ABCUL Members

Breathing Space and Credit Score

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  • August 8, 2024 at 2:12 pm #6081

    james-d
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    Good afternoon all,

    I’m James from FAIRshare Credit Union and new to the forum.

    I have a scenario where a member has entered into “Breathing Space” and is continuing to pay their loan as they have done in the past. We’ve “Charged off” the loan to prevent interest being added in Abacus (our system for managing members account) however this is now reporting “arrangement to pay/DMP” on their credit score due to interest being frozen.

    The member has called to say their credit score has now been affect by this reporting, they have maintained repayments on the loan during breathing space and believe that this shouldn’t impact her credit score (which I believe is correct).

    For any abacus users out there, what would be the solution to resolving this issue and future ones? Would you still “Charge Off” the loan which impacts the credit score as “DMP/Arrangement to pay” or would do a manual adjust for the interest for the period that the member was in breathing space? or is there any other solutions?

    Many thanks in advance for your suggestions

    James

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  • August 8, 2024 at 3:37 pm #6082

    Andy
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    • August 12, 2024 at 11:54 am #6099

      Thomas
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  • August 8, 2024 at 10:35 pm #6083

    Charles
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  • August 9, 2024 at 8:38 am #6084

    Samantha
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    Samantha Owen Finance Manager Unify Credit Union LTD Email : finance@unifycu.org

  • August 12, 2024 at 10:58 am #6098

    james-d
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