MyCRA Specialist Credit Repair Lawyers

Tag: bad credit

  • Credit file education could help consumers save money and reduce default numbers

    Media Release

    Credit file education could help consumers save money and reduce default numbers

    19 June 2012

    Brokers who provide extra education to their clients to ensure full comprehension of mortgage and loan products, could start with education on the fundamentals of obtaining credit, and particularly how to address credit listing complaints, a consumer advocate for credit reporting accuracy says.

    Founder and CEO of MyCRA Credit Rating Repairs, Graham Doessel says potential obligations to educate clients under NCCP as part of the move towards responsible lending could include education on basic credit rights and responsibilities of credit reporting, as well as the ins and outs of the specific finance products offered.

    “Too many people are just not savvy enough about their credit file, and the impact it has on their financial future. Too many people are forced to learn the hard way through being lumbered with bad credit just how the system works,” Mr Doessel says.

    This recommendation comes as industry commentator Kym Dalton claims many borrowers have limited knowledge of the meaning of mortgage products and terms, and that merely satisfying NCCP disclosure requirements may not be enough to keep brokers safe.

    “Disclosure and comprehension are not the same,” he said. “Borrowers are frequently nervous about asking questions when applying for a loan, in case it jeopardises their application,” he told Australian Broker yesterday.

    Mr Doessel suggests further credit education from a broker perspective could begin with some core topics which frequently see consumers come unstuck:

    ·         What a credit file is and what can be reported on it;

    ·         How consumers get ‘bad credit history’;

    ·         The potential impact adverse listings have on a consumers ability to  borrow further;

    ·         The importance of regular credit file checks; and most importantly

    ·         What to do in instances of credit file inconsistencies.

    “Addressing credit file errors and inconsistencies is a big issue. Since an adverse credit listing disadvantages the consumer’s borrowing ability for between 5 and 7 years, there needs to be more education from the finance community as to what consumers can do if they want to dispute something on their credit file.

    Many consumers are really left in the dark about the process and are often told by Creditors that listings cannot be removed from their credit file, and this is unfair,” he explains.

    Mr Doessel says the crucial area of credit listing complaint education could mean brokers help save consumers thousands.

    “Families who are funnelled into a non-conforming loan due to a bad credit rating will be paying a staggering $15,046.57 more just over the first three years of the loan on an average loan amount of $300,000. This is based on a standard variable rate of 7% versus a non-conforming interest rate of 9%,” he says.

    Due to the increase in people saving rather than spending in Australia, many of his credit repair clients are in a better financial position than they have been in years for loan qualification, but are held back from taking advantage of competitive interest rates and stable house prices by black marks on their credit rating.

    “Many clients tick all the boxes for loan approval, until they are knocked back due to credit rating defaults they were previously unaware of – and often those defaults should not be there,” he says.

    He says the best way brokers can prevent this scenario is to help consumers to get savvy with their credit file and the ways their good name can be compromised.

    “People also need to know that clearing credit ratings of errors is neither easy nor quick. They can get the run around from Creditors, but if they believe the listing should not be there, it is a point worth fighting for.

    He says if people have neither the time, nor knowledge of legislation that is required to deal with Creditors, over their credit reporting inaccuracies, a credit repairer can do the work for them.

    “A credit repairer uses their knowledge of credit reporting law to make a more effective case based on the appropriate legislation and also negotiates with the Creditor on the consumer’s behalf for the removal of those inconsistencies from their credit file,” Mr Doessel says.

    /ENDS

    Please contact:

    Graham Doessel – CEO  MyCRA Credit Rating Repairs       Ph 3124 7133

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

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

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

    ——————————————————————————–
    http://www.brokernews.com.au/article/borrower-education-fundamental-for-brokers-140921.aspx

    Image: tungphoto/ www.FreeDigitalPhotos.net

  • More Australians under financial pressure and less to use credit for luxuries says D&B

    Despite a 20-year high in household savings, Dun & Bradstreet’s latest Consumer Credit Expectations Survey reveals more Australians are worried about their financial futures. Those that can are tightening their belts by saving and not spending. But significant portions of the community who are unable to do so, are reaching crisis point. Could we see the rate of defaults rise among these groups as people struggle to keep their heads above water?

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

    Credit reporting agency Dun & Bradstreet’s (D & B) Consumer Credit Expectations Survey September 2012 was released a couple of days ago. D & B conduct a national survey each quarter on expectations for savings, credit usage, spending and debt.

    The latest survey shows a lack of personal savings has six in ten Australians concerned about their current financial situation, with one in three indicating they would be unable to cover basic expenses for longer than a few weeks if faced with a sudden job loss.

