Hi, I finish my IVA in May 2013 and am concerned I may have breached the terms.
I ordered a T-shirt from next for home delivery and paid for it in full on my debit card. When I logged back on to Next website I saw they had opened an account with a £300 credit limit (they do this when you sign up for home delivery apparently).
Will this account constitute a breach of terms (I think I may be allowed up £500 credit under my IVA)?
Also I am with Freeman Jones, how long after my final payment should I expect my certifcate of completion (my IVA is fully up to date so should complete on time)?
Hello Jonjo. I think you'll be OK so long as you stay under the £500 threshold that is set. I'm puzzled though how you got through their credit checks.
Completed IVA - August 2012 pheeeeeeeeeew
Only my opinion - Nothing More Nothing Less
I have a next account and my IVA company are aware of this and have said that I can use it as long as I don't go over the £500. However I clear the balance every month. So much cheaper than travelling into city to shop (petrol and parking).
I think they automatically open accounts when people shop online. Just make sure that you do not use the account as such, by ensuring each time you purchase something from them, you pay using your debit card as you did in the first instance. This way you remain within the terms of your IVA and also don't become tempted to buy things you cannot really afford.
I agree with the advice above - although I would like to stress although you have the 'ability' to have up to £500 credit facility, this is with your IP's permission and is normally agreed for essentials.
It could be they let you use it but don't do anything without telling them - you've come so far into your IVA it would be a shame to do something wrong now!
Thanks for all the replies, I don't intend to use the account, I was more worried they may do the old trick of increasing my credit limit to tempt me, thus taking me over the £500 limit.
I am confused how I got through the credit checks myself, last time I checked my file my score was only 340 so pretty poor!
I have 5 payments left so I am not going to ruin all that hard work now!
I had a next credit account which I have recently paid off. If you ring them and say dont want a credit account it can be closed and changed into a pay as you go style account meaning no preset credit but you can still shop online and pay for stuff using debit card as you order stuff rather than using credit facility. I find this still gives me flexibilty from travelling to a busy shop but keeps the reins secure as can only buy what you can realistically afford. Give customer services a call if youd rather not have credit facility. They are b*****s for raising the limit and not informing you. I had mine set for £1000 and every 6 months it crept up to £3600!!! i kept ringing to get it reduced and every few months as i paid it off it kept going up which is why ive now closed it!!!
Don't worry - common sense will prevail! If you clearly didn't want the credit line and don't use it our IPs will generally not make an issue of it.
At the moment we generally wrap up all the completion work and issue certificates in 4-6 weeks. So if all goes well you can look forward to being IVA free next summer (not that we are trying to get rid of you or anything, but you know what I mean!)
Well done on getting this far - IVAs do often feel like a long haul.
Best wishes for Christmas and a Prosperous New Year.
My BR is still showing on my credit reports and I have an account with Next - and they were one of my creditors! They have increased my credit limit to £1000 though!
