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Credit file: IVA showing as well as defaults

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(@piston95)
Active Member
Joined: 2 years ago
Posts: 3
Topic starter  

I’ll be coming out of my Trustdeed in March 2024. I’ve noticed in my credit report, the Trustdeed shows on the IVA section as a negative, which it should and I understand. But all my accounts that are managed under the Trustdeed, all show as defaults/missed payments. 

Now this seems very unfair. Being in the IVA is a huge negative in itself, why should we also be punished by having all these accounts (in my case, 13) displayed as negatives/defaults on our reports?

 

I’ve contacted Equifax to explain this to see if they can remove or add a note explaining these. My adviser failed to mention all of this to me, even when I specifically asked. 

I’m guessing lenders would look at this and think I’ve had lots of credit accounts whilst in an IVA that, I’ve missed payments for. 

Has anyone else had any sort of resolution to this?

 

 

Cheers


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4237
 

Hi Piston95,

This is entirely normal - your credit file is just a record of what has happened in the last 6 years and the current status if any debts you have.  As such, the Trust Deed will show up and your debts will show as being in default.  Once you complete your Trust Deed then the debts should change to show as settled/satisfied. Whilst the fact they had been in default will show for another couple of years, I think you will likely find that your credit rating improves again fairly quickly.

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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(@piston95)
Active Member
Joined: 2 years ago
Posts: 3
Topic starter  

Hi @kevin-mapstone 

 

Thanks for confirming this. So 6 years after my Trustdeed began (2026 for me), the IVA as well as the defaults will be removed completely?

 

Fortunately I’ve managed to slowly build my credit during my Trustdeed, but of course score doesn’t really mean much and it’ll be the defaults that will be the issue. The defaults are showing for 2021 and 2022. Will they be removed 6 years from those dates, or 6 years from the starts of the Trustdeed?

 

Cheers 


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4237
 

The defaults will disappear 6 years after the date showing on your credit file, however you should be able to get the dates amended back to coincide with the date you entered the Trust Deed.  There is more information elsewhere on this site -  https://trust-deed.co.uk/debt-solutions/repairing-your-credit-rating/  

 

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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