creditors registering defaults after IVA has started?

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simon.ms

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Post by simon.ms » Thu Jun 10, 2010 2:42 pm
Hi- I've been in an IVA for about 6 months now and am still receiving default notices. Can a creditor register a default after an IVA has started? If not, what can I do about it?
 
 

rayb

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Post by rayb » Thu Jun 10, 2010 2:51 pm
Hi Simon,

No they cannot as they are bound by the IVA and are wasting there time and to be honest do not worry about it as your credit is shot to pieces anyway for 6 years.

If it matters that much I would get in touch with your IVA Company and get them to deal with it - after all that is what you are paying them for.
 
 

kallis3

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Post by kallis3 » Thu Jun 10, 2010 2:55 pm
One of my creditors is defaulting me every month. I'm not bothering about it at all until my IVA is completed, and then I will be writing to tell them to remove said defaults.

As Ray says, your credit rating is shot for 6 years so no point worrying at the moment.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
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Michael Peoples

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Post by Michael Peoples » Thu Jun 10, 2010 2:58 pm
Depending on how quickly the IVA was put in place it is possible that the accounts did not actually go into default until after approval. I believe that the creditors are within their rights to default these accounts but regardless it does not really matter for at least five or six years.

Sorry Ray but I have to disagree. I do not think it is up to your IP to question when creditors issue default notices unless they are taking legal action or hassling you. Your IPs job is to administer the IVA and supervise the arrangement agreed between you and your creditors. The IP is not responsible for cleaning up a client's credit file.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

rayb

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Post by rayb » Thu Jun 10, 2010 3:11 pm
Hi Michael,

Surely if a creditor is still issuing defaults 6 months in to an IVA that is harassment and as such you should contact your IVA provider to get in touch with the creditor to get them to stop sending letters?
 
 

kallis3

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Post by kallis3 » Thu Jun 10, 2010 3:22 pm
Personally, I would either just shred them or write to the creditor to explain about the IVA and tell them they are harrassing you.

Although I am being defaulted every month, I don't get letters, it just shows up on my credit report.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

Michael Peoples

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Post by Michael Peoples » Thu Jun 10, 2010 3:48 pm
Creditors must issue defaults in line with the terms and conditions. The defaults will stay on file for six years regardless of when the IVA was approved. I do not believe this to be harrassment unless they are telephoning or threatening legal action.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

kallis3

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Post by kallis3 » Thu Jun 10, 2010 4:32 pm
Surely they should not be sending you letters every month though? Mine don't, I just know they are doing it.

It wouldn't bother me the letters coming, they can't do anything to me so I'd just hit the shreddern with them.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

Shining

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Post by Shining » Thu Jun 10, 2010 4:37 pm
I've not checked my credit file and won't do until 6 years past acceptance date when hopefully I can get it cleaned up a bit and will then contact creditors to remove any issued after acceptance date. No letters here either. x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

Michael Peoples

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Post by Michael Peoples » Thu Jun 10, 2010 4:43 pm
If the same creditors kept sending default notices every month that probably would constitute harrassment but just because they default the account after the IVA has been approved means nothing at all.

Getting letters after the IVA is approved is par for the course anyway as it does take time for systems to be completely updated and worrying about it now is a bit pointless.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
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If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
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