60 Day Rule Default Australia: When the Listing Should Not Have Happened

Getting hit with a default feels harsh enough when it is properly listed, but discovering it was recorded too early can make the situation even more frustrating. The good news is that Australia has specific rules designed to protect consumers from premature default listings.

The 60-day rule under the Privacy Act 1988 requires creditors to wait at least 60 days after an account becomes overdue before they can list a default on your credit file. This rule exists to give consumers a reasonable chance to catch up on payments or resolve disputes before permanent damage is done to their credit history.

Got a default on your credit file? Lodge it with Default Gone right here, or call us on (02) 5502 7025. $399 flat per consumer per default. We do not guarantee removal — outcomes depend on the facts of each case — but we will prepare and lodge the dispute properly.

Some defaults are listed correctly after the proper waiting period. Others are not. Some are recorded immediately after a missed payment, some are backdated incorrectly, and some are listed without the required notices being sent first.

What is the 60-day rule for credit defaults?

The 60-day rule is found in the Privacy Act 1988 and the Privacy Regulation 2013. It sets out the minimum waiting period before a creditor can list a payment default on your credit file.

Specifically, a creditor cannot list a default until:

• At least 60 days have passed since the payment first became overdue
• They have sent you proper notice of their intention to list the default
• You have been given a reasonable opportunity to pay or dispute the debt
• The debt remains unpaid after the notice period

This rule applies to most consumer credit arrangements, including credit cards, personal loans, home loans, car loans, store credit, utility accounts, and telecommunications services.

The purpose behind the 60-day rule

The rule recognises that people sometimes miss payments for legitimate reasons. You might be travelling, dealing with a family emergency, experiencing temporary financial stress, or simply have an administrative mix-up with your bank.

Sixty days provides a reasonable buffer period to:

• Realise the payment was missed
• Receive and respond to overdue notices
• Make arrangements with the creditor
• Catch up on the payment
• Dispute the debt if there is a genuine issue

When a default listing may have broken the 60-day rule

Several scenarios can indicate that a default was listed prematurely, in breach of the 60-day rule:

Default listed too quickly after missed payment

The most obvious breach is when a default appears on your credit file within 60 days of the first missed payment. For example:

• Payment due: 15th January
• Default listed: 10th February (only 26 days later)
• This would be a clear breach of the 60-day rule

Incorrect calculation of the 60-day period

Some creditors miscalculate when the 60-day period begins. The clock starts ticking from when the payment first became overdue, not from:

• When you received a reminder notice
• When the account was referred to collections
• When the creditor decided to list the default
• When they sent the pre-default notice

Backdated default listings

Some defaults are listed with an incorrect date that makes them appear compliant with the 60-day rule when they are not. Signs include:

• The listed date is exactly 60 days after the missed payment (suspiciously precise timing)
• Multiple defaults from the same creditor all have identical timeframes
• The listing date does not match when you first became aware of the default

Missing or inadequate pre-default notices

Before listing a default, creditors must send specific notices. If these were not sent, sent to the wrong address, or did not contain the required information, the 60-day protection may have been compromised.

What to check on your credit file

If you suspect a default may have been listed too quickly, gather the following information:

• Default listing date: When does your credit file say the default was recorded?
• Payment due date: When was the first payment that led to the default actually due?
• Account statements: What do your records show about missed payments?
• Correspondence: Did you receive proper pre-default notices?
• Contact details: Were your address and contact details current with the creditor?

Calculating the timeframe

Count the calendar days between the first missed payment and the default listing date. If it is less than 60 days, there may be grounds to challenge the listing.

For example:

• Payment due: 5th March
• Default listed: 25th April
• Days elapsed: 51 days
• Result: Potential breach of the 60-day rule

Common creditor mistakes with the 60-day rule

Some patterns emerge in how the 60-day rule gets misapplied:

Automated systems listing defaults too early

Some creditors use automated systems that trigger default listings based on account balance or days overdue, without properly accounting for the 60-day rule. This can result in defaults being listed at 30, 45, or 50 days instead of the required minimum 60 days.

