It's been a while since I've logged on as we received our CC back in Feb this year. The support of this forum helped the 5 years go by quicker and less stressful than if I hadn't have found you guys!
Anyway, we have been counting down to the end of Nov this year which will mark the six year point and we can finally clean our credit history and switch back to a repayment mortgage from interest only (Ryan has also been a great help and will help with our mortgage when credit is back on track).
However, this week I received a mysterious debt collection letter which turned out to be for one of the credit card companies, that was included in our IVA. In the same week I've noticed that another debt collection agency called Mackenzie Hall has been carrying our credit searches on our credit files.
Can this be a coincidence? Please tell me I shouldn't have googled these companies but I am now reading horror stories of such companies purchasing debts even though they have been settled then adding new default dates just as they are about to drop off the register.
Surely this is not legal ? As if the IVA term is not difficult enough as it is?
I'm hoping that you guys can help advise us as I'm just scaring myself thinking the worst at the moment.
Thanks so much in advance
The problem with these companies is that they buy debts in "lots", like a job lot auction. They do not know what the debt is actually made up of and only pay pence in the pound. They are quite likely to be unaware that the debt is in an IVA and will need to be told, along with a request to remove any defaults.
That apart, according to Experian, a debt can only be defaulted once, so I would also contact Experian, if this happens, stating that this is the same debt already defaulted.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
Great advice ... you are fully protected by your iva, but fully understand the inconvenience of all this and the unneccessary worry. Hope you get it sorted x
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Hi Cleo76-
I hope you can get this sorted, but happy to help if I can.
Foggy - I have a client who has some issues with Experian and 2nd Defaults, do you have anything to prove they say you cannot have 2 defaults?
They don't say this when we speak to them.
Ryan Radford
IVA Mortgage Expert
Zebra Money Centre
IVA Mortgage advice needed? Looking at Right to Buy and completed IVA still on credit files ?
4th entry down: "Filing defaults with credit reference agencies". Which states (somewhere) that a default should be registered when the relationship between creditor and debtor has broken down ( in the case of an IVA the date of the arrangement). This infers one breakdown and therefore one default. It also mentions that, on the sale of a debt, the partied must agree which one is to be responsible for the default, which also infers that only one default is to exist rather than the new debt owner registering another.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
One of my defaulted accounts has been sold on to a debt collection company. This debt is now appearing twice on my credit file. Is this right?
If it is clear from looking at the two entries that they relate to the same account, with the same default date and balances and the original debt is clearly showing as settled then it is likely that we would consider this to be fair in terms of the DPA. However, if the entries are recorded on your credit file in a way that may look like they are two different debts, or that could make the debt remain on your credit file for longer than six years from the date of the original default it is unlikely that we would consider this to be fair.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
I should add that the primary function of the DPA is to ensure the accuracy of information held about individuals.
In this case the information would not be accurate because it does not fully reflect the relationship between the old creditor and the organisation that bought the debt.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
This type of credit file mis recording is more prevalent than people would think.
I haven`t yet finished my IVA but having had issues myself with strange searches on my credit file from DCA`s, and one creditor not defaulting an IVA included debt at all, and still refusing to do so after intervention from the relevant CRA and my IVA provider, I have researched a little on the interweb and have seen some horror stories too.
People need to keep a close eye on their credit files, it seems the optimum period for some creditors to `move on` IVA included debts is when the relevant IVA`s are nearing conclusion (hence they`ve had the full return from the IVA), so just when you think you are reaching the holy grail of getting back on track, some people are having major problems with unresponsive and completely disregarding creditors and DCA`s when trying to resolve credit file issues.
It may be many years after an IVA that a lot of people will actually be free of it after all.
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".
Thanks everyone. This is very scary. How can they sell on a debt that has been included in an IVA. At this rate we will be back in debt as we have been paying interest only on our mortgage for six years now. We are desperate to clean our credit files so we can get a repayment mortgage.
I am finding it really difficult to get any sense from some creditors. Barclays in particular. It looks as though Capital One has sold on our debt even thought it was included in our IVA. Can they add this to our credit file again?
