"DEFAULT" or "ARRANGEMENT TO PAY" which is better

[minimal-c]

Hi everyone

 

I have a dilema I could use some advice with.

 

I challenged a Default with QuickQuid for a previous PDL which was Defaulted in 2012.

 

My argument was that they had failed to act responsibly by preventing me from setting up a payment plan until after the account was sold and a Default had been filed.

 

 

Had they agreed upon a repayment plan the account would have been settled within a couple of months without any Default being registered or the account being sold on.

 

Ultimately my complaint was escalated to the FOS who, in agreement with QuickQuid, have agreed the best course of action would be to set up a repayment plan,

remove the Default from my Credit File and update it to "Arrangement To Pay".

 

 

Although I am more than happy to see the Default gone and clear off the balance my concern is how much negative impact the "AP' status with have on my credit file.

 

If i was able to clear the balance after 6 months and close the account it would still show the "AP" status for a further 6 years, however, the Default will be gone in 3 years.

 

How detrimental an affect will the "AP" status have on my file? Would it be worth while accepting this agreement or better waiting out the Default?

 

Thanks Guys

[postmn]

well I had a similar situation a few years ago , all my defaults have now dropped off but because I was makred a AP on one it is still affecting my credit score 4 years after I had paid it

[minimal-c]

thats my worry.

 

I think the best way would be to present them with this concern, without agreeing to the proposal, and see if a better solution can be agreed upon.

 

If not i will just wait out the Default

[silverfox1961]

Hi and welcome to CAG

 

This is a difficult choice to make but here's my 2p

 

A default shows to potential creditors that you are a higher risk than others.

 

An Arrangement to Pay shows potential creditors that while you are in financial difficulties, you are trying to sort them out.

 

I think the bigger problem is that your file will show that you had a payday loan and that puts off creditors a damn site faster than any default or ArP

[minimal-c]

Thanks SilverFox, Yes defo.

 

And as it stands the fastest way to get the PDL of my credit file is to wait out the default.

 

I am going to try an renegotiate a better deal with them, if possible.

 

I have been quite fortunate so far and had 4 Defaults removed from my Credit File, through sheer perseverance.

 

I have this and another to get the full house, so to speak.

 

Hopefully perseverance continues to pay off

[dx100uk]

ask for both

 

a defaulted date in the debt summary

 

that way the account will vanish on its 6th birthday

and the monthly AP marker too

 

sad thing with AP without a default is its there for upto 12yrs and can be seen in the history

 

that can holds the PDL record there for 12yrs too

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