Can payment defaults be removed?
The short answer is yes, we can help you remove a payment default from your file.
Let’s examine this in detail:
What is a payment default?
A payment default is an overdue debt. For individuals, the debt must be at least $150 and be more than 60 days overdue. For businesses, the debt must be at least $100 and be more than 60 days overdue. This includes bills from telcos, electricity companies as well as credit cards and loans.
How did it get on my file?
Credit providers put the payment defaults on your file once they believe that you have stopped paying. Before they can do this, they must send you two separate, written notices to your last known address. If no response is received, the credit provider can report to a credit reporting bureau (Equifax, Illion or Experian) that you are in default of your contract.
How does it impact my file?
A payment default will remain on your credit file for five years from the date of listing, even if you have repaid the relevant debt.
When you apply for credit somewhere else, other credit providers see that you have a default and may be reluctant to extend credit to you. That’s why it’s so important to understand what’s on your credit file.
What can I do about it?
This is a complex process and steps to remove it usually vary from case to case.
There are often are genuine reasons why the listing is unfair, so that’s why we take the time to understand the situation properly. You may have changed address, fallen ill or been the victim of identity theft. Once we understand your situation and negotiate with the credit provider and find a resolution that’s acceptable to both parties.
Once that’s agreed we write to the credit bureaus to advise that the listing can be removed.
How long will it take?
It usually takes 3 to 6 weeks to remove a payment default from a credit file, but complex cases can take much longer.
What will it cost?
Getting professional assistance to remove a payment default can be expensive. Some companies charge significantly less, but this can mean that the work is being done by less experienced, or junior staff. Our fees are probably higher than others because this is our specialisation, especially when it comes to complex areas of negotiation.
Before the industry was regulated in 2021, many small unscrupulous operators saw this as a way of making quick money. Many of our clients came to us after wasting money (and time) with other credit repair companies who promised the world but delivered nothing.
Will my file be clean when it’s removed?
If the payment default is the only negative listing on your file, then yes, the file will be clean and your credit score will improve.
However, rather than just hope for the best, Visage will do a complete review of the files from all three credit reporting bureaus before starting your work. This means you know exactly what it will cost before any work takes place. That way, you’ll get the results you paid for.