In Australia, a writ or Form 5a often referred to as a summons is a legal document from the Supreme Court, which explains that you will be involved in a legal process. To avoid a writ turning into a judgement, you must file an appearance within proper time. Proper time is defined differently depending on where you are located. For example, in Victoria, proper time is within 10 days after you are served with the writ. Information regarding writs and court judgements can be listed on your credit file or your companies credit file. This information is what we call a negative listing and lenders may see you as high risk as a result.
There are generally only a few options when it comes to applying for finance with a negative listing on your credit file or your companies credit file. One of these options is to do nothing and wait 5-7 years, which is the retention period for negative information stored with the Credit Reporting Bodies. Doing nothing is not an ideal option because it can mean you may not be able to obtain finance such as a home loan or even get a phone on a plan. The other option is to do nothing and when you do need access to emergency funds you will have to go through a high-interest lender. As an example, on a $10,000 loan, high-interest lenders may charge up to $20,000 just in interest. High-interest lenders often take advantage of individuals with bad credit and can often result in causing you more grief down the track.
The option many Australians who once had bad credit have taken, and been successful, with is using the services of a credit repair agency. Credit repairing companies specialise in the removal of disputable and contestable negative listings. The benefit of having an amended credit file is being able to avoid high-interest lenders and obtaining simple everyday items such as a phone on a plan. Credit providers in Australia must be pursuant to the Privacy Act and Credit Reporting codes of conduct. Failure to follow the Privacy Act when placing the negative information on your credit file means the information must be permanently removed from your credit file. As an example, the Credit Provider must issue a Section 6Q and Section 21D notice, within a certain time frame; failure to do so is considered a breach.
Our team at Credit Wipe Australia can assist you if you have bad credit by providing a free assessment of your situation and running an audit of your credit file. Using the information provided by you and from our audit, we can determine if we can take you on as a client. For a free assessment today or more information, feel free to contact us today.