Credit reporting and the MOJ


Just thought I’d share a quick update about fines being recorded on your credit report.

Had confirmation from the courts that a fine does not appear on your credit report while there is a payment arrangement in place.

I haven’t tested that yet. Certainly its worth advising the courts that as a condition of your payment arrangement to them you don’t wish them to add any entries on your credit report.

I wonder if that is true in other cases. Certainly in my case the bank advised that they would not enter into any formal payment arrangement and they even returned my cheques to me. Certainly then there is reason to list a default on a credit report, when they have the choice as to whether they accept a formal payment arrangment or not. If no formal payment arrangment has been set up its reason enough for the banks to move debt outside of the regulated banking industry to a body that is entirely unregulated. Once debt becomes due the repayment of it is entirely out of the debtors control.  In my case a debt collector was able to substantially increase the debt against me after the debt went to the disputes tribunal. I found out that commission charged by the collection agent is actually only $2.00 per month and the real interest was a lot less that what had actually been charged to me.  This same debt collector was able to demand I pay them 70% of my income to them without consideration as to my ability to pay or what I may owe to other creditors. The bank are still using this same collection agent. I hope the same thing is not happening to others. Debt collectors also front load a debt with default costs at around 17%.  Part of the laws I’d like to have changed is the regulation of debt collection industry entirely and for the true cost of charges to be made available to the debtor. I’ve asked the bank under the privacy act for a transaction list but they chose not to respond. Also had confirmation from another bank that the purpose of credit reporting is to show any defaults. Because the industry is unregulated creditors are free to not accept any payment arrangments in order that a default listing can appear on a debtors credit report. This alerts other creditors that a default is outstanding, notwithstanding that there is no ceiling to the amount that a debt can continue to increase by. Also I have evidence that the burden of proof is on the debtor to prove that a listing on their credit report is incorrect. If you do query a entry with a credit reporter they will ask you for proof. Their burden of prove to list a debt is on the word only of the listing subscriber. The privacy act does not require debt to be legally valid before it is listed.

They are (correctly) not engaging with you because you are playing games with them and they can see it a mile off.

I received your message saying you don’t know how I got to a debt free position. How can this be? I have already told you the options several times. There is no great mystical answer.

Here they are again:

  1. Pay your debts - either in full or settlement.

  2. Enter into a payment arrangement (In your case I strongly suggest you get someone else to negotiate this)

  3. Insolvency - Bankrupcy, NAP or SIO.

I suppose there is another option. It seems to be the one you are taking:

  1. Don’t pay and wait until it goes to court. Same outcome as option 3 but you’ve just delayed the inevitable and also delayed the date which it will be over and done with.

All this other stuff about a big crusade, credit scoring, what allegedly happened to other people, the seminars you are advertising to teach other people your theories and ideologies (!!!) is irrelevant b*** s*** which won’t help your case and is incredibly ironic in this forum.

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I guess the subject of money will always be controversial
My hands are tied

Two seminars – on two platforms – Debt - 6 sources of influence
Income – 5 forces of Competitive strategy and lead generation

There is nothing controversial about this. You borrowed the money and can’t and/or don’t want to pay it back.

You were stupid for borrowing it from them and they were stupid for lending it to you. So you both lose. Having been in a precarious position myself many years ago, I understand well and don’t judge you on it by itself.

The major problem here though is you are just taking the ■■■■ and really, running seminars purporting to teach others how to run their financial / business affairs is a joke and will only rile your creditors when they find this out.

I have listed all the options - including the ones which are a bit politically incorrect in a bank run forum - and from there its up to you. You don’t have to take any of them but I think your many posts on this subject are in lala land.

@michaelnz - spot on

“Be good with money”

Don’t get into debt and you won’t have any issues. That’s being good with money.


Myself and others have tried to help you but you just aren’t ******* listening. I have offered you sound advice including the easiest paths out (no doubt the bank would rather you didn’t use option 3) but you are obviously intent on playing some **** **** game. Well, good luck to you. When it gets to what is colloquially known as “2nd tier debt collectors” (ie: debt buyers - some of whom are members of the brotherhood of tatooed motorcycle enthusiasts)  they won’t give a **** about your **** **** crusade nor will they play your silly games.

Your cause has next to no support. Can you not see this? The world (and especially your part of the country) is full of small businesses and tradespeople who have been screwed by people like you. The tabloid media might pick up your cause (in doing so give you a platform to get them clicks and you make a fool of yourself) but everyone else will either ignore it or think you are a douchebag.

As I said to you right from the start of our brief discussion via email “one way or another you will pay”. You can either pay the money you owe or do pennance in the commercial sin bin. But you are really sticking it to your creditors in a way that will rile them when they find out.

Hi everybody, appreciate your robust conversation here but I feel like it’s going in circles a little bit so I’m going to close out this thread. We’ve had some good suggestions for the original poster to take away and think about and we wish her all the best in making the right decision for her. If you have any queries please feel free to send me a private message to discuss.