How to ruin someone’s credit file!

Default, black mark, adverse credit listing. Whatever you want to call it, owing money can lead to a damaged credit file. Basically there are 2 types of black mark- a Credit Default and a Judgment. Defaults are bad, Judgments are worse. In order to default someone, generally the debt must be more than $150 and the invoice more than 60 days overdue. To default an individual, you must also have permission from them, in writing, giving you access to their credit file. This is a legal requirement under the privacy act. In addition, you will also need to be a member of a credit reporting agency, plus giving them multiple written warnings specifically threatening a default.

Judgments are often much easier to obtain. First, you have to sue them- small claims court, magistrates court, local court. It doesn’t matter. If they don’t pay, and you obtain a Judgment, it’s automatically listed on their credit file for up to 6 years. Judgments are gold. If you can’t get paid, getting a Judgment is the next best thing.

There you have it folks. For those wondering “well that’s all well and good, but how do I get my money” you will have to wait until our next post!


How to ruin someone’s credit file!

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