font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by mowls17
So just had clarification from HSBC that my wife can continue to make payments to service the loan. However as its included in my IVA she will still be filed a default against this loan. Can they do that? What are the implications of this to my wifes credit score? I know my IVA will have affected it anyway but is this in anyway going to impact it further?
Just seems unfair that my wife will get a default even though she is willing to continue paying it.
Thanks
In order to file a default on the account, as I understand it, there has to be have been a default to the account, if she keeps paying it I don't see how they can file a default on this account in your wifes name, or indeed in yours - but that is just personal and not a professional opinion. They would need to be sending you default letters etc etc. I would still try and get it all in writing, so that if you need to argue it you can present this written information to the complaints department and the ICO.
My Blog details, the route I took before IVA, how I choose my firm, equity release advice (year 4-5), challenging the CRA's keeping IVA on credit file once gone from insolvency register
IVA ended August 2015. Would recommend McCambridge Duffy
It does seem a bit strange but I am no lawyer either. I can understand why a default would be registered against Mowls as he has entered an IVA and therefore defaulted his agreement. His wife however has done neither so why is it marked against her? I do not have a clue.
Thanks for your advise. I guess I will be going down the complaints route once a default is filed so I will keep everything in writing.
Just when I thought everything was under control another spanner in the works! I appreciate this is HSBC's policy but it doesn't seem fair, especially when one party wants to continue paying.
Citizens advice bureau and once complaints procedure is exhausted the ICO. You could always write to them and ask if this is their final position and if you have now completed the complaints procedure such that you may progress this to the Information commissioners office (ICO) and FSA, financial ombudsmen, in sure both would take an interest in this viewpoint your lender has taken. Such a letter might make them sit bolt upright and re-assess.
The simple question you want to ask them in writing is to provide the terms which demonstrate they may mark your wives credit file as defaulted on a payment when there has been no default to the account and been paid on time with one exception (unless there was no payments since then and the account. Went I to default) ?
Last edited by longslog101 on Fri Oct 23, 2015 1:00 am, edited 1 time in total.
My Blog details, the route I took before IVA, how I choose my firm, equity release advice (year 4-5), challenging the CRA's keeping IVA on credit file once gone from insolvency register
IVA ended August 2015. Would recommend McCambridge Duffy
Very similar to our situation so hopefully we have some grounds for complaint if they do default my wife. Appreciate the advice about making sure things are in writing so we will be doing that from now on.
Good luck Mowls, glad to hear they have seen sense and allowed the payments to continue. I wonder if the default to her is because she hasn't been making all the payments? (Didn't you say these stopped when you started your IVA?).
Yes that's right we missed one payment whilst the IVA was being set up so we do think they are referring to that however my wife has since paid these arrears and brought the account up to date so she will continue to pay on time each month and i guess we will just have to see what happens. But I am assured to know that we do possibly have grounds to fight this if they do go down the default route.
Grreat Research and a cracking result finding that finding. I have reproduced it below for ease, of there was ever any doubt...there isn't now, sit back and wait for your wifes compensation [8D][:D]
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Mr and Mrs R had a joint loan. After they separated, both their names stayed on the loan – but Mr R stopped paying his contribution, and Mrs R made the full loan repayments herself.
Six months later, Mr R was struggling financially and entered into an Individual Voluntary Arrangement (IVA). Mrs R called her bank to find out whether her husband’s IVA would affect her. The bank reassured Mrs R that as long as she continued to make the full loan repayments, her husband’s IVA would not have any effect on her credit file. However, the bank went on to record a default on Mrs R’s credit file in relation to the loan account.
When Mrs R found out what had happened, she complained to the bank. She pointed out that the bank had told her that she wouldn’t be affected by her husband’s IVA – and that nothing would show up on her credit file.
The bank accepted that they’d made a mistake when they told Mrs R that her credit file wouldn’t be affected – and they offered her some compensation to make up for their mistake. But they said they’d acted correctly when they recorded the default on her credit file – and refused to remove the default on her account.
Mrs R complained again – saying that she thought the bank wasn’t treating her fairly. When the bank turned down her complaint, she asked us to step in.
complaint upheld
We needed to establish whether the bank had acted fairly and reasonably when it recorded a default on Mrs R’s credit file. The bank told us that they couldn’t report different information for the individual holders of a joint account – and so it was their policy to record a default on the credit files of both account holders when one of them entered into an IVA. Because of this, the bank said that Mrs R’s credit report had to show a default if her husband’s credit file showed one.
We noted that Mrs R had made all the monthly payments on her loan. So we took the view that it wasn’t fair for Mrs R to have a default recorded against her just because the bank had limited ways of recording information with the credit reference agencies.
In these circumstances, we told the bank to make sure they found a way of removing the default from Mrs R’s credit file – and to pay her additional compensation for the trouble they had put her to.
Last edited by longslog101 on Fri Oct 23, 2015 11:26 am, edited 1 time in total.
My Blog details, the route I took before IVA, how I choose my firm, equity release advice (year 4-5), challenging the CRA's keeping IVA on credit file once gone from insolvency register
IVA ended August 2015. Would recommend McCambridge Duffy
