Credit FAQ's
  • Are bankruptcies shown on a credit file?
    Yes, as part of our Public Record Information. Back to top
  • Asset
    Any property of value owned by a person. Can include tangible and intangible assets Back to top
  • Charge
    A form of security for a debt taken by a creditor over company assets. A mortgage is a type of charge. Back to top
  • Clearout, what is it
    The term “clearout” is sometimes used on a credit report. The process for reporting a clearout is much simpler than that for reporting a default. There is no requirement that the debt be 60 days or more overdue or for any demand to have been made. A clearout listing remains on a report for seven years and it is likely that you will be unable to obtain more credit while the listing remains on your report, especially from any mainstream lender such as a bank.

    A lender can only list a clearout if it is reasonable to believe that your actions indicate an intention to no longer pay the debt. However, some lenders may make a clearout listing simply because you have changed address without providing contact details.

    Examples of where the clearout listing might be considered to be unreasonable: -
    • if you have simply been on holiday and the lender could not contact you during this time
    • if your last payment debt was a while ago, the debt has been sold and the new owner has only sent demands to your last known address
    Back to top
  • Compromise
    Agree to accept a lesser sum in full payment of a debt. Back to top
  • Contingent liability
    A liability that might arise if a certain event occurs (e.g. a current legal action against a company might result in a liability if the company loses the case). Back to top
  • Contributory
    A shareholder who may be liable to contribute towards a company’s debts in a liquidation if their shares are not fully paid. Back to top
  • Controller
    A person appointed by a secured creditor to deal with assets subject to a charge. Includes a receiver, and receiver and manager. Back to top
  • Court liquidation
    A liquidation that starts as a result of a court order, made after an application to the court, usually by a creditor of the company. Back to top
  • Creditor
    A person who is owed money. Back to top
  • Creditors’ voluntary liquidation
    A liquidation for insolvent companies, initiated by the company. Creditors may replace the liquidator appointed by the company in this type of liquidation. Back to top
  • Declaration of indemnities
    A declaration that must be provided to creditors by a voluntary administrator informing them about any indemnities given to the voluntary administrator to cover fees or other debts incurred in acting as voluntary administrator of the company. The declaration provides information to enable creditors to make an informed decision about whether they wish to replace the administrator over concerns about independence. Back to top
  • Debt
    An amount owed. Back to top
  • Debtor
    A person who owes a debt. Back to top
  • Deed administrator
    The external administrator appointed to oversee a deed of company arrangement. Back to top
  • Deed of company arrangement
    A binding arrangement between a company and its creditors governing how the company’s affairs will be dealt with, which may be agreed to as a result of the company entering voluntary administration. Aims to maximise the chances of the company, or as much as possible of its business, continuing, or to provide a better return for creditors than an immediate winding up of the company, or both. Back to top
  • Defaults
    A credit provider may only list a default on your file if 60 days has elapsed since the day on which the payment was due and payable and if the credit provider has taken steps to recover all or part of the amount outstanding. The credit provider must also have written to you at your last known address and advised you of the overdue payment and requested payment of the amount outstanding. Back to top
  • Director
    A natural person appointed as a director of a company who is then responsible for directing and managing the affairs of a company. Also includes a shadow director. Back to top
  • Dun & Bradstreet - Getting a copy of your report
    Telephone Dun & Bradstreet on 13 23 33 for an application form, or -
    Go to the Dun & Bradstreet website at www.dnb.com/au to download an application form.

    Click on the Request Your Individual Credit File link

    Once you have completed the application form you can send it to:

    Dun & Bradstreet
    Public Access Centre
    PO Box 7405
    St Kilda Road, VIC, 3004

    Dun & Bradstreet will send your credit report within 24 hours of receiving your application and the fee, currently $25. To get your report within 24 hours, fill in the application form and send it to Dun & Bradstreet with your payment, or ring Dun & Bradstreet and arrange payment. Back to top
  • External administrator
    A general term for an external person formally appointed to a company or its property. Includes provisional liquidator, liquidator, voluntary administrator, deed administrator, controller, receiver, and receiver and manager. Other than a liquidator for a members’ voluntary liquidation and a controller who is not a receiver or receiver and manager, an external administrator is required to be registered by ASIC. An external administrator is sometimes also referred to as an insolvency practitioner. Back to top
  • Fixed charge
    A charge taken by a lender over particular assets of a company. The company may not dispose of these assets without the consent of the lender. Back to top
  • Floating charge
    A charge taken by a lender over general assets of a company. The company is usually able to use and dispose of these assets (e.g. stock, debtors) in the ordinary course of business without the secured creditor’s consent. A floating charge converts to a fixed charge over those assets if certain events listed in the charge document occur. These usually include the appointment of a liquidator or other external administrator. Back to top
  • How long does a bankruptcy stay on the Veda Advantage database?
    Bankruptcies stay on the Veda Advantage file for 7 years. If the bankruptcy is discharged after three years an annotation is entered on to the file stating this.

