MyCRA Specialist Credit Repair Lawyers

Tag: Australian Bankers Association

  • Suffering financial hardship? Speak up early to protect your credit rating.

    Media Release

    temporary financial hardshipSuffering financial hardship? Speak up early to protect your credit rating.

    6 June 2013

    Temporary financial difficulty has in the past led to accounts in default and years of restrictions to mainstream credit – but a consumer advocate says by acting early and taking advantage of new financial hardship laws, a bump in the road doesn’t have to mean you can’t borrow again.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says for those people suffering temporary financial problems, there is now a large incentive to talk to your bank.

    “If you suddenly lose your job, fall ill, separate from your spouse or have a specific period of intense financial difficulty – you should know there are laws that may be able to help you through this difficult time. By putting your hand up early– before your accounts go into arrears – you could save your credit file,” Mr Doessel explains.

    This comes after the Australian Bankers’ Association (ABA) have this week embraced new financial hardship laws designed to protect consumers during times of temporary financial hardship, committing to a financial hardship package around consumer awarenesss.

    Steven Münchenberg, Chief Executive of the ABA, said in a statement to the media on Tuesday[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] : “Our research tells us that only one in four bank customers know that banks offer hardship assistance. We would like to change that.”

    “If customers find themselves in financial difficulty, they need to take some action because money troubles don’t usually go away on their own. Don’t ignore the problem and talk to your bank as early as you can. Customers can also call an independent financial counsellor or ask your bank for a referral to an independent financial counsellor.”

    Mr Doessel agrees consumers have largely not been aware. He says he has helped many clients in the past dispute credit listings issued during a time of financial hardship, but he hopes that due to the ABA and banks playing a more proactive role in education, this will no longer be as prevalent.

    “In the past consumers have not been offered hardship variations with their bank, or they have not been aware they have a right to request one and have been defaulted – this locks them out of mainstream credit for five years,” he says.

    “If consumers are largely aware of their rights – then then they will request a variation to their credit agreement early and can avoid the long term consequences for what is often a very temporary issue.”

    He says the earlier consumers act, the better off they will be.

    “If they are able to secure a hardship variation prior to their account going into arrears at all, they may also avoid having the new late payment history recorded against their name, which could impact credit worthiness,” he says.

    Consumers experiencing temporary financial hardship should contact their bank and ask to speak with the Financial Hardship Variation division

    “Using the specific words ‘financial hardship’ will help make it clear to the bank what you need. Ideally, act before you fall into arrears on your account – to save your credit file when you recover from this difficult time,” Mr Doessel says.

    /ENDS.

    Please contact:

    Graham Doessel CEO Ph 3124 7133

    Lisa Brewster Media Relations media@mycra.com.au

    Ph 07 3124 7133 www.mycra.com.auwww.mycra.com.au/blog

    MyCRA Credit Repair 246 Stafford Rd, STAFFORD Qld

    MyCRA is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files. CEO of MyCRA Graham Doessel is a frequent consumer spokesperson for credit reporting issues and is a founding member of the Credit Repair Industry Association of Australasia.

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  • Struggling to pay your mortgage or loan? Your bank says they want to help.

    financial hardshipIt may be a foreign concept to some people to turn to their bank when they are experiencing financial difficulty, but asking for help from your bank could be the most savvy thing you can do for your finances, and ultimately your credit file if you are in trouble. New financial hardship laws which came into effect in March 2013 have been embraced by banks, and the Australian Bankers’ Association (ABA) has today announced a package which is designed to help make the process clearer for consumers who are experiencing temporary financial difficulty. We look at the package in detail, what it means for your credit file and your ability to obtain credit when you recover financially.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    As a Cancer survivor, I know all too well what it’s like to be in a worrisome financial situation. When you have to take time out from your business or employment to recover your health, the bills can pile up. I remember trying to talk to my bank at the time about freezing my mortgage so I had one less worry. But that was a difficult thing to do – especially for someone whose small business used credit accounts. In my experience, my bank wasn’t eager to offer the hardship, and when they did, it was under terms too difficult for me to accept. So I borrowed my way out of trouble, and luckily – I recovered quickly and was able to get back on my feet again. But many people in the past have not been so lucky. They have run into real trouble, and banks may have been criticised for not being open with the existence of their hardship policies, or willing to vary credit terms unless the customer could jump through the right hoops to secure it.

