Australia's credit reporting system is governed by the Privacy Act 1988 (Cth), specifically the credit reporting provisions in Part IIIA and the Privacy (Credit Reporting) Code 2014. Understanding how it works can help you make informed decisions about your debt.
The three main credit reporting bodies in Australia
- Equifax (formerly Veda)
- illion (formerly Dun & Bradstreet)
- Experian
Lenders, landlords and other credit providers subscribe to one or more of these bodies to check a person's credit history before extending credit.
What is a default listing?
A default listing is a negative entry on your credit file that records an overdue debt. Under Australian law, a credit provider can generally list a default only if:
- The debt is at least $150 and at least 60 days overdue
- The credit provider has sent a notice to your last known address notifying you of their intention to list the default
- You have not paid or entered into a repayment arrangement within 14 days of that notice
A default listing remains on your credit file for 5 years from the date the default is listed, regardless of whether you pay the debt.
What happens when you pay or resolve the debt?
Once a debt is paid or settled, the credit provider is required to update the listing to show it as "paid" or "settled." The listing does not disappear — it remains on file for the balance of the 5-year period — but a paid default is generally viewed more favourably by lenders than an unpaid one.
Commercial debts and credit reporting
If the debt is a commercial (business) debt, credit reporting rules differ. Commercial credit information may be held by credit reporting bodies, but the consumer protections in Part IIIA of the Privacy Act generally apply to personal credit information. If you are uncertain about your specific situation, seek independent advice.
Check your credit file for free
You are entitled to a free copy of your credit report from each of the three credit reporting bodies once per year (and in certain other circumstances). You can request yours directly from Equifax, illion and Experian via their websites.
For free, independent guidance on credit reporting and your rights, contact the National Debt Helpline on 1800 007 007.
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