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

Sam wanted to build a house. He had a block, a plan and a broker ready to go. What he also had was two bad listings on his credit file, and one of them was a default of around $37,000 from a building supplies company.

How a tradie ends up with a default

This one is common in the building game. Sam bought materials on account. The people he did the work for didn’t pay him. With no money coming in, he couldn’t pay his supplier, and he had nothing spare to cover it.

Diagram of how this case was resolved: unpaid by his own clients, asked for proof of notices, no evidence notices sent, removed in 14 days

It’s a cash flow problem, not a character flaw. Lenders don’t see it that way, though. A big default from a trade account looks just as bad as any other.

What we found

Sam’s mortgage broker referred him to us. We asked the supplier for its records, including proof that it had sent the notices required before listing a default.

The evidence wasn’t there. The supplier couldn’t show it had sent the notices it was required to send.

Why it came off

A creditor that lists a default has to be able to back it up. If it can’t prove the proper notices went out, the listing is on shaky ground. The supplier agreed to remove the default because of that lack of evidence.

The result

We started on 24 February. The default was removed on 10 March, 14 days later. Sam was a big step closer to the construction finance he needed.

What this means for you

Trade suppliers and smaller creditors don’t always have the same systems as the big banks. Sometimes the paperwork simply isn’t there. If you’ve got a default from a supplier, it’s worth asking them to prove they followed the rules. Our credit repair lawyers do that every day.

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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