    But with new legislation Consumer Credit Legislation Amendment (Enhancements) Bill 2012 being passed this year, there have come new rights for those in temporary financial trouble. Now the banks are taking a proactive stance on encouraging open communication and variations to the original credit contract of those consumers ‘doing it tough.’

    The ABA and banks in consultation with consumer and community groups have developed a package of initiatives that are proposing to promote good practice, clearer hardship processes and provide useful information to support their customers in dire financial circumstances.

    This is reportedly in response to concerns raised by stakeholders around a general lack of awareness about hardship assistance offered by banks.

    Steven Münchenberg, Chief Executive of the ABA, says research shows only one out of four bank customers know that banks offer hardship assistance.

    “If customers find themselves in financial difficulty, they need to take some action because money troubles don’t usually go away on their own. Don’t ignore the problem and talk to your bank as early as you can. Customers can also call an independent financial counsellor or ask your bank for a referral to an independent financial counsellor,” he said in a media statement.

    The ABA estimates that over 135,000 customers have been provided with hardship assistance by the main retail banks over the past year.

    Banks have reported that the number of customers who take advantage of financial hardship arrangements increases when economic conditions deteriorate. The key driver of hardship assistance is reduced income due to unemployment.

    Banks have also reported that customers have benefited from temporary assistance following a natural disaster. However, assistance during these times does not have a significant impact on the overall number of customers who are provided with hardship assistance.

    Mr Münchenberg also says illness, injury or a relationship breakdown can cause financial difficulties.

    The ABA’s consumer factsheet on hardship variations (pdf) explains what some of the hardship assistance options could be:

    Hardship arrangements cover the time between when your circumstances change and when you can start repaying your debts in full or varied as agreed.

    In most cases, people just need some temporary help to get them through the tough times and arrangements of between three and six months are generally suitable.

    The arrangements available will depend on your personal circumstances and financial situation. Somemeasures may include:

    • deferring or reducing loan repayments

    • restructuring and consolidating loans

    • altering loan repayments to interest-only

    • changing limits on lines of credit

    • waiving penalties for early withdrawal of a term deposit

    • freezing loans in exceptional circumstances, such as after an emergency event or natural disaster

    • providing a moratorium on collections action • providing alternative banking arrangements.

    When considering the type of assistance that might be appropriate, banks will assess the situation on a case-by-case basis and consider your specific circumstances, such as your overall financial position and whether assistance would genuinely be able to help you.

    Banks also have to factor in business considerations, such as whether providing the assistance is consistent with their internal policies, commercial costs and management practices.

    If your financial situation has permanently deteriorated and you can’t meet regular repayments over the long term even with your bank’s help, you might need to consider other options and make some difficult decisions.

    While people rarely have to face this situation, if it occurs you may have to sell your property, refinance your business or consider bankruptcy or insolvency arrangements.

    How will asking for a hardship variation impact my credit file?

    We see the emphasis on hardship variations as a positive change for consumers to be able to talk to their bank and actively get help to improve their circumstances. One of the main differences between asking for and obtaining an official variation in your credit obligations compared with simply not paying your bills is that you avoid the bank placing a default listing on your credit file (provided you meet the new obligations that is). There is a big incentive to come to try to come to an arrangement with your bank prior to being in default (60 days in arrears) – as any arrangements made after that time will be recorded on your credit file as well as your default.

    Secondly, there is also an incentive to put your hand up and ask for help in the early days – prior to being even one payment cycle behind in your repayments. Any time you fail to make a repayment with your bank on time, the late payment will be recorded on your credit file – so for example if you are unable to make this month’s mortgage repayment by the due date, that will be recorded on your credit file, along with the date you made the payment. Although lenders won’t see this data until March 2014, it is being recorded now.

    Any person who makes an official hardship variation which is accepted by their bank will be spared from being recorded as in default, but may not be spared from the late payment notations which are incurred prior to the acceptance of the hardship variation. So the incentive really is there to get in as early as possible if you are experiencing temporary financial difficulty and speak with your bank to make new arrangements to suit you.

    Where do I go from here?

    You can get assistance through the ABA’s Doing It Tough website, or you can contact your bank or building society directly and ask to speak with the Financial Hardship Variation Team. Using the words ‘financial hardship’ will help make it clear to the people you speak with at the bank about what it is you need. Ideally, act before you fall into arrears on your account – to save your credit file when you recover from this difficult time.

