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Home Refinance Declined because of a $200 Credit Default - any chance of removing it?

Discussion in 'Property Finance' started by Katarina_Investor, 8th Dec, 2015.

  1. Katarina_Investor

    Katarina_Investor Member

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    Hi
    Just as the title implies, our refinance has been declined bu St George because of a $200 Vodafone"3" bill default from three years ago. I rang the collections agency that the debt has been sold to and they advised that the best they can do is mark it as "settled in full" and lodge the investigation to see if the default procedure has been settled correctly if I wish to have the default removed altogether. If the procedures were followed, then the default cannot be removed.

    My broker said that in order for the loan to be approved, the default has to be removed, not just marked as “settled in full”.

    Any ideas of how this can be attained?
     
  2. 3am

    3am Active Member

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    Hi katarina

    I dont have an answer i come on to ask you how to start a new thread. On this forum. Thanks
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    You'd probably be best off changing lenders to one that will be okay with a small telco paid default. There's a few out there that will - ME bank is a non-specialist who will do it, AMP and maybe CBA off the top of my head?
     
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  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    You will have a hard time removing it, especially if it is paid.

    Because this relates to credit you should make a complaint to the credit ombudsman www.cio.org.au
     
  5. Katarina_Investor

    Katarina_Investor Member

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    I have not paid it as yet, I only asked to lodge an investigation as I figured once it's paid, there is no incentive for the agency to remove the default.

    Would you have any tips for me on what points to press in my complaint to the CIO?

    Many thanks
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    that is good. But $200 is not much of an incentive to them.

    On the CIo website there are some recent decisions on complaints. I read one recently regarding listing of a default. Notice must be given before defaulting you etc etc. Have a read
     
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  7. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Takes a reasonable amount of time and effort to remove defaults - I've had clients be strung along for months before they could get something removed which was 100% not their fault.

    I'd be moving this onto another lender who accepts small paid defaults if timely finance is necessary.
     
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  8. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Pay off the default, it won't remove the default but there's plenty of lenders who are fairly understanding of missing a small telco bill.

    Then go to a different bank, the CBA is fairly good about this stuff. Don't try re-applying with St George, it will only make the problem worse.

    If you can limit the loan to 80% of the purchase price, that's a huge advantage as well.
     
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  9. Watson1

    Watson1 Well-Known Member

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    ANZ and CBA should do it as long as it is reflected as paid.

    Managed to get a purchase through STG/BoM at 92% with an $8500 paid default a year ago!

    Best to pay it in full and check your veda file to ensure it is showing paid before resubmitting as it can take a while to reflect on veda.
     
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  10. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Agree with the rest - pay it up and move on. There's little point trying to get it overturned with the dragon.

    Make sure you explain it upfront to the new lender.

    What's the lvr?
     
  11. LifesGood

    LifesGood Home Building & Development Consultant Business Member

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    I've had great success with Trimarchi & Associates with regards to having defaults removed. Worth having a chat with them.
     
  12. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    That can be really expensive though - Prob not worth it unless you can't get finance at all. I'd suggest it's probably not worth it for a $200 Telco.
     
  13. LifesGood

    LifesGood Home Building & Development Consultant Business Member

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    Yep true, if all else fails.
     
  14. jpcashflow

    jpcashflow Well-Known Member Business Member

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    I had a client in the same boat... there are a couple of lenders who will be able to assist.
    I am surprised your broker has not been able to assist?
     
  15. Scott No Mates

    Scott No Mates Well-Known Member

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    You want an outstanding debt and unresolved default removed? How it snowballs.

    You've breached your credit terms with your telco, they've enforced their rights and you're upset that it has affected your credit rating?

    What did you think would happen? "Oh, it's only $200 the telco can write it off? If I wait long enough they might forget?".
     
  16. Drgonzo

    Drgonzo Well-Known Member

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    Most of the time these law abiding telcos are overzealous grubs

    Pay every phone bill 59 days late, just to piss them off :D
     
  17. Katarina_Investor

    Katarina_Investor Member

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    Thank you - the LVR is 80% luckily
    My broker also advised if approaching them to remove the default won't work (in very rare cases it can), then pay the debt and he will need to submit an explanation letter to the lender, hoping they will accept