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?

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.

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

Hi,

Thanks for the fast response.

Given what you have said, do you think I may as well let them default? As an arrangement to pay is just as bad?

Any more advice?

Said company are saying that they cant not report to CRA's. Any suggestions on how to change their minds?

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.

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.