Whether a debt affects your credit file depends on several factors, including the type of debt, the creditor's approach, and the rules that govern credit reporting in Australia.
Under the Privacy Act 1988 and the credit reporting provisions that flow from it, a creditor can list a default on an individual's credit file only if specific requirements are met — including providing formal notice before the listing is made. For purely commercial debts between businesses, credit reporting of a company's file follows different rules.
Key things to understand:
- A default listing is a record on a credit report that can affect a person's or a business's ability to obtain credit in the future.
- Creditors are not required to list a default — it is a decision they make.
- If a debt is listed, resolving it (paying or settling) does not automatically remove the listing, but the status is updated to show the default has been paid.
- You are entitled to access your own credit report for free from a credit reporting body such as Equifax, Illion or Experian.
Merion does not operate as a credit reporting body, and we cannot tell you what is or is not on your credit file. For specific questions, contact a credit reporting body directly or speak with a free financial counsellor through the National Debt Helpline on 1800 007 007.
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