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

Sami flew overseas for what he thought would be a three-month trip. There was a family emergency and he needed to be there.

While he was away, a natural disaster struck and badly damaged the area where his family lived. Getting out became close to impossible. Three months turned into two years.

Diagram of how this case was resolved: stranded overseas, debt already paid, no collector owned it, corrected in 38 days

Back home, a Vodafone mobile account went unpaid. A default of about $640 ended up on his file, held by a debt collector, ACM Group.

What it was doing

Sami, from Queensland, didn’t know about the default until he applied for finance and was declined. He wanted a home loan.

What we found

Sami had already paid the debt. Then ACM Group was bought by a bigger debt buyer, Lion Finance. Because the account had been paid, the new owner didn’t take it over. There was no debt owing, and no collector that owned the account any more.

So the default was sitting on his file in the name of a collector that no longer held the account, for a debt that had been paid.

Why it came off

We wrote to Equifax explaining that the account was paid and no longer belonged to any collection agency. Equifax made the correction to Sami’s credit file and sent through an updated report.

The result

The listing was corrected on 3 June, 38 days after we took the matter on. Sami could confidently apply for his home loan.

What this means for you

When debt collectors are bought and sold, records can fall through the cracks. A listing should reflect who actually holds the debt, if anyone does. Our credit repair lawyers deal with the credit reporting bodies directly when a listing doesn’t match reality.

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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