Arrangement to Pay entries on Credit File

I know that Defaults come off the credit file after 6 years. Arrangements to Pay (APs) can presumably stay on the credit file indefinitely, if, for instance, a debt remains outstanding / unsettled and an AP was entered into at some point, even if its not current.

I have this on a couple of my accounts. Even if I could settle them, the fact that I was once on an AP would remain on file.

Also, can/do creditors enter an "AP" when a Default is removed?

[jax007]

Re: Arrangement to Pay entries on Credit File

Just going by past experience (not knowledge) I believe the AP stays on the CRF for 6 years even if the debt gets repaid but the AP entry would only apply if there was an arrangement in place - I don't believe having the Default removed would automatically create an AP entry - unless of course an arrangement to pay was made following that removal.

My son-in-law has an AP on showing his credit file from 2 years ago but only for the months it was in place - he has now caught up with his arrears and is back on track with his payments so it's all little green boxes now!

It shows as an AP for every month it is in place until, as I say, the arrears paid off/debt is up to date with payments.

[The Debt Star]

Re: Arrangement to Pay entries on Credit File

Just going by past experience (not knowledge) I believe the AP stays on the CRF for 6 years even if the debt gets repaid but the AP entry would only apply if there was an arrangement in place - I don't believe having the Default removed would automatically create an AP entry - unless of course an arrangement to pay was made following that removal.

My son-in-law has an AP on showing his credit file from 2 years ago but only for the months it was in place - he has now caught up with his arrears and is back on track with his payments so it's all little green boxes now!

It shows as an AP for every month it is in place until, as I say, the arrears paid off/debt is up to date with payments.

Hi. On Experian it shows the AP for the dates it was in place but, even when repayments normalise, the "AP" - and the period it applies to- remain on the credit file. So, in theory, it could be there for the rest of our lives, even if the credit is paid off and the AP was years and years ago. Unless the account is closed that is, but even then it would remain on the file for 6 years.

[Caspar]

Re: Arrangement to Pay entries on Credit File

I don't know the answer I'm afraid, but I would doubt it would stay there for ever. Most things fall off your file after 6 years.

Could I suggest you e-mail Experian and ask them direct - they should know.

Caspar

[The Debt Star]

Re: Arrangement to Pay entries on Credit File

Could I suggest you e-mail Experian and ask them direct - they should know.

yip, have done already. Will post up their response as and when I get it.

I can't see the 6 year rule applying though as the account would be current and live & not defaulted. But I hope you're right.

[The Debt Star]

Re: Arrangement to Pay entries on Credit File

I have just received this response by email from Experian:

If an arrangement flag is recorded on your account, this is usually retained until the account has been removed.

We keep defaulted accounts on your report for six years from the date of default. This is true whether or not the debt has been fully repaid.

We keep settled accounts on your credit report for six years from the date of settlement.

So yes, sadly, I was right in thinking that an AP stays on one's credit file for as long as an account is either active or for a period of 6 years after it was settled. Therefore in theory an AP can stay on one's credit file forever. Whereas a Default is auto removed after 6 years.

It seems this is the credit industry's way of saying a special thank you to conscientious borrowers who try their damndest to keep paying.

Looks like a full-blown Default is the way to go?

Any views?

[QueenVIc]

Re: Arrangement to Pay entries on Credit File

This is the AP argument I am having with Nationwide BS who are less than helpful!
I am told their rules for flexaccount have changed .. I went into an arrangement to pay in Sept 2009 and this record should come off the credit file after 6 yrs is this correct? or does an AP stay put until the account is settled in Full? The Date of Arrangement has also been moved to 2013 from 2009 why this is I don't understand???? Anyone help?

[judgemental24]

Re: Arrangement to Pay entries on Credit File

It wil only come off your credit record six years AFTER the account has been closed/settled

AP are not that bad on your credit file, it shows that you had problems and you faced up to your responsibilities. Creditors like that.

I would take an AP any day over a default