My Bank has registered 2 defaults

[penny.l]

I entered into an IVA just over a year ago. My Bank has registered 2 defaults, one for my current account and one for a credit card. It will take 4 years for the Defaults to clear after I have completed my IVA - so 9 years from now!! As I am paying the bank back surely they are not allowed to just give me 2 defaults, especially as I was honest with them from the start and didn't miss any payments. Is there anything I can do? Also, I didn't receive any communication regarding the defaults, I just requested an equifax - I thought they had to send them registered post and have them signed for?

[DebtDummy]

penny.l, hello and welcome to the forum. The defaults will appear on your credit file for 6 years from the date your IVA was accepted.
I had a credit card, personal loan and a current account with HSBC.
When I checked my credit file all the defaults were listed individually. They have to be listed individually because they are seperate credit agreements each with their own account number.

Contact your bank or IP and ask them how can the bank register those accounts as defaults when you where already into an IVA with them? The accounts should state IVA or something along those lines on your credit file. A creditor doesn't have to send notification of a default by registered post. They do have to send you a default notice, but by regular post.

I am surprised they designated the accounts as defaults and not use some IVA designation AFTER you've been making payments for over a year into your IVA. I don't know if this can be done or not with IVAs.

An expert will come along who can assist you further.

Take care

All I have left is my humour.

View my blog http://www.debtdummybankruwoman.blogs.iva.co.uk.

[Adam Davies]

Hi
just to confirm that they will stay on your file for 6 years from the date that they have registered.
You should have received a 28 day notice of default from the lender and if you did not then I would challenge this with the credit report agencies and with the bank involved.Ask them to remove them.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[penny.l]

So in a nutshell I'm stuffed then, for 10 years! Unfortunately I moved house at about the same time I started my IVA so there is a good chance the notices went to the wrong address. Am I right in thinking I can't get a mortgage with defaults on my account? Also, I'm trying to reclaim the charges they put onto my account over the years - am I still ok to do this with a closed account?

Hi
just to confirm that they will stay on your file for 6 years from the date that they have registered.
You should have received a 28 day notice of default from the lender and if you did not then I would challenge this with the credit report agencies and with the bank involved.Ask them to remove them.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[Adam Davies]

Hi
Where do you get the ten years from ? The defaults will stay on your file for six years only.
You can still get a mortgage with a default on your credit file as the lending criterea is very different regarding secured lending.
You can reclaim your bank charges but any money refunded will go into your IVA as a windfall payment.
regards


Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[Storm]

Yes you can get a mortgage with Defaults especially if they were registered after the IVA start date or they can be sufficiently explained to the lender. Use a good subprime broker to do this for you - they know how to present / package the case to the lender.

No you are not stuffed for 10 years - The maximum period the item will remain on the file is 6 years but its relevance in credit scoring terms devalues over time.

It doesn't matter if the account is open or not for you to recover bank charges.

[penny.l]

Sorry what I mean is there are 4 yrs left of my IVA at the end of which my debt will be settled - then an additional 6 until they are clear from my file... isn't that right?
Thanks
Penny

Hi
Where do you get the ten years from ? The defaults will stay on your file for six years only.
You can still get a mortgage with a default on your credit file as the lending criterea is very different regarding secured lending.
You can reclaim your bank charges but any money refunded will go into your IVA as a windfall payment.
regards


Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[DebtDummy]

hello andydavey, can you clarify something? It may penny.l. Say, I had an started IVA in 2004 and in 2006 one of the creditors listed in my IVA in 2004 sent a default designation to appear on my credit history in 2006. Can the creditor do this?
Thank you

All I have left is my humour.

View my blog http://www.debtdummybankruwoman.blogs.iva.co.uk.

[Storm]

Yes - the lender is required under the fundamental principles of reprocity to report the the upto date status of credit accounts throughout there life.

Your rights to correction at the CRA are only available if this is incorrect. For example your account with them is not in default.

The IVA agreement / payment being conducted correctly ie you making your payments does not mean you will not get a default on that account.

The fact you didn't get a notice of default will not effect the fact it will be recorded by the CRA nor will the CRA ammend this information.

Entering into an IVA doesn't freeze the reporting by lenders.

[Adam Davies]

Hi penny1
No its 6 years from the start of your IVA,not from the end.
DD
I have had experience of a creditor[A+L] defaulting me a couple of years after a CCJ with no notice.I just came accross it on my credit file by chance.I challenged them directly and quoted the consumer credit act 1976 and they soon removed it.
I think that they cannot do this out of "spite" but must follow correct procedure and that is to send out a default notice to you first.
So ,in short ,challenge it
regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[Sadsack]

Hi penny
An IVA normally runs for 5 years where it will reflect on your credit record. It will then stay on your credit record for a further year, but will have a Certificate of Satisfaction on it. This means that should anyone do a credit check, they will know that the IVA is completed. After the 6th year, there will be nothing on your file and you are free to then seek credit again. But why would you want to?!!!!! You have just got yourself out of the debt!!! (Don't think you will want to go down that route again!!!)
If you are wanting to claim your bank charges, the other posters are correct in that any money reclaimed will go straight to your IVA but will not necessarily allow you to settle the IVA earlier. Your creditors will always ask for a "minimum" return and any "windfall" will be deemed as part of the minimum.

Sue

Ho Hum! Think I'll bang my drum!

[penny.l]

I wasn't thinking of credit, I'm just worried that it will be a decade before I can buy a house that's all. Just for the record I wouldn't have credit again if my life depended on it.. It should be banned in my opinion! I am only reclaiming my charges because I don't want to have to give HSBC anymore than necessary... they have been ripping me off for years, happy that it will go back into the IVA, at least it will be evenly spread and not just going to HSBC. Thanks for the advice.

Hi penny
An IVA normally runs for 5 years where it will reflect on your credit record. It will then stay on your credit record for a further year, but will have a Certificate of Satisfaction on it. This means that should anyone do a credit check, they will know that the IVA is completed. After the 6th year, there will be nothing on your file and you are free to then seek credit again. But why would you want to?!!!!! You have just got yourself out of the debt!!! (Don't think you will want to go down that route again!!!)
If you are wanting to claim your bank charges, the other posters are correct in that any money reclaimed will go straight to your IVA but will not necessarily allow you to settle the IVA earlier. Your creditors will always ask for a "minimum" return and any "windfall" will be deemed as part of the minimum.

Sue

Ho Hum! Think I'll bang my drum!

[Sadsack]

You are quite within your rights to purchase a property but you will need to speak to your IP about this. Generally speaking, I am sure there will not be a problem, but you have to get their approval first.

Speaking of credit - when my IVA is completed, nothing is going to give me greater pleasure when all the bumf on credit and credit cards come thru my post, to call these banks and loan companies and tell them to BOG OFF!!!!!!!!! I do admit tho' that I have already started doing this and it is such a good feeling!

Take care and good luck

Sue


Ho Hum! Think I'll bang my drum!

[Skippy]

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