Defaults AFTER IVA was started

SPELLKASTER

I have just check my credit report online and glad I did.

My IVA was approved on the 1st June 2012, and is still showing as being active.

Halifax, put a default on my credit report dated the 11th July 2012.

Max Recovery also put a default on my credit reported dated the 1st June 2012, the same day as the IVA approval.

Can they actually do this because I had not defaulted on payments hence why the IVA was in place?

fermi

By definition, placing an account into an IVA is a default.

http://webarchive.nationalarchives.gov.uk/20100428141142/http://ico.gov.uk/upload/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.pdf

10 Indicators of a default

The following indicate that a breakdown has occurred in most types of product (excluding those in the section on Exceptions at paragraphs 12-15). This list is not necessarily exhaustive.

• The account has been referred to a collection agency or in-house debt collection department.
• The account has been referred for legal action.
• The account has been included in a bankruptcy, IVA, or similar.
• The asset financed has been repossessed or instructions for repossession have been given.
• The lender takes or has taken steps to cut off the service provided (or would do so if they were not prevented on social rather than commercial grounds or by other regulations, codes of practice or statute).
• The customer has not made satisfactory proposals in response to a demand for repayment.
• The customer has given a clear indication, for example, by handing back an asset, that they do not intend to meet their contractual obligations.
• The lender has evidence that an account has been opened or used for fraudulent purposes by the applicant.

SPELLKASTER

fermi wrote: »

By definition, placing an account into an IVA is a default.

http://webarchive.nationalarchives.gov.uk/20100428141142/http://ico.gov.uk/upload/documents/library/data_protection/detailed_specialist_guides/default_tgn_version_v3%20%20doc.pdf

So there's nothing I can do about it then?

fermi

You entered an IVA. That is a default, so no.

Any default date should be no later than the start date of the IVA, so the Halifax one may need a minor correction to a month earlier, but the fact of the default is factual.

SPELLKASTER

The IVA is currently in the process of failing and will soon be closed down.

In the meantime the debts mostly with Halifax are being looked at by the FOS.

In the meantime, what can I do to increase my credit score?

fermi

Time and some positive data if you can get some basic credit is the only way..

SPELLKASTER

I wont be able to get any credit because my credit rating is shot to piece because of the IVA!!

althas

Sorry am I missing something here??

You enter into an IVA and don't think you should have a credit record to reflect this?

DorisTrousers

I have to ask, why are you seemingly interested in fresh credit, or the potential availability of fresh credit, you know you cannot afford to repay? And aren't you wanting to apply for a DRO as you cannot afford to repay what you already have? A lot of your income is DLA based if memory serves, and you surely won't fall into the trap of earmarking that for debt repayments again?

Far better, in my view at least, to let your IVA take it's course to close, which may be longer than you think unfortunately, then wait for your DRO and it's moratorium period to pass, whilst also using that period to start saving a little each week or month.

SPELLKASTER

Thanks for the advice.

I think I will wait ask you say for the IVA to close, and then apply for a DRO.

Its a joke with Debt Free Direct though its taking longer then expected.