MyCRA Specialist Credit Repair Lawyers

Tag: bad credit rating

  • The risks you’re taking with credit this Christmas that could see you left without a home

    Media Release

    The risks you’re taking with credit this Christmas that could see you left without a home

    A consumer advocate for accurate credit reporting warns Australians who use credit over the Christmas period they should be cautious about the ways their credit rating can be put at risk, which could see them refused finance in the New Year.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says after the highs of Christmas, the New Year can see people weighed down by credit stress, and the reason is not always due to overspending.

    “Many people throw things on credit at Christmas and think nothing of it, but we should be on guard for the ways this can potentially lead to credit stress and bad credit history in the following months.”

    “If you’re lumbered with a bad credit rating, you’re generally locked out of mainstream credit for a significant time – between 5 and 7 years. You can be refused a home loan, and most other credit for that matter – even mobile phone plans.” Mr Doessel says.

    He says people have an increased risk of damaging their credit rating during Christmas and covers 5 major ways this can occur:

    1. Identity theft.

    Identity theft and fraud has grown in severity and volume to now be the fastest growing crime in Australia.[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]

    Scammers are out in full force at Christmas, people can be lax with their personal information and credit cards are used more frequently and at a variety of locations.

    Security company, McAfee’s recently released their warning ’12 scams of Christmas’ hoping to warn consumers about where cybercriminals may be looking to take advantage of consumers over the festive months. Scams warnings are given for fake vacations, fake gifts and e-cards, malicious mobile apps and a multitude of online dangers including bogus websites and phishing scams.[ii]

    “If fraudsters are able to get hold of your personal details they have the key to your good credit rating. They can run up credit all over town in your name. Often it’s not until you apply for credit in your own right and are refused that you realise your credit file has been misused – but by then it’s too late. Your life is basically set to be turned upside down,” Mr Doessel says.

    2. Overlooking bill payments.

    With the busy lead up to Christmas, some people can find they overlook repayment of basic accounts. Then if they go on vacation, it can easily escalate the overdue account into default status.

    “Overdue bills for as little as $100 can be just as damaging to your credit file as missing a mortgage repayment. Any credit account which is more than 60 days overdue can be listed by the Creditor and will show on your credit rating. Basically any negative listing will hinder your chances of getting credit in the future,” Mr Doessel says.

    3. Moving and transfers.

    “A change of address is a very common reason bills and warning notices go unnoticed and unpaid – and you can have a bad credit rating attached to you that you have no idea about until you apply for a home loan,” he says.

    As Christmas and New Year is a very common time for transfers and other work changes to occur that could see people moving interstate, people should tie up all loose ends at their current address, ensuring all changes of address and accounts are settled and confirmed in writing to avoid being blacklisted for credit.

    4. Over committing and spiralling into debt.

    Some people feel the pressure to give so much they do so at the expense of their own budget and ultimately end up with a debt they cannot pay back.

    The consequence of this can be getting into more debt to pay the original debt. People then end up with loan commitments they can’t meet or other bills get neglected because they just can’t afford to pay it all. Creditors start to close in and their credit file is damaged.

    5. Overlooking errors and omissions from Creditors.

    Creditors may also be affected by Christmas. The volume of transactions may increase while staff decrease, putting pressure on some Creditors’ systems.

    For this reason it is crucial for people to keep watch on their own finances.

    “Despite being a busy period for all families, it is important to check your bank statements and bills at this time. Creditors can and do make mistakes with billing. Also keep abreast of which bills are due and when. If you notice you haven’t received a bill and you believe it’s due, you should chase it up. No news is in this case not good news, and could mean you have an overdue account noted on your file,” he says.

    Christmas is also a good time for people to check their credit file. They can request a free copy of their credit file from one or more of the credit reporting agencies and a credit report will be sent within 10 working days.

    “If there are errors on your credit report, or it contains negative listings – defaults, writs or Judgments which are unfair or shouldn’t be there, then it is important to know you have the right to have them rectified or removed,” Mr Doessel says.

    Contact MyCRA Credit Rating Repairs for more information on credit rating repair on 1300 667 218.

    /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 Repairs is Australia’s leading credit rating repairer. We permanently remove defaults from credit files.

    Image: sixninepixels/ www.FreeDigitalPhotos.net

     

     

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    [i] http://www.crimecommission.gov.au/publications/crime-profile-series-fact-sheet/identity-crime

    (2) https://blogs.mcafee.com/consumer/12-scams-of-christmas-2012[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • More buyers apply for home loans, but dreams could be shattered by credit rating blunders.

    Media Release

    More buyers apply for home loans, but dreams could be shattered by credit rating blunders.

    A consumer advocate for accuracy in credit reporting says the finance sector should focus on educating prospective home buyers about their credit file in the wake of signs more Australians are capitalising on interest rate cuts and applying for home loans.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel, says many buyers will be caught out with a bad credit rating at the time of finance application, because they simply don’t know the importance of checking their credit file for inconsistencies beforehand.

    “We find many people do not know what a credit file is – many more don’t know the process for being listed with bad credit, and more again assume that if there was something amiss with their credit file, that they would somehow be informed.”

    ”They don’t realise that the onus is on them to check their credit history on a regular basis – at least once per year – just to make sure that errors have not been made on the credit file,” Mr Doessel says.

    The warning comes as new housing figures from the Australian Bureau of Statistics released on Monday point to a continued rise in the number of home loans.

    September’s key figures reveal owner occupied housing commitments rose 0.9% to 46,395, up from an upwardly revised 45,983 in August.[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]

    With a possible new influx of buyers to the finance market, Mr Doessel says it is vital that people know about credit reporting and how it can impact their ability to get a home loan.

    He says many people may believe their credit history is clean, but creditors can and do make mistakes with credit reports, and often it is not until people apply for finance and are refused, that they find out they have bad credit.

    “This surprise bad credit is happening to many people, from all walks of life – businessmen, families – we have even had a millionaire require our services to remove an error on his credit file so he could purchase a home for his wife,” he says.

    Bad credit is shown on the credit file for between 5 and 7 years, and most often impacts the credit file holder’s ability to get mainstream credit.

    “Most are forced into three scenarios – 1) ride out the 5 or so years until the listing falls off their credit rating; 2) get a home loan at a much higher interest rate with a non-conforming lender; or 3) dispute the credit listing which they believe shouldn’t be there,” Mr Doessel says.

    But he says at the time of finance application the process of investigation and complaint can be stressful and can sometimes mean the prospective borrower misses out on the home loan while the credit rating discrepancy is addressed.

    “Disputing and removing an unfair credit listing can be a difficult and time consuming process, made more stressful if the credit file holder has pressures from finance deadlines,” he says.

    People can check their credit file has the “all clear” before they apply for finance, by contacting Australia’s credit reporting agencies Veda Advantage, Dun and Bradstreet and TASCOL (if in Tasmania) and requesting a copy of their credit report – which is free once a year. This report is mailed within 10 working days, or for a fee to the credit reporting agency, it can be sent urgently.

    “If there are any inconsistencies or out and out errors on the credit file, generally thousands and thousands of dollars in interest is saved by having them removed, as the credit file holder can then take advantage of those interest rate cuts by applying for a home loan with a mainstream lender at competitive rates,” Mr Doessel says.

    For more information on removing or disputing credit rating errors, contact MyCRA Credit Rating Repairs on 1300 667 218.

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO Ph 3124 7133

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

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

    246 Stafford Rd, STAFFORD Qld

    MyCRA Credit Rating Repairs is Australia’s front-runner in credit rating repairs. We permanently remove defaults from credit files.

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    [i] http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5609.0Main%20Features1Sep%202012?opendocument&tabname=Summary&prodno=5609.0&issue=Sep%202012&num=&view=

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

  • Bill Shock: telco bills ruining credit ratings

    Botched phone plans and lack of data usage monitoring is leaving many Australians shell shocked over their mobile bills, with bills so large many can’t pay up or refuse to pay up, leading to an increased rate of defaults. We look at what is happening with Telco consumers, the new laws that have come in to combat bill shock, and some practical things that you can do to prevent it happening to you, and threatening your good credit rating.

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

    A large number of current credit listing complaints we receive from telco consumers relate to data usage on mobile phones. Consumers are confused when it comes to data allowance on their smartphones, and the providers up till now, have not been helping.

    Often clients claim they have gone over their allowance really quickly, or the plan they were put on was not appropriate for what they intended to use their mobile internet for. Often they can have great difficulty in cancelling the accounts or coming to a resolution with telcos over these billing issues.

    Our current statistics show almost 26% of our credit repair clientele in the 12 months to July were telco customers.

    Consumers have either reluctantly paid the bill, thought the matter was settled, only to find they were defaulted anyway, or they have just refused to pay the bill until they got some resolution – but have copped a bad credit rating through the account being more than 60 days in arrears.

