How to Get a Default Removed in Australia (2026 Legal Guide)

Quick Answer: To get a default removed in Australia, you need to establish that it was listed in breach of the Privacy Act 1988 or Credit Reporting Code — most commonly because no Section 21D notice was issued, the default was listed while a dispute was active, the amount is wrong, or the debt is statute-barred. You then formally challenge the credit provider and/or bureau in writing, citing the specific breach. If unresolved, escalate to AFCA. Professional removal through ACS takes an average of 47 days with a 98% success rate on accepted cases.

Knowing that a default can be challenged is one thing. Knowing exactly how to get it removed — what to write, who to write to, what to cite, and what to do when you hit resistance — is another. This guide covers the complete process from start to finish.

The Legal Basis for Default Removal

Default removal in Australia isn't about negotiating goodwill. It's a legal process grounded in the Privacy Act 1988 and the Credit Reporting Code. When a credit provider breaches either instrument in the process of listing a default, the Privacy Act gives you the right to have the entry corrected — which means removed.

The key obligations credit providers must meet before listing a default:

Breaching any of these creates grounds for mandatory correction — not optional goodwill removal, mandatory legal correction.

Step-by-Step: How to Get a Default Removed

1. Get your credit report and document the default**

Request your free report from Equifax, Experian, or Illion. Note: the creditor name, listing date, amount, and status (paid/unpaid). This is your starting point for every step that follows.

2. Identify your grounds**

Review the default against the table above. The strongest and most common ground is the Section 21D notice failure — did you receive written notice at least 30 days before the listing? If you can't recall receiving one, that's a potential breach worth investigating. Other grounds: was there an active dispute or complaint when it was listed? Is the amount different from what you actually owed?

3. Gather your evidence**

Evidence that supports your challenge:

• Bank records showing payment was made
• Written correspondence with the creditor (emails, letters)
• Complaint reference numbers and dates from ombudsmen or AFCA
• Any response from the creditor acknowledging a dispute
• Your address history showing where you lived when notice should have been sent

4. Write your formal challenge to the credit provider**

Address it to their compliance or customer relations team. Include:

• Your full name and the account reference
• The specific default you're challenging (creditor, amount, date listed)
• The specific breach you're asserting: "This listing breaches Section 21D of the Privacy Act 1988 as no written pre-listing notice was issued to me at my last known address prior to the listing date of [DATE]."
• The outcome you're seeking: removal of the default from your credit file
• A 30-day timeframe for response
• Your contact details

Send by email and keep a copy. Follow up in writing if no response within 30 days.

5. If the creditor refuses or doesn't respond — lodge with the bureau**

Each bureau has a formal dispute process. Submit your challenge in writing with all supporting documentation. Reference the Privacy Act 1988 and the specific breach. The bureau has an obligation to investigate and contact the credit provider.

6. If still unresolved — escalate to AFCA**

The Australian Financial Complaints Authority at afca.org.au handles credit disputes free of charge. AFCA has the power to order removal where a breach is established. File a formal complaint with all correspondence to date as supporting documentation. AFCA resolution typically takes 30–60 days.

7. Consider professional representation**

If the creditor is disputing the challenge, the grounds are complex, or multiple entries are involved, professional credit repair through Australian Credit Solutions handles the entire process on your behalf on a No Win No Fee basis.

Real Case Study: Lily, Wollongong — Creditor Refused Twice. Removed on Third Escalation.

Lily, 44, an accountant from Wollongong, had a $1,380 default from a private health insurer on her Equifax file. She'd cancelled her policy in writing — email confirmation from the insurer — but the insurer had continued billing for three months before listing a default on the unpaid amount.

Lily lodged her own challenge with the insurer, citing the Privacy Act 1988 — specifically that the default had been listed while her written cancellation dispute was unresolved. The insurer refused, claiming the cancellation hadn't been processed correctly on their end and the debt was legitimate.

She came to ACS. We reviewed the file and the correspondence. The insurer's own email confirming receipt of the cancellation was dated 19 days before the final disputed invoices — making the debt itself contestable. More critically, the default had been listed while Lily had a formal written complaint open with the Private Health Insurance Ombudsman — a direct breach of the Credit Reporting Code.

We filed a formal complaint with AFCA, providing the Ombudsman complaint dates and the default listing date as evidence of the simultaneous breach. AFCA found in Lily's favour within 38 days of filing.

Result: The default was removed on AFCA's order. Lily's Equifax score moved from 489 to 718 in 52 days from first contacting ACS. She refinanced a personal loan at 9.8% p.a., compared to the 21.4% she'd been quoted with the default on file. On her $55,000 loan over 4 years, the interest saving was approximately $19,200. She only paid when we succeeded. Subject to individual assessment; results may vary.

What If the Creditor Still Refuses After AFCA?

AFCA determinations are binding on financial firms that are AFCA members. If a creditor is an AFCA member and AFCA has issued a determination in your favour, the creditor must comply — including directing the bureau to remove the listing.

If a creditor is not an AFCA member, or the matter falls outside AFCA's jurisdiction, the remaining pathway is formal legal proceedings through the courts. This is rarely necessary and is typically disproportionate for smaller defaults. At this point, professional legal representation is essential.

Frequently Asked Questions

Can I get a default removed without a lawyer in Australia? Yes. You can self-lodge challenges with credit providers, bureaus, and AFCA at no cost. The Privacy Act 1988 gives you these rights directly. Professional credit repair becomes useful when: the grounds are complex, the creditor disputes your challenge, multiple entries are involved, or a loan application is time-sensitive. ACS offers a DIY vs professional comparison to help you decide.

What happens if my default removal challenge is rejected? Escalate through the formal process: from credit provider → to bureau dispute process → to AFCA. Each escalation level has independent investigation authority. AFCA determinations are binding on member firms. The majority of valid challenges that are initially rejected at creditor level are resolved through bureau or AFCA escalation.

How long does it take to get a default removed in Australia? Most successful removals take 30–90 days from when the formal challenge is lodged. Simple cases with clear documentary evidence often resolve in 30–45 days. Cases requiring AFCA escalation typically take 60–90 days. ACS's average resolution time is 47 days across all accepted cases.

Can I get a default removed if I owed the money? Yes — whether the underlying debt was genuinely owed is separate from whether the listing process was lawful. Many legitimate debts are listed using unlawful processes (no notice issued, listed during a dispute). The legal obligation the credit provider breached is independent of the debt itself.

Do I need to pay the debt to get the default removed? No. Payment of the debt is not a prerequisite for removal through a legal challenge. If the listing was unlawful, the default can be removed regardless of whether the underlying debt has been paid. However, some credit providers will attempt to negotiate removal in exchange for payment — get any such agreement in writing before paying.

Get Your Default Challenge Started Today

A free assessment from ACS reviews your default, identifies the strongest grounds, and tells you exactly what the removal process looks like for your specific case.

Australian Credit Solutions is ASIC-licensed (ACL 532003), lawyer-led by Principal Solicitor Elisa Rothschild, and has helped over 5,000 Australians remove unlawful defaults since 2014. No Win No Fee. 98% success rate on accepted cases.

Get My Free Assessment → 📞 0489 265 737 🛡️ ASIC Licensed ACL 532003 | ⭐ 4.9/5 from 976+ Reviews | 🏆 Award Winner 2022–2024

Australian Credit Solutions Pty Ltd holds Australian Credit Licence ACL 532003. Credit repair services are subject to individual assessment. Results may vary. This article provides general information only and does not constitute legal or financial advice.

Related reading: Default Removal Services → | How to Remove a Default → | DIY vs Professional Credit Repair →