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

James was buying off the plan with his sister, and settlement was coming up fast. There was one problem: a default for nearly $6,000 from a credit card he’d taken out years earlier as a uni student.

How it happened

Like a lot of students, James got a credit card from Commonwealth Bank and couldn’t keep up with it. Within months it was in arrears. Not long after, he entered a payment arrangement with a debt collector and he kept paying until it was finished.

Diagram of how this case was resolved: old student credit card, hardship and plan paid, hardship and privacy act, removed in 5 days

The default stayed anyway. When he and his sister applied for finance, they were declined.

What was at stake

When you buy off the plan, settlement day doesn’t move. If you can’t get finance, you risk your deposit and possibly more. James needed the default gone, quickly.

What we found

James’s broker referred him to us. We looked at the history: a young borrower in obvious hardship, who’d then worked through a payment plan to the end. We also found breaches of the Privacy Act’s credit reporting rules in how the listing had been handled.

Why it came off

We drafted a removal request based on James’s hardship at the time, and included a settlement offer tied to the Privacy Act breach. The creditor agreed to remove the default.

The result

The default was removed 5 days after we started, well before his settlement date. James could get on with his finance approval.

What this means for you

Old student debts follow people around for years. A finished payment plan doesn’t erase the default on its own, but hardship at the time and how the creditor reported the debt both count. Our credit repair lawyers often work to tight settlement deadlines.

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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