive interest because someone asks nicely, they do it for those in financial distress but flag to others via the CRAs of the issue. 

Ultimately register a complaint that the advisor didnt properly inform you of the consequences of using a payment plan to avoid interest and see what they say. They'll listen back to the call to see if they did inform you that the CRAs will be notified etc and decide from there what they do

Clive_Woody

msp212345 said:

The simple response from Barclays advisor should have been no we can’t extend the 0% interest unless you take an arrangement plan. I was able to make the monthly payments and the interest wasn’t very high. I would have been able to pay it off. If I was aware of the extent of what I was entering I never would have taken it. 

"They said the only way to have 0% interest is if we put you on a payment plan and you won’t be able to use the card again" - it sounds like they might not have fully explained the consequences of your request to avoid paying interest and being put on a payment plan.

I am not sure of their legal requirements to explain the impact of your request to be put on a payment plan, but sadly this might be an expensive lesson - lenders rarely offer 0% out of the goodness of their hearts, they are expecting a certian % of borrowers to not pay it off in full at the end of the 0% period and will then start paying interest. You made an alternative arrangement where effectively the interest was frozen and the card cancelled. 

msp212345

Who can I contact for removal?

DullGreyGuy

msp212345 said:

Who can I contact for removal?

Barclays are the only ones that can remove it as they put it there.