There have been a lot of posts recently about ‘cleaning’ your credit files, so I thought it might help if I posted what I’d done in a bit more detail.

Before you start the clean up you need to get copies of your credit files from the 3 main agencies, Experian, Equifax and Call Credit:

Experian Ltd
Consumer Help Service
PO Box 8000
Nottingham
NG80 7WF
Tel: 0870 241 6212
http://www.experian.co.uk

Equifax
Credit File Advice Centre
PO Box 1140
Bradford
BD1 5US
Tel: 08705 143700
http://www.equifax.co.uk

Callcredit PLC
Consumer Services Team
PO Box 491
Leeds
LS3 1WZ
Tel: 0870 060 1414
http://www.callcredit.co.uk

I found the letter below on another forum, and it definitely works.  The wording is for after bankruptcy, but it wouldn’t be difficult to alter it for after an IVA:

Your address:
XX XXXXXXXX XXX
XXXXXXX
XXXXXXXXX
XXXX XXX

Data Control Officer
e.g. Next Retail Limited
Desford Road
Enderby
Leicester
LE19 4AT

Dear Sirs

Re: Account Number xxxxxxxxxxx

After consultation with both the Information Commissioner and the Credit Reference Agencies, I am writing directly to you to request that you formally update my credit files in accordance with the Data Protection Act.

I was declared bankrupt on <Date of your bankruptcy>and subsequently discharged on <Date of Discharge>, and <name of creditor> was included within the Bankruptcy. For your convenience I have attached both my bankruptcy Order and Discharge Notification.

Currently the information that you have recorded against my name with the Credit Reference Agencies is factually incorrect, and despite several written requests to your customer services , as yet your company has failed to correct the entries as required.

• It is requested that if you intend to default the account, the default entry must be <Date if your bankruptcy>, in accordance with the Data Protection Act.

• It is requested that you mark the account in some way as to indicate that it is settled or satisfied, in accordance with the Data Protection Act.

• If you have sold the debt on, according to the Information Commissioner, you are still liable to ensure that both you and the new holder are aware and that as the originator of the information it is your responsibility to ensure that it is corrected.

The Information Commissioner has indicated that I should allow you 28 calendar days from the date you receive this letter to comply, during this time you are requested either to update the Credit Reference Files correctly (of all three Credit Reference Agencies) or notify me in writing the reasons that you refuse to.

After the 28 days have elapsed the Information Commissioner has requested that I inform them if your company fails to update the records so that they may take any necessary enforcement action against your company.

I have copied the relevant information provided by the Information Commissioner as an attachment to this request.

Yours faithfully

xxxxxx xxxx

Enc:

Bankruptcy Order
Discharge Notification 

Relevant Extracts from Bankruptcy – frequently asked questions – 18/06/07 issued by the ICO

Frequently Asked Questions – Bankruptcy

I’ve noticed that an account that was included in my bankruptcy is marked in default later than my bankruptcy. Can I do anything to change it?

Sometimes a lender will not know the exact date you were made bankrupt. This may mean that when the lender registers a default with the credit reference agencies, the date on the default is later than the date on your Bankruptcy Order.

If a particular debt is included in the Statement of Affairs at the time of the bankruptcy, you can ask the lender to change the date of the default to the date on your Bankruptcy Order. To do this, you should write to the lender and ask them to change the default date to the date of the Bankruptcy Order.

Remember to send the lender a copy of your Bankruptcy Order or other documentation which confirms the date you were declared bankrupt.

If the lender refuses to change the date of the default then you can contact us using the enquiry form on our website (http://www.ico.gov.uk). You will need to send us:

a copy of the Bankruptcy Order or document that confirms the date you were made bankrupt;
proof that the debt in question was included in your bankruptcy;
and a copy of the lender’s letter which says it won’t change the date of the default.

What happens to the defaulted accounts on my credit reference file?

After you have been discharged from your bankruptcy you can send proof of your discharge to all the lenders included on your Statement of Affairs.

The lenders whose debts were included in your bankruptcy should then mark the entry on your credit reference file to show that you no longer owe money on that account (perhaps by marking the entry as ‘partially satisfied’ or ‘partially settled’ or in some other way).

Once the lender has changed the information on the entry, if you make any new credit applications the prospective lender will be able to see that you do not owe any more money on that account.

Finally, if you wish, you can ask the credit reference agency to add a statement called a ‘Notice of Correction’ to the default entry. In your statement, you can explain that the entry was included in your bankruptcy which is now discharged.

If the lender refuses to change the date of the default or mark it as ‘satisfied’ or ‘settled’ or to indicate in another way that you have fulfilled your obligations to that lender then you can write to us at: Information Commissioner, Wycliffe House, Water Lane, Wilmslow, Cheshire, SK9 5AF.

