AP markers on barlays mortgage ruining my life.

[hacompany]

Hello CAG

 

I haven't posted on here for a while, hoping you can help.

 

I’m writing to complain about the way Barclays have reported the payment history on my Mortgage. I recently applied for a credit card and got refused; I signed up to ‘Credit Expert’ and spoke with one of their representatives who said the reason I was declined was probably because I have not been keeping up with my mortgage.

 

Although I have had some difficulty in the past when I lost my job in 2009, I have not missed a mortgage payment in over six years so I thought this was odd.

 

In 2009 I lost my job and was unable to pay my mortgage and, after a number of missed payments Barclays obtained an order of possession. Fortunately I regained employment and was able to strike a deal with Barclays just in time to fend off repossession. This deal was to pay my full mortgage payment plus an extra payment towards the arrears. This was under a suspended order of possession.

 

I believe this is defined by the ICO as a rescheduling of the agreement. Barclays have agreed to reschedule the terms of the agreement for the medium to long term, in this case 4 years, in anticipation that the arrears would be cleared and I would return to the original level of payment and some of the arrears were recapitalised.

 

It states quite clearly in the ICO guidelines how this arrangement should be reported:

 

- The credit reference file should record the correct payment history up to the time of the rescheduling.

- The account should be marked to show a new arrangement has been made, and reflect the modified repayment terms.

- Any record of monthly payments after the reschedule should reflect payments made against the modified agreement.

- Where a rescheduling of this type breaks down, a default may be filed when the total value of the arrears is equivalent to three monthly payments under the original terms. However, this should not result in the customer being placed in a worse position than someone who has made no effort to pay whatsoever.

 

Yet Barclays have been reporting each payment as an ‘Arrangement to pay’. This is not factually accurate. An arrangement to pay is defined by the ICO as a temporary this involves a temporary, short-term (up to six months) arrangement where the lender agrees to accept reduced payments. Arrangement to pay markers imply that I have been making reduced payments towards my mortgage and that I am accruing arrears each month. This is not the case.

 

 

Please advise.

 

This is a major problem for me, the last AP marker was September of last year. This will be on my credit file until 2020. If I had known this was going to be how things would pan out, I would rather have defaulted in 2009 and had a clean credit file today.

 

Its ridiculous that some one who defaulted six years ago is in a better position to some one who has paid off all the arrears.

[dx100uk]

I'd simply request that they put a default on from your 3rd missed/short payment

That way twill be gone if they do

 

Quite a common issue with Barclay these aP markers

 

Dx

[hacompany]

I wrote to Barclays and asked for them to default me, after a few weeks or tooing and frooing they have sent me there final response.

 

Not what I was hoping for:

 

Your complaint

We’ve finished our investigation

Thank you for your time on the phone and for talking through your complaint with me. We’ve now finished our investigation, so this letter is to inform you of our decision. I’d like to assure you that we’ve looked into it very carefully.

 

About your complaint

 

Your complaint was, in summary:

You are unhappy because Arrangement to Pay Markers (APM) have been reported on your credit file in relation to your mortgage account. You feel we have used an APM rather than a Default marker and that this contravenes guidance issued by the Information Commissioners Office (ICO). You would like a Default marker to replace the APM with a default date of May 2009.

 

Our Decision

On reviewing your account I can see that we have reported an APM for the periods of October 2010 to May 2011 and July 2011 to September 2014. The arrangement was initiated under a Suspended Order of Possession, which unfortunately was not maintained. At this point, rather than pursue a Warrant of Possession we entered into a variation for a sum higher than the terms of the Suspended Order of Possession.

 

For the purposes of the Guidance a 'default' should be recorded on a credit reference file when 'the lender is in a standard business relationship with the individual decides the relationship has broken down'. The guidance also gives flexibility on how we go about making that decision. So for example mortgage lenders can give borrowers greater latitude around repayment arrangements if their account gets into difficulty. I do not feel the guidance requires us to file a default after an arrangement to pay has expired. We still retain the flexibility as to when to file a default as described above.