    Either way, they were dished out at least 5 years of bad credit from the episode unless they have been able to make a successful complaint.

    Complaints numbers

    Recently the Telecommunications Industry Ombudsman (TIO) surveyed its services. It counted 52,231 new complaints about telcos received between January and March 2012. Almost two-thirds were about mobile phone services.

    The TIO reports new complaints about over-commitment caused by inadequate spend controls have over doubled in 12 months (4,282 in the January-March 2012 quarter, compared to 2,181 in the same quarter in 2011). In the same periods, new complaints about disputed internet charges increased 180 per cent (From 981 to 2,823).

    “It is well known that more internet browsing and downloads are now done on mobile phones and other mobile devices. With this change in consumer behaviour, we have seen complaints about excess data charges almost treble over the last year,” Ombudsman Simon Cohen said.  “The incidence of these complaints will reduce if consumers are only contracted for services they can afford, and where spend management tools such as notifications and usage meters are accurate and reliable”.

    The powers that be have heard the many complaints. Some changes have been swiftly made to improve transparency and service for telco customers. A revised Telecommunications Consumer Protection Code has been made in conjunction with the Australian Communications and Media Authority (ACMA) which will amongst other things require telcos to provide their customers with notifications when they have used 80% and 100% of their data usage in the plan.

    These changes come after pressure from ACMA for Telcos to offer better protection for consumers, or face external regulation.

    For more information on the TCP Code, see our September post ‘Telco bill shock should in theory now be a thing of the past.’

    In the meantime, many consumers are still facing bill shock. We look at what you can do to prevent it.

    Preventing Bill Shock

    Savingguide.com.au published a great article late last week detailing some practical things that you can do to avoid bill shock. Here is an excerpt from ‘How to Avoid Bill Shock’:

    Read Your Contract

    I’ve said it before and somehow I feel I shall say it again: read the contract. From start to end. Before signing up to anything. Now, let’s just say you have already signed up and you didn’t read it before, you are not off the hook. Read it now. I’m serious, go do it… like, right now!

    Now that you’ve read your contract, you’ll know exactly how much data you get for your regular fee and how much you’re going to pay if you exceed that limit. Without this knowledge, you’re really just playing a guessing game and you’re probably going to lose.

    Don’t be Silly

    Seems obvious, doesn’t it? Yet here we are. If you are on a limited data allowance, don’t fritter it away on silly things! When I first got my smart phone I was so enamoured by the fact that I could get the internet on my handset that I would lie in bed, checking the week ahead’s weather on my mobile rather than simple make the walk to the study and use my PC, on which the internet is virtually limitless! Fortunately, I did not have to learn the hard way but many people will. Don’t be one of them.

    Start Downloading

    I know, I know, I just told you not to download stuff but this is the exception. Downloading the right apps is going to make all the difference, in fact these two apps are the best way to keep your data use under control.

    Data Usage Monitor

    A data usage monitor like 3G Watchdog (Android) is a brilliant addition to your phone. Simply enter the date your billing cycle commences and your data allowance, and a little symbol appears on your phone’s desktop, changing colour to warn you when you’re reaching your limit.

    Programme Closing

    A programme-closing app is your next best friend. Apps like Advanced Task Killer enable you to close any programmes that might be running without your knowledge with the push of a button. And without programmes secretly running, chewing into your data allowance, you’re much less likely to suffer that dreaded disease, bill shock.

    This is great advice. But what about if you already have a phone bill that has left your head spinning?

    How to Dispute That Shocking Mobile Bill

    1. Attempt to resolve the dispute with the Telco first. If a bill has just popped up you don’t agree with, let your Provider know, and DOCUMENT ALL CORRESPONDENCE WITH THEM (and document who you speak with if you are calling).

    2. You may need to make a formal complaint in writing. If there is no resolution over the telephone, set out what specific resolution you require, and all the details of your complaint. The telco has 30 days to answer any written complaint you make.

    2. Get all responses in writing. The matter may seem at an end, but sometimes people believe they have sorted it out only to find out later they have been defaulted anyway. If you have come to a resolution with the telco verbally, get it in writing and make sure it clearly states what will happen from here.

    3. If the matter can’t be resolved to your satisfaction internally, take your case to the Telecommunications Industry Ombudsman. The TIO will make a decision on the matter, and their decision will be final. Make sure you provide as much evidence as you can for the Ombudsman to make an informed decision – you may only get one shot at it.

    4. If at any stage you have a credit file listing from a Telco which you believe shouldn’t be there, you can undertake professional credit repair services. The credit repairer works on the consumer’s behalf to remove credit file listings which contain errors or inconsistencies or just out and out shouldn’t be there. It gives the consumer the best chance of presenting the best case for removal of a disputed listing, and actually having an unfair listing removed completely off your credit file. The credit repairer can also escalate the matter to the TIO on the client’s behalf if necessary.

    If you would like help disputing your telco default or other credit listing, contact a Credit Repair Advisor on 1300 667 218 or visit our main website for more information MyCRA Credit Rating Repairs www.mycra.com.au.

    Image: Ambro/ www.FreeDigitalPhotos.net

     

  • Are you spending more than you earn? You’re not alone….

    It was reported yesterday that one in seven households in Australia is on ‘struggle street’ – spending more than it earns. It seems many Australians are living on credit, including some of our richest. We look at the concept of living on credit, and how existing this way can not only put pressure on the household, but when it all catches up and you are lumbered with bad credit history – threaten the family’s ability to get the best credit at the best rates for years to come. We look at how you get there, why you want to avoid it, and what to do about it.

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

    News.com.au featured some interesting statistics put out by the ABS yesterday in its article ‘Aussie strugglers living beyond means’:

    “One in seven Australian households is spending more than it earns, as the working poor struggle with monster mortgages and surging power bills.

    Nearly 8 per cent of the nation’s richest households were living on credit, the Australian Bureau of Statistics reported yesterday.

    Of the top 20 per cent of households earning the most money, 3 per cent could not afford to pay a gas, electricity or phone bill on time during 2009-10.

    Of the poorest 20 per cent of households, one in five could not pay their bills on time and one in four spent more than they earned.”

    Living this way is living dangerously. Often you are said to be robbing Peter to pay Paul. But if something goes wrong, you can run a real risk of getting into arrears. If your accounts fall 60 days behind, then your Creditor will place a default on your credit file – and this will impact you and your family for years and years to come. You will be banned from mainstream credit. The credit you do buy after that will be at a pretty high price. You may not even be able to get a mobile phone on a plan.

    How did we get here?

    Sure petrol prices are ridiculous, and grocery bills seemed to rise no end, and then there are reports out there that people have had to use bbq’s and eskies because they can’t pay their power bill – but the average person can afford these essentials. It’s the luxuries we have issues with – and what we consider to be luxuries and essentials today may have something to do with it.

    A while back, I blogged about the concept of “Affluenza” an idea put out there by Australians Clive Hamilton and Richard Denniss’ in their book, Affluenza: When Too Much is Never Enough.

    Affluenza is a disease of the 21st Century that can make us sick, and it can make our credit file sick with it –pulling us into a crazy cycle of spending and debt. Many of us are struggling to stay happy under a pile of ‘things’ and a pile of debt.

    It is the disease of consumerism and it is being fuelled by big corporations urging us to buy more, persuading us with clever advertising aimed at selling to our emotions. It drives us to work crazy hours leaving no time for ourselves and our families. It drives up the mental health problems, the suicide rates, the divorce rates, the drug addictions, fraud, the stress related health problems – all these things seem to be a curse of living in the 21st Century in the Western world.

    Here is an excerpt from that book:

    “Our houses are bigger than ever, but our families are smaller. Our kids go to the best schools we can afford, but we hardly see them. We’ve got more money to spend, yet we’re further in debt than ever before. What is going on?

    The Western world is in the grip of a consumption binge that is unique in human history. We aspire to the lifestyles of the rich and famous at the cost of family, friends and personal fulfilment. Rates of stress, depression and obesity are up as we wrestle with the emptiness and endless disappointments of the consumer life.

    When I read yesterday that one in seven of us are still living on borrowed money, it makes me realise that not enough Australians understand the power of credit. It is a great concept, but as long as we make it work for us. We should use it to enhance our lives so that we can spend time with the ones we love, or to really improve our quality of life. Not make ourselves slaves to it.

    Maybe we throw that long sought after holiday on the credit card and take the family away? Or take out repayments on an educational course that will change our working lives forever? Or perhaps we do buy a home, but after years of good saving. One that fits all the requirements of what we need, rather than what we want. A home we don’t have to work 24/7 to pay off because it is priced within our means.

    What we shouldn’t do is spend money we don’t have, on things we don’t need, and ultimately find ourselves with what we don’t want – debt, unhappiness and a bad credit history.

    What does your credit file say about you?

