Defaults on Credit File

[Rainbow]

Hi All

Haven't posted for some time but have been watching in the background. The other day I accessed our free credit file on line (Thanks to the forum) although our IVA was approved in October 07 - Mint, Cahoot, Nationwide and some other creditors are still reporting defaults on our credit files - Is there anything we can do as they are all captured in the IVA- If they continue to report everymonth throughout the IVA am I correct in thinking that they won't drop off for 12 years - IE 6 after the IVA has concluded?
Cahoot and others are still applying charges to the account also.
Thanks in advance
Rainbow

[TheMatrix]

In the same boat with HSBC, however I spoke to someone about this and it is not the fact that they keep defaulting you, but the initial default date that counts and 6 years from that date it will drop off.

Not sure how true that is I suppose time will tell.

I don't think they should be applying any further charges to your account though as I'm aware that all interest payments stop in a IVA

[kallis3]

They should not still be applying charges. There should be a fixed sum that went into the IVA. It should not be getting bigger.

I would speak with your IP and tell them.

[acsn]

Hi ,

I've posted before on topic . creditors can default your account whenever they want and this will remain on your file for 6 years from the date of defualt.

Really the sooner they default the better as you don't want them to leave it to the last month or so of the IVA before defaulting the account as that will remain on your credit file for a full six years.

The default is a formal notice that the credit arrangement was cancelled by them and and such is down to the individual creditor when and if they do it. But I think they need to do it to write it of as bad debt.

And the amount of their claim will be as at the date of the IVA your IP will prove all claims to ensure they are correct, the charges are just them wasting their time and they will eventually stop and need to be removed. Some of mine even came it at hundreds of pounds less than the last statements I got from them. Never understood but I'm not going to questionit.

Best advice is stop looking at your credit file for 6 years. It's a reporting system entirely for the benefit of creditors assessing risk. The notice of IVA shines out like a warning beacon so nothing else showing matters very much.

Its one of those things no one really thinks about when taking out an IVA because usually at that point your desperate for the 'pain' to stop. And whilst you can have inaccuracies corrected there not much you can do about the truth.

No one should imagine there isn't going to be a big black spot on your credit files for a long time, maybe even 10 years in worst case scenario. But for me at least it's a small price to pay to get out of the mess I was in.

[TheMatrix]

Yep but there should really only be one black spot, not 23 of them on the same loan. But I'm told only the first black spot counts with the default date.

6 years is from the initial black spot as far as I am now aware

[acsn]

I used to think that once the IVA was gone my credit file would be sparking clean but this is the reply I got from Expedian

We note that some or all the debts shown on your report were included in your IVA. The debts have to be shown separately to reflect how a credit agreement was conducted before the IVA took place. We keep credit accounts on our records for six years from the date of default. When your IVA is complete, lenders should update the entries to be marked as satisfied. However, the defaults will not be removed just because your IVA is complete, they will remain for the six years.

There is no reason why the default date of an account cannot be after the date of your IVA. The date of default will be down to the individual company and their set procedures of at what point you have breached your contract with them. At this point they will default the account entry.

Some of my old creditors are still reporting me overdue each month but haven't yet defaulted the agreement. A few are even defaulted on the original debt and it's been defaulted again by Evershed when they bought it. These were all included in the IVA.

So I'm not even going to look again until my IVAs completed and see if the slates wiped clean by magic but I doubt it.

[TheMatrix]

All mine have defaulted or satisfied default ???

The latest default date is of July 06, I can live with that but others just keep defaulting me month after month. It's this that I question whether they can do that or not and when will they drop off. I am told it will be from the original default date but time will tell on this I guess.

[wen]

This is a concern for me too. Although my bankruptcy was February, i have received defaults since, and although a month or two is not going to make much difference after 6 years, I am concerned about those who continue to default.

[Skippy]

Wen, as you are BR your creditors cannot default you after the date of your BR. This won't stop them, and I'm in the process of writing to all mine to get them to amend the default date and mark the debts as either satisfied or partially satisfied. If they refuse to do it you can then take it further and they will be forced to do it - not an easy process, but I like a good arguement!

[jane.l]

mmmmm, I just don't have the energy or fight in me anymore to even comtemplate cleaning up my credit files! Bankruptcy has been an awful time and I am just now beginning to get on with my life and do not think about it every day[:D] Got new job to start, holiday to look forward to and NO DEBTS[8D]

I won't be applying for credit ever again

[Skippy]

I won't be applying for credit cards again, but I'll need a new car and will probably have to try and get finance, and I might want to go on the mortgage at some stage, so it's important to me to try and get my credit files straight.

[TheMatrix]

Absolutely Skippy13, once this IVA is out the way the only debt I will have is a mortgage. If I want anything in future I'll save for it and not use credit.

But I wont be getting any mortgage until all those defaults drop off and my credit file is clean.

After my iva is paid off I'm going to be putting all the money I'm paying into it into a savings account to build up a nice deposit in year 6.

[Soulgrowth]

I agree ... I wont be using 'credit' again ... other than for my mortgage.

I do need a car however and have managed to get a brand new leased car on a website that Andy posted a few weeks ago who have been brilliant. All they needed was proof of ID and evidence of 'affordability' which was the last three months bank statements. Whilst this IS a deal for self-employed people I wonder how long it will be, with the increase of IVAs and BRs, before other companies for things such as cars also look for 'affordability' rather than 'credit ratings'

Debbie

[Rainbow]

Hi All
Thanks for the replies - Although I am confused (Doesn't take much!) the creditors I mentioned are defaulting us every month registering default if they continue to do this for the 5 years that the IVA runs this will mean that after the IVA is completed our credit file will not be "Clean" until 6 years after is that correct?

I will ensure that our IP knows that some creditors are still applying charges and they need to deduct these from the balances.

[MelanieGiles]

Your credit file should be clear 6 years after the date of the creditors meeting, as creditors are not allowed to register anything with the CRAs after and IVA has been accepted. I think you need to get your IP to speak to the creditors concerned with a view to removing those entries.