 

Whilst I appreciate your comments on the guidance, further guidance has been issued by the ICO concerning the application of arrangements and defaults. ‘There are exceptions to this which may result in a default being recorded at a later stage, such as secured or long term loans e.g. mortgages, or if the product operates in a more flexible way e.g. current accounts, student loans, home credit. If an arrangement is agreed (see Principle 3 above), a default would not normally be registered unless the terms of that arrangement are broken. Apart from being 3 or more months in arrears there are other circumstances which may lead to the recording of a default: 1. Property such as a house or vehicle has been repossessed or handed back with no indication to pay a remaining balance.’

 

Given the above, we cannot default a mortgage until we secure possession of the property. As the terms of the Court Order are currently being met we are required to report this Court Order as an APM. Therefore, whilst I appreciate your position and your sentiments on this matter I do not feel we have made a mistake and feel the account has been reported correctly.

 

The retention of arrangement information by Credit Reference Agencies (CRA) does vary, with Experian, for example having a period of three years from the end of the arrangement. I do hope this answers your complaint fully. Thank you for taking the time to complain to us and I hope that you will feel confident in letting us know your views again.

 

Your next steps

Please get in touch with us if you would like a further explanation of our decision. If there’s anything you think I haven’t considered, and you have new information to share with me, please let me know right away and I’ll be happy to look again at your complaint.

Otherwise, you can ask the Financial Ombudsman Service to look into your complaint for you. This is a free, independent service for resolving disputes between customers and financial services institutions. We’ll give the Ombudsman all the information they ask us for, but do remember that you need to approach them within six months of the date of this letter. I’ve enclosed a leaflet on how to take your complaint to the Ombudsman.

 

 

Yours sincerely

 

 

Xxxxxxx Xxxxx

Senior Decision Maker

 

 

What do I do now? This seems ridiculously unfair, even if I had gone bankrupt in 2009 it would be off my file by now!!

Edited August 6, 2015 by hacompany

[hacompany]

This isn't fair is it?!

[citizenB]

The only thing I can suggest you do is to contact the ICO and ask them for their views !

[Old Cogger]

They will no doubt say that the entry must be of correct nature at the time of registering

[hacompany]

is it correct at the time of registering though?

[hacompany]

They will no doubt say that the entry must be of correct nature at the time of registering

 

Is it of correct nature though?

[Old Cogger]

Is it of correct nature though?

 

Was it a fact when registered??????????????

[hacompany]

Was it a fact when registered??????????????

 

Based on the ICOs definition of an Arrangement to Pay, it is not factual.

 

An arrangement to pay is defined by the ICO as a temporary this involves a temporary, short-term (up to six months) arrangement where the lender agrees to accept reduced payments.

 

For me it was a period of at least five years paying the full mortgage plus and additional sum to clear the arrears, which were reduced each month.

[dx100uk]

At that time the ICO looked down on creditors that did this

Particularly Barclay's

Lots of threads in the Barclay's or Barclaycard forum

And successes too

 

However the ICO guidelines have now changed.

 

Dx

[hacompany]

At that time the ICO looked down on creditors that did this

Particularly Barclay's

Lots of threads in the Barclay's or Barclaycard forum

And successes too

 

However the ICO guidelines have now changed.

 

Dx

 

I can't seem to find any successes! This just seems outrageous... I have complained to the ICO and the FO... The FOs response doesn't make any sense:

 

your complaint about Barclays Bank Plc

 

Thank you for your emails of 30 June 2015 and 7 June 2015.

 

I have considered very carefully the additional information you have sent us. However my view of your complaint remains unchanged.

 

As originally discussed you are unhappy that Barclays recorded an arrangement to pay marker (APM) on your credit file. You state that Barclays agreed to, in its own words, reschedule the terms of the agreement.

