MyCRA Specialist Credit Repair Lawyers

Tag: advocate for accurate credit reporting

  • Australia Day: Migrants to the ‘lucky country’ walk a rocky road to financial success.

    Australia DayMedia Release

    Australia Day: Migrants to the ‘lucky country’ walk a rocky road to financial success.

    21 January 2013

    Australia Day is the time when thousands of new Australians are welcomed, but an advocate for accurate credit reporting says some migrants are running into trouble with Australia’s credit reporting system, and are getting banned from credit and set back on the road to financial success.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says migrants have unique issues with Australia’s credit system, and often the origins for unfair defaults and other credit notations come from mistakes during identity establishment.

    “Some of our migrant clients are finding issues coming from incorrect names placed on their credit files – resulting in the wrong person ending up with the default or other credit listing.”

    “It may be easy to track down and correctly list ‘John Smith’ but some nationalities have three or four names which can be presented in a different order in their country of origin. Even our migrants themselves can be unsure how to present that name correctly for identity establishment in this country,” Mr Doessel says.

    He says apart from identity establishment and identification issues, there is also a lack of education for migrants on the types of credit available, and what type is safest and easiest to manage.

    “Migrants may choose lenders with high interest rates and terms that are not user-friendly, ultimately setting them on a path of overdue payments and debt,” he says.

    Mr Doessel suggests that new Australians make a point of ensuring continuity with their name on any credit they take out and requesting changes to any bills or documentation which are incorrect.

    He also says many do not know they should be checking their credit file regularly to make sure it is accurate and free from unfair or incorrect listings.

    “It’s actually not just new Aussies who are kept in the dark. Many Australian-born Aussies are unaware they are responsible for checking their credit file, and that they can obtain a credit report every 12 months at no charge,” Mr Doessel says.

    7 Credit Tips for New Australians

    1. Do use credit – Having no credit history means there is nothing to calculate and the risk appears high to lenders. Start by borrowing something small and make repayments consistently.

    2. Make repayments on time – Repay any bills by the due date to avoid incurring a late payment notation on your credit file. If a bill is greater than 60 days late you will be listed with a default. Both notations may hinder your ability to obtain credit. If you are having trouble paying a bill by the due date, contact the creditor as they may be able to work out a payment plan as preference to listing your overdue account on your credit rating.

    3. A stable address – Lenders like to see stability and this can be reflected in your address. Once you have credit, make sure you update your address whenever you move. Defaults can happen when bills are sent to the wrong address.

    4. Do your research – A competitive interest rate can save you thousands – so double check you are getting the best deal for you and your circumstances before committing.

    5. Apply for credit with care – Only apply for credit you have a very good chance of being approved for. Likewise, only apply for credit you have full intention of pursuing. Every application is noted on your credit file as an enquiry, it does not stipulate whether credit was approved or not.

    6. Check your credit file regularly – Check your credit file before you apply for credit. Make sure all your details are accurate.

    7. Don’t leave defaults too late – If your credit file does show defaults and you feel they are incorrect, unjust or just shouldn’t be there – don’t put up with them for 5 years – it is possible to dispute a credit listing you believe is inaccurate.

    “We should use Australia Day to help our fellow Aussies, and raise awareness of the problems our new migrants face, so we can all experience financial success,” he says.

    People can contact MyCRA Credit Rating Repair on 1300 667 218 for help to obtain a copy of their credit report.

    /ENDS.

    Please contact:

    Graham Doessel – Director Ph 3124 7133

    Lisa Brewster – Media Relations media@mycra.com.au

    http://www.mycra.com.au/ 246 Stafford Road, STAFFORD QLD. Ph: 07 3124 7133

    MyCRA Credit Repair is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

  • Great shot, wrong target: Gillard Government’s draft legislation to regulate small business credit completely misses the point

    regulate small business creditMedia Release

    Great shot, wrong target: Gillard Government’s draft legislation to regulate small business credit completely misses the point.

    21 December 2013

    The Federal Government has published draft legislation which proposes regulating small business credit, but an advocate for accurate credit reporting has criticised moves to regulate access to credit for small businesses, saying what is needed is not less credit, but simply a better credit reporting structure.

    Small business publication, SmartCompany, reported…that draft legislation put out by Financial Services Minister Bill Shorten’s office proposes prohibiting people from “engaging in credit activities” in relation to a small business credit contract or a small business consumer lease unless they hold an Australian credit licence.

    “Responsible lending obligations do not apply to small business credit contracts or to investment credit contracts generally, but only to specific classes of these contracts,” a spokesperson for Mr Shorten told SmartCompany.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    “The substantive obligations in the National Credit Code do not apply to small business credit contracts and to small business consumer leases. Other than the unjust contract provisions, these provisions also do not apply to investment credit contracts.”

    The spokesperson declined to comment on whether the proposed legislation will make it tougher for small businesses to obtain credit.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says the proposed changes would be widely criticised by small business advocates as stifling the flow of business credit in Australia and that the changes are unnecessary form of “hand holding” for Australian business owners.

    “Australian small businesses are already doing it tough getting credit out there post GFC – this is going to mean they will struggle even further to expand and there will be less start-ups,” Mr Doessel says.

    But he does say any changes to credit reporting for small businesses would be welcomed.

    “There is a gaping hole in the basic rights afforded to commercial credit file holders before recovery is commenced, and this needs to be dealt with,” he says.

