Credit default removal in Australia

In Australia, an inaccurate credit default can be removed from your credit file if the listing is incorrect or if the credit provider failed to follow proper procedures. Real Credit Repairers examines your credit report to identify any valid reasons to dispute the listing.

We then communicate with both the credit reporting agency and the lender to facilitate its removal. Our service operates on a contingency basis, meaning you only pay if we successfully clear the default from your file.

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1800 953 563

Can a credit default be removed from your credit file?

Yes, in certain situations, you can remove a default from your credit file. Typically, a correctly listed default remains on your record for five years. Even if you pay it off, it doesn't vanish; instead, it updates to show as paid.

However, it is possible for a default to be disputed if there was any mistake in its listing. This may include situations where the figure was not accurate or the credit agency did not go through all the required processes before listing it.

It's important to note that defaults are just one type of listing. Court judgements and other credit black marks follow different regulations and are addressed separately, as is the removal of unnecessary credit inquiries.

Grounds for removing a credit default

You can challenge a default if there are inaccuracies in the listing or if the credit provider failed to follow required procedures. We look into various issues, such as whether you ever received a proper default notice, if the listing happened before the notice period ended, or if the amount listed doesn't match what you actually owe.

Mistaken identity or fraud can also lead to a wrongful listing, and sometimes defaults appear while a dispute is still being worked out. Many of these issues relate to breaches of the Privacy Act 1988, which outlines the rules credit providers must follow before listing a default.

We examine each case on its own merits and will inform you if any of these grounds apply to your situation. However, we cannot promise that a default will be removed, and be wary of any company that guarantees removal without first reviewing your file.

Default notice and the listing process

$150+

the payment must be over this amount

60 days

unpaid past your deadline before listing

There are certain steps that need to be followed before a credit provider can make a default entry. This happens only if the payment is over $150 and is not paid within 60 days of your deadline. In the first instance, the provider needs to notify you in writing about the overdue payment. Secondly, a notification needs to be issued indicating an intent to report the payment to a credit reporting agency.

Both notices need to be provided to you at your current address on record. If the notice was sent to an old address by the provider after you have updated your details, or if no notice was ever sent out, that would be a valid reason to challenge the listing.

When the listing is incorrect

Errors can slip into listings, such as an overstated amount that is overdue, a default erroneously listed as yours, or an account opened in your name through fraudulent means. We also check whether or not the debt has surpassed the statute of limitations. If the information does not add up, we challenge the listing from both the credit report agency and the creditor, requesting it is removed.

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How Real Credit Repairers removes credit defaults

Our default removal service is a key part of our broader credit repair offerings, and it unfolds in four straightforward steps.

Step 2

Step 3

If there is any discrepancy, we formally dispute the default with the lender and credit reporting agencies. When needed, we take the issue to the formal process of complaints.

Step 4

When our efforts are successful, and the default is removed, you will receive written confirmation that it has been cleared from your credit file.

Step 1

The first step is completely free and involves a friendly, no-pressure conversation with one of our credit repair specialists, who will go over your credit report with you. If you don’t have an up-to-date report, we’re happy to assist you in obtaining one from Equifax, Experian, or illion.

After we receive your report, the investigation process begins. We get in touch with the credit reporting agencies and your lender to obtain all the information about your case. We check whether the default complies with all the requirements.

Book your free credit report review

What credit default removal costs

Our pricing follows a no-win-no-fee straightforward approach: you only pay if we achieve results for you.

$99 non-refundable fee

Initially, there's a $99 non-refundable fee for investigation and administration, which we charge upon accepting your case. Beyond this, you incur no further costs unless we are successful.

$1,195 success fee

If we successfully remove a default or serious credit infringement, you will be charged a success fee of $1,195, including GST, for the first listing.

$695 each additional listing

Each additional listing costs $695, also including GST.

Exercise caution with companies that demand hefty non-refundable fees upfront, as the regulator has issued warnings about such practices. Our pricing model ensures that we shoulder the financial risk, not you.

Importantly, we only bill you once you receive written confirmation that the listing has been removed.

How long a default stays on your file and how long removal takes

When it comes to Australian credit files, two important timelines come into play. A default remains on your credit file for five years from the date it gets listed. If there's a serious credit infringement, it stays for seven years. Paying off the debt won't reset this timeline or erase the listing; it simply marks the debt as paid.

The question of how long it takes for removal is different. Typically, cases are resolved in a few weeks. We strive to wrap things up in six weeks or less, with most clients seeing results in about 30 days. The timing largely hinges on the responsiveness of your credit provider and the credit reporting agency. Once we evaluate your situation, we can provide a more accurate estimate.

What happens to your credit score when a default is removed

The removal of the default record from your credit file is likely to improve your score greatly because defaults constitute one of the worst entries. The level of improvement depends on how bad your credit history is overall, how old the debt is, and how big the particular debt is.

A cleaner credit report improves your chances of being successful in loan applications and getting better interest rates. Your credit report is evaluated by the lending institution in order to get the right price. Nevertheless, it is important to state that without reviewing your credit report, we cannot predict the increase in the points that you will have.

What happens if a credit default cannot be removed

Before you spend any money, it's important to know that not every credit default can be erased. If your credit report is correct and the lender has complied with all regulations, disputing it might not be feasible. However, you still have alternatives. We can open a debt negotiation with your creditor to establish a realistic repayment plan or discuss hardship arrangements. Additionally, we can work on enhancing other entries on your credit report. Often, rebuilding a credit file that is clean and accurate can restore your financial standing more quickly than attempting to remove a default without justifiable cause.

Book your free credit report review

Start with a no-cost credit report review. Book a free credit report review, and we'll examine your file and let you know if there's a valid reason to remove the default, as well as the expected expense if the removal is successful.

Prefer to talk it through? Call us on 1800 945 140, or use the enquiry form on this page, and we will get back to you.

Credit default removal FAQs

No. Clearing the outstanding balance will only update the listing but won’t erase a properly reported default. A default gets removed early if there are reasons to contest it, and not for paying any money. This is the reason why we operate on a no success, no fee basis.
It will remain a default despite having been paid. After you have paid up the outstanding balance, the status changes to “paid,” but it will appear on your record for the entire five-year period unless the listing was fraudulent. If the original listing broke the rules, paying it does not stop us challenging it.
Not as a blanket rule. Default information is normally cleared after five years, not seven. The seven year period applies only for a major credit violation, which is a separate and more serious listing. Most defaults are actually cleared two years prior to the commonly cited seven year period.
Default refers to an entry that is made by the creditor on your record in case of non-payment of an outstanding debt. Court judgment refers to a ruling that is recorded against you by a court. They follow different rules and removal paths, and we handle judgments on our remove a court judgment page.
Generally, some information is needed, and we will tell you precisely what: the loan or credit contract you have, payment receipts, if there are any default notices, and evidence of your situation back then.
Yes. The challenge relates to whether the listing was proper and accurate, which is an entirely different matter from whether you owed any money at all. The fact remains that if there was any error committed by the credit company with respect to the listing of the debt, then you have grounds even if you did owe the money.
We work with all three Australian credit reporting bodies: Equifax, Experian and illion. The default might be registered by any or all of them, so we look into each of your files. If you do not have a report, we can help you with getting one.