The Amount on My Credit Default Is Wrong — What Should I Do?

If the amount shown on a default on your credit report doesn’t match what you believe you owed, it’s worth checking.

Credit information should be accurate, up to date and complete. MoneySmart specifically identifies an incorrect debt amount as an example of an error that can be corrected on a credit report.

But an incorrect amount does not automatically mean the entire default has to be removed.

First, check what the amount should have been

Before disputing the listing, compare your credit report with any records you still have.

Useful records might include:

• account statements
• payment receipts
• emails or letters from the creditor
• settlement agreements
• payment-plan records
• correspondence from a debt collector

Pay particular attention to the amount owing around the time the default was recorded.

Sometimes the difference can be explained by payments, fees or account activity. In other cases, the information may genuinely have been reported incorrectly.

Does a wrong amount mean the default must be deleted?

Not necessarily.

There is an important difference between correcting inaccurate information and removing an entire listing.

If part of a listing is incorrect, the appropriate outcome will depend on what went wrong and the circumstances in which the default was reported.

For example, an incorrect figure may need to be corrected without necessarily making the underlying default itself invalid.

That’s why a claim such as “the amount is wrong, therefore the default has to be removed” is too simplistic.

The whole listing needs to be looked at.

What can you do if you think the amount is wrong?

You can contact the relevant credit provider or credit reporting body yourself and request a correction for free.

The OAIC advises that if the organisation is satisfied the information is incorrect, it must generally take reasonable steps to correct it within 30 days, unless you agree to a longer period.

If the organisation does not agree that the information is incorrect, it should explain its reasons and advise you about your complaint options.

What I would look at when assessing the listing

When reviewing a default, the amount is only one part of the picture.

I would also want to look at things such as:

When was the debt due? What amount was actually overdue? What notices were sent? Were payments made before the listing? Was the debt being disputed? Does the information on the credit report match the creditor’s records?

Looking at the complete timeline usually gives a much clearer picture than focusing on one number by itself.

If you believe a default on your credit file may contain incorrect information, you can learn more about A OK Credit Repair’s Default Removal and Credit File Correction service.

Sources

MoneySmart — Credit Repair Australian Government information about correcting errors on credit reports.

Office of the Australian Information Commissioner — Correct Your Credit Report Information about your rights and the credit-report correction process.