    We should think of our credit file as a mirror on our finances. It can reflect our assets, our good history, but it can also reveal our financial shortcomings. It can be a reflection of our inability to stick with something, our disregard for repayments and it shows the financial potholes we fall into that are sometimes impossible to climb out of.

    A bad credit rating can completely change our financial situation. The black marks placed there by creditors show up on our credit file for 5 years. Bad credit can limit our choices and can perpetuate the debt cycle by leading us to choose loans with higher interest rates and more fees, so the struggle to make repayments can be even harder.

    If we want to try and start again with credit, it may be possible to wipe the slate clean, particularly if our bad credit rating should not be there.  Firstly, we can obtain a free copy of our credit report from one or more of the credit reporting agencies, Veda Advantage, Dun & Bradstreet and Tasmanian Collection Services (TASCOL). If after checking our credit file we find inconsistencies, we may be a good candidate for credit repair.

    A credit repairer can work with creditors on our behalf to completely clear our credit file of all defaults, clear-outs, writs and Judgments which contain errors, are unjust or just should not be there. This means we no longer have a bad credit rating, but a completely clear credit file, giving us the financial freedom to use credit whenever we need to.

    The rest is up to us.

    Contact a credit repair advisor on 1300 667 218 for more information on repairing bad credit, or visit our main site www.mycra.com.au.

    Image: hin255/ www.FreeDigitalPhotos.net

     

     

  • Is Your Tax Refund Safe? Identity Theft Warning for Taxpayers

    Identity theftAt tax time, there are some things you need to know about to protect your identity from criminals. We look at the two most common types of identity fraud associated with tax refunds, and look at what you can do to ensure you don’t lose your refund, or become an identity theft statistic with a bad credit rating that will be a nightmare to recover from.

    By Graham Doessel, Founder and Chief Executive Officer of MyCRA Lawyers

    Criminals Lodging Fraudulent Tax Claims

    There have been reports over recent years of Australians unable to lodge their own tax return, because they have found that one has already been lodged in their name. Fraudsters have been able to canvas the tax file number and personal details such as full name, address and date of birth of the individual, and have lodged a claim in their victim’s name, pilfering the return before the victim has even thought about putting their tax in. These people are also vulnerable to bad credit through identity theft – if fraudsters take out credit in the victim’s name as well.

    It was reported in Ninemsn yesterday that the Australian Taxation Office (ATO) blocked payments worth $40 million last year that would have gone to criminals. This represents more than double the revenue the tax office protected the previous year in identity crime-related cases – with the reported interception of 8,000 fraudulent tax claims.

    But officials tell Ninemsn they have little idea how much money they lose to identity thieves who con them into actually paying out on fraudulent returns. Last year it was reported in The Telegraph that in the previous financial year the number of stolen tax file numbers suspected of use in identity fraud topped 31,200 – from 12,669 the previous year.

    How do criminals get your tax file number?

    The ATO recently sent out a media release warning about the recent surge in fake job adverts over the internet asking prospective employees to provide their tax file numbers as part of a job application or once they are made an offer of employment, which is later withdrawn.

    Ninemsn also reports temporary visa holders such as foreign students are offered cash for the tax file numbers they will no longer need once they leave Australia.

    They also say sometimes rogue tax agents are involved.

    “People are trusting people they shouldn’t,” Greg Williams, a deputy commissioner in the ATO’s compliance division told Ninemsn.

    People who share the same name and birthday are also in the “at risk” category.

    But Ninemsn reports, the reasons go deeper:

    “… Brett Warfield, a forensic accountant and fraud specialist at Warfield & Associates, said the biggest threat comes from organised crime groups lifting wholesale identity and salary information on employees from private firms or government bodies, either by hacking into company databases or convincing insiders to leak it.

    They then use this pilfered data to lodge hundreds of forged submissions with the ATO, he said.

    “They tend to submit the tax returns fairly quickly after the end of June to beat the real taxpayer,” said Mr Warfield.

    He added that crime gangs still have to outsmart the ATO’s sophisticated fraud risk filters, which cross-check claims against data such as previous entries on income and expenses, mailing addresses and bank account details for wiring refunds.

    But when ninemsn used freedom-of-information laws to find out how many such fraudulent returns the ATO fails to intercept, it admitted it does not measure or even estimate its losses.

    This is despite increases in funding to detect fraud as well as criticism from the Commonwealth Ombudsman that the ATO fails to investigate or attempt to recover funds in cases of identity theft where losses were deemed “relatively small”.

    An ATO spokeswoman said its focus is on detecting fraudulent claims before refunds are paid out — a strategy they say is more effective than trying to recoup sham refunds that have already been issued.

    What to do if someone has made a fraudulent claim on your tax refund

    Contact the ATO immediately. Last year the ATO established a “client identity support centre” to assist people whose identities were stolen. You could also contact and make a formal complaint to the Commonwealth Taxation Ombudsman if you are unable to come to a solution or been able to lodge your correct refund.

    Considering the very important personal information these fraudsters have for you, you should order a copy of your credit file as soon as possible. Check it carefully to make sure there have been no attempts, nor successes in obtaining credit in your name. Notify Police if you find anything strange on your credit file – look for address changes, credit enquiries you didn’t make, and credit accounts.

    If criminals have been able to take out credit in your name, it will mean you may have incurred some repayments in arrears and Creditors could be in the process of adding a default or other negative listing to your credit file, even if it doesn’t show up as such right away. You should contact those Creditors as soon as possible to advise them of the identity theft.

    For tax crime, which is a Commonwealth indictable offence, Police may advise you that as an identity theft victim, you could be eligible to apply for a Victims of Commonwealth Identity Crime Certificate – which can go a long way in helping to prove you didn’t initiate any credit taken out in your name. This could mean you would be able to recover your ability to obtain credit in your own right and could help with debts that have been incurred in your name.

    Fake tax refund scams

    On the other side of the coin, if you have been able to successfully lodge your tax return with the ATO, beware of fake emails claiming to be from the ATO asking for confirmation of personal details in order to send your refund to you – or for you to claim your refund.

    Here’s what one of these emails might look like, but they take many different forms (picture courtesy of ATO Online Security webpage):

     

    scamWhat you should do if you receive an email like this

    The ATO advises it will never email you asking for personal or credit card details and you should never provide this information.

    One version of this scam contains an attachment infected with a virus. This email purports to be from the ATO and asks for the recipient to complete the attached form to receive a tax refund. There is zip file attached to the message that contains a malicious program. If you receive an email like this, do not open the attachment.

    Under no circumstances should you give personal information including credit card or banking details. Anyone who has received a suspicious phone call or email should contact the ATO immediately.

    A good way to stay ahead of scams and other ways your identity and credit file could be at risk, is to sign up to the Government’s Stay Smart Online alert service, which will inform you of new scams as they unfold, and hopefully prevent you from becoming a victim, losing money and incurring debt and bad credit as a result.

    To get a free copy of your credit file, or if you need help to recover your clean credit file after identity theft – we might be able to help. Contact a credit repair advisor on 1300 667 218 or visit our main site for more details www.mycralawyers.com.au.

    Image: Arvind Balaraman/ www.FreeDigitalPhotos.net

  • Identity theft risks high for pre-retirees

    Media Release

    Identity theft risks high for pre-retirees

    27 July 2012

    Baby boomers scrambling to secure their future before retirement are prime targets for fraudsters who are dangling a whole host of carrots to lure their savings and a national credit repairer warns they are also candidates for credit fraud.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says victims of the latest very elaborate investment scams could also be at risk of identity theft and having their good name used to take out credit.

    He says pre-retirees who fall victim to scams lose their nest egg, and could also have their identity hijacked and potentially credit taken out in their name, which can rob them of the ability to obtain credit in the years when they will need it most.

    “Many people in this age group also generally have a good clean credit rating, and if fraudsters are prepared to go to elaborate lengths to get them to part with their cash, what’s to say they haven’t set up fake identities and taken out credit in their name as well?,” he says.

    Investors were earlier this month hit with the news of an elaborate scam involving overseas investments.

    The Australian Crime Commission and Australian Institute of Criminology reported that more than 2600 Australians have lost in excess of $113 million to these investment frauds, but it is believed there is a high level of under-reporting and the extent is far greater.

    They warn that the scam is incredibly sophisticated and has fooled even experienced investors with elaborate back up data, including fake websites and publications and fraudsters even issuing online press releases in the hope of extracting major dollars from their victims.

    Australians have been targets for this fraud because of high levels of superannuation and retirement savings. The Australian economy is also known to have been less affected by the global financial crisis than other nations.

    Mr Doessel says if criminals gain access to information like names, dates of birth and addresses they can build a profile with enough information to request duplicate identity documents – enabling them to take out loans, credit cards, even mortgage properties in their victim’s name.

    “Fraudsters are never so kind as to pay the credit back -meaning the identity theft victim is hit twice – financially ruined and with no ability to borrow for 5 to 7 years,” he says.

