MyCRA Specialist Credit Repair Lawyers

Tag: adverse listing on credit file

Why Some Creditors Remove Defaults Faster Than Others

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Understanding creditor default removal timeframes is crucial for anyone with a damaged credit file. If you’ve ever wondered why some people get their defaults removed in days while others wait months, the answer isn’t luck—it’s about which creditor listed the default.

Understanding Creditor Default Removal Timeframes in Australia

Not all creditors operate the same way. They have different processes, different compliance standards, and different attitudes toward default removal requests. Many respond quickly and cooperatively, while others drag their feet and fight every step of the way.

After 16 years of helping Australians repair their credit files, we’ve developed deep insights into exactly which creditors fall into which category. Here’s what makes the difference.

Understanding creditor processes is key to faster default removal outcomes.

The Four Factors That Determine Creditor Default Removal Speed

1. Compliance Culture

The first major factor is a creditor’s internal compliance culture.

Some creditors maintain tight compliance processes. They keep meticulous records and follow the rules carefully when listing defaults. When you challenge them, they can quickly pull up the documentation and either defend the listing or acknowledge an error.

Other creditors have sloppy compliance standards. Their records are incomplete, and their processes are inconsistent. When you challenge them, they scramble to find paperwork that may not exist.

Interestingly, sloppy creditors can be easier to deal with in some ways—they can’t defend what they can’t prove. However, they can also be slower because their internal processes are disorganised and chaotic.

Want to Know Your Chances?

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For more information about your rights under Australian credit reporting law, see the Office of the Australian Information Commissioner (OAIC) and the Australian Financial Complaints Authority (AFCA).

2. Established Relationships

Over 16 years, MyCRA Lawyers has built relationships with key contacts inside major creditors. We know who to talk to, how their internal processes work, and what they need to see to make a decision.

When we reach out to a creditor we’ve dealt with hundreds of times before, we’re not starting from scratch. We’re not getting lost in a call centre queue. Instead, we go directly to the people who can actually make things happen.

This is why we’ve had defaults removed in as little as 14 minutes with some creditors. We knew exactly where to go and what to say to expedite the process.

Years of building relationships with creditors means faster resolutions for our clients.

3. Creditor Attitude Toward Disputes

Creditors take vastly different approaches when responding to disputes.

Some creditors adopt a commercial approach. They weigh up the cost of fighting a dispute against the cost of simply removing the listing and moving on. If we present a solid case backed by evidence, they’ll often agree to remove the default rather than drag things out.

Other creditors fight everything on principle. They’ll defend listings even when their position is weak and escalate matters to external dispute resolution rather than concede. These creditors take longer—not because the case is harder, but because they choose to make it harder.

4. Whether the Debt Has Been Sold

If the original creditor still owns the debt, there’s one party to deal with. However, if someone sold the debt to a debt buyer, the process can become more complicated because documentation often goes missing during the transfer.

That said, debt buyers have their own compliance vulnerabilities that experienced credit repair lawyers understand. Very often, if your debt has been sold, this can actually help get your default removed faster due to documentation gaps in the chain of ownership.

What Creditor Default Removal Means for Your Credit Repair Journey

When we assess a client’s credit file, we don’t just look at what’s listed—we look at who listed it.

We know which creditors typically resolve matters in 7 days. We know which ones average 30 days. Furthermore, we know which ones might take 90 days or more. This knowledge helps us set realistic expectations and prioritise work based on each client’s specific needs.

If you need a default removed quickly because settlement on a property is approaching, we can tell you whether that’s realistic based on which creditor we’re dealing with. This honest assessment prevents disappointment and allows for proper planning.

Not All Defaults Are Created Equal

The key takeaway about creditor default removal is that not all defaults are equal, and not all creditors are equal. The name next to the listing on your credit file matters more than most people realise.

Understanding these dynamics is crucial for anyone dealing with defaults on their credit report. While you might be tempted to tackle credit repair yourself, having professionals who understand the nuances of each creditor’s processes can significantly impact both the outcome and the timeframe.

Professional legal analysis can identify compliance errors that lead to faster default removal.

The Advantage of Legal Representation

As a law firm, MyCRA Lawyers has capabilities that standard credit repair companies simply don’t possess. We can take legal action when necessary, which gives creditors additional incentive to respond appropriately and promptly to our requests.

Our 16 years of experience means we’ve seen every type of creditor behaviour and developed strategies to handle each situation effectively. We know which creditors respond to which approaches, and we tailor our strategy accordingly.

