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

Aaron was declined for finance and didn’t know why. When he checked his credit file, he found a default for about $1,750, for a utility account from a rental property he’d left a long time ago.

He’d never been contacted about it. Not once.

What it was doing

For Aaron, from Victoria, this was a debt he’d never heard of, from a place he’d long moved on from, blocking his finance today.

What we found

When a debt is old enough, the creditor runs out of time to sue for it. That’s called being statute barred. The limitation period depends on the state or territory, but in most places it’s six years.

The debt had been passed to a debt buyer, Panthera Finance. When we looked at the dates, it was clear the limitation period had expired.

Why it came off

We sent a demand letter to Panthera Finance. It reviewed the account, accepted the debt was statute barred and agreed to remove the default.

The result

We started on 8 May. The default was removed 12 days later. Aaron could move forward financially.

What this means for you

Old debts that get sold and resold are often past the limitation period. Be careful, though. In some cases, paying or even acknowledging the debt can restart the clock. Talk to our credit repair lawyers before you pay anything on an old debt.

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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