    The report seems to show that those that can save are, and those that can’t are reaching crisis point. Likewise with credit – those that are in a stable financial situation are skimping on credit for luxuries, whilst the numbers of low income earners relying on credit just to get by are significant amongst low income households.

    Let’s look at the figures from the survey as they relate to 3 Australian expectations on household savings and stability, credit access and ability to meet credit commitments for this coming September quarter:

    Household Savings and Stability

    The survey found that a third of low-income earners and a quarter of older Australians would only be able to survive for up to one month without a steady income.

    Sixty-nine per cent of those earning less than $50,000 annually and 62 per cent of consumers aged 50-64 are worried about their personal financial health.

    In addition, one in four low-income households and one in five older Australians admit to having no savings, despite a substantial portion (close to one third) indicating that current economic conditions are refocusing their attention towards saving.

    According to Dun & Bradstreet Director, Adam Siddique, some vulnerable demographics are facing significant financial pressures.

    “Our latest research clearly demonstrates that consumers are worried about their financial position.

    “This is partly symptomatic of lingering pessimism from the global financial crisis however, for certain demographics it reflects the reality that households are living hand-to-mouth; with very little savings buffer should unforeseen circumstances occur. So while national household savings levels are at a 20-year high, it is clear that not all consumers are in a position to put money aside,” said Mr Siddique.

    “For the older demographic, concern over finances in part reflects the ongoing fallout from the global financial crisis and its impact on superannuation.”

    Projections for credit access

    More than half of all consumers (53%) will be less likely to spend money on entertainment or other non-essentials this year than 12 months ago.

    Likewise, 40 per cent of consumers are less inclined to use existing credit to buy non-essential items, a figure which rises to 48 per cent for low-income households.

    Expectations for new credit access has also fallen, down five percentage points to just 15 per cent since the March quarter.

    “Ten to 15 years ago consumers were more comfortable living with a lower savings to debt ratio. However, continued global economic uncertainty is weighing on Australian households and dissuading discretionary spending, credit usage and significant investments such as buying a property,” said Mr Siddique.

    Ability to Meet Credit commitments

    40 per cent of low-income households expect to rely on existing credit sources to cover costs – the same demographic also anticipates difficulty meeting current credit commitments.

    Whilst this figure is still too high, the number has actually reduced from expectations in the June quarter, which found nearly half (46%) of all low-income households expect difficulty managing their debt.

    Low-income earners are similarly expecting rising debt levels; 34 per cent compared with 24 per cent of middle-income earners.

    Amongst older Australians, 28 per cent of 50-64 year-olds expect they will need to rely on credit to cover expenses, while 41 per cent anticipate difficulty meeting existing credit obligations.

    Reliance on credit among older Australians comes as one third of consumers aged 50-64 anticipate rising household debt in the coming months, up from 26 per cent during the March quarter.

    The evidence showing older Australians experience difficulty with credit was echoed by Veda Advantage recently. We blogged about seniors (over 65’s) struggling with credit in our post Default rates soar in over 65’s. Veda’s study on generational trends for credit activity showed 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.

    Solutions to financial concerns

    If people bury their heads in the sand about their finances, they can invariably end up with debt and with bad credit history.

    This bad credit can send them into a debt spiral for years to come. Bad credit sticks for 5 to 7 years, so people are banned from mainstream credit at normal interest rates and are forced into payday loans, fringe credit and the non-conforming market, all of which charge significantly higher interest rates for the increased ‘risk’ of lending to someone with a history of poor repayment.

    Rather than allow this to happen, people should put their hands up early, as there are many avenues for help out there today.

    ASIC’s Money Smart website is the best place to start to get some FREE tips on how to make the most of money, get out of debt or squirrel away for a rainy day.

    They also link to a list of free or low-cost financial counsellors who can actively help with budgeting, managing debt and financial difficulties.

    For people who are having trouble with repayments, aside from seeking financial counselling, TALK TO THE CREDITOR.

    Creditors are generally willing to assist people experiencing genuine financial hardship, but they need to be specifically informed of the financial hardship prior to bills going overdue or to default stage.

    ASIC has also put together a factsheet titled Can’t Pay Your Debts? which outlines the process of requesting financial hardship from your Creditor, and other financial solutions.

    People should act as early as possible on financial problems, and look for ways of realigning finances so they avoid defaulting on any payments.

    For those people who may not be struggling with their finances, but are in the 6 out of 10 Australians who are concerned about their current financial situation and want to get savvy with their money – Money Smart can also help, or perhaps Australian savings websites such as http://www.savingsguide.com.au or http://www.simplesavings.com.au/ can offer some motivation and encouragement.

