Data and Credit reporting
Article by Anne Wooding-Giles
Debt Referral
One of the ways that many utility suppliers attempt to recover overdue accounts is by using a debt collector. If they are unsuccessful in getting the money, some suppliers will list the customer with a credit-reporting agency. Suppliers are required to notify customers if this occurs.
In many cases customers have moved address and are not aware that their debt has been transferred to one of these agencies. It is only when the customer applies for consumer credit such as a loan, credit card or mobile phone, and it is declined, that they discover their details are with one of these agencies.
EWON can investigate a complaint where, for example, a customer is disputing the amount of the debt, or is disputing that they owe money. If we find that the supplier has made an error, they will normally ensure that the customer’s credit rating is restored.
People can be referred to a credit reporting agency for any overdue bills that have remained unpaid for longer than 60 days. Once a person is listed with an agency, their listing remains for five years (serious credit infringements stay on file for seven years).
People who are listed with a credit reporting agency can request a copy of their credit report directly from the agency. It usually takes around ten working days for the report to be sent. In some instances the agency may charge a fee to obtain a copy.
If the information in the credit record is incorrect or misleading, these concerns can be raised directly with the agency. If people are not satisfied with the response, a complaint can be made to the Federal Privacy Commissioner. Contact 1300 363 992, or visit www.privacy.gov.au for more information.
For free legal advice and assistance contact the Consumer Credit Legal Centre on 9212 4111, or 1800 247 890 (outside Sydney) or visit www.cclcnsw.org.au
Passing the Buck
When Mr S’s mother died, he contacted the electricity supplier to tell them that the $30 owing on his mother’s account would be paid in three weeks, once her will was finalised.
In the weeks following, the supplier sent reminders to his mother’s address, threatening legal action if the $30 was not paid.
Mr S contacted EWON for assistance after he received a call from a debt collection agency wanting to speak with his mother. They informed Mr S that the electricity provider had transferred the outstanding $30 to their agency.
EWON spoke to his electricity provider and informed them of Mr S’s situation. The electricity provider cleared the $30 owing on his mother’s account and stopped the collection agency from taking any further action.
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