    The Australian Bureau of Statistics data shows 514,500 Australians were victims of scams in 2011, with 44,700 people citing actual identity theft in the same year.

    Credit reporting agency Veda Advantage also recently reported in its Australian Debt Study that one in five Australians have had their identities stolen or had their personal or financial data illegally accessed.

    Matthew Strassberg, a Veda senior advisor said: “Whilst credit card fraud is a common form of identity crime, many people do not realise that with only a small amount of personal data, an identify thief could take out a second mortgage on a house, or open up a new line of personal credit and purchase items in their name or under a false identity.”

    Mr Doessel says pinpointing identity and credit fraud early can be difficult.

    “Fraudsters often change contact details, and many victims don’t know they have been scammed until they apply for credit and are refused,” he explains.

    He says sometimes there can be some early warning signs of identity theft, and people should watch out for these occurrences:

    1. Strange unaccountable withdrawals on credit or personal bank accounts. It may not need to be a big amount to indicate fraud. Many criminals do ‘test’ amounts to begin with before extracting more significant amounts.

    2. Phone calls or emails from what often appear to be legitimate companies, asking for money or personal details. If you have given bank details or personal information in this way either online or on the phone there is a high chance it was a scam. Verify with the company in question.

    3. Can’t log in to social networking or bank accounts.

    4. Bills or letters of demand sent to you for accounts you don’t know about.

    5. Missing mail – particularly credit card statements which could indicate someone has overtaken your accounts. In this case no news is not good news.

    6. Credit refusal due to a bad credit rating.

    If people feel they may be vulnerable to identity theft, they should alert their creditors, and also alert credit reporting agencies, who may be able to ‘flag’ their accounts to prevent fraudsters accessing credit in their name.

    Mr Doessel says if a credit check reveals any “surprise bad credit” through possible identity theft victims should act immediately to notify Police.

    “This crime is not very widely reported. But it is only through people reporting it that any real statistics get collated. Likewise, if people want to try and repair their credit rating following identity theft, the first thing I tell them is to make sure they have a Police report,” he says.

    For more information on restoring a credit rating following identity theft, contact MyCRA Credit Repairs on 1300 667 218 www.mycra.com.au.

    /ENDS.

    Please contact:

    Lisa Brewster – Media Relations Mob: 0450 554 007 media@mycra.com.au

    Graham Doessel – Director 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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  • Banks, telcos to have access to better id theft prevention through document verification (DVS)

    Identity theft…what can we do to prevent it and in doing so protect our credit rating from misuse? We look at how it occurs, and what the Federal Government is doing to help minimise the instances of identity fraud through implementing a better system of verifying important personal information.

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

    How do identity thieves go about taking credit out in your name? If they have enough personal information about you, such as your full name, date of birth, and heaven forbid your mother’s maiden name – fraudsters can forge identity documents, or request new ones in your name, which then gives them access to funds via your clean credit rating. This credit is left owing and you are stuck with a mountain of debt, and a bad credit rating you probably don’t even know about until you go and apply for credit yourself and are refused because of defaults you didn’t initiate.

    This doesn’t occur as regularly as other types of personal fraud – but it occurs more than you might think. Current statistics from the Australian Bureau of Statistics 2010-11 Personal Fraud Survey estimates that a total of 1.2 million Australians, or 6.7% of the population aged 15 years and over, were a victim of at least one incident of personal fraud in the 12 months prior to interview. Within these figures, 0.3% of the population had been a victim of specific identity theft. This amounts to 44,700 Australians. These were the people who admitted to being duped. Identity theft is one of the most under-reported crimes, due mostly to embarrassment from the victims. It is also extremely difficult to Police, with it often being initiated from overseas crime syndicates. So prevention in this case is often better than the cure.

    For those of you who have been following our updates on identity theft prevention, you may remember the government’s introduction of The Document Verification Service – a national service which allowed government agencies which took it up to verify documents. In May the Attorney-General announced her plans to roll the DVS out into the private sector we blogged about this then in the article Identity theft prevention in budget 2012. She spoke yesterday of the intended service, and said it will be available for the private sector from 2013.

    Yesterday Computerworld published an article Identity crime in sights of Australian Attorney-General detailing the Attorney-General Nicola Roxon’s comments about the DVS during the Security 2012 conference in Sydney.

    She told delegates the move will save businesses money by reducing unnecessary manual processes, data collection and record keeping.

    “It will also help to support law enforcement agencies such as the Australian Federal Police [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”][AFP] in their efforts against identity crime,” she said.

    The DVS was introduced as an electronic online system used by government agencies to check whether a proof-of-identity document that has been presented by a person applying for a benefit or service is authentic. If a document matches information held by the issuing agency, a positive response is returned. The service does not store personal information, but allows verification only.

    “Requests to verify a document are encrypted and sent via a secure communications pathway to the document issuing agency,” Ms Roxon says in a statement on the AG website.

    A spokesperson from the Attorney-General’s Department said that it expects to be able receive applications for private sector access to the DVS from the end of 2012.

    “This would allow the private sector to commence verifications of documents from September 2013, possibly earlier,” the spokesperson told Computerworld.

    The Federal Government set aside $7.5 million in this year’s Budget to extend the DVS to the private sector from 2013-14.

    “The DVS will provide a tool to help reduce the incidence of identity fraud and improve the integrity of consumer identification used by the banking and finance, telecommunications, aviation and maritime security industries,” read the Budget 2012-13 documents.

    Perhaps the introduction of the DVS into the private sector will encourage those government agencies which have failed to take up the service to implement it.

    Last year prior to the private sector introduction, the DVS was criticised for its inadequate take up amongst government identity issuer and user agencies. At the time we blogged about it (Can official documents be forged to commit identity fraud?), agencies such as Centrelink, the Department of Immigration, and state road authorities and birth and death registries, were not connected to DVS.

    Images: photostock/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Businesses on verge of default: Cash flow issues leave more businesses unable to pay bills on time

    According to credit reporting agency Dun & Bradstreet, the June quarter came up grim for Australian businesses and particularly small business repayment terms. The number of businesses paying their bills on time fell considerably. It is predicted this will have a flow on effect to the whole economy.  We look at Dun & Bradstreet’s report, the ramifications for those individual businesses when it comes to commercial and personal credit rating defaults, and offer some simple ideas for managing business cash flow and keeping a clear credit file.

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

    According to the latest Dun & Bradstreet Trade Payments Analysis – examining the ability of firms to pay their bills, and pay them on time – the number of payments falling within the standard 30-day term fell 16.5 per cent quarter-on-quarter.

    Further underscoring the deteriorating conditions faced by businesses is the performance of small businesses, which recorded the biggest deterioration in payment terms of 2.2 days. Businesses with between one and five employees are now operating under an average term closer to that of larger firms, at 53.2 days.

    Dun & Bradstreet attributes simple lack of cash flow as the reason for the decline in businesses meeting the standard 30-day term.

    D & B Director, Adam Siddique, says cash flow issues within the small business sector will have a significant knock-on effect to the rest of the economy.

    “It is particularly concerning that SMEs are waiting longer to be paid, and as a result are taking longer to pay their own bills. Trade credit constitutes a significant and critical portion of non-banking finance.  When this is delayed, it withholds millions of dollars from businesses and the wider economy,” Mr Siddique said in a statement to the media .

    “Small business payment terms now more closely resemble those of a large corporation, however small operations are less equipped to manage for cash flow issues, particularly if they are waiting more than two months to be paid for goods and services.”

    In addition, two-thirds (62%) of all trade payments were late during the second quarter.

    The number of severely delinquent payments (90+ days overdue) also rose noticeably during the last 12 months – up 13 per cent since the June quarter last year.

    Mr Siddique predicts economic uncertainty and conservative consumers will continue to impede cash flow for businesses through the rest of 2012.

    He warns businesses to remain focused on the ‘fundamentals’ such as cash flow.

    “A proactive approach to risk and receivables management can often prevent a situation where businesses wait months to be paid,” he says.

    With the threat of delinquency facing many more commercial credit ratings in the small business sector, it is important to realise the connection to personal credit ratings that can often follow the small business default.

    Small business owners who allow overdue accounts to become the norm during the course of business could be unaware of the ramifications for not only the future of their commercial credit rating, but their personal credit rating as well.

    People should not take trade credit lightly, as it can impact both credit files. This applies to both outgoing and incoming accounts. Dropping the ball on either is not the best way to ensure repayments continue to be made within standard terms of trade. If repayments are delinquent, creditors can place defaults on the business credit rating.  But often the owner finds out as Director this is tied in to their personal credit rating as well.

    Long after the business problems are over, the owner can be haunted by this bad credit and denied the basics for their family – mortgages, car loans, credit cards, even mobile phones for 5 years. For someone recovering from a business failure, this can be completely debilitating, particularly if savings have previously been thrown at the business to try to keep it afloat.

