Credit repair is an important process for many Australians, as it can affect their ability to access credit and financial products in the future. If you have a poor credit history or have defaulted on loans, you may find it difficult to borrow money, rent a property or even get a mobile phone plan. In this blog article, we will explore some useful credit repair information for Australians, including Sections 88 and 91 of the National Credit Code, repossession, and unreasonable enforcement expenses.
Section 88 and 91 of the National Credit Code:
The National Credit Code (NCC) is a national set of rules and guidelines that govern the lending practices of credit providers in Australia. Section 88 of the NCC provides for the correction of credit reporting information, which means that if you believe that there is an error in your credit report, you can request that it be corrected. This is important because incorrect information can negatively impact your credit score and make it difficult for you to obtain credit in the future.
Section 91 of the NCC provides for the removal of credit reporting information. This means that if you have paid off a default, for example, you can request that it be removed from your credit report. However, it is important to note that credit providers are not required to remove the information, and it may still be visible on your credit report for up to five years.
Repossession:
Repossession is when a lender takes possession of an asset that has been used as security for a loan. This can happen if you have failed to make repayments on a loan, and the lender believes that you are unlikely to be able to repay the debt in the future. In Australia, lenders are required to follow specific rules when repossessing assets, and failure to do so can result in legal action being taken against them.
If a lender wishes to repossess an asset, they must first provide you with a notice of default, which gives you an opportunity to rectify the default before any further action is taken. If you do not rectify the default, the lender may then issue a notice of repossession, which gives you a further opportunity to rectify the default before the asset is repossessed.
Unreasonable enforcement expense:
Under the NCC, credit providers are prohibited from charging unreasonable enforcement expenses when attempting to recover a debt. This means that they are only able to charge you for expenses that are reasonable and necessary, such as legal fees or repossession costs.
If you believe that you have been charged unreasonable enforcement expenses, you can make a complaint to the Australian Financial Complaints Authority (AFCA), which is a free and independent dispute resolution service.
Credit repair can be a complex process, and it is important to understand your rights and obligations under the law. If you are struggling with a poor credit history, it is important to take steps to improve your credit score, such as paying off outstanding debts and correcting any errors in your credit report. By understanding the relevant legislation, such as Sections 88 and 91 of the NCC, as well as the rules around repossession and unreasonable enforcement expenses, you can protect yourself from unfair practices and ensure that your credit history is accurate and up-to-date.
