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Arrangement to pay effect on credit worthiness


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Hi,

 

How detrimental is an "arrangement to pay" on your credit file?

 

Is it as bad as a default or ccj?

 

I'm negotiating with 2 payday lenders regarding repayment of outstanding loans. I'm looking at borrowing a lump sum from a family member in order to pay them off in one go, and avoid any adverse info on my credit files.

 

I'm agreeing to pay all their crazy fee's and charges on the condition they don't report any adverse info to CRA's. But one is insisting that they will show an arrangement to pay on my file. I want to avoid this at all costs, but if its as bad as having a default or CCJ, I'm tempted to let them default me and try it on in court.

 

Any advice?

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Hi,

 

Found this...................

 

Arrangement To Pay

 

A situation where a lender agrees that you can pay less than the repayments legally due, because of a loss of income or ill health. Arrangements to pay are recorded on credit reports and will automatically drop off your report once six years have elapsed from the date of account closure. Lenders will not always inform you about the negative impact that such an arrangement will have on your credit report.

 

Such an arrangement is usually interpreted by a lender that you are having trouble meeting your existing commitments, and are possibly over-indebted. As such, it is regarded as serious arrears and will have a significant adverse impact while it remains on your credit report.

 

Regards.

 

Scott.

Any advice I give is honest and in good faith.:)

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sadly yes very bad

 

as is any thing negative

 

now you amention charges?

you should be reclaiming those

they will be deemed as a penalty

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Hi,

 

I would suggest that you keep up with your arrangement for three reasons. My first reason for suggesting this is that your debt will eventually be paid off. Secondly, when calculating your credit score, most lenders that you approach in the future for credit wouldn't look as badly on an arrangement and associated late payments on your credit file as they would a default or county court judgment. The third reason is that it would support any justification you may have about the late payments being caused by financial difficulties as opposed to just choosing not to pay back your debt.

 

If you have the means to repay your debt this is always better than defaulting or leaving it to become a county court judgment.

Edited by MARTIN3030

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WCR Can you please contact admin [email protected] as previously asked.

Just to explain their your brief and seek permissions for links.

Thanks for understanding.

Have a happy and prosperous 2013 by avoiiding Payday loans. If you are sent a private message directing you for advice or support with your issues to another website,this is your choice.Before you decide,consider the users here who have already offered help and support.

Advice offered by Martin3030 is not supported by any legal training or qualification.Members are advised to use the services of fully insured legal professionals when needed.

 

 

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