Confusion about when the clock starts

Creditors sometimes start counting from the wrong date:

• From when the account was closed instead of when payment was first missed
• From when they sent a final demand instead of the original due date
• From when they decided to take action instead of when the debt became overdue

Joint account complications

With joint accounts, creditors sometimes list defaults against both account holders immediately, without considering whether each person had proper notice or opportunity to respond within the 60-day timeframe.

Business vs consumer account confusion

The 60-day rule applies to consumer credit, but some creditors incorrectly apply business account processes to personal guarantees or sole trader arrangements, leading to premature default listings.

What about hardship and payment difficulties?

The 60-day rule becomes particularly important when you were experiencing financial hardship. If you were dealing with financial stress when the default was listed, the premature listing may have compounded an already difficult situation.

Creditors have additional obligations when dealing with consumers in hardship:

• They must consider hardship requests made within reasonable time
• They cannot list defaults while genuine hardship negotiations are ongoing
• They must allow reasonable time for hardship arrangements to be implemented

If you requested hardship assistance within the 60-day period, but the creditor listed the default anyway, this may provide additional grounds for challenging the listing.

Notice requirements and the 60-day rule

The 60-day rule works alongside specific notice requirements. Before listing a default, creditors must:

• Send notice to your last known address
• Include specific information about the debt and their intention to list
• Allow reasonable time for you to respond
• Consider any response or payment arrangement offer

If proper notices were not sent, or sent to an outdated address, the entire default listing process may be flawed, regardless of timing.

How Default Gone helps

Default Gone helps Australians challenge unfair, incorrect or unlawfully listed defaults. We collect the relevant information, prepare the dispute, lodge it with the credit provider and/or credit reporting body, track the response and explain the outcome in plain English.

The standard Default Gone service is $399 per consumer, per default (limited launch pricing — normally $399). There are no stage fees, no success fees and no surprise invoices. The fee covers the work performed, not a sought outcome.

Challenging a default that broke the 60-day rule

If you believe a default was listed prematurely, you may have grounds to challenge it. The process typically involves:

1. Gathering evidence: Collect account statements, payment records, and correspondence
2. Calculating timeframes: Document exactly when payments were missed and when the default was listed
3. Reviewing notices: Check whether proper pre-default notices were sent and received
4. Preparing the dispute: Present the evidence clearly to show the 60-day rule was not followed
5. Following up: Track responses and escalate if necessary

What constitutes strong evidence

Compelling evidence of a 60-day rule breach includes:

• Bank statements showing the exact payment due dates
• Credit file records showing the default listing date
• Mathematical calculation proving less than 60 days elapsed
• Evidence of missing or inadequate notices
• Correspondence showing the creditor was aware of contact detail issues

Industry-specific considerations

Different types of creditors may have varying approaches to the 60-day rule:

Telecommunications providers

Telco accounts often have monthly billing cycles that can complicate 60-day calculations. Make sure the creditor counted from the first missed payment, not from when they suspended service or sent disconnection notices.

Utility companies

Electricity, gas, and water providers sometimes fast-track defaults during seasonal peaks (summer air conditioning, winter heating). Check that they allowed the full 60 days regardless of usage patterns.

Credit card companies

Credit cards typically have clear monthly due dates, making 60-day calculations more straightforward. However, some issuers incorrectly start counting from when the account was closed rather than when payments first became overdue.

Personal and car loan providers

Instalment loans should have clear payment schedules. If you missed one payment but continued making subsequent payments, ensure the creditor calculated the 60-day period from the first genuinely overdue amount.

What happens if the 60-day rule was breached?

If a creditor listed a default without following the 60-day rule, several outcomes may be possible:

• Removal of the listing: The credit reporting body may remove the default entirely
• Correction of the listing date: The default date may be updated to comply with the rules
• Partial correction: Other aspects of the listing may also be reviewed and corrected
• No change: If the creditor can demonstrate compliance or other factors, the listing may remain

The outcome depends on the specific facts, the strength of evidence, and the response from the creditor and credit reporting body.

