I've just paid £5k to settle my IVA (hurrah!) however, it's not that simple. Very long story short, my original IP went on the run after re-directing his clients' funds into his own bank account - true story. The IVA was taken over Grant Thornton and I've just paid them the £5k. However, because they are claiming against the other IP's bond to try and claw back missing funds, they can't 'complete' my file. As you can imagine, this is very frustrating as I'm technically no longer in any debt but I'm not reaping the rewards. My questions are these: Do I have to wait until I have my certificate of completion, or can I start rebuilding my credit rating gradually with things such as Vanquis card or mobile phone contract? I don't want to apply for something, be rejected and make matters worse!
I should point out that my need to re-build my credit is business related, not for personal spending. I've got a full grip on that nowadays. All help appreciated as GT are not helpful or communicative and I'm in limbo. Cheers everyone
When did your IVA start ? technically you are not allowed to take credit until your IVA has actually concluded, you just need to chase GT on a regular basis.
I don't believe I am hearing this! An IP running off with client funds? An absolute disgrace, but glad to see you are in better hands now.
I once had the fortune to take over some cases on a similar basis, and it took nearly six years to get the bond insurers to make a decision about paying out - in the meantime there was no mechanism for me to close the cases.
Personally, I see no reason why you cannot apply for low level credit if you have complied with all obligations under the IVA, however you will need to seek your Supervisor's permission which should not be unreasonably withheld.
Thank you for the replies. The IVA was originally taken out in 2008, however for approx 14 months he was re-appropriating the funds.
Melanie, that's not good news! I guess I thought that having a full and final settlement agreed would speed things up. GT have given me no indication that things could take that long.
So, in your opinion, I could apply for something like a Vanquis card with the permission of my supervisor? Would I not be automatically rejected because the IVA is still technically live?
It's very urgent that I make some progress with this as I now own my own company. The business is doing well, but obviously I've not been able to get business credit because of my situation. That has been fine until now, but we've grown and taken on staff and we now need the flexibility of credit so I need to take steps to re-build.
I guess the problem in your case is that you have fully complied with the terms of the arrangement, however your IP has to pursue the misappropriated monies, and to do that he needs to remain in office.
I don't know whether you would be rejected for forms of credit now, and perhaps you can only find that out if you actually apply.
There really does need to be some mechanism which discharges people from their IVA when they have done all they need to - as would happen in a bankruptcy. It is not fair that people's credit ratings are being affected, when they have done everything they originally promised to do to repay their creditors - especially when a crooked professional has been involved.
Thanks again for the replies. Finally got a reply from Grant Thornton, usual robot response:
"I can confirm that your IVA must be fully implemented/concluded before the personal insolvency register can be updated. As you are still registered as having an IVA it is possible any requests for credit may be rejected.
As advised in paragraph 3.9 of my recent report to creditors I am not able to give a definitive timescale as to when the bond claim will be settled. The matter of the claim being settled is not within my control, it is in the hands of the insurance company."
Do you think it would be worth me making a formal complaint? Would taking something like this to the Ombudsman yield any results? It seems crazy that I've just paid £5k to settle this and that actually I'm NO further forward and may not be for years to come.
You cannot complain to the Financial Ombudsman about an IVA - the only route to complain is via the IPs own regulatory body - and on face value they are not doing anything wrong, regardless of how annoying this must be for you.
