This is the response I got from site expert regarding lenders registering defualts after IVA has been put in place.
Victoria (Credit Analyst) said:
Hi Karen
Thanks for your message.
Your credit accounts will remain on your credit file irrespective of your IVA. Your credit file will display the actual status of your accounts, as reported by the lenders to the credit reference agencies. As such, any late payments or defaults will be reported even if you have entered into an IVA. Typically the credit accounts will remain on your credit file for 6 years from the date of default.
After your IVA has been settled you can request your lenders show the account as settled. Some lenders will mark the defaulted account on your credit file as ‘settled’ or ‘satisfied’, although it is entirely up to their discretion whether they do this or not, as technically the accounts have not been settled in full. Some lenders mark the account as closed by ‘partial settlement’.
I hope this helps to clarify the situation but should you have any further queries please get in contact.
Regards
Vicki
annualcreditreport.co.uk
On the slow safe road to success. Personal thanks to Melanie Giles Kallis Skippy Elv5 and all the other wonderful forum friends.
Thanks for the post Kabby, however I am still unclear whether there is a real issue here. As most people on here my life is on hold during the IVA and I was hoping to move house at the end of the term and want the best possible deal open to me.
You posts seem to suggest that at the end of the term of the IVA some creditors may update the credit file to satified/complete/closed (all of which are negativly viewed when applying for more credit?)
I'm confused to xx!!! My credit file looks like a terrible accident basically on the file all of my lenders CC and loans have either marked the file satisfied or closed. But two EGG and Lloyds are still putting it at default every month since the IVA so on the calendar each month there is big D so I have since May 2005 nearly 4 years of D's where by all other Lenders the calender is empty...my concern is why they are still updating the calender with D's when LLoyds were my main creditor and agreeded to the IVA, where is David Mond when you need him?? He would just say if this is right or wrong!! I am a panicker and just dont want to finish IVA (I'm scared of coming out of it) felt safe and very happy in it and find that the last D on the calender will stay for another 6 years. My IVA is due to concluded May 2010 (2011 if I have to pay another 12 months in lieu of Equity). I would then have a default on my file until 2017??? I would be ever so old and grumpy by then!!!! sorry for the ramble xxx
On the slow safe road to success. Personal thanks to Melanie Giles Kallis Skippy Elv5 and all the other wonderful forum friends.
But the point is that creditors should not be putting defaults on customer's files once an IVA is in place. Once they have accepted a compromise, they have accepted that the account can no longer be defaulted.
No need to apologise kabby, everyone has a genuine concern here, although some comfort from Melanie's post seems indicating this is not a common problem. However, the fact that it is not very common does not help if it is you that it affects.
David over in Rome so doubt we will see him posting until weekend. I got a letter this week from Egg telling me they are going to register a default on my file (even though this is post creditors meeting). Do I write to complain? Not sure, will wait for guidance from the board.
Well I think I have got to the bottom of the problem!! You really need to check with Equifax and Experian I have just done this on line and I can see all my accounts are as they should be!!Defaulted May 2005 BIG RED D!!! Becareful using other sites because the buy info from the "Big Agencies" and it does not always give the correct info! Hope this helps xx
On the slow safe road to success. Personal thanks to Melanie Giles Kallis Skippy Elv5 and all the other wonderful forum friends.
Hi All
Just to add my two pence here! We have been in an IVA for 20 months now! and i've looked at our credit report today and we have defaults registered by all our creditors every month since we entered into the IVA - One Cahoot even charges my husband £30 per month for late payment which they kindly tell us about each month they send him a new default notice. I've told our IP customer service department about this charge but just got the response that some creditors do register defaults each month.
So I hope something can be done otherwise it looks like 2018 before they drop off our credit files!
Best wishes
Rainbow
Every Cloud has a silver lining. At the end of the Rainbow is a Pot of Gold - Or Hope!
The Creditors are not allowed to do this as once the IVA is agreed they are bound to it, however does not stop them. Just let them keep adding them and when you come to the conclusion of the IVA write to them and ask them to remove it/change the dates
Rayb - if creditors are not allowed to do it and they do - any idea as to whom one can write to in order for them to be stopped. These people seem to think they are above the law.
Fergie - one has just done the same to me! They are not supposed to do it. B/C told me they will still be adding charges - well they won't get them! I don't know if the FSA can do anything - anyone any ideas please?
Hi
Vicki from the credit report company states that a default will be removed six years after it is registered, no problem and exactly as we expect. However the question is if creditors mark your account as defaulted each month, after the initial default, does the report end after the initial six year period or does it stay on your file six years from the LAST monthly report of a default [this could be many years after the first default was registered and the point that James was making] ?
Regards
just been told by Experian that complaint should be made to the Banking Ombudsman and if that does not work then one should write a note of correction (!) not exceeding 200 words with a request that it be placed on the credit file.This can only be done following completion of the IVA
