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Thread: Payment arrangement and credit report

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    Default Payment arrangement and credit report

    After us two getting my credit cleaned up and sorting the wifes out too, we were in a position to get a mortgage. Unfortunately, last week the student loans company decided to put a spanner in the works and we would like to ask your advice.

    In about april last year my wife dropped out of her OU course due to ill health. The student loans company said the balance would still need paying so my wife arranged with them to pay £100 a month instead of the £245. They were very understanding, accepted the arrangement and were happy with it. The amount was paid as agreed without fail.

    Everything has been fine with her credit report until this month, when we noticed data they reported says 5 months of 'missed' payments. What they are saying is that as the original loan should have ended in october '10 and her arrangement doesn't pay the balance off till Feb '11, then the late payment markers are accurate, even though an arrangement was in place. Thats going to really mess us up. Is there anything we can do about it or are they OK to do that even though they accepted an arrangement of £100 a month?

    TIA!
    Last edited by shamen; 28th January 2011 at 20:49:PM.
    Advice given is offered as personal opinion only. I always recommend you seek professional legal advice.

    Negative, I am a meat popsicle

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    Default Re: Payment arrangement and credit report

    Hmmm, rather than missed payments markers surely they should have been putting Arrangement to Pay markers on the file instead.

    This may help a little http://www.informationcommissioner.gov.uk/~/media/documents/library/Data_Protection/Practical_application/DEFAULT_TGN_VERSION_V3%20DOC.ashx the second part (21) does seem to agree with the SLC although 17 may be appropriate depending on the conversation at the time about the changes.

    17 Lenders should not file a default where there is a genuine and agreed variation in the payment schedule. (The only exception to this is where a debt management programme is put in place where the level of repayment represents only a token sum which is only accepted by the lender because the customer cannot afford to pay more. The reporting of debt management plans is discussed at paragraphs 22-26.) Customers should not be led to believe that they have agreed a change to the arrangement to repay a loan, when the lender considers that the customer has defaulted. A lender filing a default in these circumstances is likely to be processing personal data unfairly.


    21 An ‘arrangement to pay’
    This involves a temporary, short-term (up to six months) arrangement where the lender agrees to accept reduced payments.

    The original payment terms will still be shown on the credit reference file and arrears will accrue which will be shown on the monthly status record.
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    Default Re: Payment arrangement and credit report

    Quote Originally Posted by Amethyst View Post
    Hmmm, rather than missed payments markers surely they should have been putting Arrangement to Pay markers on the file instead.
    They did both - put an arrangement marker *and* the late payments

    Sounds difficult then. They have not logged a default, just missed payment markers. From what it seems even with an arrangement they can do this What terrible news
    Advice given is offered as personal opinion only. I always recommend you seek professional legal advice.

    Negative, I am a meat popsicle

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