After a divorce my ex incurred a debt with a major telco. When they couldn't find her they came after me, with a note on my credit file. I helped them get their money and was promised that the mark on my file would be removed once the debt was cleared.
The debt was cleared; the mark remained. When I reminded them of our arrangement I was told 'sue us'. This has been going for four years and has caused me embarrassment as well as inconvenience (eg. I had to put company mobile phones in my private name, but was refused service my some preferred suppliers).
I've been thinking of taking them to court, out of principle. But the cost, stress, inconvenience and distraction are putting me off. Is there somewhere I can go to have this addressed?
There are avenues you can utilise to have your complaint addressed. However, you must be aware that it is standard procedure for a default to remain on a persons credit file for up to five years - it can be listed as paid, however it will not be removed.
The following steps can be taken to address concerns you may have about your credit file:
- Step 1: If you haven't done so already, get a copy of your credit report. If the information in your credit record is wrong or misleading you can make a complaint.
- Step 2: Write to the credit provider to raise your dispute. You need to give reasons as to why the listing is misleading or incorrect.
- Step 3: If you do not receive a satisfactory response to your complaint you can make a written complaint to the Federal Privacy Commissioner.
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Christine Christian was appointed CEO of D&B Australia and New Zealand in 2001 after leading the management buy-out of these operations from D&B global company. In this role, Christine has more than doubled the market value of D&B. In 2007 Christine managed the competitive sale process of D&B Australasia from AMP Capital to Lazard Carnegie Wylie.
D&B's new book, Dun & Bradstreet's Guide to Cash Flow and Credit Risk, provides expert advice for SMEs on improving cash flow and reducing bad debt. It provides hints and tips on a range of issues including: developing and implementing a credit policy; managing receivables; credit management for overseas customers; and using credit data in your marketing.
Not all facts are in hand eg whether you signed the initial contract as a joint account owner or guarantor, which may act against you,
However, assuming the Ombudsman is receptive to your circumstances, I would then advise the telco that you have now raised the matter with the Telecommunications Ombudsman and will lodge a complaint within 7 days unless you receive written confirmation that the debt has been cleared.
Don't hold off on lodging the complaint if you don't get an acceptable response.
At worst, a notation that the debt has been cleared should be made on your file. refer below for more detail.
Notes
The Privacy Act does not require a credit reporting agency to physically remove from your file information about an overdue payment (a default) when you've paid off the debt, as long as the default was correctly listed in the first place. The agency must however:
a) if it has been advised by either you or the credit provider concerned that you are no longer in debt - attach a note to your credit file saying that you have paid off the debt
b) after 5 years since the date on which the debt was reported, remove the debt from your file.
(A credit reporting agency can keep information about you on file for 7 years if it is about a 'serious credit infringement'.)
Hope this helps.