    Here’s some ideas for the best ways a business can keep track of its cash flow and stay in the clear with their credit rating:

    1. Pay all accounts on time. Have systems in place whereby credit cards and all bills are paid on schedule if not by the Director then by Administration. If the business is running behind, creditors need to be contacted and payment plans possibly worked out before the due dates to best avoid a default listing.

    2. Ensure all accounts are paid in on time. Chase up bounced cheques and failures to pay immediately.  Too many accounts left unpaid can leave businesses short on cash and run the business into the ground if left to continue. People should regard any client non-payment as potential risks to their credit rating.  Develop a tactful system for retrieval ahead of time – reminding clients of the risks to their credit rating by defaulting on payments. If overdue accounts go beyond 60 days, businesses should notify the account holder in writing they will be referring the non-payment to a credit reporting agency.

    3. Consider credit checks for all potential account holders. As suggested by Sue Hirst in her article ‘Why You Need Good Terms of Trade’ (My Business Magazine August 2010) business owners should consider implementing a system of credit applications for potential clients who request a major account. This involves the business requiring a credit check on the prospective account holder with one or more of the major credit reporting agencies prior to undertaking a credit account with them.

    4. Regularly obtain a copy of both credit files –it is free for both consumer and commercial credit files once every year from one or more of the Australian credit reporting agencies. This will alert the owner early to any inconsistencies or errors on either business or personal credit files which could see their ability to obtain credit in jeopardy. If there are wrong defaults or mistakes on either the commercial or consumer credit file, it is important to address those inconsistencies immediately – and before it is a matter of urgency.

    5. Keep credit card limits within a set budget as specified by the needs of the company. Don’t be tempted to set a lofty limit to business credit cards as it may encourage needless spending and blow out the business budget.

    6. Be wary of excessive credit enquiries. People should get their credit health checked before applying for new credit, and only apply for credit they have full intention of pursuing.  Some lenders are rejecting loans for as little as two enquiries in 30 days, or six enquiries within the year.

    7. Most importantly, monitor accounts regularly.  Business owners still need hands on knowledge of the business’ expenses.  Check accounts are being paid and check receipts and credit card statements regularly.

    Bad credit attached to your business?

    If you are suffering with a bad credit rating, or have errors or mistakes on your credit file impacting your ability to get business credit, it would be well worth investigating whether you are suitable for credit repair.

    The criteria for credit repair success is generally people who have a credit listing that contains an error or errors, or people who believe their listing is unjust or incorrect.

    By engaging the services of a professional credit repairer, you are giving yourself and your business the best possible chance of being credit active again.

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

    Image: sscreations/ www.FreeDigitalPhotos.net

  • AFP and FBI sign agreement to pool resources on identity crime

    Police from Australia and the United States have joined forces to pool their resources to fight a number of crimes which cross international borders, including identity crime and cyber-crime. We watch these changes with interest as they apply to fighting the increasing instances of identity crime which can result in victims being stung with bad credit and being banned from borrowing for 5 to 7 years when frausters use their good name to take out credit.

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

    The Australian Federal Police (AFP) and the Federal Bureau of Investigation (FBI) signed a memorandum of understanding (MoU) in Washington on Friday to share intelligence in order to fight many types of crime, including identity crime and cyber crime, ninemsn reports in its story AFP, FBI pool resources against crime.

    The MoU, called Combatting Transnational Crime, Combatting Terrorism and Developing Law Enforcement Cooperation focused on collaboration between agencies in terrorism, illicit drugs, money laundering, illegal firearms trafficking, identity crime, cyber crime and transnational economic crime.

    It also consolidated AFP and FBI cooperation in the exchange of information, resources and technical and forensic capabilities.

    The Australian Government made changes to Australia’s laws in June last year, to allow for the international collaboration of information on cybercrime. The Cybercrime Legislation Amendment Bill 2011, amended several laws in order to comply with the only international treaty on cyber-crime.

    This was done in the hope of coming up to speed with other countries in the fight to tackle an international wave of cyber-attacks.

    Cyber-crime and identity crime are a global phenomenon, and potentially this relationship between Police forces could improve the chances of tracking fraudsters, and potentially lead to more arrests.

    Currently, identity crime and cyber- identity crime is often one of those largely ‘untrackable’ crimes  – especially if it originates overseas. It can lead to the victim having any number of credit accounts taken out in their name, which can result in the victim being stuck with wrong defaults on their credit rating, or a bad credit rating they didn’t initiate, and a whole heap of trouble recovering their good name. Often Police are unable to prosecute anyone, and it is up to the identity theft victim to go about proving they didn’t initiate the bad credit.

    It will be interesting to see whether more arrests can be made or whether the sharing of information could deter cyber-criminals in the future.

    If you have been a vicitm of identity crime or cyber-crime, we would be interested to hear from you, and the process you went through. Did you let Police know of the attack?

    If you need help with a bad credit rating you didn’t inititate which would point to identity theft, whether inititated on our shores or overseas, you may be able to get assistance in recovering your good name. You may be eligible for a Victims of Commonwealth Identity Crime Certificate, and/or you may be able to get help from a professional credit repairer to help with getting those wrong defaults removed from your credit file.

    Contact our credit repair team on 1300 667 218 to get advice.

    Image: Victor Habbick/ www.FreeDigitalPhotos.net

  • Bad credit affects refinancing market too

    Refinancing numbers are at a record high. But any home owner looking to refinance needs to consider they could have surprise bad credit history. Before you apply for a new loan, it is important to check your credit history prior to making any finance application, even if you think your repayment history is impeccable.

    By Graham Doessel, founder and CEO of MyCRA Credit Repairs and www.fixmybadcredit.com.au.

    Australian Broker reported Tuesday on figures coming through from AFG showing figures for refinancing have gone through the roof in the past 12 months, with two in five loans now refinancing:

    Refinancing outweighed all other loans on AFG’s Mortgage Index at 39.1 per cent for June.

    Mark Hewitt, general manager of sales and operations at AFG attributed the growth to a more competitive market.

    “Refinancing is very strong as borrowers take advantage of a more competitive market to secure a better deal,” he said.
    AFG also said fixed rate loans fell to 16.5 per cent – a significant decrease from March’s peak of 25.4 per cent.

    “It’s significant that, as we begin a new financial year, the vast majority of borrowers are opting not to lock in an interest rate. Most see a period of stable or even softer rates for the foreseeable future.”

    Before refinancing

    Prior to making a re-financing application, you should order of free copy of your credit report – in case your credit history contains inconsistencies you aren’t aware of. For some home owners, it can be years since you applied for major credit, who knows what information is present on your credit file?

    Under current credit reporting legislation, you are entitled to obtain a free copy of your credit report from the credit reporting agencies once a year. A person requesting their own credit report does not generate a ‘credit enquiry’ on their credit file so it is important to do this prior to putting in the application. If a credit enquiry from a lender finds a default against your name, warranted or not, you will be refused finance. That lender’s ‘enquiry’ now shows up on the credit file for 5 years along with the default, creating two negative entries instead of one.

    You need to contact all the credit reporting agencies to request your credit report – as creditors have access to 2 main agencies within mainland Australia and 3 if in Tasmania. The report will be sent to you within 10 days of the request.

    Regardless of whether you have been diligent with paying bills, creditors can and do sometimes make mistakes with credit files, which can leave you with black marks against your name that just shouldn’t be there.

    Sometimes you may not know your good name is compromised until you apply for finance or in this case re-finance and are refused.

    What is bad credit?

    A bad credit rating can result often due to unpaid accounts. When a bill or repayment goes unpaid past 60 days, it is listed as a default or a ‘clear-out’ on your credit file. In the current finance market, any black mark generally results in an automatic decline with the major lenders, as does too many credit enquiries.

    So how many credit files contain errors? The volume of credit file errors on Australian credit files is uncertain.

    A spokesperson from credit reporting agency, Veda Advantage estimated 1% of the 250,000 credit reports they give out as a credit reporting agency to Australians every year contain a material error on the credit file.

    But the Australian Consumer Association (now Choice) survey from 2004 revealed that 34% of the credit files surveyed in their small scale study contained errors or inconsistencies.

    And the real numbers? They may be somewhere in between.

    Approximately 63% of the clients who request credit repair have defaults, writs or Judgments which are listed in error on their credit file.

    We have clients who are facing identity theft; some are caught in issues over separation from their spouse; some have been disputing the bill which went to default stage and many people are just victims of the fallout from inadequate billing procedures – wrong names, wrong addresses, human and computer errors.

    Listings are not removed by creditors unless you can provide adequate reason and lots of evidence as to why the listing should not be there.

    Credit repair requires knowledge of the legislation, lots of evidence and perseverance. But if your financial freedom is hindered because your credit file contains errors, it is a point worth fighting for.

