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QLD New Zealand Debt - Affect Home Loan Chances in Australia?

Discussion in 'Debt and Bankruptcy Law Forum' started by Nathan, 21 May 2014.

  1. Nathan

    Nathan Member

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    Hi all,
    I'm a New Zealand citizen who moved to Australia and have lived here for 5 years. I left a loan in New Zealand of $20,000 which I intended to continue paying. Unfortunately, I could not keep up the loan payments and the debt was sold to Credit Corp ( debt collectors). I've been paying this with Credit Corp without fault now for 4 years and accumulated a total of $8500 paid.

    Since I have been in Australia, I have been approved for phone plans, credit cards and car loans but now seeking a home loan I am concerned I may not make it across the line in this credit check. Does my credit report from New Zealand follow me to Australia? I know it appears it doesn't however I tried to do the right thing and talk to Credit Corp about my intention to seek a home loan and if there company comes up on a report from Australia? At first, I spoke to a lady who basically told me that the credit files are made in New Zealand and do not transfer in Australian files and would not show. I was called again today about a week after I spoke to Credit Corp about the files and my debt manager spoke to me, made very clear I was being recorded and asked all my details. Then proceeded to tell me that because Credit Corp is an Australian company I have an account with them and my New Zealand debt would be able to be viewed. She then proceeded to ask me to increase the amount I currently am giving each month. If I was getting through a loop hole before to get loans, is Credit Corp now able to change my files to ensure I won't be able to get a home loan approved?

    Thank you.
     
    Jennifer J likes this.
  2. John R

    John R Well-Known Member

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    Hi Nate,
    Australian home loan lenders (banks, etc.) generally rely on your credit report to better understand your credit history.
    Recent reforms to the Privacy Act mean that foreign (including New Zealand) credit information should not be included in Australian credit reports. Please review the Office of the Australian Information Commissioner's website for further information on recent Privacy Act credit reporting reforms.
    If you are presently seeking a home loan (or any other credit facility), you should review and/or monitor your Australian credit report (available from Veda Advantage with free and paid options) for any potential attempts by Credit Corp to record your New Zealand credit information on your Australian credit report.
     
  3. Sasha

    Sasha Member

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    Hi John R,

    Do you know if its the same if you move from Australia to New Zealand? I'm thinking about moving back to NZ and wondering if my 10k credit card default will follow me back and appear on my credit file.
     
  4. matt 68

    matt 68 Member

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    So basically, If I have a bad debt/default in NZ and the NZ finance company know I'm in Australia, then they cannot record the default onto my Australian Credit file?
     

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