How to Remove a Default From Your Credit File (Australia)

If you want to remove a default from your credit file, the first thing to know is that you do not need to pay anyone to do it. A default can only be listed if the credit provider met strict conditions set by Part IIIA of the Privacy Act 1988 (Cth) and the Privacy (Credit Reporting) Code 2014. If any condition was missed, you can ask for the listing to be corrected or removed — for free, yourself.

This guide sets out the conditions, the grounds for removal, and the exact steps to take.

The short answer

A default can be removed from your credit file if it should never have been listed the way it was. That means checking the listing against the rules the credit provider had to follow, then putting a written correction request to the credit provider or the credit reporting body. They must respond, and if they refuse or ignore you, the OAIC and AFCA both handle these complaints free of charge.

A default that was listed correctly generally cannot be removed early — see “What if the default is correct?” below. Anyone who promises otherwise for a fee is selling you something they cannot guarantee.

A default can only be listed if all of these were true

• The payment was at least 60 days overdue when the default was listed.
• The overdue amount was at least $150.
• The credit provider had taken reasonable steps to recover the overdue amount.
• You were given a written notice of the overdue amount, and a separate written notice of intention to list the default at least 14 days before it was listed.
• The details recorded against you — the amount, the dates, the identity of the account — are accurate.

Grounds to get a default removed

Each of these is a separate, independent reason to ask for removal. You only need one.

• No notice. You never received the required written notices, including the notice of intention to list at least 14 days before the listing.
• Listed too early. The debt was not yet 60 days overdue on the date it was listed.
• Below the threshold. The overdue amount was under $150.
• Wrong amount. The figure recorded against you is not the amount that was actually overdue.
• Debt in dispute. You were genuinely disputing the debt at the time it was listed.
• Too old. The listing has passed the five-year retention period and should have dropped off.
• Ignored request. You asked for a correction and got no response within 30 days.

How to remove a default — step by step

1. Get your credit report free from all three credit reporting bodies — Equifax, Experian and illion. A default may appear on one and not the others, and you need to know which body holds the listing.
2. Identify the listing: who listed it, the exact amount, the date it was listed, and the date the debt fell overdue.
3. Check it against the conditions above. Work out which ground applies to you — the date it was listed against the 60-day rule is the fastest one to check.
4. Gather what you have. Statements showing the true overdue amount and its ageing, and any emails or complaint reference numbers showing you disputed the debt before it was listed.
5. Write to the credit provider and the credit reporting body. Say which condition was not met, attach your evidence, and ask for the listing to be corrected or removed. Do this in writing — the statutory clock only starts when you ask.
6. If they refuse or do not respond within 30 days, lodge a free complaint with the OAIC (which handles credit reporting under the Privacy Act) or AFCA (which handles disputes with the credit provider).
7. Keep copies of everything — your letters, their replies, and any proof that the required notices were never sent.

You can also demand the provider’s records

If the credit provider says it sent you the required notices and you do not believe it, you can request the personal information it holds about you under Australian Privacy Principle 12. That covers account records, case notes and file notes about your account. The provider must respond within 30 days. If it cannot produce evidence that the notice was sent, that strengthens your case for removal considerably.

What if the default is correct?

Be careful here, because this is where people lose money. If you were genuinely more than 60 days overdue on more than $150, the provider took reasonable recovery steps and sent you the correct notices, then the listing reflects what happened and it will generally stay for five years from the date it was listed.

That is not the end of the road. Paying the debt does not remove the listing, but the file will be updated to show the default as paid, which lenders do read differently from an unpaid one. And if the reason you fell behind was hardship — illness, job loss, family violence, a natural disaster — that is worth raising directly with the credit provider, because hardship is handled separately from credit reporting and may open other options on the debt itself.

What credit repair companies charge for

Commercial credit repair firms charge hundreds or thousands of dollars to send the same correction request described above. They have no power a consumer does not have, and they cannot remove a listing that was made correctly. The credit reporting bodies, the OAIC and AFCA are all free to use.

If you are being asked to pay an upfront fee to “clean” or “wipe” your credit file, that is a signal to slow down and check the grounds yourself first.

How FairClaim helps

FairClaim walks you through each listing requirement — the notices, the 60-day rule, the $150 minimum, the accuracy of the details, whether the debt was in dispute, and the five-year age of the listing — works out which grounds apply to your situation, and drafts a structured correction request or complaint you can send yourself. Free to start.

Frequently asked questions

Related guides

• My Car Was Repossessed — What To Do Right Now (Australia)
• Can You Get Your Car Back After It’s Been Repossessed?
• How to Avoid Car Repossession in Australia
• Phone or Internet Problem Your Telco Won’t Fix? How to Complain (TIO)