    For further information in relation to bankruptcies please visit the Insolvency Trustees Service Australia (ITSA) Back to top
  • Indemnity
    An agreement between the external administrator and a third party to cover the fees and other debts incurred by the external administrator. Back to top
  • Insolvent
    Unable to pay all debts when they fall due for payment. Back to top
  • Intangible asset
    An asset with no identifiable physical form (e.g. a contractual right, copyrights, patents and goodwill). Back to top
  • Liability
    A legal obligation to pay a person. Back to top
  • Liquidation
    The orderly winding up of a company’s affairs. It involves realising the company’s assets, cessation or sale of its operations, distributing the proceeds of realisation among its creditors and distributing any surplus among its shareholders. The three types of liquidation are: court, creditors’ voluntary and members’ voluntary. Back to top
  • Liquidator
    A natural person appointed to administer the liquidation of a company. Back to top
  • Members’ voluntary liquidation
    A liquidation for solvent companies, initiated by the company. Back to top
  • Officer (of a company)
    A director, secretary or external administrator (in most cases) of the company. Back to top
  • Prescribed provisions
    Provisions that the Corporations Act 2001 takes to be included in a deed of company arrangement, unless the deed specifically excludes them. Back to top
  • Priorities
    The order set down by the Corporations Act 2001 for the payment of unsecured creditors of an insolvent company by an external administrator. Back to top
  • Priority creditor
    An unsecured creditor entitled to be paid ahead of other creditors (e.g. employees). Back to top
  • Proof of debt
    A prescribed form to be completed by creditors at the liquidator’s request, setting out details of their claim against the company, including how the debt arose and the amount claimed. Back to top
  • Provisional liquidator
    A liquidator appointed by the court to preserve a company’s assets until a winding-up application is decided. Back to top
  • Public examination
    A liquidator, voluntary administrator, deed administrator, ASIC or a person authorised by ASIC to do so can apply to the court to question an externally administered company’s directors or any other person who may be able to give information about the affairs of the company. Back to top
  • Realise
    Convert assets into cash, often by selling them. Back to top
  • Receiver
    An external administrator appointed by a secured creditor to realise enough of the assets subject to the charge to repay the secured debt. Less commonly, a receiver may also be appointed by a court to protect the company’s assets or to carry out specific tasks. Back to top
  • Receiver and manager
    A receiver who has, under the terms of their appointment, the power to manage the company’s affairs. Back to top
  • Receivership
    An insolvency procedure where a receiver, or receiver and manager, is appointed over some or all of the company’s assets. Back to top
  • Secured creditor
    A creditor who has a security (e.g. charge or mortgage) over some or all of a company’s property. Back to top
  • Tangible asset
    An asset with a physical form (e.g. stock or real estate). Back to top
  • Uncommercial transaction
    A transaction that was unreasonable for a company to have entered into. It may be able to be set aside by the company’s liquidator provided it occurred within 2 years prior to the winding up, and when the company was insolvent or if the company became insolvent by entering into the transaction. Back to top
  • Unfair preference
    A payment made or other benefit given to a creditor by an insolvent company which causes that creditor to be in a more favourable position than other unsecured creditors in a liquidation. The company’s liquidator can seek to recover an unfair preference provided it occurred within 6 months prior to the liquidation, and when the company was insolvent or if the company became insolvent by making the payment or giving the benefit. Back to top
  • Unsecured creditor
    A creditor who does not hold a security over a company’s property. Back to top
  • Veda Report - Can a lender list me more than once for the same debt?
    No, a lender cannot list the same default more than once. However, a lender can list you once for not paying a loan and then if the lender gets a court order against you, the court order will be listed separately. Back to top
  • Veda Report - Getting a copy of your credit report
    Within 10 working days

    1. Write a letter to Veda saying you are requesting a copy of your credit file and state your full name, date of birth, driver’s licence, current address and, if applicable, your previous address (if you have moved in the last 5 years), a daytime telephone number and your signature.

    2. Send the letter to Veda at: Veda Advantage Public Enquiries PO Box 964 North Sydney NSW 2059, or Fax the letter to Veda at: 02 9951 7880

    Veda will send your credit report within 24 hours of receiving your application fee, currently $27. Back to top
  • Veda Report - How long can they keep your information?
    5 years: credit applications, overdue accounts and court judgments
    7 years: bankruptcy orders, debt agreements and serious credit infringements Back to top
  • Veda Report - What information can be kept about me?
    Your personal details (name, current and previous addresses, gender, drivers licence number) -
    Records of credit applications you have made in the past five years -
    Records of your current loans - Unpaid defaults (Accounts where you have been in default for more than 60 days and the creditor has demanded payment), even where the default has later been paid.

    Court judgments or orders

    Dishonoured cheques

    ’Serious credit infringements’, or ‘clearouts’, which are listings to show that the lender has a reasonable belief that you intend to avoid paying the debt. This is common for utility debts.

    Bankruptcy orders, which might include debt agreements under the Bankruptcy Act Back to top
  • Voluntary administrator
    An external administrator appointed to carry out the voluntary administration of a company. Back to top
  • Voluntary administration
    An insolvency procedure where the directors of a financially troubled company or a secured creditor with a charge over most of the company’s assets appoint an external administrator called a ‘voluntary administrator’. The role of the voluntary administrator is to investigate the company’s affairs, to report to creditors and to recommend to creditors whether the company should enter into a deed of company arrangement, go into liquidation or be returned to the directors. Back to top
  • What does Cross Reference mean
    When two or more files on the Veda Advantage database are found to be the same identity, they undergo a 'file combine process' to leave behind a single file. When two or more files on the database are found to belong to the same person, but are different identities, these files may not be combined but left as separate files. Examples of this situation include:

    • A woman goes from a maiden name to a married name or vice versa
    • An individual is using different names to obtain credit whether or not this may be intentional or fraudulent
    • Cross-reference information is given to Veda Advantage by our subscribers, the police and the subject themselves.

    When these files are identified as being related, they are assigned a 'cross reference' identifier pointing to the other related file(s). Back to top
  • What is a bankruptcy?
    An insolvency procedure that applies to a natural person, not to a company. When a person is unable to pay their debts it is possible for them to be declared bankrupt. Action may be taken by one of the creditors, or it may be taken by the individual themselves. Back to top
  • Winding-up order
    A court order for the winding up of a company. The first step in a court liquidation. Usually made after an application by a creditor. Back to top