Tippa – Removed default, and increased Credit Score from 250 to 750
Tippa is a family man, father of one, and a hard-working everyday Australian. When Tippa came to the team, he was in the process of buying his first home, and his mortgage broker discovered he had a default with ANZ Bank part-way through the process.
It was a large default of $25,000. Although it had already been paid, his credit report still showed this information. This default put him outside the standard lending policies from most banks and would have resulted in a very high-interest rate if he had proceeded with a non-bank lender.
A close friend learned about this situation and referred Tippa to us—and so we began the work.
Outcome
We investigated Tippa’s credit history and found that the bank had not provided the appropriate hardship assistance to the client during his unemployment. We reached out to the bank’s Internal Dispute Resolution (IDR) but they were uncooperative so we had to escalate to AFCA (Australian Financial Complaints Authority) after a month.
The bank continued to delay and inconvenience the client, but after some back and forth, the bank agreed that they could have done better and paid the client an amount of money to settle his claim and remove the default.
It took 2.5 months to remove the default but at the end of it all, his credit score went from 250 to 750 and Tippa has been able to purchase his first home.