    For additional advice, visit ASIC’s Money Smart Website Trouble with Debts.

    To check what is being seen by lenders about you, it is a good idea to get a copy of your credit file. This is free once every 12 months from Australia’s credit reporting agencies, and will be sent within 10 working days. If there is anything on your credit report which you are unsure about, or which seems inaccurate or inconsistent, you do have the right to have the information rectified. Contact MyCRA Credit Rating Repair for more information on disputing a credit listing or to obtain a free copy of your credit report 1300 667 218.

    Image: imagerymajestic/ www.FreeDigitalPhotos.net

  • Flood affected? Ask for help early to protect your credit rating

    flood victimsAs flood and cyclone victims across Queensland and New South Wales start to take stock of their homes and businesses, they may not know that their obligations to lenders still apply unless they take some necessary steps NOW to prevent being defaulted. We look at what flood victims should do to get back on their feet again and in the process, hopefully save their credit file.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

    Today the Credit Ombudsman COSL has urged lenders to show compassion to flood victims when considering cases of financial hardship.

    Ombudsman Raj Venga says lenders and mortgage managers have previously responded sympathetically to borrowers who have experienced financial stress as a result of natural disasters and hopes they will continue to do so.

    “We expect they will again show the same compassion to affected borrowers in Queensland and northern New South Wales, and take into account COSL’s Position Statement on financial hardship.  We also urge borrowers who may be experiencing financial difficulties as a result of the flooding to contact their lenders or mortgage managers as soon as possible to discuss payment variation options available to them,” he said in Australian Broker today.

    How could I be affected by defaulting on my loan?

    Obviously, if you default on your loan for a certain period of time, you risk the bank taking the home. But even if you default once, but then begin to make up the repayments you are still putting your future at risk.

    If you fail to make repayments on our loan past one payment cycle, you will probably end up with a late payment notation on your credit file. If that extends out to more than 60 days, the bank will list a default on your credit file. Once you have a default against your name – it will stay there for 5 years. The intention of adding default credit listings to credit history is to warn future credit providers you would potentially have trouble keeping up with repayments. Likewise, as part of ‘responsible lending’ it would mean the credit provider would be acting irresponsibly to lend you money – so most don’t.

    A default on your credit file means you have very little access to mainstream credit for the five year term.

    What can I do if I am experiencing mortgage stress due to the storms and or floods?

    Ask for help early!

    The Australian Bankers’ Association (ABA) told Australian Broker banks are already offering a range of emergency relief packages to assist people affected by the severe weather in Queensland and New South Wales.

    Steven Münchenberg, chief executive of the ABA, says:

     “If someone’s home, income or business has been affected by the floods or storms, they should contact their bank as soon as they are able to. Banks are providing support to help their customers get back on their feet.”

    Banks offer a range of support options and the assistance provided will depend on their individual circumstances and needs, but may include:

    ■ deferring home loan repayments;

    ■ restructuring business loans without incurring fees;

    ■ giving credit card holders an emergency credit limit increase;

    ■ providing payment holidays on personal loans or credit cards;

    ■ refinancing loans at a discounted fixed rate;

    ■ waiving interest rate penalties if term deposits are drawn early; and

    ■ deferring repayments on equipment finance facilities.

     “If you are worried about the financial effect of the flooding and storms, talk to your bank about the support that is available. It is often not well understood that banks do offer their customers assistance during these difficult times and go beyond what might be legally required to offer immediate financial relief and support to affected customers and their communities. If you know someone affected, let them know that banks are offering emergency packages,” Mr Münchenberg says.

    “The best way to contact your bank is to speak to your relationship manager or call the bank’s dedicated emergency relief or financial hardship support number. These numbers can be found on the ABA website www.bankers.asn.au or at www.doingittough.info along with additional information to assist people that might be experiencing financial difficulty. You can also speak to a free, independent financial counsellor by calling 1800 007 007.”

    Tips for Applying for financial hardship

    – Work out what you can afford to pay prior to requesting a hardship variation. This would involve taking the bull by the horns and doing up a serious budget on what’s coming in and what your repayments are on all of your credit accounts. The best place to start looking for some help would be ASIC’s MoneySmart Website. If you feel like you’ll struggle across a number of credit areas in the short term – consider requesting a reduced payment for other credit accounts as well.