    Image: Nutdanai Apikhomboonwaroot: www.FreeDigitalPhotos.net

    Image: digitalart: www.FreeDigitalPhotos.net

    For help with repairing bad credit history that is affecting your financial future, contact MyCRA Credit Rating Repairs for assessment of suitability for credit repair.

  • The Top 7 Credit File Myths Costing Brokers More Than $50,000 Every Year

    Media Release

    The Top 7 Credit File Myths Costing Brokers More Than $50,000 Every Year

    7 June 2012

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

    Credit reporting is governed by mountains of legislation across different industries. Often we can assume that this system is working, but in reality it doesn’t always work effectively.

    The fall-out from this is credit rating errors on consumer and business credit files that affect your brokerage business.

    Here are 7 myths about credit files that could be costing you thousands in lost commission:

    1. Consumers always know they have bad credit before they apply for a loan.

    Many brokers assume if a client’s credit check reveals a negative listing on their credit file that wasn’t disclosed, they must have been trying to hide it. Whilst this is sometimes the case, there can be many reasons for people not to know they have bad credit until they apply for credit.

    If your client has moved addresses they may not have received the appropriate warning notices or notification of the credit listing; or they may have been the victim of identity theft; been hospitalised; been incarcerated ;  been traveling overseas or been a victim of a system error or human error with the creditor.

    All of these instances can see people end up with a bad credit listing without them knowing it. In many instances the listing has been placed on the credit file unlawfully. Rather than turn these clients away, why not refer them for credit repair.

    2. Credit file listings are always correctly placed on credit files.

    Credit reporting mistakes can and do happen – and it is up to the consumer to ensure that their credit file reads accurately. But if many are not aware they even have bad credit, many more are unable to recognise credit file errors.

    Wrong names, wrong addresses, incorrect notification provided, a Creditor not adhering to the letter to credit reporting legislation, and a Creditor entering a listing which the Client believes should not be there can all potentially be grounds for requesting for the removal of the listing. Credit file errors happen every day. So if the client is at all unsure about the validity of the listing, and the method in which it was listed, they are likely candidates for successful credit repair.

    3. Credit file complaints are easily disputed.

    Some brokers assume that if the listing should not have been there, that it should be fairly easy for the client to request its removal. They assume if the listing is still there – the client must be deserving of it.

    In reality, once a listing has been placed on a credit file, it is very difficult to have removed. So even if the listing shouldn’t be there, most often clients are forced to put up with it for 5-7 years, depending on the listing type. Often clients are told the listing can be marked as paid, but will not be removed from the credit file (unless of course they are lucky enough to know about professional credit rating repair).

    4. If a Default or Clearout is on the credit file it can never be removed prior to the end date.

    On the other hand, if brokers are aware how difficult removing adverse listings can be, sometimes when they see the option of credit repair, they assume it must be a ‘con’, as in their experience listings are never removed from a credit file before the drop off date.

    In truth, unless the client can show why the listing was placed unlawfully on the credit file it will not be removed. So in the case of overdue accounts that have been listed as defaults or clearouts on the credit file, it is up to the client (or the credit repairer acting on their behalf) to show reason as to why the listing was placed unlawfully, and negotiate the listing’s removal.

    There is a lot of legislation which clients need to be up to speed with and it is very difficult for them to apply the letter of the law to their own circumstances – which is precisely why people assume it can’t be done.

    The process of credit repair involves the investigation of the credit file, the request for information on the account from the Creditor, and the determination based on legislation as to whether the credit listing was placed unlawfully on the credit file.  If this is determined, the credit repairer will formally negotiate the removal of the listing from the credit file on the client’s behalf.

    Whilst currently there is no legislative obligation for the Creditor to remove the listing, escalation of the complaint to industry Ombudsmen and the Privacy Commissioner can all improve the chances of removal in justified cases. This legislation is also set to change in the coming months to improve credit listing complaints processes.

    5. Bad credit clients aren’t worth the trouble.

    If you have done a lot of work with a client, only to find out they have bad credit it can be tempting to close the door on them and move on to someone who can be helped more easily. It is true bad credit clients will be rejected by mainstream lenders, but in the interests of good customer service, we should look at alternatives before turning them away.

    You could refer the client for assessment for credit repair as a first option. It saves you time, the credit repairer does all the work from there, and if the client should otherwise qualify for a loan apart from their bad credit, it makes sense to ascertain whether that bad credit history can be removed prior to looking at other options for lenders or simply turning them away.