Checklist: Signs your default may have broken the 60-day rule

• [ ] Default was listed less than 60 days after the first missed payment
• [ ] You never received pre-default notices at your current address
• [ ] The default date seems suspiciously close to 60 days (suggesting backdating)
• [ ] You were in genuine hardship negotiations when the default was listed
• [ ] Multiple defaults from the same creditor show identical timing patterns
• [ ] The creditor calculated 60 days from account closure, not first missed payment
• [ ] You can prove your contact details were not updated despite attempts to notify
• [ ] The default relates to a joint account where your co-borrower was not properly notified
• [ ] Business account processes were incorrectly applied to personal credit
• [ ] You made payments during the supposed 60-day period that were not credited correctly

For more detailed information about checking your credit file, see our guide on how to get a free copy of your credit report.

Taking action on 60-day rule breaches

If you identify a potential breach, document everything systematically:

1. Download your credit file: Get current copies from all three credit reporting bodies
2. Gather financial records: Collect bank statements, payment confirmations, and account correspondence
3. Create a timeline: Map out exactly when payments were due, missed, and when the default was listed
4. Calculate the days: Use calendar days to verify the timeframe
5. Review correspondence: Check all notices from the creditor for content and timing

Remember that challenging a default does not undertaking removal. The outcome depends on the specific facts and the creditor’s response. However, if the 60-day rule was genuinely breached, you may have strong grounds for having the listing corrected or removed.

If a default is affecting your ability to secure finance, rental applications, or business loans, it may be worth reviewing whether the listing complied with all applicable rules, including the 60-day protection. Start your default review today to see what options may be available.

Disclaimer

Default Gone is not a law firm and does not provide legal or financial advice. We do not undertaking that a default or judgement will be removed. Outcomes depend on the facts, documents and response from the credit provider, credit reporting body or relevant legal pathway.

Frequently asked questions

Does the 60-day rule apply to all types of defaults?

The 60-day rule applies to most consumer credit defaults, including credit cards, personal loans, home loans, utilities, telecommunications, and store credit. It generally does not apply to commercial or business-to-business credit arrangements. The rule is designed to protect individual consumers, not business entities.

What if I was overseas when the payment was due?

Being overseas does not change the 60-day rule timeframe, but it may affect whether you received proper notice of the overdue payment and intended default listing. If the creditor sent notices to an address where you could not receive them, or if you had notified them of temporary overseas travel, this may provide additional grounds to challenge the listing beyond just the timing issue.

Can a creditor list a default exactly 60 days after the missed payment?

Technically yes, if they have also complied with all notice requirements. However, defaults listed exactly on the 60th day should be scrutinised carefully. The creditor must have sent proper pre-default notices and allowed reasonable time for response. If notices were sent on day 50 and the default listed on day 60, this may not allow sufficient time for consumer response.

What happens if I paid the overdue amount within the 60-day period?

If you paid the overdue amount before the 60-day period expired, a default should not be listed at all. If one appears anyway, this would be grounds for removal regardless of timing. The creditor cannot list a default on a debt that has been paid, even if it was paid after the original due date.

Do weekends and public holidays count towards the 60 days?

Yes, the 60-day period includes weekends and public holidays. It is calculated using calendar days, not business days. This means if a payment was due on a Friday, the 60-day protection period includes the following Saturday, Sunday, and any public holidays that fall within that timeframe.

Can I challenge a default that is older than 12 months if it broke the 60-day rule?

Yes, you can challenge defaults that broke the 60-day rule regardless of their age, as long as they are still on your credit file. Defaults remain on credit files for five years from the listing date, and compliance issues do not have a statute of limitations for credit file disputes. However, gathering evidence may be more difficult for older defaults.

What if the creditor claims they calculated 60 days correctly but I disagree?

If there is a disagreement about when the 60-day period should have started, gather documentary evidence including account statements, payment records, and correspondence. The calculation should be based on when the payment first became overdue according to the original credit agreement, not when the creditor decided to take action or sent reminder notices.

Does hardship affect the 60-day rule timeframe?

Hardship does not change the 60-day minimum timeframe, but it may extend it. If you applied for hardship assistance within the 60-day period, the creditor should not list a default while genuinely considering your hardship request. This can effectively extend the protection period beyond 60 days in practice.