Credit reporting - a final word


#1

Since that discussion is closed I’d like to make a final word on the matter.

I’ve been trying to settle outstanding debts for more than three years.

There’s never been any dispute that there is outstanding debt owed to the banks.

For one part, the banking ombudsman did step in and I was awarded compensation for the earlier wrongdoing of the bank. Its never been applied to the outstanding debt though.

Cheques have been sent, repayment plans offered. All rejected. They were asked to forward details of purchases made so a settlement based on what had actually been spent could be discussed. Refused.

The only option is a payment arrangement which the banks won’t accept. It won’t make any difference now at this stage if someone else submitted a plan. Sure, in hindsight I should have done that first knowing there could have been an option to do so.

I even sent money in an effort to start a repayment and still the bank refused to accept a payment arrangement and returned my cheques. There was a tribunal hearing but the debt was substantially increased by nearly $2000.00, a month after the order was made against me, by the same agent that falsified the tribunal application against me.

I wanted a formal financial assessment hearing so creditors can come forward and everyone treated fairly.

I have already been told by my current bank (who I have never been in default with) that once a formal insolvency procedure is against me I’ll lose internet banking and eftpos cards. I tried to open an ordinary transactional account (no lending of any sort) with a new bank only to have them refuse because of the defaults listed on the credit report that Veda hold against me.

My credit score with Veda is below 400 points. Veda linked historical data to it which substantially reduced the score. Even when the defaults fall off after 5 years the score will be too low that I’ll never be able to borrow again.

No one is disputing that I wasn’t stupid for borrowing the money. I wish 20 years ago I understood about debt and how money works. Today would have been different. I can’t turn back the clock.

But credit reporting of defaults and credit scoring are a life sentence. Its that consequence that is stopping people from moving forward. Not the debt. I believe credit reporting and scoring also have a substantial impact on the poverty in our country.

When I tried to make good, I had no idea the extent of the unlawful behaviour and dishonesty that goes on within the system.

I received a statement of claim against my company. I can’t even defend that because it has not been formally served but it has been stamped by the courts. The document server gave me the details over the phone without requiring any proof of who I was. My hope was our court system would at least give everyone a chance to have their say and the matter settled.

Whatever my wrongdoing, there is never any excuse for a bank to allow its collection agents to submit falsified documents to our tribunals. I don’t understand why they would do that.

My campaign is for the debt collection and credit reporting industries to be government regulated. The system is being abused and people taken advantage of. Credit scoring is an unnecessary cruelty.

Sure, maybe people are OK with the current system. I’ll know that if I don’t get any responses to my petition. I’ll stand by my right not to engage with a business that uses unlawful debt collection practises. One day maybe that will be recognised formally.

If someone reading my posts has a second though about getting into debt like I did, then the posts would have been worth it. My seminars are to share my story and show people some other ways to earn income and expand their businesses and their minds.

Its too late for me, all I can do is try and put right what has been made wrong.

I’ve lost 20 years of my life to unsecured debt.

There are a lot of issues that need to be addressed. Both poverty, crime and household debt continues to rise. If that makes me an ****hole to want to do something about it, then so be it!


#2

There is no problem with saying “I screwed up” and advising others to avoid your mistakes. The problem is you are trying to run the process according to your perception of what the rules should be.

I am now days away from the 5 years and the consequences of mistakes I made 11 and 12 years ago will fall off. I had a chat today with a manager at the BNZ who said once it’s dropped off he can put through an application for [service applied for]. This is inline with the responses you were offered by people in the other forum.

Everyone makes mistakes and they can be gotten over.

Here is what I suggest (based on what you have written publicly and privately):
Go to your friend who offered to help you and file a No Assets Procedure. That will be over and done with in a year’s time. A bad credit rating will last 5 years but your’s is shot anyway so no change there. This will get the monkey off your back and your creditors will take the tax deduction on the money they (shouldn’t have) loaned you.

Stop the lectures and attention seeking. Either you are taking the ■■■■ or are oblivious to the message you’re sending. It’s a non starter. People get really suss about people who run up debts and talk **** **** about it.


#3

A formal insolvency procedure will go on top of the existing defaults. The creditors have already taken the tax deduction back in 2013 when the debt was written off.
Any formal procedure will mean I won’t be able to continue working in my current positions. Their terms and conditions require that I have no formal insolvency ever. Five years makes no difference. One of those positions is voluntary.
ANZ bank requires a new customer to confirm if they have had any insolvencies ever. Not just within 5 years.
My customers do know of my financial position and I’m thankful they are continuing to support me.
The credit report means I won’t be able to obtain lending. But certainly its a double blow to further trash my credit report by adding an insolvency procedure to it.
A Bankruptcy and NAP stays on a credit report for 4 years after discharge. There is no guarantee I’ll meet the criteria for a NAP anyway.

Maybe its different for everyone. It sounds like you were lucky.
There’s a lot of skills I could have been learning over the years. The skill of how to create real cashflow. But I took the easy road, and used debt like a security blanket. I didn’t need anything else. Even my thoughts were so ingrained that whenever I wanted to buy something my thoughts immediately went to - put in on the credit card. Thats a deep ingrained habit that has strenghtened over the years. It stems from below the level of consciousness and continued habitual action.

Now my behaviours have caught up with me. Today I paying the ultimate price. Behaviour is difficult to change.
I have to teach myself how to think and act in new ways. Make budgets and look at the profitability of my business.
I don’t know if I would have the same desire to learn if I took the easy road.

What have you learnt from your insolvency?

I’ve learnt about profits, budgets, business strategy and how to make some personal changes.
I’ve learnt what really happens when you get into financial strife.
I’ve also learnt that for me I do have impulse control issues that need to be contorlled or worked around. At that is just how my brain works.
I am thankful for the OCD research and other great authors and speakers that have given me some hope. Maybe that information is useful to others. There are some great strategies that do work.

If my “crime” is so bad that the banks will go to any lengths to further the debt against me, then I don’t want any part of it.
I’ve worked in small business long enough to know that its not just the actions of one person or one company. Look at what happened to DickSmith. That will all get swept away, and we the consumer, employees and staff will pay the price. That business was in trouble for at least a year before, probably longer.


#4

I did not enter into insolvency. I just mentioned that as an option for you.

“If my “crime” is so bad that the banks will go to any lengths to further the debt against me, then I don’t want any part of it.”

You are part of it whether you like it or not and it won’t go away until you pay it, settle it or declare insolvency.