Default removal Australia.

Can a default be removed?

Often, yes — it depends on the listing. A default may be corrected or removed where it is inaccurate, out-of-date, incomplete, irrelevant or misleading, or was not recorded in line with the applicable credit reporting requirements. The grounds are broader than most people expect: the amount and the dates, the notices that had to be sent, the process the provider followed, and the circumstances you were in at the time can all matter. A default that is accurate, complete, current and lawfully reported cannot simply be deleted.

Most people have no way of telling which of those situations they are in, because the detail that decides it does not appear on the credit report. That is exactly what a review looks at — and the review costs nothing. If a listing is correctly reported we will tell you plainly, and you will have lost nothing by asking.

What is a credit default?

A default is a listing a credit provider can make when a payment of $150 or more is overdue by at least 60 days and the required notices have been sent. It generally stays on your consumer credit file for five years from the date it was listed. Defaults can be significant adverse information on a credit report and may affect how lenders assess a credit application.

For the thresholds, the notices a provider must send and how defaults differ from judgements, read our guide to what a default on your credit file actually is.

How a default happens

1. 1

   Payment missed

   An amount of $150 or more falls overdue on the account.

2. 2

   60 days overdue

   The overdue period a credit provider must reach before a default can be listed.

3. 3

   Notices issued

   The written notices a provider is required to send before listing the default.

4. 4

   Default listed

   The listing appears on your consumer credit file with the credit reporting bodies.

5. 5

   Five years

   A consumer default generally remains for five years from the date it was listed.

When might a default be challenged or corrected?

These are examples only. Whether any of them applies — and what happens if it does — depends on the individual circumstances of your credit file.

• Incorrect amounts or account details

  The overdue amount, account number, dates or credit provider recorded against the listing do not match the actual account.

• Notice issues

  The written notices a credit provider is required to issue before listing a default were not sent in accordance with applicable requirements, or went to an address the provider knew was out of date.

• Timing and reporting requirements

  The debt was below the $150 threshold, the 60-day period had not passed, or the listing should already have expired from the file.

• A genuine existing dispute

  The debt was in genuine dispute with the provider or in an external complaints process at the time the listing was made.

• Relevant hardship circumstances

  A hardship arrangement was in place or had been requested, and the way the account was reported does not reflect that.

• Identity or duplicate listings

  The listing belongs to another person, resulted from misuse of your identity, or the same debt appears twice after being sold to a collector.

This list is not exhaustive. Other circumstances can be relevant too, including personal hardship and compassionate circumstances at the time the account fell behind. If your situation is not described above, it is still worth talking to us rather than assuming nothing can be done.

What if the default has already been paid?

Paying a default does not automatically remove it. Once the debt is settled the listing should be updated so the payment status is reflected appropriately, and that update matters — lenders generally treat a paid default differently to an outstanding one.

The original listing can still be reviewed separately to determine whether it was correctly reported when it was made. A paid default that should never have been listed is still worth looking at. Our articles below cover paid defaults and incorrect default amounts in more detail.

Defaults compared with other credit file listings

Retention periods are general and set by the credit reporting rules that apply to each type of information.

How A OK Credit Repair assesses a default

An assessment looks at the whole picture around the listing: the creditor, the amount, the important dates, the notices, your payment history, any dispute that was on foot, any hardship or personal circumstances, and everything else appearing on the credit report itself.

How the process works

• Free assessment of your credit report and the listing in question.
• A written explanation of what we believe can and cannot be challenged, with any potential fees set out clearly and only payable upon an agreed successful outcome.
• We gather the supporting evidence and lodge a formal dispute with the credit provider and the credit reporting body.
• We manage the correspondence and keep you updated. Most disputes are resolved within 30 to 90 days.

See our full step-by-step process.

What we cannot do

Being upfront about the limits is not the same as saying nothing can be done. Circumstances vary widely, and the only way to know where your file stands is to have it looked at — which is free. With that said, here is what is outside anyone's power:

• We cannot remove information that is accurate, complete, current and lawfully reported.
• We cannot guarantee any particular outcome, timeframe or change to a credit score.
• We cannot change a lender's decision — each lender applies its own criteria.

What default removal costs

We assess your file at no cost. Default removal fees start at $1,200 and increase with the complexity of the matter. A no win, no fee Australian credit repair service — success fees are payable only when an agreed success stage is achieved, with any potential fees set out clearly and agreed in writing before any fee-bearing work begins.

See our fees and the full fee timeline.