IVA and credit file

busyteachermummy

Hi,
I'm new to this forum and I'm hoping someone can explain something to me.

My husband and I took out an IVA in July 2013 with Debt lifeboat after getting advice from National debtline. All is going well so far however I have an account with Noddle as I want to keep on top of my credit file and deal with any discrepancies as they arise.
When I have checked it I have various defaults and late payments showing up AFTER the date of the IVA agreement so for August onwards.

Why would defaults be showing after the IVA has been agreed? I have rang Debt Lifeboat who tell me that these defaults will happen as we are paying them their fees first and then creditors after. They also said there is little point in looking at my credit file while I am in my IVA. I really don't understand this because this means instead of things dropping off our files 6 years from the beginning of the IVA it will several years after this.

Hope this makes sense and that someone can explain this for me.

Find_The_Real

In my experience, generally it can take a while for creditors to update their files correctly to the date of the IVA if they have not already defaulted before this. Also it also depends on which CRA's they report to as Equifax and Experian tend to be used more often, Noddle do sometimes take longer to update.

I have to agree with your IVA firm, that although it is ok to take a look at it, I certainly am not going to do anything about mine until the 6 years are over and then I will tidy up the file if there are some incorrect default dates checking my report from all the 3 CRA's. By then I will have the completion certificate and can send the evidence for it to be corrected.

Experian_company_representative

Defaults should pre-date the start of the IVA so I would take this up with the individual lenders. Let us know if you'd like us to contact them for you, using the online Experian query form.

James

busyteachermummy

Thank you for both of your replies. After reading your posts, I also found some info on the credit file board- from the information commission- on here which basically says all defaults should pre date the IVA. (basically agreeing with you James)
I spoke to Debtlifeboat again who still insist that defaults will show continuously throughout my IVA even after the date the IVA began.
I think I am going to ring the creditors and try and sort it out myself ASAP as I dont really want to leave it till the end of my IVA.
However it is very worrying that Debtlifeboat are giving out this kind of information and advice which is clearly wrong and can have a serious implication at the end of an IVA basically prolonging a poor credit rating for much longer than necessary.
Thanks again

Tessajb

Hi Busyteachermummy,

Having been through the IVA/Credit File saga, I can advise the following my lovely.

The defaults on your account remain there for the term of your IVA.

After the IVA is completed and Certificates of Completion have been issued then and only then will the Credit Reference Agency amend their records. Basically 6 years from the date of default or start of IVA is when all the defaulted accounts disappear from your record file.

Hope this is of some help for you.

monkeydaniel

I took an IVA out for what I believed was 5 years but then I was told it was for 6 years. All the comments I've read state they should be 5 years. What can I do about this?

rustyroy

, Im new to the forums as well but we took an IVAout 2 years ago. we thought it was 5 years but it turns out that ours is for 6 as well.

FiatFan_2

depends on your circumstances, most ivas are 5yrs but can be extended to 6 depending on creditors or not being able to release equity at the 54th month

Foxy-Stoat_3

monkeydaniel wrote: »

I took an IVA out for what I believed was 5 years but then I was told it was for 6 years. All the comments I've read state they should be 5 years. What can I do about this?

If you have a read of your contract that you signed at the beginning....that will confirm what your term is, 5 or 6 years.....as for what you can do about it....if you signed the contract that stated 5 years plus equity release or an additional 12 months payments, then there is nothing much you can do about it.