John asked in Business & FinanceCredit · 7 years ago

Default debt in Australia - I have $400 owing on the debt... is it worth paying?

let me explain in further detail. I had a $1600 debt with Three Mobile back in 2009. The bill was a major overcharge and I disputed it with Three Mobile who obviously knew they were at some fault as they halved the bill. However, I was very stubborn at the time and I demanded that I wouldn't pay until they drop all of it as I wasn't going to pay for half of their mistake.

Being young at the time and not too aware... this bill went into default at full price for $1600. At first I refused to pay it but then I realised this wasn't going to go away, and so when I was sent a letter by the debt collector, they gave me two options... pay the full price of the debt for $1600 or pay a settlement for $1200. I chose the settlement, paid the $1200 and everything was fine. They were off my back and happy with this.

However... I found out a few years later (when Three was bought out by Vodafone) that there was a new debt collection agency following the debt and they were asking me to pay the additional $400. A bit annoyed I tried to explain I'd paid a settlement... but as this phone call came about 2 years after I had already paid the settlement... I couldn't quite remember exactly what month or date I paid it, and I no longer had the letter they originally sent me and so therefore no real proof that there was a settlement figure had been offered, they just have it noted that $1200 was paid as a 'part payment'.

So now... that default will be off my credit file in April 2014 as it would be 5 years by then. Would they sue me at the last minute to recover $400? I know that if I pay it, it won't make any difference as it will still remain on my credit history anyway.

Also - can they try suing me after the debt is removed from my credit file? I don't want to be sued for such a small amount and have that on my record for another 5 years but I just don't know if paying that debt is going to make any difference or not.


1 Answer

  • Anonymous
    7 years ago
    Favorite Answer

    The $400 should have been written off-contact the collection agency who had it at the time, and remind them that it was settled. It's there responsibility to forward the accurate information to the new agency. If that doesn't fix things, contact whichever government agency there handles credit card fraud.

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