To find the address of the data controller (not necessarily the same as customer services) you can search on http://www.ico.gov.uk/ESDWebPages/search.asp

If your creditors don’t or won’t update your files you can report them to the Information Commissioner and he has the power to force them to do this.  Be warned it’s a slow process though!  The website of the ICO is http://www.ico.gov.uk/

It turned out that we were all being asked to take a voluntary 7% pay cut, effective from April, in the hope that this will save jobs.  There have already been around 250 redundancies worldwide, so management are hoping that pay cuts might mean they don’t need to make any more.

We were given until the end of the week to decide whether to accept or refuse the pay cut, but I’ve already signed to say I accept.  I don’t feel I have a choice to be honest – I’d rather have a job paying 93% of my salary than nothing.  It was stressed that there may still have to be cut backs, but who knows what will happen further down the line.

I work in the electronics industry, and out major customers are the car industry, so we need a big turnaround before things will improve, so I’m not too optimistic.  We’ve been told the pay cut is temporary, but who knows?

I’m going to have to have my IPA payments reassessed as once the cut takes effect there’s no way I can afford to pay the same amount.  I phoned Moon Beaver, the company who collect my IPA payments (it changed from Clarke Willmott this month) and they said to phone nearer the time and they will send me a change of circumstance form.  I asked what to do about April’s payment as I’m paid on 25th and the payment is due by 30th and they said to put the money aside.  The only problem is I won’t know how much!  I’m just going to put aside what I can afford and hope for the best.

Years ago I had a full Nationwide Flexaccount with debit card, chequebook etc.  I stopped using it long before my bankruptcy, but never closed the account.  I declared it on my bankruptcy forms, but it was never frozen by Nationwide, and the OR never showed any interest in it.

While I’ve been happy with my Co-op Cashminder account I’ve missed having a full debit card, rather than a Visa Electron, and I object to paying for a prepaid card.  As I knew no other bank was likely to consider giving me an account I decided to give Nationwide a call and ask if they could send me a card so that I could start using the account.

I’ve got a basic Flexaccount with Nationwide, which I opened after I was bankrupt, so I fully expected them to send me another cash card rather than a Visa debit card.  I was very surprised to see a nice shiny full Visa debit card when I opened the envelope!

When I went into Nationwide on Saturday I decided to ask for a chequebook as well.  After a nerve-wracking couple of minutes I was told it’ll be with me within 5-7 working days.  I don’t need to write a cheque very often, but every now and then it comes in handy, and it’ll be nice not to have to ask other people.

My salary will be paid into the full account, with my direct debits coming out of the cash account so I don’t have to worry about whether everything has been paid – I know what’s left is mine.

I now feel that I’ve got my financial life back on track.  I’ve got a full bank account, an ISA (Abbey) and an e savings account (also Abbey) – not that there’s much in either of them!  My credit files have been amended (apart from Tesco who I’ll be reporting to the Information Commissioner),  I’ve got 16 more payments into my IPA, which seems to be flying past, and I can’t believe it’s nearly 2 years since I went BR.

I hope no-one thinks I’m boasting or sounding smug as that’s not my intention.  I just want to show that there is life after bankruptcy, and while it’s not the solution for everyone, for some of us it’s the right decision.

I’m 33 years old, and for the first time in my life I’m scared.  I don’t mean scared as in not wanting to go to the dentist or because I’ve seen a spider, but I’m scared I’m going to lose my mum.  She had flu before Christmas, but this has left her with terrible pains in her shoulders, so bad she can’t sleep, and even has problems getting dressed. 

The doctor thought that mum had polymyalgia, but the blood tests came back clear.  She’s got all the symptoms – pain in her arms, unable to sleep, night sweats, depression, lack of appetite – but the doctor can’t treat her until they know what’s wrong.  Mum was given strong painkillers, but she can’t take them as they made her very sick.  She’s back on paracetomol, but this isn’t really doing anything for the pain. 

The thing that really scares me is the way mum has been talking – she can understand why people commit suicide if they have constant pain, and she can’t go on for however long she has left (her words) as she is.  She’s got another appointment with the doctor on Monday, but I don’t know what she’ll do if they can’t do something to help her.  I know mum has been very lonely since my dad died ten years ago, but I’ve never heard her talk like that before. 

I don’t know what I can do for her, partly because she won’t let me.  I’ve offered to walk the dog, but because I won’t do it at 7am in the morning I know she’ll do it anyway.  I offered to get some shopping for her, and she asked me to get a couple of things and then went herself the next morning and got the rest herself!  She might be 77, but she’s fiercely independent.  My dad had Multiple Sclerosis and she nursed him for 20 years until he died of cancer.  She then looked after her friend and her elderly neighbour until they died.  She’s good at looking after other people, but a lousy patient herself! 

To be honest, this sort of thing puts everything into perspective – it makes me realise that despite all my worrying about my debts, my IVA and being bankrupt nothing is more important than your family and health.   

Life is too short to worry, so I would say to anyone reading this – if you are in debt take steps to sort yourself out, and if you’re in an IVA or BR, be thankful that you have a second chance, and the chance to enjoy the rest of your life.

