A credit-file mistake almost cost us our house

THE Corbo family risked losing their home because of a mistake on Jennifer’s credit file. They discovered the error when refinancing their home mortgage. LIVE CHAT: Your credit issues solved

PD Origin

THE Corbo family risked losing their home because of a mistake on Jennifer’s credit file.

Jennifer and husband Jimmy discovered the error when refinancing their home mortgage. The $619 black mark had been listed by Origin Energy.

Two months ago — three years after paying the bill — the Corbos received a letter from Origin saying the default still stood.

YOUR CREDIT ISSUES SOLVED: LIVE CHAT WITH PUBLIC DEFENDER @11AM

“We understand you might be unhappy with our decision,” Origin wrote in a letter signed off “all the best” by a general manager.

Origin told News Corp Australia it had requested the default be removed — eight days before the letter was sent to the Corbos.

News has asked that Origin provide the Corbos with proof in writing that the default has been removed.

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Jimmy and Jennifer Corbo with their children Gisele, 5, and Sebastian, 2 / Picture: Tim Hunter

A CHEAP FIX:

IF there’s an error on your credit file it can be removed for free.

* You can get your credit file for free from reporting ­agencies Veda, Dun and ­Bradstreet or ­Experian.

* If there’s a mistake such as a double-listing, raise it with the reporting agency

* If there’s a listing you didn’t know about, contact the ­provider of the credit

* If they don’t remove it, ­contact the relevant ­ombudsman. If the listing is a mistake you can get it ­removed without charge

* Expensive credit repair agents cannot do anything you can’t do ­yourself

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CREDIT REPAIR AGENTS CHARGING CUSTOMERS FOR A SERVICE THEY CAN GET FOR FREE

OMBUDSMEN will bar rogue “credit repair agents” who slug unsuspecting consumers thousands of dollars to get black marks removed from their records, when it can be done for free.

One in seven adult Australians has a default on their credit report. Eighty per cent only discover this when ­applying for, say, a new ­mobile phone or home loan.

Many believe the default is a mistake and turn to a credit repair agent for help.

Repair agents were responsible for nearly 30 per cent of the complaints to the Credit Ombudsman Service (COSL) in 2013-14, which ­alleged incorrect information in a credit report.

COSL said agents charge an up-front fee of as much as $900 plus $1000 per credit default listed.

Credit Ombudsman Raj Venga told The Daily Telegraph some agents had falsely claimed a client was in hardship or that a loan had been provided in breach of responsible lending obligations.

COSL would no longer deal with agents who repeatedly made bogus claims or delayed investigations in the hope it would make a service provider cave in.

It received nearly 300 complaints through agents last financial year, up from 250 in 2012-13.

“They can’t take advantage of a free service to enrich themselves,” Mr Venga said.

“We can’t afford for this service to be abused. The fact is a default can only be ­removed if it is incorrect in the first place.’’

COSL will get it removed.

Meanwhile, the Financial Ombudsman Service (FOS) has decided to reject disputes brought by agents if the ­application deliberately lacks detail or when it believes a consumer’s best interests are not being protected.

FOS disputes raised by agents surged 59 per cent to 1100 in 2013-14, ombudsman Philip Field said.

COSL’s Mr Venga said other ombudsmen, such as the Telecommunications ­Industry Ombudsman (TIO) and state-specific energy and water ombudsmen “had the same problem” with agents.

One of the chief concerns was clients are not told ombudsmen can get incorrect defaults removed for free.

Credit repair agents lodged more than 4000 complaints with the TIO in 2013-14. The Energy and Water Ombudsman of Victoria received 174.

The number of cases brought by agents to the EWO of NSW doubled in 2013-14 to more than 450.