Incorrect Credit Default by AGL Energy

I've tried to apply for a personal loan on Tuesday and was knocked back by CBA (my bank) with a claim that they couldn't provide me a loan due to the information they received from Veda.
I applied for a credit report the next day and found a default on my credit report from AGL Energy dating 16th of July 2013. I knew what the issue was and I knew it's an unfair/incorrect default. Here's what happened…

I had signed up with AGL in 2013 as they offered 16% discount + 5% if I pay on time. When I received the first bill of $733.92 it did not include the discount, so I contacted them and was advised that a new bill will be sent in 2 weeks to reflect the discount. No new bill was received, instead, I received a Final Notice bill 4 weeks later. I called AGL that day and explained the issue. Again, I was told that a new bill will be sent out within 2 weeks.

The very next day 10th of May 2013 I received a call from NCML calling on behalf of AGL regarding an overdue payment. I explained that I'm not running away from the payment, in fact I called AGL twice to get the bill rectified. The lady on the phone then offered me 25% discount if I pay over the phone; I explained that this is a better deal than what I was requesting from AGL to rectify, I gave her my credit card details, paid the amount on the bill $733.92 - 25% = $550.44 and received an email stating:

"Upon receipt of your payment of $550.44, our client will consider the debt settled and your obligation in regards to the above account will be finalised."

AGL has put a default on my account on the 16th of July 2013 for the amount of $183.00 (which happens to be the 25% discount offered by "NCML")!

I have contacted AGL and they claim that me paying the amount requested by NCML does not mean no default will be put on my account! But this isn't my fault, I've never ever missed a bill payment, I've had 2 car loan paid off and currently paying off another 2 car loans. I've had 6 credit cards before and never missed a payment, all which have been closed and only left with 1 credit card as I'm trying to save for a house. How can something so simple stuff up my credit history? I feel it's very unjust and unfair that providers can stuff up people's lives however they want and whenever they want.

AGL said they will investigate the matter, but every time I call them to follow up they ask me to call back the next day.

What can I do to fix this issue? I still have the bill and the email correspondence with NCML, reference numbers, etc… Who should I contact if AGL can't fix the issue? How long will a fix take to reflect on my credit report should they decide to lift the default?

Is there a compensation to wrongly listing a default on people's credit report?

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Comments

  • +3

    If they're dragging their feet, and you've done all you can to resolve, I'd recommend the ombudsman.

    • I will try again on Monday. If they still have no proper answer I will take your advise.

  • +2

    im no debt expert but from what you are saying is , you where having a issue with AGL , AGL sold on your debt, you paid the DEBT collection agency instead of having it sorted with AGL?
    am i missing something or did you not just pay off a debt collection agency hence admitting to defaulting to AGL?

    • I'm not sure if paying off a debt agency is considered admitting to a default. But I'm no debt expert either, I could have done the wrong thing by trying to do the right thing.

    • +2

      Just because a debt collector was used doesn't mean AGL sold the debt. Depends on the arrangement in place between them and AGL, by the sounds of things the debt collector remitted the amount collected in full and charged AGL a collection fee separately, the 'discount' amount was still outstanding in AGL's accounts receivable ledger and someone at AGL black marked OP's credit profile when the debt was written off.

      You can lodge the dispute with Veda and provide them with all the facts of the case, it will take about 30 days for them to investigate and liaise with AGL
      https://www.veda.com.au/yourcreditandidentity/resolution-cen…

      Ombudsman as suggested above is another good idea, not sure how long they'd take though
      http://www.ewon.com.au/index.cfm/contact-us

      An expensive option is going legal with this and have your solicitor state out the facts of the case and threaten legal action for economic loss suffered due to the incorrect mark placed on the credit file unless resolved within say 14 days. I've seen a few of these letters at my company, but usually they're from businesses not individuals.

      • Thanks a lot for the links and the advise. Will definitely contact Veda if they don't respond on Monday. Going with legal might cost me more than it's worth. I think the steps will be:

        • AGL
        • Veda
        • Ombudsman
        • Legal (last resort)

        I have a strong belief one of the top 3 will get it sorted.

        I happened to find that Veda's office is in the same building as my work :)

  • +1

    http://consumeraction.org.au/credit-reporting-correcting-mis…

    https://www.veda.com.au/faq/how-can-i-dispute-information-my…

    But put everything in writing,not only your diary notes As you have been put off BY agl A LETTER REGISTERED MAY BE A CORRECT STRATEGY.

    On the bottom of the letter ps If you are not able to rectify this matter by date please phone me on 04 xxxxxxxxx.

    It appears that the credit collection company, AGL owe you a letter of error and release. you will need to follow up with your finance coy.

    do not give up. if you are confident of your phone calls - perhaps a copy of all call?

    ps we are looking at moveing from this provider. now will move quicker

    • I have spoken to 3 different people from the resolution center and they have all confirmed that they can see notes on the account of me calling AGL twice between the bill date and the default date. They just didn't want to share the exact notes with me. I explained that since their calls are "recorded" they should have no issues finding exactly what happened. I work in I.T and one of my majors was data archives, I know the recordings are most likely stored in some cave and will take weeks to find, which is not ideal.

      I spent every penny saved on the surgery, money which I had saved for my holidays on the 8th of April, and if the issue does not get resolved by then so I could take a personal loan, I will be taking the family on holidays with hardly any money in my pocket. Had I not paid $6,700 for return flights I would have cancelled already.

  • The default will remain on your record as it went into debt collection. Refer below.

    https://www.moneysmart.gov.au/borrowing-and-credit/borrowing…

    • Mistakes by creditors
      A default listing was made while the debt was in dispute

      This is reason enough for the amount to be removed.

      If what the OP has said is accurate (and I have no reason to believe they're lying) than Origin are 100% in the wrong and there should be no reason not to remove it.

    • thanks for the link. In the same page I found this:

      What information can be put on my credit report?
      Only certain information can be listed on your credit report. This includes:
      defaults listings of more than $150, as long as you have received certain notices;

      I did not receive any notice of the default, it's been over 2 and a half years and I only found about it this week as I happened to need money for an emergency surgery :/

  • When we had issues over 11 months even getting a power bill oft agl we had to go to our local member, no one else would help us. Within a hour they blew the wind up agl so hard we had bills emailed.

    They are a terrible terrible company…

    • I am of the understanding that after some time of not presenting or requesting an eclectic bill there are penalties on provider and cash benefits to client. Sorry I do not have the link but I chased up agl to get my bill only after paying to find I was 2 weeks out of get off bill provision. However I got $50 cheque as an apology. Thanks further hurry up to change provider

      • +1

        Lol we are in a ergon area, but somehow agl had a box put on so ergon says nope thats agls and agl said you dont use enough lol. Stupidity…

        But yes you are right about that.

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