A default is better than a payment plan (read on )

[huggy41]

We decieded to check my credit file today using http://www.checkmyfile.com which has left me fuming with rage some time back we got into trouble with The Halifax

 

After some tooing and frowing we entered into a payment plan with them,ON OUR TERMS I MIGHT ADD.

 

It has now come to light that we would of been better off Defaulting on the account and therefore they would of only been able to update the cra for 6 years .

 

But we decided to go with a payment plan as we thought this would be better in the long run.

 

It is recorded as AR on the credit file but this is what we were not told.

Lenders regard arrangements to pay as serious arrears, which is having a significant impact on your ability to obtain credit. Negotiating a lower amount to repay on just one occasion can indicate to lenders that you're struggling to meet your existing credit repayments, so you represent a greater risk should they lend money to you

.

 

Reported Until6 years after account closure

 

So if you start to pay using a payment plan in 2011 and it takes 3 years to clear and they then close the account on the last payment it will not fall off your CRA until 2020.

 

were as if you Defaulted in 2011 they can only record the default until 2017.

 

 

Can somebody please advise if BCOBS is the way to go as we find this very unfair.

[huggy41]

you know me GODMOTHER love a fight it's just so wrong them not telling of coarse has realy peeeed me off but will call them on Monday and point out the error of there ways and what they are going to do for us to rectify there short commings all recorded of coarse.

[huggy41]

to all that are going to follow this thread weather the out come is good or bad. i believe in fair and honest play.

 

and i play Fair Honest.

 

I sent a letter to the Halifax ages ago informing them and there agents that i record all phone calls to use on any site i see fit including youtube and my own in small print at the very bottom of the page

and therefore i do not have to remind them of such.

 

so will put links to all.

[huggy41]

GOOD MORNING ALL.

 

first THANKS with all help.

there is NO DEFAULT on my file at the moment because we entered into a payment plan with them but they record this with the CRA'S as AR an arrangement . now then stay with me people

eg. start plan Jan 1st 2010 they then mark your CRA file Jan 1st 2010 AR.

You pay your plan without missing a payment for 2 years and your CRA file has been marked AR for that period.Jan 1st 2012 (still with me here )

On Feb 1st 2012 you make your final payment, and your account is closed.

They then have a further 6 YEARS TO REPORT ON IT so it will then fall off on Feb 1st 2018 If we had Defaulted on the account in the beginning it would be off our CRA file Jan 1st 2016.

 

TAKEN FROM CHECKMYFILE.COM WEB SITE.

 

Arrangement To Pay

Definition of 'Arrangement To Pay'

An arrangement to pay is recorded on your credit report when the lender agrees for a short while to take fewer payments than those that are due contractually under the Credit Agreement.

The impact of an arrangement to pay on your credit rating varies depending on the attitude of lenders. Some lenders view an arrangement to pay similarly to a default, as they regard it as a fundamental inability to pay debts as they fall due (which is one of the definitions of bankruptcy).

Other lenders take a much more relaxed view about an arrangement to pay. They would prefer to receive less than expected rather than nothing at all, and they see the approach by their customer to ask for time to pay as a proactive and positive step, and not one that should be penalised.

An arrangement to pay stays on your credit report for six years and can seriously impact your ability to get credit.