outstanding balance after IVA

emma1505

Hi.
I've been checking my credit report as I wanted to check it's up to date following the completion of my IVA back in January 2017. I completed via a full and final settlement.
Experian shows an outstanding balance of £16,129.00 for a Halifax loan which was included in the IVA .
Clear score shows nothing owing and noddle shows nothing owing.
I understood that the IVA would show on my report for 6 years but not that it would look like I still owe money.
I contacted the Halifax with proof of the IVA completion and asked them to update the balance but they replied " it's important that you realise that as we've agreed to write off the balance on your account, your credit reference file will be updated to show that your account has been partially settled. It's normal to update your file in this way and shows potential lenders that you settled the debt for less than the amount borrowed. This information stays on your file for 6 years"
I'm confused as to why Experian shows it but not the others and why it shows up as outstanding rather than partially settled as Halifax said it should.
Kind regards

sourcrates

Hi,

They are correct the account will show as partially settled until it drops off your file.

To be fair its the IVA damaging your credit file, it won`t improve until they are both gone.

As you have complained to them already, and they still wont budge, involve the ICO.

PrettyKittyKat

When have they said that they have updated their system to show that the debt has been partially settled? It may be up to 6 weeks before you see this change on your credit file.

Not all lenders report to each credit file reference agency, so it is normal to see a debt with one agency but not the other.

National_Debtline

Hi emma and welcome to the forum


This does sound a frustrating situation. Once an IVA has finished your credit file should reflect that you no longer owe any debt, meaning the balances of your debt should be zero. All unsecured credit debts must also show a default debt the same as, or earlier, than the IVA.


The debts will drop off your credit file 6 years after the date of the default. The IVA will drop off 6 years after it started, unless it lasted longer then 6 years, in which case it drops off once the IVA finishes.


If Halifax won't correct this make a formal complaint. If necessary you can ask the Information Commissioner's Office (ICO) to look into it www.ico.org.uk.


Susie
@natdebtline

emma1505

sourcrates: Thanks for your reply. When I check on Experian it isn't showing as partially settled though, it shows as outstanding. Kind regards


prettykittykat: Thanks for your reply. Halifax haven't actually stated when it was updated. Kind regards


Susie at national debtline: thanks for your reply. The IVA started January 2014 and the Halifax last recorded a default in June 2014, so that's after the IVA started. On Experian it shows as outstanding £16,129.00, last defaulted June 2014 and status says 6 months late. Hope this helps. Kind regards

National_Debtline

emma1505 wrote: »

Susie at national debtline: thanks for your reply. The IVA started January 2014 and the Halifax last recorded a default in June 2014, so that's after the IVA started. On Experian it shows as outstanding £16,129.00, last defaulted June 2014 and status says 6 months late. Hope this helps. Kind regards

Hi again emma


Thanks for that information, what is showing on your credit file is wrong as the balance of the debt should now be zero. The initial default must also be registered prior to the date of the IVA. It's a case of now complaining to get Halifax to rectify the situation. Good luck.


Susie
@natdebtline

emma1505

Susie at national debtline thanks for your reply. How does this draft letter to Halifax sound please? Kind regards.

Dear......, thank you for your reply regarding our account, completed IVA and our credit reference file. In your letter you stated that our credit reference file had been updated to show that our account has been "partially settled" but you didnt state when this was actually updated.
When we checked our credit reference file via Experian, it didn't state that the account was "partially settled" as you say it should have been. It states -
[B]Balance: £16,129.00 Credit in use.
Current status: 6 months late.
Account last updated: 15/06/2014.
However, we have been advised that -
A default cannot be registered after the IVA started, which was 03/01/2014.
Once an IVA has completed, the credit file should be updated to show a balance of Zero - to reflect that the debt is no longer owed. Therefore, the file entry is incorrect as it shows a balance of £16,129.00 not Zero.
Both the account and the IVA will drop off our credit reference file after 6 years from the start of the IVA, which will be 03/01/2020.
We have also been advised that if the account isn't rectified after this second request, then we should consider making a formal complaint and if necessary, to ask the Information Commissioner's Office (ICO) to look into it.
Yours sincerely,
Mrs...........

National_Debtline

Hi Emma


You are correct in saying the IVA will drop off your credit file 6 years after the date the IVA was started. The account will only drop off then as well if they agree to change the default date (which they should). You may want to rephrase it to say the account should drop off 6 years after the date of the IVA, if they agree to change the default to the correct date. Or you could leave that sentence out completely.


Other than that I think you have clearly explained what the issues are and what you want them to do to rectify the situation. Hopefully the letter will result in your credit file being amended, but if not the ICO is your next port of call.


Susie
@natdebtline

emma1505

Susie at national debtline: thanks for checking over my draft letter, I have now rephrased that part you suggested.
I am sending that letter off (recorded delivery to prove they've received it) so hopefully it will finally be rectified.
I will keep you posted.
fingers crossed.
kind regards