MyCRA Specialist Credit Repair Lawyers

Tag: bad credit clients

  • Harvest Your Future Business…In The Busy Times

    harvest future businessAre you writing a lot more business than you used to? You’re not alone. Being flat out has its obvious advantages – number one being you don’t have to worry about where your next deal’s coming from. But while business is good, it’s easy to forget that times have recently been tough.
     
    There are some important habits you can form now while business is flowing well, that will separate you from the pack, and ensure that you always reap the rewards -whatever the market conditions are.
     
    By Graham Doessel, Non-Legal Director MyCRA Lawyers.
    In Australian Broker yesterday, it was reported that brokers are seeing a big boost in their market share – up to on average 46% of all home loans in the three months to the end of September.This compares to about 40 per cent 18 months ago and a low of 38 per cent during the global financial crisis.
     
    Great news – but brokers can do some really important things to make sure this trend is not temporary.While you have more clients on your books, build a plan to keep in touch with them NOW – yes, now, during the busy times. You might as well start when you have plenty of clients.
     
    But let’s talk about content. What do we keep in touch about? 
     
    In my experience as a broker, I found there are four main areas of interest to your clients:
     
    1. Themselves. 
     
    How much do you know about your client? Keep in touch on their birthday; when their house anniversary comes around; when you have a new product or service which might interest them; or any old time you’re thinking of them. Personal correspondence is always endearing.
     
    2. Their footprint in the market. 
     
    Most clients would be interested in what the housing market is doing in their area, and how they are faring in comparison to others in their area. Likewise, information on their business and investment markets will also be well received.
     
    3. Opportunities they can take to be better. 
     
    New products or services which will enhance your client’s lives, or cut the length of their mortgage down would always be of interest. Whilst understandably many brokers can’t give financial advice to their clients, they can give the benefit of their experience and their knowledge to tell their clients something they didn’t know.
     
    Do you forsee interest rates as having a major positive impact on most of your existing clients? Should your bad credit clients look at getting into the market sooner rather than later? Is there someone you can put your clients in touch with who can enhance their lives?
     
    4. How you’ve helped them. 
     
    When your client has saved thousands because you have helped them find a professional to repair their credit rating before you’ve fitted them into a loan, tell them. When you helped them find a loan that was right for them that ended up being the best long-term choice, tell them. If they’ve saved thousands over the years because you found them a more competitive interest rate, tell them.
     
    Actually pointing out what you are doing or what you’ve done may seem obvious, but it may not be so for many of your clients. Showing them where they are saving money, where they could go wrong, and how your extra effort and experience is going to benefit them will mean they feel confident about the decisions they’ve made, and more willing to make another one under your guidance next time.
     
    So keep in touch now, and create those habits that will weather any storm.
     
     
    We would like to extend our thanks to the many brokers who have allowed us to help them create business in their future, by looking after their clientele with credit rating issues and inconsistencies. We are so happy to hear many have gone back to their brokers to be fitted into a better product, and saved thousands. The loyalty amongst your clients is unmistakable – and that’s reaping real rewards.
     
    Call MyCRA Lawyers today on 1300 667 218 and find out how credit repair will work for your clients. Also ask about our generous broker referral system.
    Image: zirconicusso/www.FreeDigitalPhotos.net

  • Brokers and clients disadvantaged by clients navigating the ‘minefield’ of credit reporting

    Media Release

    Brokers and clients disadvantaged by clients navigating the ‘minefield’ of credit reporting alone

    Brokers who don’t have contact with a reputable credit rating repairer to refer bad credit clients to, may be missing out on valuable commission through lost deals, and in some cases may also be doing their clients a disservice, says a leading credit rating repairer and advocate for credit reporting accuracy.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says whilst many people whose credit history shows up with defaults have obtained that default justly, there are also many whose credit file contains errors and omissions and he says those people should be given the chance to clear their name.

    “I would like to say it is as easy as calling the Creditor to sort out the mix-up, but in reality clearing bad credit is a minefield, and a credit rating repairer can be invaluable,” Mr Doessel says.

    Generally when a client presents to a broker with bad credit they have two options:

    (1) Send them packing to resolve the mix-up or to wait until the credit listing “falls off” their credit file in 5 or 7 years before they apply again.

    (2) Organise a non-conforming loan at a higher interest rate to absorb the risk associated with lending to those with bad credit.

