Blocking RAC taking more money. Will my credit score be affected

Tarambor wrote: »

You signed up for a year, there's no partial term cover. When you pay monthly you sign up to a credit agreement. If you default on that, which you have, they can report that to the CRAs. The debt companies they'll pass the default onto most certainly will report to the CRAs.

The RAC can legally pursue you for the rest of the money and don't think that "it's just £55 so they won't bother."

To clarify; if it's a credit agreement and they report your account to the CRAs on a continuing basis, then yes, you could end up with late payment markers. To be honest, I'd be surprised if they report these sort of arrangements, but I'm not with the RAC so I don't know. Regarding the use of debt collectors, they can only report a debt to the CRAs if the debt they've bought was previously being reported, otherwise they can't (incidentally, the ability of debt collectors to do this is something that's crying out for proper regulation).

I don't think you sign a credit agreement when you pay monthly with the RAC so they won't report missed payments to the CRAs. It's still a daft thing to do. When the letters start coming they won't be asking for £55.

I'd just pay up. Mainly because of that old fashioned notion of sticking to agreements I've made, but also because it's a very small sum to pay to avoid a load of future hassle and extra expense.

Edit to add, all for the sake of 50 quid back in 2011...:

http://forums.moneysavingexpert.com/showthread.php?t=5823478

Personally, I'd rather have paid the early cancellation fee which is what you'll have signed for in the contract rather than having to keep watching my credit file etc. It's £55, pay it and have done with it, you'd be worse off with markers on your credit file if they happened to report it.

It isn't their fault that you've decided to scrap your car.