What Notice Must a Credit Provider Give Before Listing a Default in Australia?

What notice is required before a default can be listed?

A credit provider cannot generally list a consumer credit default simply because a payment has been missed.

Before default information can be reported to a credit reporting body in Australia, there are rules around the amount owing, how long it has been overdue and the notices that must be given.

For a standard consumer credit default, the payment generally needs to be:

• at least $150 overdue
• overdue for at least 60 days
• the subject of the required written notices

There are two important notices involved.

This article relates to consumer credit defaults. Commercial credit defaults can operate under different rules.

What is the first default notice?

The first notice is commonly referred to as a section 6Q notice.

It must tell you that a payment is overdue and request payment of the overdue amount.

This is important because a debt cannot simply move from being overdue to appearing as default information on your consumer credit report without the required notification process being followed.

The first notice must be given before the second credit reporting notice.

What is the second notice?

The second notice is commonly referred to as a section 21D(3) notice.

This notice must tell you that the credit provider intends to disclose the default information to a credit reporting body.

Under the Privacy (Credit Reporting) Code, this second notice must be given separately from the first notice and cannot be given less than 30 days after the first notice.

So the basic sequence is:

1. The credit provider gives a written notice requesting payment.
2. At least 30 days later, a second notice may be given stating that the provider intends to report the default.
3. The provider must then wait at least another 14 days before reporting the default.

The timing of the actual listing matters as well.

How long after the second notice can the default be listed?

A credit provider must generally wait at least 14 days after giving the second notice before disclosing the default information.

However, there is also an upper limit.

The default generally must be reported no later than three months after the second notice was given.

This means the second notice does not remain open indefinitely.

When reviewing a default, the dates of the notices and the date the default was actually listed can therefore be important.

Where do the notices have to be sent?

The required notices must generally be sent to your last known address at the time they are sent.

They may also be sent electronically where appropriate.

This is why an old address does not automatically mean a default was reported incorrectly.

If the credit provider sent the notices to the address it reasonably held as your last known address because you had not provided updated details, the notice requirements may still have been met.

However, the situation can be different where the credit provider had already been given your updated contact details but continued sending important notices to information it knew was out of date.

That can be worth investigating.

What if I never actually saw the notices?

Not receiving or reading a notice does not automatically mean the notice was invalid.

The important question can be whether the credit provider properly sent the notice to your last known contact details in accordance with the applicable requirements.

For example, a letter may have been sent to an address you had not updated with the provider.

On the other hand, if you had already provided a new address and the provider continued using an older address, the circumstances may deserve a closer review.

The account records and correspondence history are often important in working this out.

What if I had asked for financial hardship assistance?

Financial hardship can affect when a default may be reported.

A credit provider is generally prevented from disclosing a default while it is considering a qualifying hardship request.

If the request is refused, the provider generally must also wait at least 14 days after notifying you of that decision before listing the default.

There are exceptions, including some repeated hardship requests, so the dates and circumstances should be reviewed rather than assuming that a hardship request automatically prevents a default.

What if the notice requirements were not followed?

A missing or incorrectly issued notice does not mean every default will automatically be removed.

However, if the legal and credit reporting requirements for disclosure were not met, the listing may have reasonable grounds for investigation and correction.

Useful records can include:

• copies of the notices
• the dates they were issued
• the address or email they were sent to
• account statements
• contact-detail history
• hardship correspondence
• the date and amount of the default shown on your credit report

If you believe a default has been reported incorrectly, you can request a correction directly from the credit provider or credit reporting body at no charge.

Does paying the debt fix a notice problem?

Paying a valid default does not normally remove it.

If a default has been correctly reported and you later pay the debt, the listing will generally remain on your credit report but should be updated to show that it has been paid.

A standard default generally remains on a consumer credit report for five years.

Payment and whether the original listing was correctly made are separate questions.

How can I check whether my default was properly listed?

Start by getting a copy of your credit report and identifying:

• who reported the default
• the amount
• the listing date
• whether it is showing as paid or outstanding

You can then ask the credit provider for the relevant account history and copies of the notices where necessary.

The aim should not be to find a technical reason to challenge every default.

The question is whether the information was accurately and properly reported based on the circumstances of the account.

Can I dispute a default myself?

Yes.

You do not need to pay a credit repair provider to request information or challenge credit information you believe is incorrect.

You can contact the credit provider or credit reporting body yourself and request an investigation or correction.

If you would prefer assistance reviewing the listing and the notice history, A OK Credit Repair can assess the circumstances and explain whether there appears to be a reasonable basis to proceed.

No removal can be guaranteed, and a correctly reported default may remain on your credit report for its normal reporting period.

Sources

• Office of the Australian Information Commissioner — Repayment history and defaults
• Office of the Australian Information Commissioner — Privacy (Credit Reporting) Code 2025
• Privacy Act 1988 (Cth)

This article contains general information only and does not take your personal circumstances into account. It should not be treated as legal or financial advice.