How will an IVA impact your credit rating ?

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MRBLUESKY

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Post by MRBLUESKY » Mon Sep 13, 2010 6:25 pm
going by my file with several creditors,ive found aprox half have added defaults upto my iva being completed.so i believe this will be a common problem, where after the 6th year there will still be defaults if not challenged.also some companies add a [arr] in black (arrangement)post iva until completed,then these wont drop off for a further 6 years.in my experience your credit file wont be clear until you have done some work by contacting creditors when the 6th year of your iva is up.i think this needs addressing by the government.
Last edited by MRBLUESKY on Mon Sep 13, 2010 6:30 pm, edited 1 time in total.
 
 

kallis3

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Post by kallis3 » Mon Sep 13, 2010 6:37 pm
Once the IVA is completed then all defaults etc from post agreement have to be removed.

You need to send a copy of the completion letter to those creditors and tell them to remove those defaults.

It's nothing to do with the government.
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MRBLUESKY

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Post by MRBLUESKY » Mon Sep 13, 2010 6:43 pm
it does,nt state that in the terms and conditions of a iva,and ip companies dont advertise that information on there web sites.
 
 

kallis3

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Post by kallis3 » Mon Sep 13, 2010 6:52 pm
It doesn't but it's also not down to the IP. They send out details of your completion to the creditors. If there are any problems with your credit file after that then it is down to you to sort out and I don't have a problem with that.

If we didn't take some responsibility for our own credit records then our IPs would spend more time sorting things out post IVA than they do supervising the arrangement.

How many of us read the terms and conditions anyway?
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.
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MRBLUESKY

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Post by MRBLUESKY » Mon Sep 13, 2010 7:14 pm
i think that is a big problem.if there is a pattern with creditors not updating credit files acurately with debtors,that could be seen as discrimination.the responsibility of credit files is between the creditors and credit file agencies. published false information is illegal,so should be addressed by the laws which are billed by the government and sanctioned by our queen.the credit file agencies are responsible for the information they publisize,not the public.
Last edited by MRBLUESKY on Mon Sep 13, 2010 7:17 pm, edited 1 time in total.
 
 

kallis3

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Post by kallis3 » Mon Sep 13, 2010 7:28 pm
We're going to have to agree to disagree on this one.

The defaults are not false information. You will always owe the full amount to your creditors until IVA completion. Then they should be removed, and if it is down to us to sort out in the end, then fine. I can't see what the problem is.

However, it is nothing to do with the government.

The CRAs go by the information supplied to 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.
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MRBLUESKY

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Post by MRBLUESKY » Mon Sep 13, 2010 7:34 pm
defaults post iva are false information.
 
 

MRBLUESKY

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Post by MRBLUESKY » Mon Sep 13, 2010 7:37 pm
i will agree not to add any more to this post as it is not in the interest of the forum.
 
 

kallis3

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Post by kallis3 » Mon Sep 13, 2010 7:39 pm
No they are not. You will always owe the full amount to the creditors until completion.

Until your IVA is completed then you are defaulting every month which is why most people, myself included, don't bother to alter things.

Once the IVA is completed then they have to remove them so that is why you should write to them to tell them to remove said defaults.
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
 
 

Skippy

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Post by Skippy » Mon Sep 13, 2010 7:45 pm
I think dragging the Queen into the argument is going a bit far! [:D]

Seriously, as Jan says until an IVA is settled and the certificate of completion is received the full amount of the original debt is still owed.

IPs are busy enough without having to sort out everyone's credit files, and it really doesn't hurt to take a little responsibility for ourselves now and then.
 
 

MelanieGiles

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Post by MelanieGiles » Mon Sep 13, 2010 8:04 pm
It simply is not the IPs job - and we would never wish to become involved in this nor would we be paid for the additional work either. Although we should always be able to help any of our former clients who are really struggling with one or two errant creditors.
Regards, Melanie Giles, Insolvency Practitioner
 
 

TheMatrix

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Post by TheMatrix » Tue Sep 14, 2010 6:18 pm
Creditors have a obligation under the data protection act to ensure the data recorded at the CRA's is factually correct.

Your accounts with them are technically in default up until the point when you owe them nothing under the IVA. So they can show the account as being in default every month.

They are reporting the state of the account at the time.

However, if they refuse to back date the default date if it is incorrectly registered, to the the start of the IVA, after you have ask them to they are in breach of this act.
We're willing to wipe the slate clean, give you a fresh start. All that we're asking in return is your cooperation.
 
 

Adam Davies

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Post by Adam Davies » Tue Sep 14, 2010 7:58 pm
Hi
It is all a bit of a mine field in my opinion.
A default is usually just registered once on the credit file and this should be before or just after the IVA starts. The fact that it sits there for six years should mean that creditors don't need to report it each and every month. Technically you are in default until the debt is paid or written off so there is an arguement that creditors are within their right to report this to the credit agencies.
I left my file alone and waited for everything just to drop off, I think you possibly can make things worse by contacting the agencies to inform them that your IVA is completed.
I do think that the government has a duty to make sure that any information held on an individual by agencies/insolvency register is correct and that Joe Public has the right to a fresh start once they have fullfilled their obligations.
Regards
Andam Davies
 
 

kallis3

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Post by kallis3 » Tue Sep 14, 2010 8:07 pm
Lombard Direct have defaulted me since day one. I shan't do anything about it until I've completed but I will expect the creditors to correct the information on my record as soon as they are informed that I have completed.

I personally don't think it is down to the government to make sure the CRA information is correct. It's not a public record, unlike the Insolvency Register.
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
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