Step 1: Get your credit reports
You are entitled to a free copy of your credit report from each credit reporting body every three months. Request yours from Equifax and Experian (which now includes illion). Defaults are not always reported to every bureau, so check each one.
Step 2: Check the details
- Is the debt yours?
- Is the amount right, and was it $150 or more?
- Was it at least 60 days overdue when listed?
- Is the listing date correct, and is it less than five years old?
- Is the same debt listed twice, for example by the original lender and a collector?
Step 3: Ask for the lender's records
Before listing a default, the lender must have sent you a written request for payment and a notice of its intention to list, then waited at least 14 days. Ask the lender for copies of these notices and the addresses they were sent to.
Step 4: Lodge a correction request
If you find an error, write to the lender or the credit reporting body asking for a correction. Explain what is wrong and include your evidence. Correction requests are free. They should deal with your request within 30 days, unless you agree to a longer time.
Step 5: Escalate to AFCA if needed
If the lender refuses or does not respond, you can lodge a free complaint with Australian Financial Complaints Authority (AFCA). The Office of the Australian Information Commissioner also handles credit reporting complaints for some organisations.
When a default cannot be removed
If the listing is correct and the rules were followed, it will stay for five years. Pay or settle the debt so it shows as paid, keep all other accounts on time, and avoid multiple credit applications while you rebuild.