Advice please: default on credit record - 1 year post IVA end

ianto703

IVA started in Nov 2005 and unsecured part of Nothern Rock 'Together' mortgage (£900) was included. In May 2006, fixed rate came to end and was offered same rate for another 3 years on same 'together' mortgage which included £1000 unsecured loan, which had to be taken as part of the acceptance even though I stated it wasn't required. In Nov 2010 IVA extended for 1 year with increased payments at meeting of creditors as unable to get equity release. IVA ended 1 year later and competion cert received. On checking credit files, have found default from Northern Rock dated Nov 2010 for unsecured loan part of May 2006 fixed rate deal. No payments were missed from May 2006 to Nov 2010 and at no time was I queried or consulted about the 'new' unsecured part of the mortgage being included in any extension to the original IVA. How can this default be removed. Any advice please, as still being affected 7 years on.

Foxy-Stoat_3

I would call/write to NR for details of the default, you may of missed a payment without knowing.

I would dig out all paperwork first tho so you know the date of the agreement and date of first, second and all further payments and check that these went out of your bank on time. Check your bank statements, if you bank online then this should be very easy.

Maybe the last payment for the old deal in November was cancelled and the new deal's first payment was taken ok, but NR didn't update their records at the time.

NR have to update the records if you have genuinely not missed a payment.

fermi

So for clarity, does this relate to the original unsecured loan that you say went into the IVA? Or the newer unsecured loan that you say didn't?

If it is the one covered by the IVA then a default is correct, but it should have been dated back when your IVA started and have now been removed from your file.

ianto703

I assume it's for the newer unsecured loan as they stopped taking payments for it in December 11 - didn't notice and query as they were included in monthly mortgage payment. Up until that point all payments had been made since it had been given in April 06. The old unsecured loan was included in the IVA in Nov 2005.

Foxy-Stoat_3

Think your better off finding out exactly what the default is for, when it was supposed to be paid and check it see if your account had the funds on or around the payment date and go from there.

UpToMyNeckInIt

This seems to be quite a common problem - credit files not being updated promptly. I have come across this standard letter (tweak the text as required) which you may find useful (to send to the creditor):

'Data Control Officer
This Creditor
Data Controller Address


Dear Sirs

Re: Account Number xxxxxxxxxxx

After consultation with both the Information Commissioner and the Credit Reference Agencies, I am writing directly to you to request that you formally update my credit files in accordance with the Data Protection Act.

My IVA was completed on <Date on your completion certificate >, and <name of creditor> was included within my IVA. For your convenience I have attached a copy of my completion certificate.

Currently the information that you have recorded against my name with the Credit Reference Agencies is factually incorrect, and despite several written requests to your customer services , as yet your company has failed to correct the entries as required.

• It is requested that if you intend to default the account, the default entry must be no later than <Date your IVA was approved>, in accordance with the Data Protection Act.

• It is requested that you mark the account in some way as to indicate that it is settled or satisfied, in accordance with the Data Protection Act.

The Information Commissioner has indicated that I should allow you 28 calendar days from the date you receive this letter to comply, during this time you are requested either to update the Credit Reference Files correctly (of all three Credit Reference Agencies) or notify me in writing the reasons that you refuse to.

After the 28 days have elapsed the Information Commissioner has requested that I inform them if your company fails to update the records so that they may take any necessary enforcement action against your company.

I have copied the relevant information provided by the Information Commissioner as an attachment to this request.

Yours faithfully'

Hope this helps.

Good luck, and let us know how you get on.