[vc_row][vc_column][vc_text_separator title=””]

What Is A Credit File?

[vc_column_text]A Credit File, or Credit Report, is the comprehensive credit history of an Australian Citizen. The information listed in a credit file is compiled to generate a Credit Score, which allows a Credit Provider to see an individual’s Credit Worthiness. A Credit Score ranges between 0 to 1200, with 0 being the worst and 1200 being the best. A recommended score is around 755 for people hoping to obtain finance.

[/vc_column_text][vc_single_image image=”3576″ img_size=”large” alignment=”center”][vc_column_text]The following entries can appear on a Credit File and do affect your Credit Score;

  • Past alias’ or other names
  • Current and previous addresses
  • Current or past employers
  • Credit Enquiries
    • These are marks left on a credit file when a Credit Provider is checking your eligibility for finance
  • Credit Defaults
    • Also known as a “Black Mark”, this is a record of a debt older than 30 days for more than $150
  • Repayment History Information (RHI)
    • This is a record of all missed  or pending payments on a line of credit
  • Bankruptcy or Court Judgements

A consumer copy of a Credit File will also contain a record of all companies accessing the Credit File, with dates recorded. This includes both Credit Providers and Equifax itself. This record of Credit File access is only visible to the consumer who owns the Credit File.[/vc_column_text][vc_btn title=”View Example” color=”blue” align=”center” link=”url:https%3A%2F%2Fdrive.google.com%2Ffile%2Fd%2F16mByIN7PF49fHT6TLHaVtOTg6a-7CcR6%2Fview%3Fusp%3Dsharing|||”][/vc_column][/vc_row][vc_row][vc_column]

What Is Credit Repair?

[vc_column_text]Credit Repair is the removal of information that is negatively impacting a consumer’s Credit Score.

In CreditReboot this process is done by obtaining certain documents, via Credit Disclosure, that we then check for breaches. These breaches could be;

  • Failure to have a clear heading (First Demand Notice/6Q Notice or Final Demand Notice/21D Notice)
  • Inaccurate amounts listed on the file and/or the notices provided of more than $1
  • Failure to alert the clients to the consequences of failure to pay (ie RHI data or Default recording being placed on the file)
  • No details on the Credit Providers EDR (external dispute resolution authority), like the AFCA or TIO
  • No mention of company IDR (internal dispute resolution authority) or ability to dispute the debt
  • No mention of a financial hardship application

And much more. Once these breaches are found, we then have the ability to reach out to a CRB (Credit Reporting Body) and notify them that the Default or RHI data was listed incorrectly.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column]

Repayment History Information

[vc_column_text]In March 2014, amendments to the Privacy Act allowed the collection and disclosure of consumer credit liability information (CCLI) and repayment history information (RHI). Despite the age of this change, RHI has only been appearing in recent history, since 2019. Before this time, RHI was not reported on Credit Files despite it being able to, and Banks rarely disclosed of the possibility of Repayment history information.

Repayment History Information, more commonly known as RHI, is a timeline of all missed payments on an account.[/vc_column_text][vc_single_image image=”3626″ img_size=”full” alignment=”center” style=”vc_box_rounded”][vc_column_text]The above legend outlines how this information is represented and what each letter and number means. Below is an example of RHI can look like.[/vc_column_text][vc_single_image image=”3625″ img_size=”full” alignment=”center” style=”vc_box_rounded”][vc_column_text]RHI data does not require any special notices in order to be correctly listed on a client’s consumer Credit File. However if a matter is in dispute and all collection activity must be stopped, then RHI data also cannot be recorded on a client’s Credit File. In that instance, the RHI data listed on a client Credit File would be placed there in error and can be removed.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column]

Credit Default

[vc_column_text]Prior to the changes in 2014 a default only required a single notice to be sent before being listed on a client’s Credit File, however, after the changes to the Privacy Act both a 6Q (First Demand) and 21D (Final Demand) were required before a default could be listed on a clients Credit File.

A default will be listed in a clients Credit File if a debt is more than $150 and over 30 days overdue. It will appear in a client’s Credit File underneaths the “Consumer Overdue Accounts” section and will contain information such as the amount of the debt, the Credit Provider that listed the default, the date it was placed on the file, and when it will be removed.

A default can only stay on a client’s file for up to 5 years, however, if it is found to be in error it can be removed sooner.[/vc_column_text][vc_single_image image=”3627″ img_size=”full” alignment=”center” style=”vc_box_rounded”][vc_column_text]If there were mistakes made during the notification process, the default can be considered in error and therefore be removed from a client’s Credit File.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column]

Debt Management

[vc_column_text]At CreditReboot, we operate in a very specific and unique way when handling Debt Management. Our primary focus is consumer rights and the role that things like the NCCP Act (The National Consumer Credit Protection Act) and the ACCC Guidelines (Australian Competition & Consumer Commission) play in the world of lending.

Our process is straightforward. We reach out to a Credit Provider on behalf of a client and request documentation that a consumer has a right to obtain. This includes all notes, records, notices and contracts collected and made throughout the course of the lending procedure.

Once we obtain that documentation, we check it for breaches.

Documents that are missing and any breaches found are used to create the foundation for our argument when negotiating with a Credit Provider. Our logic is simple, if our client is being held to the full compliance of the law, why should the Credit Provider not be held to the same standard.

With that in mind, we discuss a settlement with the Credit Provider until we reach something that can make both the Credit Provider and the Client happy.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][vc_btn title=”ACCC Debt Collection Guidelines” color=”blue” align=”center” link=”url:https%3A%2F%2Fwww.accc.gov.au%2Fsystem%2Ffiles%2FDebt%2520collection%2520guideline%2520for%2520collectors%2520and%2520creditors%2520-%2520April%25202021.pdf|||”][/vc_column][vc_column width=”1/2″][vc_btn title=”NCCP Act” color=”blue” align=”center” link=”url:https%3A%2F%2Fwww.legislation.gov.au%2FC2009A00134%2Flatest%2Ftext|||”][/vc_column][/vc_row]