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once you get a default on your credit rating Lock Rss

we just discovered that DH has a default on his credit rating from an unpaid bill for $350 from over a year ago that we had absolutely no idea was owing. It was for a unit we were renting for when we first started a business and when we left, we truly thought all our accounts had been finalised.

DH has just discovered it, paid it straight away without question and now wondering if this is going to completely stuff us with trying to get a loan etc in the near future?

God im so furious. angry We never received reminder notices, default notices, phone calls, NOTHING.

dammit! What can we do to "redeem" his credit now? Or is a measly $350 going to stuff us up for x amount of years?
the listing will stay there for 7 years, but the company should have advised the credit reference agency that the bill is now paid. so if he has a loan application in the 7 years from the default, it will be listed on the credit report, but you should be able to get a letter stating that the bill has been paid. hope that made sense?!

I would be disputing it, no sure where to start but I remember giving people defaults on their credit ratings when I was in finance and I was told its illegal to do it without so much notification, there should have been reminder notices and notices that it will be getting listed
yeah it will get listed as a paid default i believe. but paid or unpaid its still a default.

im just furious because had we known it was owing we would have paid it. Its not like we didnt/dont have the money or that we just forgot.
It was a power bill and all our mail was redirected once the unit was no longer being used so we should have received some form of warning surely!
We cant afford to have a mark against DHs name because we often need to use his credit rating for things to do with our business and now he doesnt think he can even get a phone if he needs one!

we just discovered that DH has a default on his credit rating from an unpaid bill for $350 from over a year ago that we had absolutely no idea was owing. It was for a unit we were renting for when we first started a business and when we left, we truly thought all our accounts had been finalised.

DH has just discovered it, paid it straight away without question and now wondering if this is going to completely stuff us with trying to get a loan etc in the near future?

God im so furious. angry We never received reminder notices, default notices, phone calls, NOTHING.

dammit! What can we do to "redeem" his credit now? Or is a measly $350 going to stuff us up for x amount of years?


I think you can contact the credit agency and get them to look into it, I could be wrong but I dont think someone can do that without first trying to contact you but I know credit agencies look into defaults if you claim they are incorrect or have already been paid - I got one from Video Ezy once, they said I kept the DVD but they never contacted me, anyhow turned out they returned it to the shelf without scanning it so they had it the whole time! My credit rating was almost shot for a crappy DVD I didnt even keep! so theyre the best ones to ask
i cant ring up and discuss it as its not in my name but i will tell DH to ring them back and ask more questions. He's paid it over the phone so at least its no longer owing but i cant imagine any reason why they would have been unable to reach us unless they sent the notifications after the mail redirection had already expired. but even then they should have had DHs mobile number or email address or something?
a paid default shouldn't stop him getting a loan. but i do know what you mean, that you weren't informed by the power company about the money owing so how could you know to pay it, it is very unfair.

i recently had an unpaid bill from 3 mobile because i had cancelled my account with them, and my credit card where the direct debit came from had expired about the same time. my emails ended up going to DH's junk mail on his lap top, which i never use, so i didn't get anything until i got a dirty letter in the post saying it would be put on my credit rating if i didn't pay it. what i don't get is, its a phone company, they have my mobile number, why didn't someone from the collections department ring me? duh....

This happened to us and get this it just showed up this year when DP applied for a loan. He had had credit checks done before and it never showed up than. It is a paid default from telstra. We never got a single letter either. It just lower your chances i was told by someone at a bank but all other i spoke to said an automatic NO because of the default. Try and dispute it we tried.

we just discovered that DH has a default on his credit rating from an unpaid bill for $350 from over a year ago that we had absolutely no idea was owing. It was for a unit we were renting for when we first started a business and when we left, we truly thought all our accounts had been finalised.

DH has just discovered it, paid it straight away without question and now wondering if this is going to completely stuff us with trying to get a loan etc in the near future?

God im so furious. angry We never received reminder notices, default notices, phone calls, NOTHING.

dammit! What can we do to "redeem" his credit now? Or is a measly $350 going to stuff us up for x amount of years?


We tried to re finance our home loan for a better deal a few months ago and found out that hubby had a default against his name (that we never new about. Because of this one thing we were knocked back even though our history with our bank is perfect!

Like you it was an electricity bill from a rental we were in years ago.

Apparently if its for stuff like electricity/water/gas bills etc once you have payed it you can get the default removed off your credit rating. There is some sort of ombudsman you can contact to have it done. There was actually a thing on Today Tonight about it not that long ago.

My DH found out he had 2 unpaid bills from his old unit, that he received after he moved out. He paid them off straight away and paid an extra charge to have them removed from his credit rating also. It was a huge fee, like $700 or something, but I'm not sure if that was because he had two to remove or what. He also had to go to small claims court and have a judge sign off on it (to prove the bills were paid and to have clearance to get them removed).
Defaults stay on your credit file for 5 years, not 7. The listing will only be updated to show it as paid, if the creditor updates the listing. Often, they're lazy, and don't bother to do so. But either way, the big banks don't care whether it's paid or not, a default means an automatic "no" according to their policies. The only way it can be removed is if the creditor files to have it removed. But, if he was legally in default of the payments, then chances are that the creditor will not ask to have it removed, no matter how you plead with them. Sorry, but they're just like that.
I work in the area of personal insolvency, and spend a lot of my day look at peoples' credit files - and it's amazing how many people don't know that they have defaults listed against them.

It will last for 5 years. But you could try to dispute it if you believe you weren't in the wrong. No harm in trying.
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