r/AusFinance • u/Moey_One • 1d ago
Credit Score Drop
I have a family member under my account name for Vodafone and they have accrued an excess of $1300 worth of unpaid bills and roaming charges. They have neglected to pay it for an extended period of time despite my efforts to inform them to pay the bill, and I refused to pay it myself to demonstrate that it's their responsibility to solve the problem (even though ultimately, legally it's my responsibility).
Vodafone hasn't contacted me for the better part of nearly a year so I forgot about it and assumed my family member has taken care of it. Then Debt Managers informed me about the outstanding bill one day to either pay the bill in full or go on a payment plan.
Due to repeated attempts from Vodafone to clear the debt, they have since made multiple credit inquiries which caused my credit score to dip significantly from over 730 to now 300.
I was frustrated my family member would not take responsibility, plus I thought they've taken care of it at some point finally.
As it stands I've succumbed to my obligations and I am now on a payment plan.
All I want to know is can I dispute my credit score plunge at all and make a case that I personally never defaulted on a payment?
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u/TheRamblingPeacock 1d ago
It’s not their debt. It’s your debt.
You guaranteed it by putting it under your name/account.
Nothing you can do about it now.
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u/Cuminmianus 1d ago
Nope once it’s on your file all you can do is pay it and have it classed as a paid default. Please don’t go to one of those credit clean companies they are scams.
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u/Current_Inevitable43 1d ago
So you signed then up on your account. Now you are going nahhhhh its not me.
If they stole your id and did it report them for fraud, however u were likely meant to do it when u noticed, not years later when it caused an issue for you.
Id make sure that account is closed as well
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u/Querulous-Quokka 1d ago
Dude... that's like letting your family member stab you, then refusing to stitch yourself up because you want to teach him that he can't just go around stabbing people. Like, WTF were you thinking? "Pay off your debt or watch my credit rating get tanked!"
But no, you have no recourse here. You have shown creditors you don't care about paying bills you have agreed to be responsible for, even when someone else benefits. That's all they need to know.
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u/Ambitious_Writer1938 1d ago
If you don't need credit or loans for the next 7 years, no new phone plans, no new electricity plans, you should be okay. It should drop off your file.
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u/Nottheadviceyaafter 1d ago
No. You allowed the family member to have the phone even through they could of got one themselves in their own name (or if they couldn't well thats alarm bells already as their credit is fucked so why would they worry about yours...)
You are responsible for the debt and the defaults. Use it as a huge arse learning experience and never get any finance for anyone else in your name ever! Your credit score will start to rebuild once you pay the default off, 3 to 5 years from then you may be able to get finance again cause a 300 score you aint getting nothing with a decent interest rate.
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u/StasiaMonkey 1d ago
You're the legal lessee, you have to pay the bill even if the authorised user isn't paying it, theres no disputing that - you've even acknowledged it.
You've never personally defaulted on a payment? Yes you have, a vodafone account in your name.
A credit score from 300 isn't recovering for at least the next five years or until the default on your credit report drops off the credit report.
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u/Money_killer 1d ago
Any one with half a brain would have paid the debt (which obviously you can't afford) cancelled the phone contract and told the family to beat it until the debt in paid.
You are the one now that with suffer the repercussions.
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u/jokuda-au 12h ago
Get a free copy of your credit file and check those Vodafone listings are actually in your name. If they're family debt wrongly listed, dispute with the bureau and the telco in writing. Paying them can clear a default faster, but it doesn't always wipe the record straight away.
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u/maton12 1d ago
they have since made multiple credit inquiries which caused my credit score to dip significantly from over 730 to now 300.
Not quite how credit score is calculated, regardless, 300 is a shit score
All I want to know is can I dispute my credit score plunge at all and make a case that I personally never defaulted on a payment?
If you need to borrow money, you can try with a credit repair agency but they'll cost a bit, and will review your case and advise, but you did yourself no favours with this gem:
so I forgot about it and assumed my family member has taken care of it.
Good luck
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u/StasiaMonkey 1d ago
It can drop quickly when there is a default and poor repayment conduct. I missed a payment on an unused ANZ Credit Card where the annual fee was charged and I never noticed it - My score dropped by about 100 overnight and took 2 years to build back up even though I closed the account shortly afterwards. I even had to explain to Macquarie Bank about it when I refinanced my mortgage to them about a month before the missed repayment dropped off.
If a default was recorded on the credit report, it's a hefty drop.
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u/maton12 1d ago
It can drop quickly when there is a default and poor repayment conduct.
No doubt, I see one most months
Whereas I highlighted the part where OP said:
they have since made multiple credit inquiries which caused my credit score to dip significantly...
Where Vodafone would actually need a signed application to make each credit enquiry
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u/Jumpy_Hold6249 1d ago
You are responsible, not the other party. The credit score hit is reasonable. If someone cant get a phone on their own, there is probably a reason. You have just experienced the reason. Treat this as a $1300 lesson and end the contract as soon as you can.