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Credit Reference File Clean Up Post IVA

edited 3 December 2009 at 12:40PM in IVA & DRO
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edited 3 December 2009 at 12:40PM in IVA & DRO
This information was originally posted by TalbotWoods on the 'Debt Questions forum'.

Many thanks to him for the excellent work and info.

This text may be edited to keep it up to date.

CREDIT REFERENCE FILE CLEAN UP – POST IVA

There seems to be a lot of questions around about what is a clean credit file and what is not, so in an attempt to clear up some of the confusion, here are some examples of what you should be looking for and what you can do if it is not like these:

Let us assume for this that the date of the IVA was the 1st April 2001 and discharged on 22nd November 2006

Key information that should be shown:

Default date MUST be NO LATER than 1st April 2001 (date of the IVA)

Settlement date (where shown) MUST be NO LATER than 22nd November 2006 (date of Discharge).

Experian (or CreditExpert)

Before clean up

Entry Number: C3
Name and address: MR FRED R JONES
10, LOWER ROAD, HIGHER TOWN, BANKRUPTCY CITY, DE3 TED
Date of birth: 02 February 1957
Company name: BARCLAYCARD
Account type: Credit Card / Store Card
Started: 22/01/2003
Default Balance: £3,582
Current Balance: £3,582
Defaulted On: 15/08/2003
File updated for period to: 12/11/2006
Status History:
(brackets indicate most recent status) [8]

After Clean Up

Entry Number: C9
Name and address: MR FRED R JONES
10, LOWER ROAD, HIGHER TOWN, BANKRUPTCY CITY, DE3 TED
Date of birth: 02 February 1957
Company name: BARCLAYCARD
Account type: Credit Card / Store Card
Started: 22/01/2000
Default Balance: £3,582
Current Balance: Satisfied
Defaulted On: 01/04/2001
File updated for period to: 02/04/2007
Status History:
(brackets indicate most recent status) [8]

Or

Entry Number: C9
Name and address: MR FRED R JONES
10, LOWER ROAD, HIGHER TOWN, BANKRUPTCY CITY, DE3 TED
Date of birth: 02 February 1957
Company name: BARCLAYCARD
Account type: Credit Card / Store Card
Special Instruction Indicator: Partial Settlement
Special Instruction Start Date: 02/2007
Started: 22/01/2000
Default Balance: £3,582
Current Balance: Satisfied
Defaulted On: 01/04/2001
File updated for period to: 02/04/2007
Status History:
(brackets indicate most recent status) [8]

Now with Experian this will mean that the account will come off the system 6 years from the default date

If the default date is LATER than your IVA commencement date, or the account is NOT marked as satisfied (including partial settlements) then is it INCORRECT and you will need to follow the advice in this post and amend the letter to suit the needs of the IVA:

http://forums.moneysavingexpert.com/showpost.html?p=7834441&postcount=2

Equifax

Before Clean Up

Name: Mr Fed R Jones
Date of Birth: 02/02/1957
Company Name / Insight Account Number: Barclaycard Centre XXXX XXXX XXXX 1809
Account Type: Credit Card
Terms: 0 @ £ 0 (Monthly)
Start Balance: £0
Current Balance: £3,582
Status: Defaulted
Credit Limit: £0
Date Updated: 08/05/2006
Start Date: 22/01/2000
Date Last Delinquent: 05/06
Date Satisfied:
Default Date: 08/05/2006
Default/Delinquent Balance: £3,582
Payment History: Lots of little numbers but the default one will be in May 2006.

After Clean Up

Name: Mr Fed R Jones
Date of Birth: 02/02/1957
Company Name / Insight Account Number: Barclaycard Centre XXXX XXXX XXXX 1809
Account Type: Credit Card
Terms: 0 @ £ 0 (Monthly)
Start Balance: £0
Current Balance: £0
Status: Settled
Credit Limit: £0
Date Updated: 15/06/2007
Start Date: 22/01/2000
Date Last Delinquent: 05/06
Date Satisfied: 22/11/2006
Default Date: 01/04/2001
Default/Delinquent Balance: £3,582
Payment History: Lots of little numbers but the default ( a red D ) will be in March 2006 and the Settled ( a green S ) will be in November 2006.

Sometimes but not always, the entry will be followed by:

Customer Account Status

Status: PARTIAL SETTLEMENT
Explanation: Payment received as a full and final settlement although the payment would not fully clear the balance.


Now with Equifax this will mean that the account will come off the system 6 years from the default date

If the default date is LATER than your IVA commencement date, or the account is NOT marked as satisfied (including partial settlements) then is it INCORRECT and you will need to follow the advice in this post and amend the letter to suit the needs of the IVA:

http://forums.moneysavingexpert.com/showpost.html?p=7834441&postcount=2


CallCredit


This is the least used of the CRF,s and they sell their information to a lot of the pay for your credit file companies, such as Annual Credit Report, Check My File.com, etc.

CallCredit is notoriously incorrect to say the least, so will form a separate section that will cover them and the main companies that they also sell to; so there will be several examples.

At present I urge people correcting their files to concentrate on Equifax and Experian and I will do an update when I get certain information back from CallCredit and the companies they sell to.

How Much Does It Cost Getting Them Updated?

Honest answer is very little:

You need to obtain your reports, which can be done on line or by post, the cost of the statutory report is £2

The cost of a recorded letter to each of your former creditors and/or debt buyers

After 2 months you need to check them again to ensure that the former creditors / debt buyers have updated

The cost of posting a complaint to the ICO if the former creditor doesn’t up date

So basically not a lot and hell of a lot cheaper that the companies that charge for this will charge you.

In my case I had 18 creditors so the total cost for me (using statutory reports) was £23.20, which was about 1/3 of the cost the nearest ‘Well do it for you’ company charged!!

How Long Will It Take Getting Them Updated?

From the time you receive your CRFs’ and send your formal request for the creditors to update.

Allow 28 days (plus about 14) for the files to update.

If they have NOT been updated after 2 months then raise the complaint to the ICO

The ICO is SNOWED UNDER so you need to allow them around 60 days.

Total time about 3 months

Why Should I Bother?

This is one that is asked periodically, well…..

Once the accounts are marked as satisfied and the account is correctly closed with the creditor / debt buyer.

They can’t sell it on to another debt buyer, so you won’t get hassled in the future, with DCA that won’t believe you have been in an IVA – There have been instances of this happening 4 – 5 years later where the files have not been cleaned

Your CRFs will automatically clean after 6 years from default/settlement date, so you will have a squeaky clean file from then. – There have been MANY instances where former creditors only close the account off several years after your discharge, thus knackering your CRF’s for many many years. In effect creating a very bad CRF for a lot longer than 6 years and in the worst case I have heard off a full 11 years!!!!!

Your accounts will be marked as settled in the meantime, which ADDS to your credit score

You will be able to rebuild your life much quicker

Peace of Mind!!!!

OK – So Who Do I Get My Files From?

I STRONGLY urge you ONLY to get your files from the Credit Reference Agencies and NOT from the sub agencies. The sub agencies buy their files from CallCredit and the information is often even more incorrect and out of date. Plus they charge hell of a lot more!!

Instructions for obtaining your files can be found here:

http://www.ico.gov.uk/for_the_public/topic_specific_guides/credit.aspx

How do I do this then?

Follow the advice in the following Sticky, you will need to amend the wording to reflect that you were in an IVA rather than bankruptcy:

http://forums.moneysavingexpert.com/showpost.html?p=7834441&postcount=2
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