A well-maintained credit report is an essential part of financial wellbeing in New Zealand. Whether you’re an individual applying for a loan or a business seeking supplier credit, your credit file plays a key role in shaping financial opportunities. However, credit reports are not immune to errors, mistakes can and do occur, and they may affect your ability to access finance or negotiate favourable terms. Being informed about how credit report issues arise and knowing what to do when they occur is important for protecting your financial credibility.
Common Credit Report Errors in New Zealand
Credit report inaccuracies can arise from a range of sources and can affect both consumers and businesses. Some of the most frequent issues include:
- Incorrect Personal Details: Errors in your name, address, or date of birth. Sometimes, information from another person with a similar name may be incorrectly included.
- Wrong Account Status: Closed accounts marked as open, or debts listed as unpaid when they’ve already been cleared.
- Duplicate Listings: The same debt appearing more than once, often under different account numbers.
- Payment History Issues: On-time payments marked late, or missed payments recorded due to system or bank errors.
- Suspicious or Fraudulent Entries: Accounts you don’t recognise or credit enquiries from lenders you’ve never contacted, which could signal identity theft.
- Outdated Information: Defaults older than five years that should have been removed under the Credit Reporting Privacy Code.
How Do These Errors Happen?
Mistakes on credit files often stem from:
● Data entry errors by lenders or creditors when submitting or updating information.
● Delay in updating paid-off accounts or resolved disputes.
● Mismatched personal information causing files to mix between people with similar names.
● Incomplete information from businesses, especially when contact details change.
● Errors during data migration or software updates at credit bureaus.
Impact on Businesses: The Importance of Accurate Commercial Credit Files
Errors aren’t restricted to individual credit files. Business credit reports are also susceptible to inaccuracies, which can impact company reputation, supplier relationships, and access to finance. Common business report issues include:
● Wrong account statuses (e.g., paid debts listed outstanding).
● Inaccurate records of judgments or insolvencies.
● Outdated directorship or shareholder details.
● Errors in trading history and payment performance.
For businesses, maintaining accurate records and regularly reviewing credit files is critical for risk management and seamless operations.
How to Dispute a Credit Report Error?
If you believe your credit file contains incorrect information, you have the right to request a correction. The first step is to obtain a copy of your credit report and review it carefully.
In New Zealand, you can request a free credit report from credit reporting agencies such as Equifax, illion and Centrix, which outlines your credit history, payment behaviour, and any defaults or inquiries.
If you identify an error:
- Gather Evidence: Collect documents such as payment records, emails, or statements that support your case.
- Contact the Credit Reporting Agency: Submit a correction request, including your supporting documents.
- Investigation Process: The agency will investigate by contacting the relevant lender or information provider. During this time, the disputed entry may be flagged.
- Receive an Outcome: If the error is confirmed, your file will be corrected and updated. If not, you may attach a statement of dispute or escalate your concern through a formal complaints process.
Staying on Top of Your Credit Report
To minimise future issues:
- Review your credit report regularly (annually is a good habit).
- Report suspicious entries or potential identity theft promptly.
- Keep copies of financial records, including payment confirmations and communications with creditors.
- For businesses, ensure company records—such as ownership details and trading status are accurate and up to date.
Conclusion
Whether you’re an individual or running a business, credit report accuracy is vital. Errors can limit your access to credit, raise costs, or damage your financial reputation. By staying proactive and knowing how to address mistakes through the proper channels, you can help ensure your credit profile reflects your true financial behaviour.