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

Renee was going through a rough patch financially when a small debt, a bit over $800, slipped into default. As soon as she saw it on her credit file, she borrowed the money and paid it straight away. She didn’t want it hanging over her.

The default stayed, of course. Paying it only changed the status to “paid”.

Diagram of how this case was resolved: paid as soon as she saw it, only an assignment notice, no proof of the debt, removed in 22 days

What it was doing

Renee wanted finance. A paid default still counts against you, and she contacted us to see if it could come off.

What we found

The debt had been sold to a debt buyer, Pioneer Credit. We asked for the full documentation. All it gave us was a notice of assignment and file notes from when it bought the account.

That’s not enough. There was nothing showing where the debt came from, how the amount was calculated, or whether the figure listed was the accelerated amount of the loan rather than what was actually overdue.

Why it came off

We lodged a complaint with the external dispute resolution scheme, pointing out that Pioneer Credit had no documents to support the debt or the amount it had listed. The default was removed.

The result

We started on 21 July. The default came off on 12 August, 22 days later. Renee could confidently apply for finance.

What this means for you

Buying a debt doesn’t give a collector a free pass on proof. If it can’t show how the debt arose and how the amount was worked out, the listing is vulnerable. Our credit repair lawyers ask for that proof every time.

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.

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