Quick Question

[Vintage123]

Someone having a cash flow problem as most of it is tied up in assets and comes to an agreement with the bank to repay loan at reduced payments. A reduced amount in total of the loan is repaid.

 

The person didn't think their credit score would be affected in doing this but finds out differently.

 

Out of interest is there anyway the situation can be resolved? I suspect not but thought I'd see if anyone else has a different opinion.

[2Grumpy]

How is the credit score affected?

 

Was a default or arrangement to pay recorded with the CRA?

[Vintage123]

A default was recorded on the loan at CRA of which a full and final settlement was agreed with the bank. They didn't realise this would happen, however, I do recognise they did default.

 

Please keep in mind this is a bit of a remote situation to me so I don't know all the details but I am trying to learn about CRA's etc. I know more about Insolvency but this is of interest to me too.

 

Basically, I'm learning, that is what I'm saying.

[liquidauctions]

Well an agreement if accepted by the bank with no previous missed payments cannot be recorded as default. Default means just that, a person who stops paying can only get into default.

[Vintage123]

So can it be recorded with CRA as anything else then? Incase I may have mis-understood the problem in terms of being recorded at CRA.

 

Now as far as I beleive the person wants to take it to court as the bank are refusing to try and remove it, therefore do they have a case and how would they fight it? Going on what I've been told it's been recorded as a default.

[liquidauctions]

Has the person missed any payments prior to the repayment agreement? did they get letters telling them they are in default? Is it a secured or unsecured loan?