    – Put your request in writing and keep a copy as a record.

    – You may need to use the actual words “hardship variation” for your lender to officially recognise the request, and to avoid confusion as to what you’re asking for.

    – Check your loan agreement as to the terms you entered into around financial hardship. Those agreements post-1 July 2010 have a clause which requires the lender to respond to you within 21 days.

    – Creditors are legally required to consider a person’s request for variation on payment arrangements, but are not obliged to agree to any hardship variation proposal put forward. If a lender either refuses or fails to respond to your hardship request, you can lodge a complaint with their independent dispute resolution scheme, such as the Ombudsman they are a member of.

    – Research how to apply for financial hardship. You can do this through ASIC’s MoneySmart Website, or through sites like Money Help, a website run by the Victorian State Government.

    Image: khuruzero/ www.FreeDigitalPhotos.net

     

  • Stay safe this Christmas: Scam victims should be worried about 5 year blacklisting on their credit rating

    Media Release

    Stay safe this Christmas: Scam victims should be worried about 5 year blacklisting on their credit rating

    As more Christmas scams come to the fore, a consumer advocate for accurate credit reporting is warning consumers that scammers are not just after the money in their bank accounts, but are after much more – their financial identity.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says consumers need to be wary of the opportunities fraudsters may take to misuse their personal information.

    “Scams and other fraud attempts are becoming much more sophisticated as profits get more lucrative. Many fraudsters are into building a profile of their victim – extracting layers of information which allows them to access credit in the victim’s name – including loans and even properties.”

    “The difficulty for recovery when someone has tapped in to your credit rating is that generally you have unpaid debts in your name, which are placed in default – which basically means for 5 years your own ability to obtain credit is ruined,” Mr Doessel says.

    This warning comes as the Australian Banker’s Association (ABA) last week announced reports of a telephone scam where fraudsters were impersonating them and offering instructions on how to obtain a ‘refund’ for overcharged bank fees.[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 ABA said criminals asked customers to proceed to a post office to receive the so-called ‘refund’ – ranging from $5 000 – $7 000.

    Victims are then asked to wire money via Western Union for costs associated with the ‘refund’.

    But in addition, scammers also tacked on a request for personal details, which signifies an attempt to misuse those details in the future, possibly for identity theft purposes.

    Fraudsters asked these questions:

    – With whom do you bank?
    – For how long?
    – What is your credit card number?
    – What is your driver’s licence number?

    Mr Doessel says fraudsters are attempting to gather extra information from their victims over and above what they might already have in front of them.

    “If they have your full name plus who you bank with, and your driver’s licence number – they have the basic building blocks for an identity theft attempt. They can call the bank and have some kind of identity information on which to proceed with accessing bank accounts AND accessing further credit in your name,” he says.

    The bank refund phone scam has been added to a long list of scam attempts running over the past few months, and many more could emerge as Christmas approaches.

    Mr Doessel says sometimes people don’t know they have been a victim until after they apply for credit and are refused.

    “By that time, it is such a struggle to recover your good name. For an identity theft victim to have a chance at removing bad credit history, you must prove you didn’t initiate the credit in the first place. This can be difficult if the scam happened months or years before,” he says.

    What to do if you suspect you have fallen for a scam

    1. Contact the Police immediately. Don’t be embarrassed or dismiss it because you don’t think the amount was significant enough. It is only through identity theft being reported that data gets collected and appropriate preventative measures eventually get put in place.

    2. Contact your Bank. They should be able to flag your accounts so that no credit can be obtained in your name.

    3. Contact the credit reporting agencies that hold your credit file. In Australia, this is Veda Advantage, Dun and Bradstreet and TASCOL (if in Tasmania). You should inform them that you may be at risk of identity theft and they may have a plan of action for protecting your credit file.

    4. At this time, you should also order a copy of your credit report. If there are any inconsistencies on your credit report – change of address, strange credit enquiries and instances of credit you don’t believe you’ve access, then you may already be a victim – and should do all that’s possible to follow up on each account so as not to accrue defaults on your credit file that should not be there.

    5. If you find you have defaults that shouldn’t be there, take steps to remove them. Although it seemed so easy for the fraudster to use your good name in the first place, you are now faced with proving the case of identity theft with copious amounts of documentary evidence in order to get the credit listings removed from your credit file.