    In the consumer landscape, if an account is overdue, then the account holder is afforded a 30 day right to remedy under the Credit Reporting Code of Conduct. This is meant to ensure that fair and reasonable means have been taken to attempt to recover the outstanding amount before further action is taken, and before the consumer’s credit file is defaulted.

    As commercial credit is not covered under the Code, this right is currently not provided to commercial credit file holders – and Mr Doessel says many times small business owners have been caught out.

    “The common courtesies which consumers are afforded and which many assume stay with them in the commercial sphere just don’t apply – many don’t realise just how big a risk commercial credit is.”

    “It’s like the ‘wild, wild west’ out there with some lenders defaulting small businesses with little to no warning,” he says.

    Once a default is placed on a commercial credit file, then the length of time it remains on the credit file is legislated by the Privacy Act 1988.

    “A commercial credit file holder is still subject to 5 years of bad credit if they end up with a default listing, the ramifications are still the same – they are generally refused mainstream credit, refused mobile phone plans, car finance and credit cards – but the rules for how the default gets there in the first place are just not there,” Mr Doessel says.

    “In theory, you can be one or two days late in paying a commercial account and you can have your ability to obtain credit ruined. There is no right of redress, as there is no legislation governing notification requirements in the commercial credit sphere.”

    Mr Doessel says the Government has completely missed the mark on what small businesses need to thrive and survive.

    “Most don’t need restrictions on available credit, they just need the basic credit reporting rights that they deserve,” he says.

    /ENDS.

    Please contact:

    Graham Doessel – Director Ph: 3124 7133

    Lisa Brewster – Media Relations media@mycra.com.au

    Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog 246 Stafford Rd, STAFFORD Qld

    MyCRA Credit Repair is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files.

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    [i] http://www.smartcompany.com.au/politics/053547-government-sneaks-in-draft-legislation-to-regulate-small-businesses-access-to-credit.html?utm_source=SmartCompany&utm_campaign=82bc6a73e2-Friday_21_December_201221_12_2012&utm_medium=email

    Image: Ambro/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Aussies “On the Move” need clear strategy to tie up financial loose ends.

    Media Release

    Aussies “On the Move” need clear strategy to tie up financial loose ends.

    Australian residents are as mobile as ever, according to a recent Australian Bureau of Statistics report, but an advocate for accurate credit reporting warns every time Australians move, they run the risk of damaging their credit rating by not tying up loose ends on their accounts.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says it is vitally important that consumers have a strategy for making a clean break at each residence to maintain the integrity of their credit rating.

    “Time and again we have the situation where clients apply for a home loan and are refused because they have ‘surprise bad credit’, which when we track it back for them is due to the fallout of accounts sent to their previous address,” Mr Doessel explains.

    The recent ABS report ‘Still on the Move’ examines internal migration across Australia between 2006 and 2011 censuses. The report revealed that 41.7% of Australian residents had moved in the five years prior to the August 9 2011 Census night.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    Mr Doessel says the rate of Aussies on the move is reflected in the volume of moving-related credit issues, and these are not always the fault of the consumer.

    “For example, we had a client who needed their credit rating repaired because their Energy Provider could not work out that cancellation of their old account and installation at the new address meant that they had actually moved. Their final account was sent to their old address because they had not specifically provided a forwarding address,” he says.

    Mr Doessel provides 5 tips for keeping your credit rating in check when moving house:

    1. Let all your Creditors know you will be moving and give them a forwarding address.

    You are obliged to update your Creditors with your forwarding address when you move. When you make that call to your Credit Provider, be sure to make a note of the day, time and person you spoke to about the request.

    “Often we have people say they have told their telco or their energy company they are moving, and provided a forwarding address, but mail has still gone amiss and the client has ended up paying for it. If you have specific details of your call – the Creditor may be able to bring up the recording and verify your request,” Mr Doessel says.

    2. If ending an account with a Provider, request a final account.

    If you need to cancel your account, such as an Energy or home phone account when you move, make sure you request a final account for services. There may be incidental charges, or pay out fees as well as days accrued in the new bill period. Pay that notice as soon as possible.

    3. Don’t assume your account is finalised until you get it in writing.

    Once you have paid your final account, request a statement be sent in writing verifying the account is at an end. If you don’t receive that notice, chase it up.

    4. Cancel any direct debits.

    Places such as gyms and childcare centres operate payments via a separate direct debit company. If you have any direct debits set up, you should notify the company of the cancellation and of your forwarding address.

    Mr Doessel explains, “Don’t assume correspondence with your gym is enough to cancel that account. You will have signed a separate contract with the direct debit company, and you are just as obligated to them if you have missed payments, for whatever reason.”

    5. Redirect mail.

    Despite providing a forwarding address, and despite your attempts to finalise your accounts, there can be instances where a Credit Provider continues to send mail to your old address.

    “Creditors can and do make mistakes, and one common mistake is simple computer or human error with billing systems. To prevent their oversight from costing you your good name through bad credit, consider redirecting mail through Australia Post to your new address,” he says.

    Mr Doessel says Australians who have moved and have now been lumbered with surprise bad credit need not put up with it for 5 or even 7 years.

    “If your Creditor has an incorrect address for you and they have placed a default or Clear-out on your credit file then you should dispute your credit listing and insist your credit file reads accurately,” he says.

    /ENDS.

    Please contact:

    Graham Doessel – Ph 3124 7133

    Lisa Brewster – Media Relations media@mycra.com.au

    Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog 246 Stafford Rd, STAFFORD Qld

    MyCRA Credit Repair is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

     
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    [i] http://www.abs.gov.au/websitedbs/censushome.nsf/home/CO-68[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]