To be honest it’s going really quickly, and despite the credit crunch we’re still managing.  I thought I might need a payment break last week – I hurt my neck and had to go to the osteopath, but luckily Dave lent me the money and I only needed to go once.

I did find out what I need to do if I need a payment break though – I need to provide Clarke Willmott with proof of the reason I need the break, and then they will consider it.  This would have caused a problem with the osteopath as I couldn’t get proof without going, and therefore borrowing the money, but hey ho, where there’s a will there’s a way!  I did ask what would happen if they didn’t approve the payment break as I would have borrowed the money, but I couldn’t get a straight answer.

To be fair to Clarke Willmott, every other time I’ve had to speak to them they’ve been very helpful and have sorted out any problems I’ve had very quickly.

Barclaycard – they have sent me a letter confirming that they have removed their entry from my credit file as they have sold the debt to Max Recovery.
Callcredit – they have written to confirm that they will remove the second BR from my file, and I can have a free copy of my credit file to check!
Equifax - they have confirmed they have removed the alias from my account.
Max Recovery – their solicitors Eversheds wrote to confirm that they have updated my files (they bought the debts from Barclaycard and Virgin MBNA) and they have written to Barclaycard asking them to remove their entry.
Next – being a pain in the bum!  They wanted proof that they were included in my bankruptcy.  I sent this to them and haven’t heard anything since.
Tesco Personal Finance – I haven’t had a reply.
Egg Card / Egg Loan – they never replied to my letter but updated my files
Littlewoods – file updated
Natwest – see Egg

As I have to give the companies 28 days to update the files I’m going to order all 3 credit reference files in the New Year.  If any entries are still wrong I’ll go straight to the Information Commissioner, but fingers crossed I won’t need to!

Littlewoods – marked as partially satisfied
Natwest – marked as partially satisfied
Egg Loan – marked as partially satisfied
Egg Card – marked as partially satisfied

I was surprised about the Egg entries as they hadn’t replied to my letter.

The one big disappointment was Barclaycard – they had replied to my initial letter saying that they would mark the account as partially satisfied, but when I checked the entry it’s still showing as defaulted and they have sold it to Max Recovery who are also on the report so it looks as though I owed both companies!

On Monday I posted letters to Barclaycard (again!), Next Directory, Tesco Personal Finance and Max Recovery (Barclaycard and Virgin).  Once 6 weeks have passed I’ll order my credit files from Experian, Equifax and Call Credit and see if everything has been done – if not it’ll be letters to the Information Commissioner!

The Callcredit file could be interesting as they had me being bankrupt twice on the same day, but I haven’t written to them yet – I want to see if it’s corrected when I get the file again.

One very positive thing – I noticed on my Equifax file that I had an alias.  It was only a misspelling of my name, but I wanted it cleared up.  I completed their online complaint form and had an email within a week saying the entry had been removed.  Obviously I’ll have to check, but fingers crossed!

An IVA is tough, and to try and survive on your own for 5 years must be very hard.  I couldn’t have tried an IVA without Dave’s support – he was there for me through the short-lived IVA and has been a big support to me through my BR.  It’s good to be able to talk about worries and problems, and if he wants to go out and I haven’t got any money at least he understands why.

When I first told Dave I had problems he was great.  He calmed me down and told me to look on the internet for a solution, hence the IVA.  Unfortunately that didn’t work, and he was there for me again during BR.  It took me a long time to admit how much I actually owed though, and even longer to tell my mum!  She has been a big support as well, although I was dreading telling her – she took it very well and said “Oh well, everyone’s doing it these days!”  Not what I was expecting, but a pleasant surprise!

I have also been open with my friends – they now know why I can’t always afford to go out, and why there’s only a fiver in their children’s birthday cards instead of an expensive pressie (bought on credit).

I’m not saying that my way is the right way, but I wanted to share my experiences in case it helps someone else.

Once you have been made bankrupt creditors are no longer allowed to default you, meaning that after 6 years are up your credit file should be ‘clean’.  However, this doesn’t stop some of them!  I have sent the data controller for each creditor a letter requesting that the default date on my file is no later than 29th March 2007 (the date of my BR), and that they mark my file either ‘satisfied’ or ‘partially satisfied’.

The results are as follows:

Barclaycard – will amend the default date and mark the account as satisfied
Egg loan – no reply
Egg card – no reply
Littlewoods – will amend the default date and mark the account as partially satisfied
Natwest – will amend the default date and mark the account as partially satisfied
Next – letter to be sent this week
Virgin (MBNA) – letter to be sent this week
Tesco – no reply

If I don’t receive a reply within 28 days of their receipt of the letter I will then refer the companies to the Information Commissioner who can (eventually!) force them to comply.

I have also got to write to Callcredit and ask them to amend their information – apparently I was made BR in Kingston and Warwick on the same day with the same reference number!