Sold out debt still being added to my credit file after IVA completion

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kerry308
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by kerry308 » Sat Apr 07, 2018 5:47 am
I entered into an IVA in 2013 Brighthouse/Caversham Finance has sold a debt onto Tocatto Ltd. Which was included and accepted by the IVA. The IVA finished in 2016 December with full and final payment which was also accepted by a creditors meeting.

Brighthouse are still adding defaults to my credit file, despite tocatto receiving their funds from my IVA. I’ve raised a complaint with the company which has not been upheld and it’s currently with the ombudsman and also I have added a notice of correction to the file.

If Brighthouse sold this to a debt collection agency then technically I owe them nothing? And 5 years later I shouldn’t still be receiving fresh defaults each month. Am I correct?
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kallis3
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by kallis3 » Sat Apr 07, 2018 7:56 am
Your credit file won't clear until next year when the six years are up and all defaults should drop off. In the meantime you could send a copy of your completion letter to the creditor and ask them to put defaults back to the start of the IVA and next year they will drop off.
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Foggy
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by Foggy » Sat Apr 07, 2018 8:08 am
These are not fresh defaults -- they are simply a record that the account is still in default and will appear monthly until the 6th anniversary of the date of the default, which should be on or around the date of the start of the IVA. When a debt is sold on, sometimes the original creditor retains the right to report the debt to the CRA's and sometimes they transfer that right to the new debt owner, who then will report the old default -- they cannot add a new default --- each debt can only be defaulted once.

Have a read here: https://www.iva.co.uk/what-does-an-iva- ... dit-record
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kerry308
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by kerry308 » Sat Apr 07, 2018 8:13 am
kallis3 wrote:
Your credit file won't clear until next year when the six years are up and all defaults should drop off. In the meantime you could send a copy of your completion letter to the creditor and ask them to put defaults back to the start of the IVA and next year they will drop off.



No I’m aware of that, however when the iva finishes in 2016. For the months that followed until now, the account has been closed so no FRESH defaults should be added.
I have a default added even this month. I fully understand that while the account was in default those will remain on for 6 years after the date.

My question really was, should this company have been adding defaults when they sold the debt to a collection agency and the collection agency has been paid?
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Foggy
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by Foggy » Sat Apr 07, 2018 8:20 am
kerry308 wrote:
kallis3 wrote:
Your credit file won't clear until next year when the six years are up and all defaults should drop off. In the meantime you could send a copy of your completion letter to the creditor and ask them to put defaults back to the start of the IVA and next year they will drop off.



No I’m aware of that, however when the iva finishes in 2016. For the months that followed until now, the account has been closed so no FRESH defaults should be added.
I have a default added even this month. I fully understand that while the account was in default those will remain on for 6 years after the date.

My question really was, should this company have been adding defaults when they sold the debt to a collection agency and the collection agency has been paid?


These are not fresh defaults. Each debt can only have one default, which gets reported each month if the creditor decides to. Of my creditors, about half reported monthly, the others just went quiet, but the original default still showed.
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Lisa Thomas
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by Lisa Thomas » Mon Apr 09, 2018 8:24 am
Defaults should be backdated to start date of IVA.

Once the 6 year anniversary mark passes get any creditors left to adjust the default dates accordingly.
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kerry308
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by kerry308 » Mon Apr 09, 2018 8:33 am
I understand all that about how it works and the time frame. However my IVA is finished in 2016. And the defaults are still being added each month (to date) despite me not owing the company any money. The account also shows as open, when it is closed.

Foggy wrote:
kerry308 wrote:
kallis3 wrote:
Your credit file won't clear until next year when the six years are up and all defaults should drop off. In the meantime you could send a copy of your completion letter to the creditor and ask them to put defaults back to the start of the IVA and next year they will drop off.



No I’m aware of that, however when the iva finishes in 2016. For the months that followed until now, the account has been closed so no FRESH defaults should be added.
I have a default added even this month. I fully understand that while the account was in default those will remain on for 6 years after the date.

My question really was, should this company have been adding defaults when they sold the debt to a collection agency and the collection agency has been paid?


These are not fresh defaults. Each debt can only have one default, which gets reported each month if the creditor decides to. Of my creditors, about half reported monthly, the others just went quiet, but the original default still showed.
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Lisa Thomas
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by Lisa Thomas » Mon Apr 09, 2018 8:36 am
If you are really concerned about this then contact them now and remind them that the defaults should be backdated to day one.

Personality I wouldn't worry about any of this until the 6 years has passed then you can tidy it up.
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kallis3
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by kallis3 » Mon Apr 09, 2018 8:38 am
As has been posted - not fresh defaults, just updated every month and will drop off. Contact the creditor again and ask them to adjust your record to show closed.
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Ryan
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by Ryan » Mon Apr 09, 2018 8:44 am
Hi Kerry,

The most important factor is the default date - this will be shown on the credit report. As has been previously said the Account will fall off the reports 6 years after the Default date.

Regards
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plasticdaft
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by plasticdaft » Mon Apr 09, 2018 8:56 am
Which ombudsman is the case with?

Have you used the ICO??

Paul
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