Consumer Default Loading

Reporting overdue accounts as defaults

The Code places an obligation on subscribers to ensure that default information reported to Veda is correct. You must ensure that you have taken such steps as are, in the circumstances, reasonable to ensure that the default information is accurate, up to date, complete, relevant, and not misleading.

 

• Payment defaults may only be listed once an account has been overdue for more than 30 days
• Steps have been taken to recover the whole, or any part of the debt owed.
• You must have requested the borrower, either in person or in writing, to pay the outstanding amount
• The debt must be over $100.00
• The debt must not be in dispute
• Under the Code the 30 day period is the minimum period to have elapsed before the default can be listed.
• The debt must not be over 5 years old.
• The debtor must be over 18 years old.

 

ADVICE ON REPORTING CERTAIN TYPES OF ACCOUNTS »

Guarantors

Before listing with Veda the overdue account against the credit file of a guarantor, you must first give all guarantors written notice that a default has been incurred by the principal borrower(s) and make a demand under the guarantee.

Joint Accounts

When you wish to report joint debtors where the parties live at different addresses, and those addresses are known, then written notice must have been sent to all parties at all of these addresses advising them of the overdue payment and requesting payment of the amount outstanding.

Debtors using Other Names

You are able to notify Veda of individuals using another name/s. Provide us with the inquiry number for the individual and we will establish and confirm with you if they are known to be using those name/s. Once confirmed we will add a "Cross Reference" to their credit file. A common example of this is maiden and married names.

Please note:

In order to lodge a default against a company director on a consumer credit file, a signed "Director's Guarantee" must be held. As previously stated, before listing the overdue account with Veda, you must first give all guarantors written notice that a default has been incurred by the principal borrower(s) and indicating whether you are making a demand against the guarantors.

 

Company Default Reporting

Whilst the Act and the Code do not in effect regulate information about company credit, Veda asks its subscribers to adopt a uniform approach to all its default reporting procedures. That is, that the same guidelines are adhered to for listing both consumer and company defaults

One of the most important procedures to adopt is to ensure that all overdue accounts are reported. Veda also recommends that you allow 30 days to elapse before reporting overdue accounts. Whilst this is not a regulatory requirement, it is a widely accepted Veda standard. Company Defaults can now be loaded directly from the Veda  Subscriber Website or by a bulk method. See Bulk Company Default Load Form.

 

Defaulting company directors

In order to lodge a default against a company director, a signed "Director's Guarantee" (also known as "personal guarantee") must be held. Before listing the overdue account with Veda, the credit provider must first give all guarantors written notice that a default has been incurred by the principal borrower(s) and that a demand is being made under the guarantee.

Updating your defaults

When you report overdue accounts to us, you must ensure that you are authorised to do so and that the information is accurate, up to date and complete. You must advise us of any changes to status of a default listing as soon as possible.

You will need to make changes to default listings when:

• The amount you originally reported changes due to an increase in the monies owed. This may require us to manually update the file. You must have taken steps to recover that amount from the debtor before advising us.
• The amount changes due to you accepting part payment of the amount owed to you by a debtor.
• The account is paid in full or settled i.e. where you accept a different amount to that which was originally reported in final settlement of the account.

You can make these changes by using your on line access to our database or you can write to us giving the details of your request. We also provide a facility for updating large volumes of default information in bulk. Please contact us if you would like access to this facility. Default listings that you mark as "paid" are not removed from files. Entries remain on files for five years from the original date of default. The fact that the account had been overdue and was later paid becomes part of a consumer's credit history.

From time to time, we may ask you to provide us with additional information on a default listing to assist with actions we must take under the Code. We may also contact you on behalf of consumers who have outstanding accounts with you to verify the status of default listings.

You can update or change the status of an account listed with Veda by:

• Internet Users can access our website where amendments are instantaneous
• Email us at assistonline.nz@Veda.co.nz and we will action your changes within 24hrs
• Fax or post your request and we will action your changes within 24hrs of receiving your request

Amending default report listings

We have obligations under the Code to ensure the default listings on our database are accurate, up to date, complete and relevant. We are also required to conduct investigations at the request of individuals who may ask for information on their files to be corrected. From time to time we may contact you to verify information you have reported to us. The information you provide may help us to amend default listings on consumer files.

Because our information services rely on the information we collect, we do not usually remove any information from our systems unless we think it is not accurate, up to date or complete. It is our decision whether we remove the information.

You may find that you have reported information to us that inaccurate or incomplete. This may occur if:

• You have reported an incorrect amount with the default.
• You are concerned that you have placed a listing on the wrong person.
• You have not complied with the Code prior to listing.

If this happens, you should write to us providing us an explanation of what has occurred. We will conduct an investigation to determine if the default listing can be amended. When we conclude our investigations we will inform all parties involved, setting out the reasons for our determinations in writing, including the consumer and any subscriber involved in the investigation. All investigations will be conducted in accordance with the Code.

Please note

Both a Payment Default and Judgment may be held on a credit file for the same account.