I want to remove a default that shouldn't be there
If a default was listed in error, you can have it removed for free. Here is how.
This guide helps you
- Work out whether a default was incorrectly listed
- Gather evidence that supports removal
- Lodge a free dispute with the bureau or lender
- Escalate to AFCA for free if the dispute is rejected
- Avoid paying a firm to remove something you can challenge yourself
6 min
What's happening
Only a correctly listed default may stay on your report. A default may be incorrect if you never owed the debt, the amount was below the threshold, you were not sent the required notices, the debt was in dispute, or your identity was confused with someone else. An incorrectly listed default should be removed, and this process is free.
Accurate defaults, by contrast, generally cannot simply be deleted on request.
Your first steps
- Get your credit report and find the exact default entry.
- Identify why you believe it is wrong.
- Collect supporting evidence, such as proof of payment, correspondence, or evidence you never received the required notices.
Step by step
- Write to the bureau or the credit provider, explaining clearly why the default is incorrect.
- Attach your evidence and keep a dated copy.
- They generally must investigate within a set timeframe and respond.
- If they agree, they remove the listing and should confirm in writing.
- If they refuse and you still disagree, lodge a free complaint with AFCA.
Watch out for
Some paid 'credit repair' firms market themselves as default removers. They cannot remove a default that was correctly listed, and they charge for steps you can take for free. Try the free correction process and free help first; only an inaccurate or improperly listed default can be removed.
Where to get free help
A financial counsellor can review whether the default was properly listed, for free, via the National Debt Helpline (1800 007 007). Disputes go to AFCA at no cost. See the directory of bodies for who to approach.
Key takeaways
- An incorrectly listed default should be removed, for free.
- Common grounds include wrong amount, no proper notice, or mistaken identity.
- Raise it in writing with evidence, then escalate to AFCA if refused.
- Paid firms cannot remove a default that was correctly listed.
Frequently asked questions
When can a default be removed?
When it was listed incorrectly, for example the debt was not owed, the amount was below the threshold, you were not given proper notice, or it was someone else's debt. An accurate default generally cannot be removed on request.
Does it cost anything to dispute it?
No. Lodging a correction with the bureau or lender, and escalating to AFCA, are both free.
Can a paid service remove a valid default?
No. If the default was correctly listed, it cannot simply be deleted, no matter what a paid firm promises.
This is general information, not legal or financial advice. Your situation is unique and rules can vary by state and over time — for advice on your circumstances, speak to a free financial counsellor (National Debt Helpline 1800 007 007) or get legal help.
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