Credit Union want to know about past IVAs

Jack06019

Just made an enquiry at a CU about getting a small short-term loan, really don't want to borrow but I really have no choice just now and I'll get it paid off asap as I have a horror of debt. The application form asks if I've ever had any IVAs, I did and that was all paid off 5 years ago so I'm wondering if they need to know about that? It's disappeared off the credit agencies and bankruptcy register now.

BorisThomson

If they ask the question then yes, you must be honest.

DCFC79

Answer the qusstion honestly.

Will the loan sort out the financial issues or will they still be there ?

Why not post on the dfw board for any help.

Jack06019

Thanks Boris and DCFC. That was my instinct to answer honestly, though apart from leafing through old court documents I don't know how they would find out... I have had no financial issues since the IVA, always stayed in the black since but I was forced to move recently and have a significant shortfall between expenditure and income next month. If application is successful I'll get it paid off asap.

Jack06019

DCFC79 wrote: »

Why not post on the dfw board for any help.

Excuse my ignorance, but what's dfw?

AFK_Matrix

dfw = Debt Free Wannabe Board

Just below the loans section on here.

DCFC79

Jack06019 wrote: »

Excuse my ignorance, but what's dfw?

Debt free wannabe, its the forum below this one.

sourcrates

Jack06019 wrote: »

Thanks Boris and DCFC. That was my instinct to answer honestly, though apart from leafing through old court documents I don't know how they would find out... I have had no financial issues since the IVA, always stayed in the black since but I was forced to move recently and have a significant shortfall between expenditure and income next month. If application is successful I'll get it paid off asap.

Your credit file and sources of public information is where they will look.

If its been longer than 6 years since your IVA was granted, then no record will exist of it anywhere.

Jack06019

sourcrates wrote: »

Your credit file and sources of public information is where they will look.

If its been longer than 6 years since your IVA was granted, then no record will exist of it anywhere.

Thank you so much Sourcrates. In the end I didn't need this loan due to some unexpected good fortune. I did however omit to mention the IVA for something else and you're right, the search did come back clear.

I've kept my finances in excellent shape since completing the IVA, an experience that really helped me to turn my life around and which taught me a lot. With that in mind and now being super-frugal I really don't see why this question of whether you have EVER had IVAs etc. should come up so regularly.

System

Jack06019 wrote: »

With that in mind and now being super-frugal I really don't see why this question of whether you have EVER had IVAs etc. should come up so regularly.

Because they are lending other people's money and have a duty of care.

For future reference, if they ask and you don't declare it and they find out it isn't unknown for a lender or insurer to report someone to the police for fraud and the borrower/insured finding the City of London fraud squad knocking on their door. Saying you haven't when you have is proper full on criminal fraud.

Excellent news you've got sorted without the need of a loan and it is good to hear the IVA had the intended effect of ending an unsustainable way of carrying on. Now it is just a case of getting you on to the DFW board so you can find a way of building up an emergency fund so you never have to take out a small loan to deal with an unexpected bill again.

PeacefulWaters

Jack06019 wrote: »

I've kept my finances in excellent shape since completing the IVA, an experience that really helped me to turn my life around and which taught me a lot. With that in mind and now being super-frugal I really don't see why this question of whether you have EVER had IVAs etc. should come up so regularly.

From my thirty years of experience in financial services, many people that are rubbish with money stay that way forever.

I applaud your success. Although suggest going a step further and building up savings to a level where you never need to borrow again should be your end game. Then you'll never be asked these questions.

Some credit unions have lent poorly in the past. It's good to see them asking a simple question to establish longer term borrowing history. But they can also see you recent history too and will reach a balanced judgement with a lending decision.