    Contact MyCRA for help with getting a free copy of your credit file, or for help with credit repair on 1300 667 218 or our main site: www.mycra.com.au.

    Image: Michal Marcol/ www.FreeDigitalPhotos.net

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

  • How You Can Give Yourself the Best Chance of Being Approved For Your First Home

    A great deposit and a great income is not enough to ensure you get the home loan that’s right for you. We show you how your credit rating can have just as much impact as your savings record and show you the steps you can take to ensure your credit file accurately reflects your ability to repay a home loan.

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

    There is more to applying for finance than wages and savings records. One of the key factors to home loan approval is your credit report.

    What is a credit report?

    A credit report is a report on your credit file status (or credit rating), held by one or more of Australia’s credit reporting agencies.  Your credit file is checked by the lender when you apply for a home loan. It contains all of your personally identifiable information as well as your repayment history, and is used to assess both the amount you are able to borrow and your ability to repay the loan.

    Anyone who has borrowed money, or has established an account for services is credit active and will have a file in their name. This includes mobile phone plans, accounts with utility companies, rates accounts and of course loans of any kind.

    What is defined as a ‘bad’ credit rating?

    In broad terms, any credit defaults, court actions or writs, external administrations and bankruptcy are all recorded on your credit file and would be considered ‘bad’ credit history by most credit providers.

    In this current economic climate defaults and even too many credit enquiries or applications for credit may be considered to be tarnishes on your credit rating.

    How do I know if I have a bad credit rating?

    If you are unsure what is on your credit file, it would be worth taking the time to find out.

    There are three major credit reporting agencies in Australia: Veda Advantage – which holds the credit file of over 16 million Australians, Dun and Bradstreet and Tasmanian Collection Service.

    You can write to or email one of these agencies and request a copy of your file.  If you are not in a hurry there is no charge to you but it will take 10 working days from application to receive this information.

    What many people do not realise, is how easy it is to have a default slapped on their credit file.  If you fall into arrears on your account for more than 60 days (including rates, power and mobile phones) then the credit provider has the right to notify you of their intention to record this default against you on your credit file. Even if this bill is later paid, this ‘paid’ default still remains on your record for 5 years.

    Will I always know I have bad credit?

    NO! This is one of the key things we want all home buyers to know. Mistakes can and do happen, and it may not be until you are sitting in front of the bank getting rejected for a home loan that you find out you have bad credit history.

    There are a great number of credit files which contain errors or listings on credit files which shouldn’t be there, so even if you think you have never paid a bill late, you may still have a bad credit rating. It is always worth taking the time to find out before you apply for a home loan.

    I have found defaults on my credit rating, what are the consequences of this?

    If you discover you have an adverse listing or ‘bad credit rating’, you will find it very difficult to find a home loan with a mainstream lender. Generally this problem will keep occurring for the 5 years the default is on your credit file. If you decide to enter a non-conforming loan, you may be up for tens of thousands more in interest repayments just over the first three years of the loan.

    What can I do to fix my bad credit rating?

    Once you have obtained a report there are three things to consider:

    1. Check the accuracy of the report. If there are errors, be aware you do have the right to have errors rectified.  Likewise, if there are numerous strange defaults and or applications for credit that you don’t recognise – you would need to immediately investigate these and notify Police in case of identity fraud.

    2. Check you were informed of any intention to list. Current legislation requires you to have been informed in writing of any intention from creditors to list you as a defaulting on credit.

    3. Check the fairness of the listing. Only serious credit infringements should be recorded, or overdue bills in which 60 days have elapsed since payment was due.

    How does a credit repairer work to repair my credit rating?

    In many cases where people have attempted to dispute or remove the default themselves, they have come across difficulties and defaults have not been cleared. Most times the creditor will explain to the client that defaults DONT EVER get removed. The best they can do is mark the listing as paid (if it’s been paid).  This may not be sufficient to ensure credit is obtained with most lenders.

    If you have a default, writ or Judgment that has errors or just shouldn’t be there – there is a good chance that My CRA can actually remove it – meaning your financial future is looking a whole lot brighter.

    The credit repairer works with creditors to negotiate on your behalf and work for your best outcome based on the creditor’s compliancy with the current legislation. We will also look at any other extenuating circumstances to determine if there is an avenue we can investigate which results in having the listing removed.

    Should I try to cut out all credit from now on?

    Credit is not all bad.  In fact, not having ever taken out credit can harm your chances of obtaining a home loan just as much as having a bad credit rating.

    However, we do advise you to be cautious with credit. Start small, for instance a mobile phone plan or store credit card and repay the account on time, every time.

    What can I do to maintain a good credit rating?

    1. Make all payments on time. This is the easiest way to ensure there are no discrepancies or defaults on your credit file.
    If you are unable to make a payment on time, contact the creditor. They may be able to set up a payment plan for you until you get back on your feet. Soon overdue accounts that are as little as one day late will be recorded on your credit file as ‘overdue payments’ and will stay there for 2 years, so it is important to repay on time, every time to avoid bad credit.

    2. Regularly obtain a copy of your credit file – once a year is recommended and this is free in Australia annually.

    3. Keep credit card limits within a set budget. Don’t be tempted to accept the sky high limits some banks offer as it could encourage you to spend needlessly and blow out your budget. A lower credit limit is also better when lenders are assessing your ability to repay a loan.

    5. Be aware of excessive credit enquiries. If you are not sure about your credit health, get it checked before applying for new credit so as not to rack up unnecessary credit enquiries. You do not record a credit enquiry when you enquire about your own credit file. Also, ensure you do not apply for credit all over town – and beware of filling any forms out online.  You should only apply for credit you have full intention of pursuing. Every application for credit will be noted on your file, but it does not say whether the application was approved or declined. It could look to creditors like you have been declined multiple times.Too many credit applications on a person’s file can hinder their chances of obtaining a loan. Some lenders are rejecting loans for as little as two enquiries in 30 days, or six enquiries within the year.

    For help repairing your bad credit, contact MyCRA Credit Rating Repairs today 1300 667 218 or see more information here:

     

    Image: annakml/ www.FreeDigitalPhotos.net

  • Default rates soar amongst over 65’s

    A study on generational trends in credit activity over the past ten years put out by credit reporting agency Veda Advantage reveals that the rate of default amongst the older generation (65 years and above) has increased a staggering 200% over the past ten years. We look at why this could be occurring and the possible ramifications of bad credit history for this age group.

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

    Veda’s study results, released on June 1 in a report titled: New data from Veda shows surprising differences in credit activity between generations reveals this age group have become more reliant on credit which has led to the increased level of defaults as some struggle to meet financial obligations.

    This topic was explored further by the Herald Sun in its article Bad debt increases among over-65s. It reports Veda general manager of consumer risk Angus Luffman saying 6 per cent of over-65s had more debt this year than last year. He said most debts related to living costs such as utility and telecommunications accounts.

    Here is an excerpt from that story:

    Financial counsellors said yesterday people could find it difficult to reduce their spending when they reached retirement and the supply of easy credit was a major problem.

    “After retirement, some people find that their incomes have decreased but their credit card limits can be quite high,” Financial Counselling Australia chief executive Fiona Guthrie said.

    “The adjustment can be hard (and) many older Australian are simply poor.

    “They may be using credit to simply make ends meet.

    “It is also frustrating to hear that industry still tries to sheet the blame home to consumers for what in fact has been the irresponsible marketing.”

    It is a worrying trend that older Australians are having to rely on credit to simply make ends meet. The reasons for the increase in the rate of defaults could be simply these age groups not having the necessary funds to meet their repayments, or as speculated by Angus Luffman, it could also be due to a lack of education around credit.

    In Veda’s report, Mr Luffman said that education is needed within all age groups on the risks of being enticed into credit as a result of factors like low introductory interest rates.

    “The fact is that consumers of all ages still fail to realise that missed monthly mobile phone, utilities, and credit card or loan repayments can all affect their credit rating.   It is vitally important that consumers consider and understand the difficulties they could face when they take on credit commitments that they can’t meet,” said Luffman.

    We assume that the over 65’s have it all worked out financially. This report debunks that and shows that bad credit history can occur at any age group, and can be as much a result of a lack of education about credit obligations as it can be about not having the necessary funds to meet those obligations.

    I always maintain that there is a lack of education about consumer rights and responsibilities around accessing and repaying credit and likewise in addressing credit listing complaints. Credit reporting law is hugely legislated and Privacy Principles cross a number of different codes of conduct for different industries. The difficulty for ordinary consumers in understanding these laws is reflected in a) the number of consumer defaults and b) the volume of consumers seeking credit rating repair services to fix their bad credit.

    More education would go a long way in preventing the rate of default in the first place. It would also allow consumers to understand their rights within credit reporting law. Many are unsure what to do if they find themselves with a credit listing which they believe should not be there, and when they try to address the issue with the Creditor, they can be left no better off.

