www.iva.co.uk

Hi all

Wanted to post this as thought it might give some of you hope. I posted a while ago as I found myself in an unusual (and totally rubbish) situation. In a nutshell: my original IP absconded with my money (true) and although I've now issues a full and final to my current IP (Grant Thornton) they are unable to close my IVA or issue me with a completion certificate until they successfully claim against the rogue IP's insurance bond. Leaving me £5k out of pocket and no further forward in the quest to re-build my credit. I've been complaining bitterly about this to anyone who will listen and eventually GT said that because the situation wasn't my own fault they gave me 'written permission to apply for credit'. Great! Except they then warned me I'd probably be knocked back. With nothing to lose, I've just applied to Vanquis and have been accepted. This is amazing news, because settling the bond on the other IP might take YEARS, so I'd have had to wait to rebuild my credit. I'm not suggesting you all rush out and get a credit card, but thought this might help those who have absolutely played it by the book and are still waiting to be given their certificates so they can move on. I have been accepted with a LIVE iva and my credit rating must have been terrible as I have not had any credit for almost 5 years - not even a phone contract. Either way, hope that helps some of you!

sounds like you've had a rough trip. I got myself a Vanquis card when my IVA finished and still use it, been recently upgraded to Gold...I always purchase something each month and pay it off in full.

Hi

They are a good company, yes it's a high APR but if you clear it each month then it will not cost you a penny

Good luck

Regards

I've just received my gold "upgrade" today Lesley! I just spend a little each month on it (don't need to, just want to prove I can pay it off), have the full amount taken straight from my bank each month so hopefully my credit worthiness will soon be the best it can be ( once I manage to sort out the credit files). We need a new car soon so hopefully we will be able to get a "normal" rate APR if our credit ratings are good. Saving hard for a deposit too so our loan will be minimal. Being in an IVA has taught us a wonderful lesson [:D]

Same here Tinks taught us a wonderful lesson too. I would like a new car one day, just not ready for that step yet but needs must so I know this won't last forever. x

Gazzio,

What sort of credit limit do they allow you? (if its not too rude a question)

I had an application from them land through the door yesterday but I tore it up and binned it without reading it. (Force of habit)

My credit limit is £1750, I do keep meaning to get this lowered but to be fair I'm never tempted to use it, think it started at £500 originally.

£500 here too for the starting amount. Just gone to £1750 but I'll not use that! That's one reason why I pay the full amount by D/D - so I'm never tempted to use more than I can afford to pay in full each month. Having no overdraft facility is wonderful!!

It really is great to see you guys rehabilitating yourselves back into the financial world. Best of luck to all of you.

My limit is now £3000.

Has anyone contacted vanquis to get them to lower the APR from the starting point? I just wondered if at any point they reward credit worthyness with a better APR.

Paul

...I'm still in my IVA, and Vanquis have just notified me that they are increasing my limit to £2,000!!! (Started at the £500 limit 12 Months ago that my IVA allows, then went up to £1,000 after 6-Months).

...Not responsible lending in my book, not that I will be irresponsible enough to abuse that limit, but let's face it, some customers would be tempted.

just a little word of advice uptomyneckinit....I believe those in an iva are only allowed £500 credit and usually just for things like mobile phones etc.....unless agreed with your ip....in which case tell me to mind my own !!!

I've never asked for a reduction in the APR as yet as never spend much on it and always pay off in full so the APR is irrelevant to me but interesting point.

Hi crazyjoe90,

I would never be rude enough tell anyone to mind their own.

Actually, your advice is sound, and demonstrates that you are mindful enough to read the clauses in your IVA. Failure to do so on the part of some IVA customers is undoubtedly the cause of the majority of the IVA problems that we read about.

It is worth pointing out as well that not everyone has a £500 credit limit in their IVA. Of those that do, with some it is reserved for the items that you state. However, my credit limit clause is worded:

'Apart from my self-employed liabilities, I propose that I shall not incur any credit greater than £500 during the course of my IVA except in relation to domestic utilities and to re-finance a balloon payment at the end of a vehicle Hire Purchase Arrangement without prior written consent of the Supervisor. Should credit greater than £500 be obtained without prior written approval of the Supervisor, this will constitute a breach of the Arrangement'.

I interpret the above as meaning that I can obtain any credit I want for my Ltd company (self employed liabilities). Additionally, I can take out £500 in personal credit AND have credit for 'utilities' on top of that. It's only if I 'needed' to borrow more than £500 that I would have to seek consent.

Other £500 credit clauses do not make an exception for utilities etc. In which case your interpretation would probably be the best one.

Subtle differences in the wording of this clause have a great impact on what an IVA customer is/is not allowed to borrow. Each IVA customer needs to check their own IVA VERY carefully before accepting credit, double-checking with their IP if in any doubt.

I don't think there is an issue with the £2K credit limit I have been offered with Vanquis. It is only if I accept it by going over my £500 allowance that I risk breaching my IVA agreement.

Ah I understand.....I just assumed it was a standard condition on an IVA. I shouldn't assume !!! On the good side I'm hoping an offer of F and F payment will be approved this week and therefore will be looking at improving the old credit rating some time afterwards so will take a look at Vanquis in the near future !!