 

findings

 

After reviewing your account, I can see that Barclays have reported an arrangement to pay for the periods of October 2010 to May 2011 and from July 2011 to September 2014. This arrangement was initiated under a suspended order of possession (SPO), which was not maintained.

 

At this point, Barclays was left with two options, to either apply for the enforcement of the suspended order of possession to be put in place and repossession or to increase the payments required, still under the SPO.

 

I can confirm that an APM involves a temporary, short term arrangement where the lender agrees to accept reduced payments. Although you were paying a higher sum plus extra to clear the arrears on your mortgage, I cannot say that Barclays recorded this information incorrectly.

 

The rescheduling of agreements involves a formal and permanent rescheduling of the payments due on the account. The payments you were making were to clear the arrears and also the capital payments. Looking at the call notes provided by Barclays I can see that the arrangement that was discussed with you was temporary and was not a permanent rescheduling of the payments due on the account and therefore does not fall into the category of rescheduling of agreements.

 

I do agree with some of the points you have made in your email sent to me on 30 June 2015. But I think it is important for you to note that it’s Barclay’s discretion as to how it records the credit file information. So here I have assessed if what Barclays did was fair and reasonable and most importantly factually correct in your circumstance at the time.

 

Also I have considered that Barclays has mentioned in its final response to you dated 29 May 2015 that it entered into a ‘variation for a sum higher than the terms of the Suspended Order of Possession’.

 

I think there has been a misunderstanding here, as when recording markers on a credit file, the option for a financial firm to choose a ‘variation to pay’ is not one that is available. Therefore Barclays chose an APM, as this was the most accurate reflection of your circumstance and reflected the management of your account.

 

I think it is important for you to note that anyone checking your credit file will be able to see the activity that has taken place in regards to the APM being placed on it. In your circumstance I can see that your arrears have been decreasing and that the APM has now stopped, putting you in a better position than if a default was recorded.

 

In addition to the above I have asked Barclays for the Information Commissioner Office’s (ICO’s) report for your account. Barclays has stated that in your case the ICO has not concluded that Barclays has acted inaccurately and the information recorded was factually correct.

 

I have also discussed your complaint with senior members and the general consensus is that Barclays recorded the information on your credit file factually.

 

conclusion

 

Based on my findings I do not feel that Barclays acted unfairly or unreasonably. I know that this is not the outcome you were hoping for. And I appreciate that this will come as a disappointment to you.

 

If you disagree with this, please write and tell me by 12 August 2015 – setting out your reasons and including any evidence that you have not already provided and that you think is important to your case. I would be grateful if you could let me know now, if you plan to reply fully but do not think you will be able to meet this deadline.

 

 

 

Please do not hesitate to contact me if you have any questions.

 

 

 

Kind Regards

 

Xxxxx Xxxxxxxx

 

 

Does that Brig guy still use this forum? He seems like he has a few ideas about this sort of thing!

Edited August 7, 2015 by hacompany

[dx100uk]

why not type in AP marker in search cag of the red toolbar.

[carlaeliza]

Did you get any resolution for this situation?

 

 

I am in a VERY similar situation and Santander have used the same markers in almost an identical situation.

 

 

Mine were last reported just over 2 years ago so I have 2 clear years now

but face another 4 before we can remortgage with another bank.

 

 

I'm now stuck with my ex husband on my account still and also can't get off the interstsed only SVR mortgage I've had for the past 10 years!

Trapped is not even the word!

 

 

How can they say we're not worse off when I have friends with far far bigger debts

- didn't pay and now they are free- I paid it off and I'm suffering for it.

[hacompany]

Nope. Not sure what else I can do. The ICO won't help, financial ombudsman a complete waste of time Not sure what else can be done.

[dx100uk]

http://www.consumeractiongroup.co.uk/forum/showthread.php?454504-MBNA-IDEM-AR-AP-markers-that-should-be-a-default-**WON-AT-FOS**/page2

 

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?414870-DN-Received-but-AP-reported-on-CRA-file-***Resolved***