Credit Score post IVA

warriorqueen

I took out an IVA in 2021, I quickly realised it had been miss sold and was not the best option for me to clear my debts so i closed the IVA, The debts had already gone to 'in default' I have requested information from all of the current debtors (most were sold on so not the original companies i took out the credit with) They have not provided me with the information requested therefore the debts are not enforceable. Some of the companies have accepted this and those debts are now satisfied on my credit report however some of the debts are still in default. my question is, even though the debts are not enforceable and I therefore do not have to pay, am I better off coming to a settlement with these companies to that my credit score improves. I have nothing negative on my credit report since the the IVA (2021) but my score is still very poor despite doing everything to try to improve it. will my score improve if these debts are satisfied rather than in default? 

CliveOfIndia

You can safely ignore your score as a lender is not remotely interested - or, indeed, aware - of it.  All they see are the raw data contained in your file.

Having an IVA and/or defaults recorded on your file is not ideal in terms of how a future lender will view you.  Usually a settled default is marginally better than an outstanding one - but if you're sure that the debt is unenforceable then it may be worth contacting the FOS to complain, if you've already exhausted the lender's own complaints procedure.

Bear in mind that the CRA cannot make any changes to your data, they can only report on the data sent to them by lenders.  So you need to get each lender to send through a notice of correction to the CRA (if, indeed, it turns out that they are required to do so).

sourcrates

Ignore the score, its the history that matters, defaults will cause you pain for 6 years regardless of the debts status.

Once the defaults have gone, your credit file will improve.

On another note, you can`t just close an IVA, it takes at least a year of non payment for an IVA to fail, and it will remain on your credit file till 2027.

Are you certain it was an IVA, that is a form of insolvency, your arrangement would have been run by an insolvency practitioner?

Did you CCA your creditors, and they failed to respond, is that why you assume the debts are unenforceable?

warriorqueen

sourcrates said:

Ignore the score, its the history that matters, defaults will cause you pain for 6 years regardless of the debts status.

Once the defaults have gone, your credit file will improve.

On another note, you can`t just close an IVA, it takes at least a year of non payment for an IVA to fail, and it will remain on your credit file till 2027.

Are you certain it was an IVA, that is a form of insolvency, your arrangement would have been run by an insolvency practitioner?

Did you CCA your creditors, and they failed to respond, is that why you assume the debts are unenforceable?

Yes it was definitely an IVA.  And yes about the CCA, some failed to respond and the debt is still in default, others failed to respond and now the debts are marked as satisfied on my credit report. One conceded that the debt was unenforceable. 

adamp87

They can still chase you and try and get a CCJ, make sure you keep them updated with your postal address to ensure they don’t try this.

If a creditor has stated it’s unenforceable still keep all communication and records, keep an eye on it because they could still be wrong and try and take you to court for non payment.

They can also continue to ask you for payment if it is unenforceable but they usually would give up if that’s the case.

I think for now if this is the way you want to go, make sure they have your address and you check their letters, CCA requests aren’t as much of an easy win as they used to be and a reconstituted agreement can usually be suffice. 

At this stage you don’t want to rock the boat so to speak and make them actively look for documentation. If you’ve sent the requests you can only wait.

It’s also possible they’ve been sent to debt agencies (who chase the debt for some one else) and not the owner of the debt. 

So they’d send the request on to that company who would then check their records or try and find the records with the original creditor so it can take time. If they get stumped or think it’s not worth the time they might sell the debt in again.

Your IVA however is a different story I’m sure you cant just close that down instantly and it’ll still be on your file