Will defaults drop of credit file with IVA?

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sarah955
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by sarah955 » Wed Feb 28, 2018 1:40 pm
Hello, I started an IVA 27/2/12, and paid this off in full in 04/15. The IVA dropped off yesterday( need to check next credit file in March most likely to confirm), however my query is about the defaults. Can you please confirm if the defaults are meant to be added once at the start of the IVA and that is it until settled/completed in full, or if the last 6 years of defaults drop off automatically with the IVA record, or if creditors from day 1 keep adding defaults monthly during the IVA resulting in 50+ defaults showing per account? I would like these all removed but want to know the correct legal/financial information..
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MerlinL14
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by MerlinL14 » Wed Feb 28, 2018 1:44 pm
6 years from official start of IVA is when all should drop off, however it may take a few letters to get the 'lazy' creditors to conform to the rules.
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sarah955
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by sarah955 » Wed Feb 28, 2018 2:05 pm
Thank you Merlin.

So that should be every default dropped off and no longer on any report ? Is it also right that the accounts from within the IVA should also no longer be showing under the closed accounts section ?
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Foggy
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by Foggy » Wed Feb 28, 2018 2:17 pm
The crediotrs are not reporting new defaults every month, they are stating that the default is still active --- there can only be one default per debt. The default date should be on or about the start date of the IVA and the whole lot will drop off on the 6th anniversay of the default. Have a read here: https://www.iva.co.uk/what-does-an-iva- ... dit-record
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MerlinL14
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by MerlinL14 » Wed Feb 28, 2018 6:25 pm
sarah955 wrote:
Thank you Merlin.

So that should be every default dropped off and no longer on any report ? Is it also right that the accounts from within the IVA should also no longer be showing under the closed accounts section ?

Pretty much, yes. Be aware though that your credit record will be bare, this is as much a red flag to lenders as having defaulted accounts. Build your credit score with care, do not take out Pay Day loans. Do not apply for credit that may be refused as the search will remain on your report for a long time, as rejected application. Use Clear Score and Noddle to do soft searches on any credit cards you may wish to apply for, those credit agencies have masses of help and information on how to build your score and how to save getting into a debt trap in the future, they are free.
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