Taking the Next Step

If you’re dealing with defaults on your credit file, understanding these factors can help you make informed decisions about how to proceed. Whether you choose to work with professionals or attempt to resolve matters yourself, knowing what to expect from different creditors is valuable information.

For those considering professional assistance, a consultation can help you understand the realistic timeframes for your specific situation based on which creditors are involved. This knowledge allows you to plan accordingly, especially if you have time-sensitive financial goals like property settlement or loan applications.

Conclusion

Default removal timeframes vary significantly based on four key factors: the creditor’s compliance culture, established relationships with key contacts, their attitude toward disputes, and whether someone sold the debt. Understanding these factors helps set realistic expectations and develop effective strategies for credit repair.

The creditor’s name on your default listing is one of the most important factors determining how quickly—and successfully—that default can be removed. Armed with this knowledge, you can make better decisions about your credit repair journey.

Ready to Get Your Defaults Removed?

Don’t let bad credit hold you back. Our specialist lawyers have helped thousands of Australians remove unfair defaults and rebuild their financial future.

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9/10Defaults Removed

Since 2009Helping Australians

1 in 3Resolved in 7 Days

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31/01/2026
Helping clients save money through credit repair

As brokers we are continually faced with meeting clients whose credit report lets them down. These clients stack up financially on all levels…until that last minute credit check reveals they have an adverse listing on their credit file.

By Graham Doessel CEO of MyCRA Credit Repairs and www.fixmybadcredit.com.au.

Many brokers who come across clients with a bad credit rating either turn them away or if they are otherwise suitable for finance, guide them into a more flexible non-conforming loan.

But many brokers may be surprised to know it can be cheaper for the client to undergo credit repair – and if the client identifies errors or inconsistencies in their credit report – it could ethically be the best option for the client.

For instance, let’s calculate the figures on an average loan of $400,000 over 30 years, comparing non-conforming loan interest rate of 9.5% with a standard variable rate of 7%. The client would be paying a staggering $702.71 per month with non-conforming loan interest rates. They will be hit with $22,867.15 more in home loan repayments over the first three years of the loan.

Credit repair would not be suitable for those people who demonstrate an inability to make repayments. But as credit repairers many times we find the client has errors on their credit report, or the listing is unjust – and that we can rectify. Often we can determine that the file can be completely cleared, allowing the client access to a whole range of loans they were previously unsuitable for.

The popularity of credit repairers is due to a large volume of errors made by creditors on credit files, and a system of redress which is often difficult for the credit file holder to navigate.

The number of errors on credit files in Australia is astounding. Many of our clients thought they had impeccable repayment histories and would have never dreamed they would end up with a default. Let me tell you mistakes do often happen. Sometimes simple human error by the creditor leads to defaults incorrectly listed.

Whilst paying bills on time is the best way to ensure a clear credit file, it does not guarantee a clear credit report.

Statistics released by the Australian Consumer Association (now Choice Magazine) from a study conducted in 2004 showed around 34% of the clients surveyed had credit files which potentially contained errors in some way.

Recently Channel 7’s Today Tonight interviewed Veda Advantage’s Head of External Relations, Chris Gration on the possible number of errors on credit reports. He admitted errors within their system alone amounted to 1%.

“We give out about 250,000 credit reports to consumers every year. But only in 1 per cent of cases is there a material error on the file, so a default or an enquiry that’s incorrect,” Mr Gration told Today Tonight.

Even if as little as 1 per cent of those 14 million credit files contained errors, that would still currently leave 140,000 credit files in Australia containing errors that just shouldn’t be there.

The nature of credit reporting is that there is much opportunity for human error and these errors are usually not uncovered until people go about checking their credit file. Often people are unaware of their responsibility to maintain the accuracy of their own credit file – and so they don’t find out about their credit issues until they apply for a home loan.
Then, once people find problems with their credit file – they often find the process of removal of errors from their credit report difficult.

Current legislation does allow people to have inconsistencies removed from their credit file, but in reality many people are not successful when they attempt to fix it themselves. Often it is because they are not schooled enough in the legislation or can’t devote the necessary time to it to ensure a successful credit repair. Sometimes people who attempt default removal themselves can do more harm than good through lack of knowledge, or difficulty in negotiating with creditors.

One thing brokers can do to encourage a better transaction is to refer clients to us to have their credit checked prior to applying for finance. They can take advantage of their yearly free credit file check, which would uncover any problems with the credit file prior to finance application, and ensure the client is in the best possible position for qualifying for a loan. Plus a client does not generate a credit enquiry when they request a copy of their own credit file.

