22 Mar 2015

A question about : AP markers vs Defaults

Hi all - question that's starting to concentrate my mind as I head towards the end of my DMP and hopefully getting a better mortgage rate in future than the one I'm on now!

Although I have several accounts marked as Default on my credit file, these will all drop off during 2013 as they become 6 years old - fine.

However, Barclaycard and MBNA have put Arrangement to Pay markers on my file which will stay on for 6 years AFTER the account is settled i.e. could affect my rating for many years yet to come.

I'm thinking that, as with other lenders where I defaulted, I also defaulted on these accounts - I broke the terms of the agreements with them when I didn't pay and since haven't been paying interest, so they should have been marked also as defaults back in 2007 and would also drop off this year.

Has anyone any thoughts or experience of contacting the lenders and suggesting they should be old defaults and not current AP's? Any thoughts would be very welcome - thanks!

Best answers:

  • Google 'ico default guidelines' as it talks about AP also.
    Not black and white but you could complain about paying and not being in a worse position than someone who had made no attempt to pay.
  • Barclaycard seem to do this to everyone. It's not right. I am currently in the early stages of a similar fight. I'm 3 years into a DMP but want my BARC account defaulted back in 2010 with the rest.
  • Well I wrote to Barc and they have tried to call twice but I am unwilling to discuss on the phone. So I am going to write again, telling them I want a response in writing. I don't expect to get anywhere at this stage, just going through the motions. I expect I will have to complain to the ICO and FOS and this can take months. But I have plenty of time.
  • Its a true reflection though the arrangement to pay flag is, thats just what a dmp is
  • It's counter productive too. In 2016 all the rest of my defaults will fall off my report. At that point I may well be in a position to re-mortgage and pay off all cards etc. in full. If I have one account with AP markers on it still going, that won't happen so they won't get their money.
    They should not be allowed to wreck your file for ever because you ran into problems many years ago.
  • I was wondering about this too. Barclays have been a bit of a nightmare creditor for me. Although we partially settled their 2 accounts in 2012, they never defaulted them (2 credit cards).
    We started a DMP in 2007 and the whole time they have put AP flags on the accounts.
    I wasn't aware that AP markers were only supposed to be for a short term. I have these AP flags from 2007-2012 on both accounts!
    Do you think they will try to swerve placing the defaults at the correct date (for me somewhere in 2008) as I was sometimes told by Payplan that Barclays reviewed their accounts every 6 months, so were they in fact just re-starting the AP cycle over & over again?
  • but as comunication has not broken down, an arrangement was made it is correct
  • Well in my case they obviously thought the thing had broken as they sold on my debt to Cabot. At the end of the day, all my other creditors have treated me very fairly and I appreciate that. I will try my best to pay them back. If Barclaycard won't do the right thing I will simply stop paying them and we'll see if they can find a copy of the credit agreement for an account opened in 1997! Two can play at their little game. Sure it gives me a certain default in 2013 and another 6 years until I'm clear but I'll save the 10 grand I owe them.
    Barclays are the bank crowing about how they have changed and are going to be oh so fair. What they are doing is keeping people in debt for as long as they possibly can.
  • Sorry to take over your thread but similar thing has happened to me with Lloyds TSB and Halifax. Had me down as AP for 3 years then decided to default me last month. Can't believe they are allowed to do this especially as all the defaults would be falling off in 3 years. Instead I now have to wait to 2018.
    Be sure to let me know if you win this battle as I am currently fighting with Lloyds TSB and Halifax myself.
    All the best!!
  • I just noticed along with my AP markers i also have 3 accounts with DM markers too. Are these just as bad as AP?
  • AP should be no more than 6 months. Lenders take the p and leave it on longer to maximise the amount of time they can damage your credit files for.
  • I've just sent off 2 letters this morning to Barclaycard (I never arrange an AP with them) and Capital One who AP'd me for 23 months before defaulting me!! More info is coming to light through threads like this which will give me plenty for letters in response to them not changing my credit files. There will be plenty of routes to go down. Would the Financial Ombudsman be in any position to help, esp regarding best practice and "fair play"?
  • Satsumi, my next step will be official complaints to the ICO and FOS about this. I will also be writing to the boss of Barclays as he has been spouting about their new culture of fairness.
    All they are trying to do is get you to pay them back before you pay other creditors. It's a tactic and I'm sure it works to the detriment of banks who treat customers more fairly.
    I was a productive, tax paying member of society before all of this. A series of unfortunate events and one serious mis-judgement on my part and I'm a financial pariah. Barclays and Cabot or whoever else can now bully me and threaten me at will because they have my credit record in their hands.
    It's just not right. People make mistakes (eh bankers?). People get unlucky. Bad things happen. But it really benefits nobody to let mean bully boy bankers to be allowed to string these people along for ever.
  • I have a query that could hit either of the credit score, DMP or mortgage boards. Any comments gratefully received.
  • Does anybody know how long I should wait for a reply from Capital One and Barclaycard? It's been 16 days and I haven't heard from them yet. Surely they won't just ignore my letters without reply?