    When faced with a credit rating error, Mr Doessel says the clients who are sent away may not always be able to resolve their credit reporting dispute themselves.

    “Credit reporting is governed by mountains of legislation across different industries, so it is not always about right or wrong, but how the letter of the law applies in each case. We have seen many clients who are defaulted despite doing the right thing and despite working actively to try and resolve the situation themselves,” he says.

    He says many brokers put credit repair in the “too hard” basket and prefer to steer their clients to the non-conforming market – at least for the first few years of the loan when they can then refinance.

    “There are a couple of reasons why a non-conforming loan will not always be the best choice for the client. Firstly, they can lose thousands on interest even over the first three years, and secondly with the market the way it’s been more home owners are stuck, finding they can’t refinance due to lack of equity in the home,” he explains.

    Mr Doessel wants to help educate brokers and consumers alike on some of the myths surrounding credit files:

    1. Consumers always know they have bad credit before they apply for a loan.
    There can be many reasons for people not to know they have bad credit until they apply for a loan. They may have moved, been hospitalised, been an identity theft victim or even been a victim of error with their creditor. If the client was not notified prior to the default, in many instances the listing has been placed on the credit file unlawfully, and should be disputed.

    2. Credit file listings are always correctly placed on credit files.
    Credit reporting mistakes can and do happen –but most consumers are unable to recognise credit file errors. Some estimates point to as many as 34% of credit files containing errors or omissions. [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]

    Credit reporting agency Veda Advantage recently admitted about 1% of material errors detected by their system alone.[ii] But many more may go undetected by credit reporting agencies, creditors and consumers until it’s too late and the consumer is refused a home loan.

    3. Credit file complaints are easily disputed.
    Some brokers assume if the listing is there – the client must be deserving of it. But in reality, once a listing has been placed on a credit file, it is very difficult for individuals to have removed. So even if the listing shouldn’t be there, most often people are forced to put up with it. Often they are told the listing can be marked as paid, but will not be removed from the credit file.

    4. If a Default or Clear-out is on the credit file it can never be removed prior to the end date.
    Some brokers assume credit repair must be a ‘con’, as in their experience listings are never removed. In truth, unless the client can show why the listing was placed unlawfully on the credit file it will not be removed. It is up to the client (or the credit repairer acting on their behalf) to show reason as to why the listing was placed unlawfully, and negotiate its removal.

    The process of credit repair involves an audit-like investigation of the entire case to determine, based on legislation whether the credit listing was placed unlawfully on the credit file. If this is determined, the credit repairer will formally negotiate the removal of the listing from the credit file on the client’s behalf.

    5. A bad credit client should be steered to the non-conforming market.
    If a broker considers duty of care to their client, and they believe the client should be able to obtain mainstream credit, except for bad credit history – then another step must be inserted in the process – deciding on the possible validity of the bad credit before providing non-conforming finance options to them.

    “As a successful broker in the non-conforming market for many years, with many cases I was left scratching my head as to why these perfectly suitable clients who had nothing wrong bar their credit rating errors did not have other options than to enter a loan at sky-high interest rates just to break in to the property market. That is precisely why I founded a credit repair business in the first place,” Mr Doessel says.

    6. Credit repair is a waste of money.
    If a potential borrower is able to have their unfair credit listing removed, they can reduce their interest charges by thousands just by entering a loan with a mainstream lender.

    On a loan amount of $350,000, a borrower would pay $487.62 more in interest each month over the first three years in a non-conforming loan at 9% interest vs the standard variable rate of say 7%.

    When we look at that in total, the borrower would be up for a staggering $17,554.34 more just in interest alone over those first three years.

    7. All credit repairers are the same
    Consumers do need to be aware there are some agencies out there who are happy to take money, but don’t add enough benefit to be of value over what an individual could do themselves. People looking for a reputable credit repairer should ask plenty of questions, do their homework on the company, and request some testimonials from past clients before they commit.

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO MyCRA PH 3124 7133

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

    http://www.mycra.com.au/ www.mycra.com.au.blog

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

    ——————————————————————————–

    [i] http://www.smh.com.au/articles/2004/02/09/1076175103983.html

    (2) http://au.news.yahoo.com/today-tonight/latest/article/-/10670080/credit-ratings-check/

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