Arranged payment to delinquent
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Nicola_cheetham
Posts: 2 Newbie
Hi
I took out a loan several years ago and struggled to pay it back so had an arranged payment plan in place. I never missed a payment and I never paid late. My credit report showed AP against all my payments. I then was able to pay the loan off in full a few months ago and my file immediately changed to 6 missed payments at the end.
Does anyone know if this is correct? I can’t understand why all along it wasn’t deemed as delinquent but now I’ve paid it off it does.
Thanks
I took out a loan several years ago and struggled to pay it back so had an arranged payment plan in place. I never missed a payment and I never paid late. My credit report showed AP against all my payments. I then was able to pay the loan off in full a few months ago and my file immediately changed to 6 missed payments at the end.
Does anyone know if this is correct? I can’t understand why all along it wasn’t deemed as delinquent but now I’ve paid it off it does.
Thanks
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Comments
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Hi Nicola and welcome to the forum
It is because you breached the original agreement terms when you entered in to an Arrangement to Pay (AP). The reason your credit file kept repeating the AP marker, is because you never caught back up with your payments.I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job
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Makes no difference what kind of arrangement you come to with the creditor afterwards, the damage is done by defaulting on your contractual payments initially, from that moment on, your account would have been marked as default, or arrangement to pay (at the creditors discretion).I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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Firstly if they said you was late and you wasn’t you can report it and under the law fair credit report it completely gets taken of your file. Some people have even taken the company that lied to court and be rewarded up to 1000 to 25000 pound by a little mistake. Dose let the judge know that due the them lying and breaking the law (fair credit act 1984) it’s course you stress as well as been turned down credit!0
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Hello
Thank you all for your quick replies!
I understand that this could be the case if a payment plan is the cause of the delinquent status. But if this is the case shouldn't my account be labelled as delinquent from the beginning, when the payment plan started, rather than right at the end? I arranged the payment plan about 2 years ago so shouldn't i be only 4 years off from this being wiped off my report rather than starting from when i paid the loan off in full?
And it is labelled as delinquent and not a default as i have contacted Equifax to explain what the "D" meant and they said it is not a default but delinquent.0 -
But it was late, though, as explained in the first post.Firstly if they said you was late and you wasn’t you can report it and under the law fair credit report it completely gets taken of your file. Some people have even taken the company that lied to court and be rewarded up to 1000 to 25000 pound by a little mistake. Dose let the judge know that due the them lying and breaking the law (fair credit act 1984) it’s course you stress as well as been turned down credit!0 -
Jonathan_Kelvin wrote: »But it was late, though, as explained in the first post.
But it wasn't though. The OP "never missed a payment and never paid late". It sounds like the OP contacted the creditor as soon as she realised she was in difficulties, and agreed an arrangement to pay. Isn't that the most sensible and co-operative thing to do? Having handled a debt in such a responsible way, why should she be heavily penalised with erroneous missed payment markers?0 -
johnsmith1890 wrote: »But it wasn't though. The OP "never missed a payment and never paid late". It sounds like the OP contacted the creditor as soon as she realised she was in difficulties, and agreed an arrangement to pay. Isn't that the most sensible and co-operative thing to do? Having handled a debt in such a responsible way, why should she be heavily penalised with erroneous missed payment markers?
'Never missing a payment' is not the same as making your contractual payments. The OP was obviously paying less than they had contractually agreed to. The markers were not erroneous.0 -
'Never missing a payment' is not the same as making your contractual payments. The OP was obviously paying less than they had contractually agreed to. The markers were not erroneous.
Yes, they were erroneous. Did she miss a payment? No. So maybe it's the case that the unregulated CRAs class an underpayment as a missed payment; it wouldn't surprise me.0 -
Who said anything about unregulated CRAs? It would seem a reasonable assumption that OP was sourcing data from one of the three mainstream UK CRAs, who are of course all regulated by the FCA....johnsmith1890 wrote: »Yes, they were erroneous. Did she miss a payment? No. So maybe it's the case that the unregulated CRAs class an underpayment as a missed payment; it wouldn't surprise me.0
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