Easy Credit Repair

Finding a credit account you never opened can be alarming. The situation becomes even more serious when the account has generated enquiries, debt or a default under your name. If you believe someone has used your personal information to obtain credit, acting promptly is important. The first priority is protecting your credit file from further fraudulent applications. Under the Privacy Act 1988, you can request a ban on your credit file. A ban prevents credit reporting bodies from disclosing your credit information to lenders for new credit applications. The initial ban lasts for 21 days, and an extension can be requested if the risk remains. Consider placing the ban with the relevant credit reporting bodies as soon as possible when identity theft is suspected. The next step is contacting IDCARE. IDCARE is Australia's national identity and cyber support service. It provides specialist support for people dealing with identity theft and can help navigate the reporting and recovery pro...

Making a settlement offer without first understanding the debt can create unnecessary problems. If you are considering debt negotiation in Australia, the first step should not necessarily be deciding how much money to offer. It is establishing exactly what you are dealing with. Start with the amount being claimed. Check the current balance and determine whether interest, fees or other amounts have been added since the account became overdue. Your negotiation position depends on having accurate numbers. Next, establish who currently holds the debt. The original creditor may still be responsible for the account. Alternatively, the debt may have been sold to a debt buyer, or a collection agency may be acting on behalf of the original creditor. These situations are not identical. A debt buyer owns the debt and generally has authority to negotiate a settlement. A collection agent may not own the debt and may need approval from the original creditor before accepting particular terms. Ask for...

Being unable to pay a default does not necessarily mean that ignoring the situation is the only option. Financial difficulty can make it tempting to stop responding to creditors altogether. But there are different pathways that may be available, and they can have very different consequences. The appropriate option depends on the debt, your financial circumstances and what has already happened. One possibility is a financial hardship arrangement. If you are experiencing genuine financial difficulty, you may be able to make a hardship request to the relevant credit provider. ASIC explains that consumers can give a hardship notice and that the credit provider must respond to the request. A hardship arrangement may involve changes to repayments or other changes to the credit contract. It does not simply erase an existing default. There is also an important distinction between a hardship arrangement and the removal of a default. They are separate matters. Financial hardship information can ...