Defaults

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Jeano99

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Post by Jeano99 » Mon Apr 20, 2015 10:57 am
Morning all.
Maybe me just being a bit dumb but is it usual to default every month on accounts in an IVA. I've just looked at my credit report on noddle & it shows a default every month on each account. Also I have one from max recovery which is showing a balance higher than 3 yrs ago when IVA started. Thanks
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Foggy

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Post by Foggy » Mon Apr 20, 2015 11:33 am
Hi -- each debt can only be defaulted once. What you are seeing is the monthly update showing that the account is still in default.

As for the statement from Max Recovery, creditors often do keep a "tally" of interest that would have been due as the account is still "live", but these additions will be written off at the end, along with any of the original debt which remains unpaid.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Jeano99

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Post by Jeano99 » Mon Apr 20, 2015 12:25 pm
Thanks Foggy for clearing that up.
End is in sight #128512;
 
 

James83

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Post by James83 » Mon Apr 20, 2015 5:04 pm
Sorry to high jack this thread but if a full and final settlement goes through 20 months early then do these defaults come off around the same time or do they stay on there? I find this incredibly confusing :-/
Last edited by James83 on Mon Apr 20, 2015 5:06 pm, edited 1 time in total.
 
 

relieved33

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Post by relieved33 » Mon Apr 20, 2015 5:08 pm
Our iva started July 2009. It and the defaults will drop off this year, 6years from the start. The accounts show as satisfied but still show until 6 years from original start date. Full and final doesn't make them drop off sooner.
 
 

Foggy

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Post by Foggy » Mon Apr 20, 2015 5:09 pm
They stay there James -- all defaults remain on file for 6 years, as does the IVA. If you finish early they might be marked settled or partially settled, but will still show.

Have a read here:


http://pjgrecovery.com/clean-up-credit-rating.asp
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

James83

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Post by James83 » Mon Apr 20, 2015 5:12 pm
Oh really? so to go completely off topic here even though a full and final settlement has gone through you'd still have to wait the full 6 years until everything is wiped so to speak? Would you be able to have rebuild your credit rating during that time?

Thanks for the link Foggy, very informative reading :)
Last edited by James83 on Mon Apr 20, 2015 5:16 pm, edited 1 time in total.
 
 

Foggy

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Post by Foggy » Mon Apr 20, 2015 5:16 pm
Yes, you are stuck with the stain for 6 years. You can start rebuilding a healthy credit history by keeping everything up to date --- mobile phone providers often report to the agencies, so green ticks there, as do some banks and some utility companies. Once the completion certificate is in your hands you could, if so moved, apply for a Vanquis credit card, using it for small purchases every month and paying the statement in full every time -- more green ticks. Some don't bother and get through life after the IVA, but I would suggest every green tick helps :-)
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

James83

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Post by James83 » Mon Apr 20, 2015 5:24 pm
Yes I'm in agreement with you there, Foggy. I want to get my credit rating to a decent standing again. We're trying to move and have been told 5 times now that the landlords won't take a gamble on me as I'm in an iva. If I can get it completed and can show them the completion certificate I might be able to convince them im trustworthy. I feel there is a lot of discrimination when it comes to individuals and their iva's!
 
 

Jethro

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Post by Jethro » Tue Apr 21, 2015 12:49 pm
Does anybody know if you can actually improve your rating whilst waiting for the six years to be up?
I got my CC in December last year having finished early. 6 years won't be up until 2017. Came off the register in March.
Having made a start with the agencies I cleaned up what I could and I just check Noodle now because it's free. I have never moved off 1/5. My most recent update was yesterday but it's still the same.
I too have monthly reds from a credit card even though it was included in the IVA. The numbers don't change and the default date is correct but it doesn't look very good because of the reds. From what I can gather here I'm stuck with them until 2017 in which case I'm not likely to move from 1/5 with Noodle. I have no debts as such and I have accounts that show green and have for a long time.
The question I'm asking is do you think it's worth fighting to get a Vanquis or Aqua card if nothing's going to really change until 2017?
 
 

Foggy

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Post by Foggy » Tue Apr 21, 2015 1:11 pm
It's a matter of opinion, Jethro. On Noddle you will stay at 1/5 while the IVA is showing -- when that goes you will improve overnight.

But, on the day of the IVA disappearing you can either start going forward with, effectively, no credit history at all, which future potential creditors don't really like, or have a history of green ticks showing that you are a good, financial, egg.

If you are collecting green ticks already, then there is probably no need for a Vanquis card or the like.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

Jethro

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Post by Jethro » Tue Apr 21, 2015 3:24 pm
Thanks Foggy, I think I'll leave things as they are then. Like most people I just felt it could be another forward step but there's plenty of time between now and 2017 to get a card. I don't need one so if it's not effective there's no point. Yes I've always had my greens..lol. My Iva was HMRC based. The only other creditor was the card company from my bank who didn't get paid because they froze the account. I didn't owe anyone else. Annoyingly the card co never came forward to collect at the end anyway!..Maybe they're happy to just annoy me with the reds....Thanks again.
 
 

Foggy

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Post by Foggy » Tue Apr 21, 2015 4:51 pm
No worries, Jethro. In the end I gave in and applied for a Vanquis Card, purely for the extra consumer credit protection it offers for larger purchases.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
 
 

mole

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Post by mole » Tue Apr 21, 2015 6:17 pm
Noddle own rating assessment is a joke. I am still in an IVA, have 8 default accounts still showing, yet they say I am a 3/5 !!!! (a rating the define as likely to get credit at high street rates !)
 
 

Foggy

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Post by Foggy » Tue Apr 21, 2015 6:31 pm
All of the CRA credit scores / ratings are a joke -- they are merely a marketing gimmick to get you to sign up to monitor or improve this pie in the sky number. Potential creditors don't see it and make their own judgements on credit history and their own risk assessment policies.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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