Can I get a late payment removed?

Short answer: a late payment can be removed if it’s wrong, unfairly listed, or updated under a valid correction or hardship record; accurate late payments usually stay for 24 months as repayment history, while defaults stay for 5 years.

What counts as a “late payment” in Australia

Repayment History Information (RHI) records whether repayments were made on time and shows a 24‑month rolling history on eligible credit accounts like credit cards, loans, and mortgages.

RHI is often shown as a month‑by‑month chart with codes that indicate on‑time or how many months overdue, and it drops off after 24 months.


When removal is possible

A late mark can be removed if it’s incorrect, incomplete, out‑of‑date, or misleading under the Privacy Act correction rules managed by credit reporting bodies like Equifax, Experian, and illion, or by the original credit provider.

The industry “no wrong door” rule means either the credit provider or the credit reporting body that gets the request must handle or consult and resolve it, generally within 30 days.


When it usually stays

If the late payment is accurate, it typically remains on the report for up to 24 months as part of RHI and cannot be removed just because it’s negative.

Defaults (60+ days overdue and at least $150, with required notices sent) are different from late marks and usually remain for 5 years whether paid or not, although paid status is shown.


Hardship arrangements and how they show

Lenders can record a financial hardship arrangement indicator, and that indicator remains for 12 months from the end of the arrangement, which is distinct from the 24‑month RHI window.

Contacting the lender early to request hardship support can reduce harm and help prevent further negative reporting while a tailored arrangement is in place.


Step‑by‑step: how to get a wrong late payment corrected

  • Get free copies of credit reports from all three bureaus (Equifax, Experian, and illion), review the RHI for the month in question, and note any errors across files.
  • Gather proof: statements, payment confirmations, correspondence, hardship letters, and any outcome emails from the lender.
  • Contact the credit provider first and request a correction; many issues are fixed fastest at the source when the lender verifies and instructs the bureau to update.
  • If needed, lodge a correction request with the credit reporting body; they will investigate and consult the lender as required by the CR Code and Privacy Act.
  • Expect a decision in writing in about 30 days; if corrected, bureaus notify recent recipients of the report and provide an updated copy.
  • If refused or delayed, escalate to the lender’s internal dispute resolution, then lodge with AFCA as an external dispute resolution scheme.


Goodwill adjustment: when to ask

If the mark is accurate but isolated, ask the lender for a one‑time courtesy adjustment citing a strong on‑time history and the reason for the slip, noting this is discretionary and not guaranteed.

If the lender agrees, they can instruct the bureau to update the entry; always get written confirmation and recheck the reports later.


Timelines that matter

  • RHI late marks remain up to 24 months from the month recorded, then drop off automatically.
  • Defaults remain for 5 years; paid status updates but the listing remains during that period.
  • Correction investigations aim to finish within 30 days, with a written decision and notices to affected parties.


Quick checklist before disputing

  • Compare all three reports for the same month and account to confirm the error appears consistently or on a specific file only.
  • Verify dates, amounts, and any hardship arrangements that should have been recorded for the period.
  • Prepare evidence: bank receipts, lender statements, email threads, call logs, hardship approval letters, and screenshots of the report.
  • Write a clear correction request that states the exact month, account, what is wrong, and what outcome is sought, attaching proof.
  • Track deadlines: 30 days for investigation, then escalate to AFCA if the response is unsatisfactory.


If hardship applied but the report looks wrong

If a hardship arrangement was approved for the period and the late mark does not reflect that context, ask the lender to review and correct reporting to include the right hardship indicator and payment status for that timeframe.

If not resolved, ask the bureau to consult the lender and then escalate to AFCA if needed.


Reduce damage going forward

  • Set up autopay for at least the minimum due on every credit account to avoid future late marks.
  • Keep utilisation low, avoid multiple credit applications, and build a steady on‑time streak across the next 24 months.
  • Learn how missed payments affect your credit score and plan repayments around billing cycles to avoid slips.


Bottom line

A late payment can be removed if it’s an error or if reporting needs correction after hardship, and the law supports a clear, time‑bound process; accurate late marks usually stay for up to 24 months and defaults for 5 years.

If a genuine mistake exists, act fast, use evidence, start with the lender, then lodge with the bureau and escalate to AFCA only if needed.

We can help

Easy Credit Repair supports Australians with structured reviews, clear action plans, and fair guidance on disputes and hardship steps, always with transparent expectations and no pressure.

Check out our services or get a free quote to map the next steps with a steady plan tailored to current goals.


Read a deeper guide here: How missed payment affects your score.


Disclaimer: This article is based on research and our views only; for questions, please reach out to us.

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