    If you have neither the time nor the knowledge of Australia’s credit reporting system and credit legislation that you may need to fight your case yourself, you can seek the help of a professional credit repairer.

    Visit www.mycra.com.au for more information on identity theft and bad credit or call MyCRA on 1300 667 218.

    /ENDS.

    Please contact:

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

    Graham Doessel – CEO Ph 3124 7133

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

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

     

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  • Beware identity theft with latest bank ‘refund’ phone scam

    Identity Theft Warning: Banking phone scammers currently on the prowl in Australia are attempting to not only pilfer easy profits from unsuspecting victims via wire transfer, but it looks like they’re also after crucial identity information which could lead to identity fraud. We look at this scam, and what you should do if you think you’re a victim.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au Visit our Facebook page https://www.facebook.com/#!/FixMyBadCredit.com.au

    Last week Australian Broker online reported on this alarming banking scam ‘Banker phone scam bamboozles customers’ which involves the Australian Bankers Association (ABA). The report says twenty five people had contacted the ABA in the three days prior to report a telephone scam – and at least two had fallen victim to the scam which involved fraudsters calling customers supposedly on behalf of the organisation offering instructions on how to obtain a ‘refund’ for overcharged fees.

    “They then ask the customer to go to a post office to receive a so-called ‘refund’ – ranging from $5 000 – $7 000. Instructions are given to call the criminals on arrival at a post office, where they try to talk the customer into sending money, via the post or Western Union, claiming it’s a fee for the so-called ‘refund service’.”

    And alarmingly:

    “In several cases, customers have been asked to reveal additional information, including whom they bank with, how long they have been a customer of said bank, what their credit card number is and what their driver’s licence number is,” The Australian Broker report says.

    Steven Münchenberg, ABA chief executive, said in a release to the media, that most customers contacting ABA after receiving the phone calls have been suspicious and have not provided any money or information to the con artists.

    “However, members of my staff did speak to two customers who had sent [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”][money] to the criminals – around $300 via Western Union. Unfortunately, there is no hope of retrieving that money and it is lost to fraud,” he says.

    “These criminals are preying on people and we are urging anyone who receives a call with a promise of easy money to hang up.”

    What could fraudsters do with the additional information they are asking for?

    What fraudsters are doing, is attempting to gather extra information from their victim over and above what they might already have in front of them.

    If they have a person’s full name plus who they bank with, and what their driver’s licence number is they have the basic building blocks for an identity theft attempt. They can call the bank and have some kind of identity information on which to proceed with accessing bank accounts AND accessing further credit in the victim’s name.

    What should you do if you suspect too late you’ve fallen for a scam?

    If you have just found out you are a victim, we recommend you contact the Police – as well as your bank – especially if you have given over personal information to fraudsters. Don’t be embarrassed – it is only through identity theft being reported that data gets collected and appropriate preventative measures eventually get put in place.

    Telling your bank also means they can flag your accounts and upgrade security on your account/s.

    You should also contact the credit reporting agencies that hold your credit file and inform them that you may be at risk of identity theft.

    At this time, you should also order a copy of your credit report. If there are any inconsistencies on your credit report – change of address, strange credit enquiries and instances of credit you don’t believe you’ve accessed yourself, then you may already be a victim – and should do all that’s possible to follow up on each account so as not to accrue defaults on your credit file that should not be there.

    Credit file defaults are difficult for the individual to remove and generally people are told by creditors they remain on our file for 5 years, regardless of how they got there. Any negative listing will prevent you from obtaining credit, so it is vitally important that your credit file is clear.

    Although it seemed so easy for the fraudster to use your good name in the first place, you are now faced with proving the case of identity theft with copious amounts of documentary evidence.

    If you have neither the time nor the knowledge of our credit reporting system that you may need to fight your case yourself, you can seek the help of a credit repairer. A credit repairer can help you to clear your credit file and restore the financial freedom you rightly deserve.

    The reason a credit repairer is usually so successful in removing your credit file defaults, is their relationships with creditors, and their knowledge of current legislation.

    Visit www.mycra.com.au for more information on identity theft or how to repair bad credit.

    Image: imagerymajestic/ www.FreeDigitalPhotos.net

    Image 2: nuttakit/ www.FreeDigitalPhotos.net

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