What Is a Serious Credit Infringement in Australia? (2026 Guide)

Quick Answer: A serious credit infringement (SCI) in Australia is a credit file listing that a creditor believes you have intentionally avoided paying a debt — typically by absconding (moving without providing a new address) and leaving a debt unpaid. Unlike a standard default which stays for 5 years, a serious credit infringement stays on your credit file for 7 years under the Privacy Act 1988. It is the most damaging standard credit file entry available to a creditor. Serious credit infringements listed in breach of the Credit Reporting Code can be disputed and removed by Australian Credit Solutions (ASIC ACL 532003).

Most Australians have never heard of a serious credit infringement until they find one on their credit file. Then the questions start: What does this mean? Why is it different from a default? Can it be removed?

Here are the answers — all of them.

Serious Credit Infringement vs Default — Key Differences

A serious credit infringement is used by a creditor when they believe you've done something deliberate — not just failed to pay, but actively avoided the debt. This most commonly occurs when someone moves residence without providing a forwarding address and the creditor subsequently cannot locate them.

The Legal Requirements for Listing a Serious Credit Infringement

Under the Privacy Act 1988 and the Credit Reporting Code, a creditor must meet strict requirements before listing a serious credit infringement. These are more demanding than for standard defaults:

1. The debt must be overdue The debt must remain unpaid for at least 60 days.

2. The creditor must have attempted to locate the debtor The creditor must have made genuine efforts to contact the debtor at their last known address — and those efforts must have failed.

3. A specific SCI notice must have been sent The creditor must send a formal written notice advising that a serious credit infringement will be listed unless the debtor responds within a specified period.

4. There must be reasonable grounds to believe the debtor has absconded "Absconded" means the creditor genuinely believes you moved to avoid paying — not merely that you moved.

If any of these steps were missed or executed incorrectly, the serious credit infringement listing is in breach of the Credit Reporting Code and can be formally disputed and removed.

Can a Serious Credit Infringement Be Removed?

Yes — in specific circumstances. Grounds for removal include:

1. Procedural breaches

• The SCI notice was not properly served (sent to wrong address, sent to email only, not given adequate response time)
• The creditor did not make genuine attempts to locate the debtor before listing
• The listing was made before the debt was 60 days overdue

2. You Did Not Abscond If you moved for legitimate reasons (employment relocation, property settlement, health) and provided or attempted to provide a forwarding address, the characterisation as "absconded" may be unjustified and challengeable.

3. The Debt Is Disputed If the underlying debt is genuinely disputed, a serious credit infringement should not have been listed while that dispute was active.

4. Identity Fraud If the account and resulting SCI were created by someone else in your name.

5. Exceeded Retention Period 7 years from the date of listing — if this has passed, the bureau must remove it.

How Much Does a Serious Credit Infringement Damage Your Credit Score?

A serious credit infringement typically drops an Equifax score by 150–250 points — more than a standard default of the same amount. Combined with the 7-year retention period (vs 5 years for defaults), it has the most prolonged negative impact of any standard credit file entry.

Most mainstream lenders will automatically decline any application while an SCI is present on the file, regardless of the amount.

Case Study: Oliver, Brisbane — SCI Removed After Address Evidence Provided

Oliver, 32, a construction supervisor from Annerley, found a serious credit infringement listed by a former energy retailer. He had moved interstate for work — a genuine relocation with a new lease agreement signed before he left. He'd forwarded mail and notified most service providers, but the energy account had been overlooked.

The creditor had listed an SCI on the basis that Oliver had "absconded." Australian Credit Solutions reviewed the case. Oliver had a signed lease agreement for the new address dated before the SCI notice date. He had not attempted to avoid the debt — he simply hadn't updated that one account.

We argued the creditor did not have reasonable grounds to believe Oliver had absconded — genuine employment relocation is not absconding. The SCI was disputed on that basis. The creditor accepted the grounds and removed the listing within 41 days.

Oliver's Equifax score moved from 428 to 609. Finance applications subsequently approved.

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Frequently Asked Questions

What is a serious credit infringement in Australia? A serious credit infringement (SCI) is a credit file listing made by a creditor who believes a debtor has intentionally avoided paying a debt — typically by moving without providing a forwarding address (absconding). It stays on your credit file for 7 years under the Privacy Act 1988 and has more severe score impact than a standard default.

How long does a serious credit infringement stay on your credit file? 7 years from the date of listing — the longest retention period of any standard credit file entry in Australia. For comparison, standard defaults and court judgements stay for 5 years.

Can a serious credit infringement be removed from your credit file? Yes — when the listing was made in breach of the Credit Reporting Code. Common grounds include: improper service of the SCI notice, insufficient evidence of absconding, listing during a genuine dispute, incorrect amount, identity fraud, or exceeding the 7-year retention period.

What's the difference between a default and a serious credit infringement? A default is listed for any unpaid debt over $150 that is 60+ days overdue, after a Section 21D notice. A serious credit infringement requires the additional element that the creditor believes you intentionally avoided the debt (typically by absconding). SCIs stay 7 years; defaults stay 5 years.

Does a serious credit infringement affect your credit score more than a default? Yes — a serious credit infringement typically causes a larger score reduction than a standard default of equivalent amount, and stays on file for 7 years rather than 5. It is the most damaging single listing type available to creditors.

Why Australians Trust Australian Credit Solutions

Australian Credit Solutions is lawyer-led, ASIC-licensed (ACL 532003), and has operated since 2014. We've helped over 5,000 Australians remove negative credit file entries and access the finance they deserve. Our 98% success rate on accepted cases reflects a simple approach: we only accept cases where we've identified genuine legal grounds. Every case is managed under the supervision of Principal Solicitor Elisa Rothschild BA/LLB (Monash University) — a lawyer, not a call centre. We operate on No Win No Fee: you pay the success component only when we remove an entry from your file. We've won the Industry Excellence Award three consecutive years — 2022, 2023 and 2024. Our 4.9/5 rating from 976+ verified reviews reflects what real clients experience.

All disputes are conducted under the Privacy Act 1988 and the Credit Reporting Code — the laws that govern your rights and creditors' obligations.

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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.