faq06
Disclaimer: the author of this website is not a lawyer and this site does not constitute legal advice. All information on this website is of a general nature only.
6. Can the parking company affect my credit rating by putting this on my credit record?
Technically a parking company can not place a debt such as a parking fine on your credit history, without taking you to court first. The Private Parking company cannot put the alleged fine or debt on your credit record or affect you credit rating because you have not entered into a credit arrangement with them. A debt owed due to breach of contract is not a debt which the company itself can place on your credit report themselves. On A Current Affair a representative from the Consumer Action Law Centre (a government funded body) says on the show that the tickets are "not fines" and that if they are not paid, ANCP and other car park companies cannot put them on a person's credit report. ACA (wait a few seconds for the ad to finish) http://video.au.msn.com/watch/video/car-park-whistleblowers/x14p732
Some of the private car parking companies use credit reporting companies such as Dun and Bradstreet to send you letters asking for you to pay your "fine". They use Dun and Bradstreet presumably so that you get scared into thinking Dun and Bradstreet will put your fine on their credit file. But Dun and Bradstreet cannot do this, as you have not entered into a credit contract with the private car parking company. Read the sign at the carpark and you will see there is not mention of credit.
If the matter went to court (unlikely according to Sean Hardy), and you lost (even more unlikely according to Sean Hardy), only then can the court can make a judgement - only if a court makes a judgment can it appear on your credit rating. It is highly unlikely to get to this stage, but if it did somehow, you could simply pay the amount owed before the case was over to settle the debt, and there would be no judgement made against you.
Alternatively, if the matter went to a Victorian court you could apply to have the case moved to VCAT. In the unlikely event you lose in VCAT, you will get an order against you to pay the car park company the amount owed. If you pay the order within the allotted time, the parking compnay will not be able to go to the Magistrates’ Court and get a judgment debt recorded against you (which WILL go on your credit file). This is why it’s desirable to get the matter moved from the Magistrates’ Court to VCAT. I understand it works similary in NSW (but you should check first).
Having said this, a lot of people who receive private parking fines are still worried that the parking company will attempt to put the unpaid fine on their credit record, which could in the future prevent them from obtaining a loan or finance. This is because all banks perform a credit check before approving loans or mortgages. If you are concerned about this, then you can apply to have your credit history file checked by an authorised agent registered with Veda Advantage and/or Dun and Bradstreet. This agent can obtain a copy of your credit history report for you. Alternatively, you could apply direct to Veda Advantage or Dun and Bradstreet to obtain a copy of your credit report. This should normally be performed for you free of charge.