Names and identifying details in this case study have been changed to protect our client’s privacy.

Eric was new to Australia and his English wasn’t strong yet. His rental agent set up his electricity. When he moved out, he called the energy company to close the account.

A few months later he went back to his old address to check for mail. There was an overdue letter for about $120. He paid it two days later.

Diagram of how this case was resolved: small bill paid in 2 days, collector wanted a fee, removal fees not allowed, removed in 169 days

Six months on, the energy company contacted him saying the account was overdue. Eric asked for a copy of the invoice, because he’d already paid. They never sent one. He faxed them his payment receipt. They never contacted him again, so he assumed it was sorted.

It wasn’t. A default of under $300 was on his file, now held by a debt buyer.

What was at stake

Eric had signed a contract to buy a property. He couldn’t get finance with the default there.

What we found

The debt buyer took a long time to produce documents. When it did respond, it said it would remove the default, but only if Eric paid a $100 fee.

Why it came off

Charging a consumer to correct their credit file isn’t allowed. We lodged a complaint pointing out that the law doesn’t permit a fee for removal. The debt buyer backed down and removed the default.

The result

We started on 17 August. The default came off on 2 February, 169 days later. Eric could move forward with his purchase.

What this means for you

If anyone asks you to pay a fee just to correct your credit file, push back. Correction requests to credit providers and the credit reporting bodies are free. Our credit repair lawyers know where the line is and hold creditors to it.

This is a past matter. Names and identifying details have been changed to protect our client’s privacy.

Results depend on individual circumstances. Every credit file is different, and a past result doesn’t guarantee the outcome of your matter. This case study is general information, not legal advice.

Don’t spend another month stuck in Credit Prison. Call our credit repair lawyers on 1300 667 218 or book a 15-minute intro call at https://mycralawyers.com.au/15min-credit-repair-intro-call/ . If we think your chances are low, we’ll tell you straight.

MyCRA Lawyers | Australia-wide | 1300 667 218 | docs@mycralawyers.com.au | Book a 15-minute intro call