There are over 14 million credit files in Australia and these contain over 3 million negative listings (Veda Advantage 2008).
Even one negative listing on a credit report has the potential to affect people’s ability to secure credit for years. The affects of this can be severe and wide spread, from the collapse of a business to family breakdowns, not being able to secure credit into today’s world can have disastrous consequences.
The good news is many negative listings can be permanently removed from a credit file, like they never existed.
Having negative credit listings such as defaults removed from a credit file can be achieved by identifying faults and errors with the credit listing or the process followed by the credit provider.
Few people realise that credit providers are bound by law to follow a very strict process before they are able to record a negative credit item. This process includes
- Making sure the account is sufficiently in arrears before the commencing recovery action
- Providing sufficient notice periods to the debtor
- Issuing correctly structured demand letters to the debtor
- Making sure all disputes are resolved prior to recording the event with a credit reporting agency
- Making repapered attempts to contact the debtor on all known forms of communication in the case of some credit listings.
Knowledge is the key, the key to repairing a credit file is having knowledge of the laws and legislation surrounding credit reporting and an understanding the process a credit provider must follow, armed with this information many negative credit listings can be permanently removed from a credit file.
Unfortnitly there is no magic built bullet with credit repair however it is common for find errors and inconsistencies with negative credit listings and given this is the case they can be permanently removed from a credit file.