    Perhaps older Australians are the most uneducated generation on their rights and responsibilities around credit. This generation is traditionally the ‘saving’ generation – most would have used very little credit in their younger years and the trend towards credit in society today has possibly pushed them into a realm they may be ill-equipped for. A meagre pension propped up by small levels of Superannuation for this generation can also be a contributing factor.

    Direct debit problems, bill disputes, divorce or separation issues, even identity theft can all lead to an unncecessary bad credit rating and can be a problem for any generation. And what about those grey nomads tripping around Australia – what if people have failed to tie up all loose ends and have left a bill unpaid or unsettled? In reality, an overdue account will lead to bad credit. They could be listed with a Default and have 5 years of bad credit. If the Creditor can’t get hold of them – they will have a Clearout listing against their name – that’s 7 years of bad credit.

    So what can people do if they find this happens to them?

    Consumers should address credit listing complaints straight away. What they shouldn’t do is wait 5 or 7 years if the listing should not be there. The best chance of getting that bad credit history removed is for people to contact a credit rating repairer and put their circumstances to them, so it can be established whether they are a suitable candidate. There are some cases of bad credit which cannot be removed. But if there are inconsistencies, there is a good chance that a credit repairer can help them with their case for removal of the credit listing.

    And for older generations who want or need to use credit, there is no time to waste on bad credit history that shouldn’t be there.

    Image: www.FreeDigitalPhotos.net

     

  • TMI – 5 things all young people should know about privacy, social networking and credit.

    If you didn’t have Facebook or Twitter – you’d be lost right? It’s a great way to keep in touch with friends– and sometimes it’s more convenient and quicker than a phone call. But if you don’t keep your personal information secure from outsiders while you use it– you could be keeping in touch with all the wrong people. There’s weirdos out there trolling the internet looking for the stuff you openly post – even people looking to commit identity theft with your info. We show you how the mistakes you make with your privacy now could lead to being unable to get a phone, a home, a car in the future because of a surprise bad credit rating.

    This information was put together for Privacy Awareness Week 29 April to 5 May 2012 and is all about promoting awareness of privacy rights and responsibilities in the community. The theme this year is “How to Protect Personal Information While Engaging With Social Media”  with a focus on secondary school students, parents and teachers. If you are not a student but you know one, flick them this link or print this page. We want all young Australians to have the luxury of a clear credit rating when they turn 18 and beyond.

    By Graham Doessel Founder and CEO of MyCRA Credit Repairs and www.fixmybadcredit.com.au.

    1. Fraudsters are looking for your personal information.

    They are looking to take it and use it for purposes of constructing a fake identity. Identity theft victims are not always ‘gullible’ as people might imagine. They are ordinary people. Many experts say it is not a matter of if you experience an identity theft attempt, but when. It is estimated one in six Australians may have been a victim or know someone who is a victim of identity theft.

    It can happen to you when someone you know obtains identity documents or credit card details to impersonate you. Or more and more it comes from professional fraudsters whose main occupation is to steal personal information and financial details in order to commit fraud.

    The internet is a big source of personal information and its ever increasing use makes you more at risk of identity crime than ever.  This means identity crime can have very long arms – often it originates from overseas crime syndicates.  Identity theft is increasing because the pay-offs are huge for criminals. It is estimated identity crime costs Australians $1 billion a year.

    2. Criminals are after information they can use to steal your identity.

    Criminals are looking for anything they can use to piece together enough information in order to construct a fake identity. Much of the information people post on Facebook or other Social Networking sites can be very good building blocks for identity thieves. They are taking snippets here and there and building a profile on people. They may know your name and they may also know where you live, or where you go to school, your pet’s names, your birthday, even your other family name which could be identified as your mother’s maiden name.

    All this is very handy information that is not only used to identify you, but may be used in passwords. After a little while, they have enough information to go about asking for replacement copies of driver’s licences, photo identification – whatever type of identification they have suitable information for. Then they can attempt to take out credit in your name. Some people have even had houses purchased in their names. Often it’s not until you go and take out credit and the bank says: “NO WAY look at all these defaults against your name!” that you may realise you have been struck by identity theft. The thing is, they are using your name so you are the one that ends up with the bad credit rating, and it can be a nightmare to recover the good credit rating you once had.

    3. These Privacy risks apply even if you’re under 18

    You might ask – what’s the point of worrying about privacy if you are underage – without a credit rating – there is no danger of identity theft right? Well think again! The fact is – crooks are pretty clever. The information you post today, could come back to haunt you in a big way. There are reports of crooks scanning social networking sites purposely looking for young people for this reason, because they usually have the most open privacy settings. That information is not used right away, but is ‘warehoused’ until the young people turn 18. They can then go on a ‘spending spree’ with the young person’s fake identity and credit. Imagine that, you turn up to buy your first car, and lo and behold you have a mountain of defaults against your name and no idea how it happened.

    Besides all this, if you have enough information on your Social Networking right now about your parents you could be putting their credit rating in jeopardy as well.

    4. The effects of a bad credit rating from identity theft

    Negative listings stay on a person’s credit file for 5 to 7 years, depending on the listing. During the time your credit file is affected most lenders and other credit facilities will refuse you credit. Unless you are able to prove it wasn’t you who took out the credit, you may be stuck with a bad credit rating until you are at least 23 if not 25. You can’t borrow to travel, purchase a home, or even take out a credit card or a mobile phone plan while you credit file has these defaults.

    5. What you should do to make sure fraudsters don’t obtain your personal information

    One important change you can make right now, is to change the way you use the internet. Keep your passwords and social networking settings as strong as possible.

    Here is some information that Stay Smart Online has provided to help young people in Australia today take steps to use social networking safely:

    • set your online profile to private and be discerning about who you accept as your ‘friend’
    • protect your accounts with strong passwords
    • have a different password for each social networking site so that if one password is stolen, not all of your accounts will be at risk
    • think before you post – expect that people other than your friends can see the information you post online
    • don’t post information that would make you or your family vulnerable – such as your date of birth, address, information about your daily routine, holiday plans, or your children’s schools
    • don’t post photos of you or your family and friends that may be inappropriate – or that your family and friends haven’t agreed to being posted
    • never click on suspicious links – even if they are from your friends – they may have inadvertently sent them to you
    • be wary of strangers – people are not always who they say they are. It’s a good idea to limit the number of people you accept as friends
    • always type your social networking website address into your browser or use a bookmark.
    • If you suspect any fraudulent use of your identity you should report it to your social networking service provider and your local police.

    MyCRA Credit Rating Repairs is proud to be a Partner for Privacy Awareness Week 2012. For more youth resources visit the PAW Website http://www.privacyawarenessweek.org/youth.html.

     

    Image of boy: David Castillo Dominici/ FreeDigitalPhotos.net

  • A consumer advocate shows Aussie singles how to recover from post-relationship credit crisis.

    Being lumbered with relationship debt is a common cause of bad credit. People can be stuck to a bad relationship long after the people in question have got out and moved on. A bad credit rating, or credit rating defaults, can hinder a person’s ability to obtain new credit for between 5 and 7 years, so it is important to cover yourself and your credit rating against an STD (Sexually Transmitted Debt).

    By Graham Doessel – Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au.

    Recently I read a fantastic article in Brisbane’s Courier Mail on How to Fix Relationship Debt. The perspective was provided from Generations Columnists Gen Y’s Justine Davies, Gen X’s Bruce Brammal, Baby Boomer Mark Bouris and Retiree Kerrin Falconer.

    I would advise people to read the article and apply the principles for their generation.

    Here is a great point I found in this article:

    “A FEW years ago, Paul Clitheroe told me that he wanted money to be the sex of the next generation.

    He explained that when he was young, sex was a taboo topic whereas now it’s talked about everywhere. He hoped that Gen Y would do the same thing for money: bring it into the mainstream.

    The best place to start making that conversational change is with your partner, because according to Relationships Australia, conflict over money is one of the top causes of arguments and relationship breakdowns in Australia,” Justine Davies says.

    Being in love is one of the best feelings in the world, but not one of the most practical states to be in. Sometimes personal financial values go out the window and people lose themselves in the process of adding to the ‘relationship’ and creation of ‘us’.

    But it is important to think practically about joint finances.

    Many people come unstuck by not asking the tough financial questions about their prospective partners early in the relationship.

    And when they fail to, when love turns sour they can end up broken hearted and broke.

    Black marks on your credit rating – the ‘STD’ that is hard to get rid of.

    When two different money ‘personalities’ combine, the potential for both to be financially damaged is greatly increased.

    Every day we meet people who need help with fixing credit rating issues due to no fault of their own really, but they have fallen under the financial shortcomings of a partner.

    When people take out any credit together, such as loans, utility accounts, homes and rental properties, they become very reliant on the partner to keep up their end of the credit repayments.

