Wednesday, 17 August 2022

Can I get a default for a bill I never received?

If you fall behind on your loan repayments, a creditor may report the default with the credit reporting agencies. However, what if you find out you have a black mark on your credit report for a bill you never received?

If you never received it, it’s not your fault

Creditors are required to follow a strict process when reporting a default with the credit reporting bodies. If you never received a bill, then you haven’t missed the payment and the negative listing should not appear on your credit report. Often people think that paying off the debt will make the problem go away, but this is not necessarily the case.

Paying the debt

Strangely enough, if you pay off the debt as soon as you find out you have a default, you may actually be doing more damage. The creditor may have not followed the law when reporting the listing and by paying the debt you will be acknowledging the debt is in fact yours. What’s worse, paying the default may only change the status of the debt to ‘paid’ but it will still show on your credit report for 5 years if nothing is done about it.

When debts are too old

If the creditor is claiming an old debt and you haven’t made any payments towards that debt for at least six years, you may be able to contest the debt as long as there are no court judgements against you and you can prove the debt isn’t yours (i.e. you haven’t admitted that the debt is yours by making a payment or in any written correspondence).

Your options

If you disagree with the debt being claimed, you have a legal right to dispute the debt on the following grounds:

  • The debt is not yours
  • You have already paid the debt
  • The amount of the debt is incorrect
  • The debt is statute barred (the time for the creditor to seek payment has elapsed)

Where to get help

The first step is to get a copy of your credit report to make sure you actually owe the debt. Click here to request a free copy of your credit history. If there is in fact a problem with your credit report, you could remove unfair, contestable and disputable black marks from your credit report through a credit restoration agency.

The main reasons people choose to hire an expert are that all the hard work is done for you and that credit repair companies typically have a higher success rate than individuals. For additional peace of mind, pick a company that offers a money back guarantee.

If you need help in removing a default from a bill that you never received, click here for a free credit restoration consultation.