Brokers can also potentially save thousands in lost commission by helping those that may otherwise be turned away to get a clear credit file.

Once the credit file is repaired the client is then passed back to the referring broker to be fitted to the loan of their choice.

For more information for brokers on the benefits of referring clients, contact MyCRA Credit Repairs or call tollfree 1300 667 218.

Image: Ambro / FreeDigitalphotos.net

02/02/2012
Consumers slugged almost $23,000 more in additional home loan repayments

Media Release

1 November 2011

Home loan rates are set to be reduced today, but for millions of Australians who are living with defaults on their credit file, they will be hit with $22,867.15 more in home loan repayments over the first three years of the loan.

The Reserve Bank of Australia is today tipped to hand over a reduction of a quarter of one percentage point in interest rates, taking the cash rate down to 4.5 per cent.

Some big banks are expected to respond immediately, with the potential to pass on a saving of $49 per month to the average householder.

But for those approximately 3 million or more Australians who are living with credit rating defaults, the interest rates cuts will be negligible.

A national credit rating repairer says those families who are unlucky to have defaults on their credit file for 5 years will be paying a staggering $702.21 more per month with non-conforming loan interest rates.

“We talk about massive savings for the average Australian with these cuts, we talk about encouraging people to switch lenders to increase competitive rates, but this is not a reality for people with defaults.”

“Most banks won’t lend them money, forcing them into non-conforming loans and paying top dollar because their credit file shows they are a bad risk – and it may not be true,” says Graham Doessel from MyCRA Credit Repairs.

There are more than 14 million credit files in Australia (14.7 million files are held by credit reporting agency, Veda Advantage alone), and approximately 3.47 million negative listings, but the number of possible errors which exist is not certain.

The possible volume of errors on Australian credit files was exposed by a small scale study conducted in 2004 by the Australian Consumer Association (now Choice Magazine). It revealed about 30% of credit files were likely to contain errors.

“In our view, there are serious, systematic flaws which are leaving an increasing number of Australian consumers vulnerable to defamation, mis-matching and harassment,” the ACA report said.

Transferring those figures from the Choice study to the number of credit files in Australia today, could mean potentially 4 million errors currently exist on credit files in Australia.

Recently Channel 7’s Today Tonight interviewed Veda Advantage’s Head of External Relations, Chris Gration on the possible number of errors on credit reports. He admitted errors within their system alone amounted to 1%.

“We give out about 250,000 credit reports to consumers every year. But only in 1 per cent of cases is there a material error on the file, so a default or an enquiry that’s incorrect,” Mr Gration told Today Tonight.

Mr Doessel says,

“Even if as little as 1 per cent of those 14 million credit files contained errors, that would still currently leave 140,000 credit files in Australia containing errors that just shouldn’t be there.”

Under current credit reporting legislation, it is up to the consumer to check for errors.

Credit file holders are able to obtain a copy of their credit report from one or more of Australia’s credit reporting agencies for free every 12 months.

But Mr Doessel says consumers are often not aware across the board of their responsibility to check the accuracy of their own credit file, so many errors go undetected.

“Often it is not until people apply for a loan that they learn they have an adverse listing on their credit file, but by then it is too late and they are generally refused credit or forced to take on non-conforming loans at sky-high interest rates to secure the home,” he says.

When disputing any adverse listing, it is up to the credit file holder to provide reason as to why the creditor has not complied with legislation.

“Unfortunately many people find this process difficult – negotiating with creditors is not always easy for the individual to undertake. Our job as credit repairers is to check the process of listing defaults for legislative and or compliance errors, any such errors could deem the credit file default listing unlawful, at which time we advise the creditor to remove the default,” he says.

/ENDS.

Please contact: Lisa Brewster media@mycra.com.au

MyCRA Credit Repairs is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

Links:

1. 3.47 million negative listings in Australia, Veda Advantage November 2008
2. Based on average loan of $400,000 over 30 years on non-conforming loan interest rate of 95.% vs standard variable rate of 7%
http://www.mycra.com.au/calculators/do-i-need-credit-repair.php
3. http://lws.vedaadvantage.com/personal_solutions/personal_default.aspx
4. http://www.theage.com.au/news/business/record-class-action-possible-against-veda/2007/05/01/1177788141045.html
5. http://www.mycra.com.au/media/television.php

Image: jscreationzs / FreeDigitalPhotos.net

08/12/2011