Do creditors have to default debts

mwarby

Most of my IVA stuff has now dropped if my credit file, just 2 items to go. One of them is a debt which was included in IVA at all stages but was never marked as defaulted, just as late until IVA completed

Do creditors have to mark debts as defaulted ? (It would seem unfair not to, for me it will drop off next year, but had IVA been longer it could add years to restore credit history)

sourcrates

No they don’t, funnily enough, some people have been right through the complaints process, inc FOS, and still found in favour of the creditor.

mwarby

Thats a bit of a bummer, got a complaint with creditor in, not sure I'd go as far as FOS (might as point of principle)

The creditor is one who did pretty well out of the IVA, they added so many penalty charges that they got about twice the return (it was a less than £500 debt)

PrettyKittyKat

They don't have to default however they DO have to remove the debt off your creditor file 6 years after the start of the IVA (if it has completed by then) so once this point has been reached you can request they do this. Most creditors do it by putting a default date on as the date of the IVA or previous, which means it is automatically removed by the creditor reference agency at the 6 year mark.

mwarby

The creditor has done something (presumably a default) which has caused the item to drop off, just 1 account coming off at end of month then no delinquency will show