Bad Credit Rating Removal Case Study
(Previous “credit repair company” failed but MyCRA Lawyers succeeded)
Client Profile:
| Name: | Nicole |
| State: | SA |
| Sex: | Female |
| Age: | 38 |
| Married/Single: | De Facto |
| Listing Type: | Default |
| Original Creditor: | Toyota Finance |
| Current Creditor: | – |
| Paid / Unpaid: | Unpaid |
| Listing Amount: | $758 |
| Commenced work: | 24/06/2016 |
| Default Resolution: | 29/09/2016 |
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Credit Repair Background:
Nicole and her partner refinanced their loan whilst they had an ATO Debt and a bad credit rating which meant that their interest rate was over 10%. During the period April 2014 – April 2016, Nicole and her partner’s were required to enter into additional repayment arrangements that resulted in very large monthly repayments to creditors. One of which was Toyota finance. It was a very difficult 2 years for Nicole and her partner and they were struggling to make ends meet.
Nicole originally asked a “credit repair company” for help wherein after she paid for ‘the service‘ they simply (and incorrectly) informed Nicole that the default could not be removed. Nicole was not willing to accept this outcome, and spoke to MyCRA Lawyers for expert advice. Nicole was initially hesitant, however, she knew that putting her trust with MyCRA Lawyers would be her best option to learn exactly what she was facing when it came to her credit report.
What were any challenges with the creditor?
Initially Toyota Finance supplied documentation to our firm. When MyCRA Lawyers audited the supplied documents an issue was noted that raised concerns. Nicole had informed Toyota Finance of her financial hardship and it appeared thatToyota Finance did not assist her.
We raised our concerns with Toyota Finance directly and they simply referred our firm to their initial response.
As Toyota Finance’s initial response did not appear to address our hardship concerns and therefore did not answer our queries, Nicole instructed MyCRA Lawyers to escalate the complaint to the Financial Ombudsman Service.
During the investigation, further evidence came to light which added to our concern that the appropriate hardship provisions were not afforded to Nicole. This was brought to the attention of the Ombudsman, who ultimately agreed that Toyota Finance did not offer the appropriate hardship provisions to Nicole and that the default listing should be removed.
Why was the listing removed?
The listing was removed on the recommendation of the Financial Ombudsman Service after MyCRA Lawyers investigation uncovered that the default had been listed unlawfully and that Toyota Finance were holding fast and not willing to remove the default listing.
Summary:
Nicole and her partner were referred to our office by their mortgage broker. Nicole had a default on her credit report which she needed investigated as she felt it wasn’t fair that she’d done everything right but she was still defaulted. Nicole has thanked and congratulated MyCRA Lawyers as although it took longer than she would have liked, Nicole confirmed that the work provided by MyCRA Lawyers was substantial compared to the previous company that she had used and who had given up on her case as soon as the creditor said no. Congratulations Nicole – you were right and the default should have never been there in the first place!
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