    Sometimes one partner ends up with a bad credit score, simply because the other person on the account has not kept up with repayments. People can be unaware their partner is generating defaults on their credit rating until it is too late.

    In many instances it’s not until people apply for credit in their own right that they find out about the credit problems their partner has initiated. The relationship may even have ended years ago and the partner is still paying for it.

    Bad credit history can last for 5-7 years, depending on the listing. The most common type of negative listing is a default, and is placed by the creditor when an account holder fails to make payments past 60 days.

    For Valentine’s Day this year, I wrote a post titled ‘Valentines Day Blues. What You Need To Know About Your Credit Rating When Love Goes Bad.’

    Here are my 10 Steps for financial separation to protect your credit rating from that post:

    10 Steps for financial separation

    1. Cancel joint bank accounts. You could use the money from these accounts to go towards paying off any debts you may have together.

    2. Pay off and cancel joint credit cards. If the debt on the card/s can’t be paid off, inform the creditor that you have separated and ask them to put a stop on the account so there may be no more transactions. They could possibly make arrangements to transfer the repayments to two separate accounts.

    3. Resolve the mortgage debt. Sell the home and divide the proceedings, or sell your share of the home to your ex-spouse or vice-versa. Before this takes place, notify the bank you have separated. Make sure no further amount can be redrawn on the loan and that you receive separate statements whilst you are separated and both still own the property.

    4. Transfer names on other accounts. Phones, electricity accounts, rental properties, rates, car loans and store credit should all be transferred to one name as appropriate.

    5. Pay any unpaid accounts. No matter who has accrued these debts, the creditors will still see you as responsible. Ensure all accounts are paid on time while they are in both names.

    6. Keep a record of all undertakings. Keep good paperwork and notes related to the separation, including cancellation or changes to any accounts for future reference.

    7. Employ a good family solicitor. Legal advice is important as it relates to children, family businesses and property. Also if anything runs off course with division of debt, they can give good advice on the next course of action.

    8. Notify credit reporting agencies. Let Veda Advantage, Dun & Bradstreet, or Tasmanian Collection Agency know of your separation and any steps you have taken to separate accounts to date.

    9. Check your credit score. Request a copy of your credit report and check each entry. A free copy of your credit file is available every 12 months from one or more of the credit reporting agencies in Australia. This is essential particularly if settlement is drawn out over a number of years.

    10. Seek help from a professional credit repairer for any defaults, Writs or Judgments. Once outstanding accounts accrued by your spouse are paid, there is the issue of the bad credit score which needs to be cleared so you may have the opportunity to borrow again in the future.

    Gen X’s Bruce Bammal describes the steps people can take if they find themselves in a post-relationship debt crisis:

    “If an ex has done the dirty on you financially, urgently get hold of your credit file to see exactly what damage has been done. They’re free through Dun & Bradstreet (dnbcreditreport.com.au) and Veda Advantage (mycreditfile.com.au).

    Assess the damage and start repair jobs, if possible, by contacting the organisations directly. Then follow up with the credit reporting services.

    Cancel joint accounts and credit cards. End all financial ties. See a specialist about recovering from sexually transmitted debt,” he says.

    The repair jobs Bruce talks about on a person’s credit rating could be small or could be significant. But if the bad credit rating really shouldn’t be there, if the listing contains errors or inconsistencies, then the negative effect on the person’s finances should warrant attempting to have the bad credit history removed.

    Current legislation does allow people to have inconsistencies removed from their credit file, but the whole process is more complicated than most people are led to believe.

    Credit reporting is governed by strict laws that the creditor must abide by, and there is no point people going in to bat for themselves without an extensive knowledge of this credit reporting legislation and a good ability to negotiate with creditors.

    In reality many people are not successful when they attempt to fix bad credit themselves. Remember, often it is a large creditor which put the listing there in the first place, so people need to know what to say to these companies and the way to say it. They also need to be thoroughly schooled in the legislation (or have enough time to get to know it), to ensure a successful credit repair. Basically people are preparing a ‘case’ to show reason as to why the creditor should remove the listing.

    In the preparation of this case and presentation to the creditor there are many instances where individuals can write, do or say the wrong thing, which can not only mean they get the creditor ‘offside’ but can damage the chances of having the listing removed for the entire term of the listing. So for the best chance at success, consult a reputable credit repair company. Visit our main website at www.mycra.com.au or call tollfree 1300 667 218.

    Image: graur codrin/FreeDigitalPhotos.net

  • Working away from home? This could impact your credit rating. How to keep your credit file clear when you’re working away.

    Australian miners – you may be the highest paid workers in the country, but in the credit rating repair profession, unfortunately you top the list as the occupation group most likely to get caught out with a bad credit rating. We tell you why you could be susceptible to a bad credit rating and how to ensure you keep your credit file clear – at home and away.

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

    If you are in the mining profession, a flight attendant, army personnel or any person whose profession takes you away from home, you can be likelier to suffer a negative listing on your credit file, namely because you can be away for long periods at a time, or because you can’t keep a close eye on day to day finances and accounts working such odd hours or geographical locations.

    Checking all bills are paid on time and that the account is running as it should be is often difficult when you’re a transient worker.

    Miners and other transient workers often set up direct debits for accounts, but this may not be enough to ensure your credit file remains clear. There can be a number of reasons why bills go to default stage – from correspondence not being read through to errors in the creditor’s billing system. Unfortunately transient workers often don’t receive notification that there is a problem until it is too late to rectify it and your credit rating suffers.

    MyCRA client and transient worker, Shannon recently had us assist in removing a Telstra default from her credit file.

    Shannon has worked as a chef in the mines for the past 8 years in Western Australia.

    She had recently relocated to Western Australia, but unfortunately for various reasons many of her bills were not forwarded on to her new address following the move. This included a Telstra bill, which unfortunately went into default.

    On top of not receiving many bills, she also received no notification  her bills, and in particular her Telstra bill was going unpaid. She also wasn’t notified of the default that had been placed on her credit file.

    It was only when Shannon applied for a home loan and was refused that she realised there was a problem with her account – and this is common.

    Shannon says she was probably at a disadvantage due to the nature of her employment.

    “In the mines, communication can be a problem. I can be out of contact for months at a time so it makes it difficult to keep on top of things. Telstra actually had addresses in their system that didn’t even exist. But this was the problem, I wasn’t getting all the correct information from where I was living, I had no idea the mail wasn’t coming,” she says.

    Shannon recommends anyone who works away from home have a Post Office Box to reduce the risk of mail being stolen or damaged in transit, and so that people can keep on top of their own finances, rather than having to rely on others.

    A credit file exists for anyone who has ever been ‘credit active’ and is used by creditors to assess risk and borrowing capacity of potential borrowers.

    The most common type of adverse listing is a default. Defaults are put there by creditors when accounts have remained unpaid for more than 60 days. Defaults remain on a person’s credit file for 5 years from the date of listing, and have the potential to severely impact a person’s ability to obtain credit.

    Currently, any default can be enough for an automatic decline with most of the major banks. Many lenders are even rejecting loans for excess enquiries such as two in thirty days or six within the year. Some people may even be unable to take out a mobile phone plan in their name if they have defaults on their credit file.

    It is a good idea to take a hard-line approach to your finances and bill notifications to ensure you are not caught out by issues that arise whilst you are absent from home.

    How to keep a clear credit file while working away from home:

    1. Reduce the amount of paper-bills that are sent. Use the internet for all bill payments or set up direct debits from accounts.

    2. Set up a Post Office Box, or appoint a trusted friend or family member to forward mail.

    3. Keep creditors up to date with changes on accounts. If there is ever a problem with bank accounts, or a change of credit or bank cards – ensure all direct debits are altered. This can be a common reason bills get left unpaid.

    4. Check up on credit accounts regularly. Make a point of checking your bills and making sure all payments are up to date.

    5. Don’t let bill issues slide. Take the time to sort out any discrepancies with bills as soon as possible. Accounts which are left unpaid for more than 60 days will be listed as defaults.

    6. Perform a credit file check regularly. Make sure everything is as it should be – including your current contact details and any credit entries. A free credit report can be requested from the major credit reporting agencies Veda Advantage, Dun and Bradstreet and Tasmanian Collection Service (if in Tasmania) every 12 months. A creditor may have listed defaults with one or all of these credit reporting agencies.

    7. Get inconsistencies fixed. If you find errors on your credit file, or feel a listing is unjust or shouldn’t be there, you do have the right to have incorrect information rectified.

    Miners and other transient workers are amongst the highest paid industries in Australia, but many of you are unable to utilise this money for big ticket items like cars and homes because your credit rating has blemishes. A credit rating repairer should be able to completely remove offending blemishes from your credit file, allowing you the chance to start with a clean slate.

    Contact www.mycra.com.au for information on how to repair a bad credit rating.

    Image: wandee007/ FreeDigitalPhotos.net