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In many ways, credit scores can be like ex-partners. When things end amicably, you go out into the world as better versions of yourselves. But when they end badly, the memory of those moments can follow you around for years to come, as we\u2019ve seen play out recently in the NSW Supreme Court.<\/p>\n
For those unfamiliar with the story, a problem first arose last year when the Reserve Bank handed down an interest rate cut, about which St George Bank then notified its customers. In its correspondence with a woman named Fiona Vinall<\/a>, the bank said the reduced rate would see her pay $44.11 less on her mortgage repayments \u201cafter July 10\u201d. On the surface, that\u2019s a great money win!<\/p>\n Unfortunately, it wasn\u2019t quite that straightforward. Vinall understandably interpreted the email to mean that any repayments made throughout the month of July, but after the 10th, could be for the revised amount. But according to St George, what they meant by \u201cafter July 10\u201d was actually from August 1. As such, the bank automatically clocked one of the repayments as being in deficit.<\/p>\n Despite the bank quickly identifying and rectifying the issue, the two parties now find themselves in court because of what transpired in those few short weeks between the bank\u2019s initial email and the missing $44.11 being repaid.<\/p>\n In Australia, banks are legally required to inform credit-rating agencies of shortfalls within 14 days \u2013 even if it\u2019s for an amount less than $50 on a loan literally the size of a house. That means St George reported Vinall\u2019s under-payment as \u201cadverse repayment history information\u201d, and that subsequently, her credit score deteriorated. So much so that when months later she bought a new property, she was unable to settle because of her newly negative credit rating.<\/p>\n When Vinall contacted St George and requested the notice be removed, the bank refused. But where many people would feel overwhelmed and think they had no power against a major banking institution, she refused to lie down, took a huge risk and began legal proceedings.<\/p>\n Always read the fine print, ask questions if you don\u2019t understand what something means, and keep a record of any correspondence.<\/p>\n At a preliminary hearing in January, a judge ordered the black mark on her credit score to be removed by the bank. But that didn\u2019t happen, possibly because nobody bothered to appear on behalf of the bank and neither Vinall nor the court could get in touch with them.<\/p>\n Then at a hearing in early February, where representatives did appear, the bank doubled down and said it couldn\u2019t undo the adverse credit information. All it could do, they said, was request the credit agency to which they had passed the information to update the information. But when pressed, they admitted they hadn\u2019t asked for that to be done either.<\/p>\n Incredibly, it was only when the court said the chief executive of Westpac (which owns St George) would be required to appear and justify the bank\u2019s actions that the matter was resolved. And incredibly, it managed to be sorted within a few short days, and over a weekend.<\/p>\n Editor’s pick Justice David Hammerschlag, who was overseeing the matter, didn\u2019t mince his words in his judgement, saying the bank\u2019s wording in its original email was \u201cat best ambiguous, and at worst likely to mislead\u201d.<\/p>\n He also said the bank\u2019s refusal to resolve an issue over such a relatively small amount of money was \u201clegally unjustifiable and short on commercial morality\u201d.<\/p>\n \u201cHaving regard to the de minimis [trivial] dimensions of the shortfall, the substantially unequal bargaining position of the parties, the profound adverse consequences for the plaintiff of the adverse credit reporting being maintained \u2026 not taking steps to erase the recorded event was unconscionable.\u201d<\/p>\n The good news for Vinall is that her previously positive credit rating has been reinstated, and Westpac has been ordered to pay her legal costs. But we\u2019d be naive to think everyone has such a positive outcome when it comes to credit-score disputes and the long-term impact they can have.<\/p>\n Let\u2019s say, for example, you skip a few loan repayments in your early 20s because you\u2019re busy having fun and prioritising travel or nights out over buy now pay later bills. Even if you get your act together and change your ways, those decisions could impact you when you\u2019re 30.<\/p>\n During those years, you might try to buy a car or your first home. You might even just want to apply for a credit card with a relatively conservative limit. But if your credit score is negative, you could be in trouble.<\/p>\n That\u2019s because even though most lenders report to credit agencies monthly, meaning your credit score is regularly updated, negative information tends to stay on your credit report for seven years.<\/p>\n So even if you have A+ habits for six years, those wayward early years can still linger and haunt you long after you\u2019ve broken up with them and moved on. The silver lining is that the more positive money behaviour you show, the better your score becomes, and you\u2019ll be seen as less risky according to lenders.<\/p>\n But if you\u2019re someone like Vinall, who had incorrect information applied to her credit report due to a misunderstanding, it\u2019s essential that the record be corrected as soon as possible. For me, her case has highlighted three things that we all need to remember when it comes to money and repayments.<\/p>\n Editor’s pick The first is that you should always always always pay on time. Whether that\u2019s through setting up automated withdrawals, paying a bill the minute it arrives, or setting reminders, find a method that works for you and stick to it religiously.<\/p>\n And if there are times that you can\u2019t make the due date, call to discuss your situation and come up with a plan that both parties can agree to and that\u2019s noted in your file.<\/p>\n The second reminder is to always read the fine print, ask questions if you don\u2019t understand what something means, and keep a record of any correspondence or phone calls. Ideally, you\u2019ll never need these, but if the day comes that you do need to dispute something you\u2019ll be glad to have them.<\/p>\n Finally, if something is on your credit report that you don\u2019t think should be there \u2013 say something and keep saying it until the matter is resolved. As Vinall proved, it took her going all the way to the Supreme Court for the bank to relent, but ultimately, she was vindicated. That\u2019s $44.11 well spent in my books.<\/p>\n Victoria Devine is an award-winning retired financial adviser, a bestselling author and host of Australia\u2019s No.1 finance podcast, She\u2019s on the Money<\/a>. She is also founder and director of Zella Money.<\/p>\n Advice given in this article is general in nature and is not intended to influence readers\u2019 decisions about investing or financial products. They should always seek their own professional advice that takes into account their personal circumstances before making any financial decisions.<\/p>\n Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday. Sign up for our Real Money newsletter<\/a>.<\/p>\n Save<\/p>\n You have reached your maximum number of saved items.<\/p>\n Remove items from your saved list<\/a> to add more.<\/p>\n![\"Banks](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/03\/027d7e5bbd145a1aefa9584a7ab4e552fb19af5a.jpeg\")
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