IVA Breach - Extra Credit

Free_Bird

Hi,

I am new to this excellent forum, but have been reading it for the last couple of years since being in my IVA.

My IVA is generally going OK, and I have managed to get a credit card with a £500 limit (all OK with my IVA terms).

A few Months ago, the card firm upped my limit to £1,000, which did not bother me, as I regularly use it, stay below £500, and pay it off every month.

But last Month was one of those where a number of things went wrong all at once: New fridge needed, new electric shower - and had to upgrade the associated wiring. In short, I struggled, but got the funds together from a small reserve that I had accumulated.

Then last week, it cost me £400 to get my car through its MOT and I got the repair done on the card (had no other choice).

Got the statement through and, what with a few other transactions, I now have a balance of £700 to pay off.

I am able to pay off the balance by the due date, but I am worried that my IP will check my credit file, find out about my 'breach', and fail my IVA.

Can my IP access my credit file to find this stuff? If so, am I better confessing, but reassuring them that I can manage it, and beg for mercy?

Or am I better of not rocking the boat, and quietly pay my card off, safe in the knowledge that if I do so, my IP won't find out anyway?

Sorry if this sounds sneaky, and I know that officially I should request a payment break. But I find the staff at my IVA company pretty unhelpful - and that is if I can get through to them in the first place.

Any help would be welcome, and thanks for reading.

FiatFan_2

Welcome along Free Bird, in my opinion I'd not rock the boat especially at this time of year where it can be stressful enough with the demand for Christmas.

If it were me, I'd quietly pay off the balance even if it took a couple of months then reduced the limit back to £500. I'd expect them to have more reason for concern that you have twice the limit of credit come review time than this little blip.

Been a while since I looked at a credit file, but if i recall correctly they do state credit limit and balance at the last report date. Whether your IP checks your report I couldn't say. If they became aware I'd hope they'd give you a non-conformance (can't remember correct term) to rectify the over limit rather than issuing a breach/termination of iva which isn't in their best interests either.

Good luck whichever way you choose.

UpToMyNeckInIt

Hi Free Bird,

I concur with FiatFan's advice, and I think we have all had one of those months at one point or another.

I'm pretty certain you will get away with this one: I don't think your IP can access your credit file, so if I were you, I would keep quiet, and just get below the £500 limit ASAP.

In any event, the worse that would happen is that your IP issues a notice of breach, which you will have 30-Days to put right.

As you suggest though, why risk that? You don't want un unhelpful customer service person (I have similar issues with my IVA firm), making all sorts of threats.

Finally, get your card company to reduce your limit back to £500, to avoid future temptation/mistakes.

Good luck.

Curlybing

I didn't know you could do this with a credit card. I am 2 years into my IVA and in all honesty credit cards now scare the b'jesus out of me.

sourcrates

To be honest your IP will not be interested or have the time to be checking your credit file, the information on there is rarely up to date anyway, im amazed you got a creditcard while in an IVA though, usually your credit is trashed by the time an IVA is thought suitable, I have recently finished my IVA and apart from the once yearly check on my income/expenditure, I can tell you its amazing what you can "get away with" while in an IVA, wouldn't worry about your situation just pay back as soon as you can, good luck with it.

Free_Bird

Hi all, thanks for the advice.

On the basis that my IP can't access my files, I shall
keep quiet, and reduce the balance asap.

My iva allows me £500 credit, and there are credit cards like Vanquis and Aqua that will accept iva customers.

Up until now I have stayed within my limit and cleared the balance every Month

UpToMyNeckInIt

I too have a Vanquis card, but IVA customers need to be aware that acceptance is by no means guaranteed (I think Vanquis use their own criteria, unrelated to your credit rating).

I understand that 'Aqua' also consider applications from IVA customers.

I must stress the point that I only did this because my IVA allowed £500 credit.

So my advice to anyone considering doing this is: MAKE SURE YOUR IVA ALLOWS IT, because not all do, and only do it if you think you will be able to usually clear any balance each Month.