Any questions would be best directed at Storm as he is far more qualified than I am to answer them! I'm not sure why you can't open the link Elv, but this is what Storm posted:
These are the guidelines from the ICO about the issue of Defaults.... when / how and if they should appear on a credit file.
http://www.ico.gov.uk/upload/documents/ ... %20doc.pdf
There is legal redress if the lender and or the CRA do not process data fairly or provide a true reflection of the account status.
AND
The lender has a duty to accurately report the status of an account - the ICO gave guidance that compelled lenders to default an IVA as near to the acceptance date as practical. Certain lenders do not crystalise the account immediately (it depends on how their funding lines work) but in any case you can ask the lender to report the default accurately.
Certain lenders and DCA's continue to report the status of the account throughout the lifetime of the IVA - each month updating the account in default.
The ICO states that the default will remain on the credit file for 6 years from the date it was originally defaulted and no longer. A defaulted account is removed from your report after 6 years whether or not you have paid the debt in full and even if the lender / DCA continues to update the account at the CRA.
I am however aware of two DCA's who have continued to report defaults beyond the 6 year term - court orders have been obtained to stop the consumers credit report reflecting the default state of the relevant accounts.
Very recent guideance has been issued by the ICO in relation to unenforceable credit agreements:
The Information Commissioner's view is:
"In view of the enactment of section 15 of the 2006 Consumer Credit Act, the ICO has given fresh consideration to the circumstances in which the credit reference agencies should be permitted to record details of unenforceable credit agreements. In doing so we have had particular regard not only to the clear legislative intent that the absence of a signature on a credit agreement should no longer be an absolute bar to enforcement, but also to the following factors;
• The question of whether a legal liability exists in relation to a credit agreement is quite separate from the question of whether such a liability may be enforced by the creditor.
• Where a liability does exist, creditors have a legitimate interest in sharing relevant information about that liability, including information about whether the amount due has been repaid. Such information may properly inform responsible lending decisions, regardless of whether the liability is enforceable.
• Responsible lending decisions are dependent upon lenders receiving accurate information about individuals’ ability (and/or inclination) to repay their debts.
Where a credit agreement clearly existed and credit has been provided to the debtor, but the debtor is not obliged to repay the loan due to the provisions of the Consumer Credit Acts, this does not mean that there was no agreement in the first place. It simply means that there was no enforceable regulated agreement."
Sorry that the latter part of the post is very technical - but hopefully this explains in the detail required that the default will remain on the file from the start of the IVA (or as near as possible) and that even if the lender / DCA continues to report the status of the account during the IVA at 6 years it will be removed at account level so that no further reference is made. If your credit file reflects the default at the end of the 6 years an application can be made to the court if the lender /DCA doesn't cease.
