Beware of a S6Q Notice.
What is an S6Q Notice? It is a default notice that is sent in accordance with section 6Q of the Privacy Act 1988 (Cth). If you owe a creditor an amount that is more than $150, that creditor can do the following:
- Issue you with a first S6Q Notice as soon as the debt becomes overdue;
- If the amount is not paid within 30 days of the date the first S6Q Notice is issued, they can then send you a second Notice;
- Wait for another 14 days and then register you on your credit report. This can be disastrous as it will prevent you from obtaining finance. The entry on your credit report automatically lapses on the expiration of 5 years of the date of the entry however, 5 years is a long time when you need to, let’s say, apply for a personal loan or refinance.
There are other steps that are available to a creditor to pursue the debt - one of them is to issue a proceeding in court. It is important therefore, to act as soon as the first Notice is received and contact us to obtain advice on your options.
This article provides information that is general in nature and is not a substitute for legal advice.