How does a court decision affect your credit rating?

Even after you settle your judgment debt, the court judgment may still appear on your credit report. Follow these mentioned steps to rectify this and work to remove the judgement:

  • Tell your credit provider who owns the debt

The first step is to notify the credit grantor who holds your debt that it has been repaid, and then you must ask them to provide a written statement that the debt is settled. It is important to get a statement from your credit provider to prove that you have paid the judgment debt in full.

  • Notify all credit bureaus

Once you have the statement from your credit grantor, you can use it to notify all credit bureaus. Australia has three credit reporting agencies, Experian, Equifax and Illion, and it is best to notify all three to avoid any continued impact. You can ask them to remove the judgment from your file. The written statement should be sufficient for most agencies, and no further steps are required.

  • Ask the credit grantor to sign a consent order

Suppose the credit bureau refuses to withdraw the judgment even with the written statement from your credit provider. In this case, you can ask the credit grantor to sign consent orders stating that both parties agree to end the proceedings and set aside the judgment. You can then file the consent order with the relevant court office. If everything is in order, the court will set aside the judgment and notify the credit bureaus to update their records.

Suppose the credit grantor refuses to sign the consent order. In this case, you can go directly to court. You can then submit the credit grantor’s written statement and any other proof you have that you have settled the debt. If the court rules in your favor, the judgment will be set aside and the credit bureaus will be asked to update their records.