Bad Credit Rating Removal Case Study
Client Profile:
| Name: | Michael |
| State: | NSW |
| Sex: | Male |
| Age: | 57 |
| Married/Single: | – |
| Listing Type: | Default |
| Original Creditor: | Citibank |
| Current Creditor: | – |
| Paid / Unpaid: | Paid |
| Listing Amount: | $30,966 |
| Commenced work: | 13/04/2016 |
| Default Resolution: | 8/07/2016 |
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Credit Repair Background:
Michael instructed MyCRA Lawyers that he had a credit card account with Citibank in which he went over the credit limit. Michael advised that he paid money towards the account and paid off the account in a couple of months to a zero balance. Citibank contacted him again and advised to pay the account in full. Michael did pay the card out and contacted them to query why they charged him extra fees, as previously they advised that the account was closed due to non-payment. Citibank advised the account was re-opened again. Michael instructed that he did not receive any notices to say he was in breach of the contract and only ever spoke to them on the phone. Michael was not under any knowledge of default of payment. Michael never had issues paying the account, however the problem was, he did not know unless contacted through phone.
What were any challenges with the creditor?
Citibank took too long to respond to our complaints. Eventually the matter was escalated to the Financial Ombudsman Service (FOS).
Why was the listing removed?
A complaint was escalated to the FOS as Citibank was not able to respond to our complaint accordingly. It was noted that there were different account numbers on the statements and payments made were not allocated correctly. As payments were not allocated correctly, it appeared to Citibank that the account was not paid and they had accelerated the total amount due. Citibank contacted our firm as a result of the escalation and advised that after review of our issues raised they will remove the default listing.
Summary:
Michael was referred to our office by his mortgage broker. We managed to negotiate removal of his default listing in 86 days and they can now move on with their life knowing that they are no longer impaired by the incorrect listing. Congratulations Michael and good luck!
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