ScottishPower confirmed a repayment plan wouldn’t affect my credit file – opposite has happened..

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/comment/82145354#Comment_82145354

I am presuming you have the money to clear this easily if you are going to be attempting to get a mortgage in a few months and you could just use a few percent of your deposit? It probably would have made sense to clear it in full in the first place but it might make sense to do so now on the basis that this probability will not come off your credit report as it is factually correct reportable.

Scot_39

Have you checked with your mortgage offer company (if you had one) - if the marker is serious enough to impact the likely success of your final application ?

But perhaps before that - talk to a debt expert - charity rather than paid advisor preferably.

Google AI response to the question

"would an ar on credit file block a high st mortgage offer"

Not the best or most reliable source at times admittedly - and sorry I don't have time to trawl through all the source links or really understand the debt rules

Came up with some bad news in general - but

1. suggested a utility debt might be treated as more minor than other debts
2. that a settled debt might be overlooked, an unsettled one not

So I wonder if it might be having a general chat with a debt advisor - like CA or one of the orgs like in the debt free wannabe forum section here re the AR and mortgage applications.

To see if google AI just nonsense - or giving useful clues - on how best to proceed (assuming you can afford to).

You might need their help getting SP to correct records anyway (if thats even technically possible - others seem to struggle)

and

if they think will hurt your access to best (cheapest / low risk deals) - maybe consider - paying off the remaining SP dept in full re point 2 - to try and improve your chances.

Before start an application on high st or with a broker (who might find less restrictive options -but higher risk often means higher cost)

MWT

Not sure it helps much, but it sounds like your arrangement is one that should correctly be reported to the credit reference agencies as you failed to pay the full amount when due, so any arrangement to pay over time is reportable.

Your complaint has to be on the wrong information that your were given rather than about the fact it has been correctly reported…

Scot_39

https://forums.moneysavingexpert.com/discussion/comment/82145354#Comment_82145354

Interestingly - I wonder if the CS reps - confusing possible internal informal settlements for existing active customers - with the procedure for non customers and more serious / unaffordable debts.

My mum ran into debt after 2.5 years of S Gas ignoring readings (sadly predating the new 12m protection) - and presented with a bill once error spotted for over £700 for immediate payment.

I took over all her bills under POA from that Xmas.

After complaints process - we settled on a lower £600 to be paid - by adding £50 to revised DD to cover real usage - for exactly 12 months.

But we were told - very clearly on phone when discussed it - and IIRC I had it in writing as part of the complaints process that anything over 12m - as I cheekily asked to push it to 2 years at one point - would be reportable.

And anything lower than £50 / longer would need an income assessed is it a "Debt Management Plan" - and again reported.

MattMattMattUK

I agree with the above that this might perhaps relate to the difference between having remained a customer and having left with an unpaid bill, although I am somewhat surprised you were allowed to switch with that level of debt, normally it would be blocked.

I also take the view that unless the OP has the exact wording in writing that we can review, then there could be a misunderstanding from their side as well, the difference between active debt recovery and agreeing a payment play may have muddied the waters.

fatbelly

They can remove the marker. Just complain. Pay it off. Never use SP again.

shazzy93

The exact wording of the email was:

“We are sincerely sorry for the inconvenience this issue has caused for you. Upon review of our account, it seems that you have sent two emails yesterday, while Jodie replied to your email at 11:47 in the morning.

Toset up an instalment plan under 12 months will not affect your credit score or credit report, we will only share this information to the relevant credit agency if you are setting up an instalment plan over 12 months.

Applying for Scottish Power Hardship Fund will not affect your credit score either.”

this is the reason I chose to opt to pay it off in installments rather than in one go, for context my app showed an outstanding balance of £460 when I left Scottish power and then it jumped to £960 after the final bill was issued. I am currently on maternity leave and the deposit is being gifted by family from the proceeds of a house sale which is currently on the market, so paying it off monthly seemed like a good option for me. I opted to pay off in 10 months based on the email I received (which they actually repeated twice) and further to that email I had another response yesterday from them when I queried the AR marker saying:

“Thank you for your email. 

I have checked over the account history and taken a look at the screenshots you've provided. As far as I can tell, there's been no recorded credit issues with the account or defaults recorded against you The Payment Plan for your final bill with us does contain some debt balance from the previous account that has been transferred over, but this is still just reflected as "I" on your credit report, which is just for information purposes only. Other lendors would be be able to see that you have an arrangement to pay on the account, as they would be aware of a direct debit from any customer, but this should not negatively impact you as there is no missed dates. 

Have you noticed a significant drop in your actual score or been refused credit on the basis of this?”

The informat In that email also seems conflicting as of course the marker will have a negative impact..

MattMattMattUK

Credit scores/ratings are made up, no lender ever sees them, they are just a marketing gimmick from the Credit Reference Agencies (CRAs), them saying it will not affect your credit score is a bit like them saying it will not impact your unicorn balance, it is a meaningless statement from them.

Was the email from them sent before or after you changed supplier away from Scottish Power?

What actually shows on your credit report, are you able to show a screenshot of that part specifically (not any wider identifiable details)?

shazzy93

it appears differently across the 3 CRA’s one shows a ‘I’ and the others show ‘AR’ with an outstanding balance.

Both emails were after I had left them and I had to chase my closing statement, which I did trying to be proactive and now hugely regret!