Bad Credit Rating Removal Case Study
Client Profile:
| Name: | Stephan |
| State: | QLD |
| Sex: | Male |
| Age: | 40 |
| Married/Single: | Single |
| Listing Type: | Clearout |
| Original Creditor: | Onesteel Distribution |
| Current Creditor: | – |
| Paid / Unpaid: | Paid |
| Listing Amount: | $7728 |
| Commenced work: | 19/02/2016 |
| Default Resolution: | 05/07/2016 |
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Credit Repair Background:
Stephan was making repayments but was also trying to contact the debt collection agency to settle the debt however they would not return his calls. The account was eventually paid in full after it was default listed.
What were any challenges with the creditor?
Onesteel provided the documents promptly. MyCRA Lawyers investigated the information by Onesteel and found multiple errors in the default listing process. When MyCRA Lawyers findings were brought to Onesteel’s attention, Onesteel failed to action the matter for several months despite multiple follow-up attempts and their repeated broken promises to respond.
Why was the listing removed?
We found that the matter was listed as a “Clearout” (Also known as a “Serious Credit Infringement” (SCI)). SCI’s are defined in the Privacy Act 1988 (Cth) as:
“(a) an act done by an individual that involves fraudulently obtaining consumer credit, or attempting fraudulently to obtain consumer credit; or
(b) an act done by an individual that involves fraudulently evading the individual’s obligations in relation to consumer credit, or attempting fraudulently to evade those obligations; or
(c) an act done by an individual if:
(i) a reasonable person would consider that the act indicates an intention, on the part of the individual, to no longer comply with the individual’s obligations in relation to consumer credit provided by a credit provider; and
(ii) the provider has, after taking such steps as are reasonable in the circumstances, been unable to contact the individual about the act; and
(iii) at least 6 months have passed since the provider last had contact with the individual.” (Post-2014)
As Stephan was making regular repayments towards the debt and was in constant contact with the debt collector while trying to reach a settlement, the account could not be considered a SCI.
MyCRA Lawyers also disputed the listed dollar amount of the Clearout placed on Stephen’s credit report. Because Stephan was making repayments, at the time of the Clearout listing being added to his credit file he was only $2228.37 overdue and not the $7728 that Onesteel alleged.
Summary:
Stephan engaged MyCRA Lawyers to investigate the validity of the Onesteel “Clearout” default listing on his credit file as he’d only just become aware of his right to challenge the validity of the listing. His company won a new contract which required the setting up of new supplier accounts. The unlawful credit file listing was impeding the setting up of those new accounts. MyCRA Lawyers successfully negotiated the removal of his bad credit default listing in 137 days (longer than usual due to delays caused by the creditor) and Stephan has been able to move on with his life knowing that he is no longer impaired by the incorrect listing. Congratulations Stephan!