    6. A bad credit client should be steered to the non-conforming market.

    Instead if you look at your duty of care to your clients, and you believe the client should be able to obtain credit, then the non-conforming market may not be the best option as a first step.

    It would seem fitting that it be ascertained whether or not the bad credit history is valid before providing non-conforming loan options to them.

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

    7. Credit repair is a waste of money.

    Credit repair is not cheap, but it’s not easy either. And it is certainly valuable. You could actually be saving yourself and your clients tens of thousands of dollars.

    Clients

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

    When we look at that in total, the client would be up for a staggering $17,554.34 more just in interest alone over those first three years. It is well worth considering clearing the client’s bad credit and getting them into a standard loan as a first option.

    Brokers

    You can generate goodwill from clients who are saving money and potentially generate great income for yourself.

    Credit rating repair is not suitable for everyone. But for most people who get taken on, the success rate is high. For example, MyCRA have a proven track record of up to 91.7% success rate for every case they take on. This means that whilst not every file can be cleared, there is a good chance.

    If you had only two clients returned to you every month with a cleared credit file it would add $52,120 per year in lost commission to your income. This figure is based on closing two extra deals for mortgages of $355,000 each month, with an upfront commission rate of 0.6%.

    $355,000 x 0.6% comms = $2130 commission

    2 per month is $4260 per month x 12 months (or 24 a year) = $51,120 in comms

    So if you are keen on helping those people you thought were lost, why not go back through your existing databases and restore some hope to those clients that you had previously turned away by referring them for credit repair.

    About Graham Doessel and MyCRA Credit Rating Repairs.

    Graham Doessel is the founder and CEO of MyCRA Credit Rating Repairs – Australia and New Zealand’s leading credit rating repair specialists.

    Graham’s origins are in finance, and he formed/owned the award-winning non-conforming brokerage “Mortgage Now.”
    Graham is a consistent spokesperson in the media for credit reporting issues in Australia and New Zealand.

    MyCRA Credit Rating Repairs, now in its fourth year of operation, has recorded an impressive track record of up to 91.7% rate of removal of inconsistent or inaccurate negative data from the Australian and New Zealand credit reports of both consumers and commercial entities.

    MyCRA Credit Rating Repairs is nominated for the 2012 Telstra Small Business Awards and was placed 24th in the 2012 Start-Up Smart Awards.

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO MyCRA  Ph 3124 7133

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

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

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

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

  • A wait and see approach to logistics of new credit laws

    Most people are very positive about changes to Australia’s Privacy Laws which are coming through Parliament, effectively bringing Australia out of the 1980’s and closer to other countries in our treatment of Privacy and personal information. But others are a little unsure they go far enough in many areas. We look at one opinion of how the new credit laws apply to credit reporting .

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

    An interesting post came through from ‘The Conversation’ yesterday written by Bruce Arnold, Lecturer of Law at University of Canberra. The post Two cheers for privacy law reform? Let’s wait and see looks at the potential benefits of these new Privacy Laws, and where perhaps the laws may be lacking:

    “For many people the bleeding edge of privacy law has been their credit records. The Bill rationalises the current credit reporting regime, which has featured strong disagreement between competing industry bodies and examples of bad practice by particular enterprises. That rationalisation is to be strongly welcomed by consumers and business as providing greater transparency and certainty. Its success however will be dependent on action by the national Privacy Commissioner, an entity within the national Office of the Information Commissioner. Under the proposed law, credit providers will have access to additional personal information with the expectation that more data will facilitate “a more robust assessment” of credit risk and “responsible lending” that may also “result in reductions to the cost of credit for individuals”. As with much finance, we will trust that lenders will pass on their savings to consumers.

    The Bill aims to give the Commissioner greater powers, for example scope for “own motion” investigations rather than in response to complaints by individuals who claim that there privacy has been disrespected. It is unclear whether the Commissioner will make effective use of those powers, given difficulties with resourcing and perceptions – fair or otherwise – that the office lacks both the will and expertise to take on particular interests. Historically it has endorsed industry practice that although commonplace, is below overseas benchmarks and is less than desired by many Australians.

    The Commissioner will be able to recognise external dispute resolution mechanisms, something that is consistent with the trend to outsourcing and administration and presumably welcomed by business.

    The Bill does not provide for a tort of serious invasion of privacy – that is, scope for an individual to seek compensation over an invasion of their privacy by an individual or an organisation. That tort has been recommended by the ALRC and by the law reform commissions of New South Wales and Victoria. It is thus hardly a radical or alarming notion, although it has been strongly opposed by the major media groups and some legal practitioners. The Government’s willingness to proceed with suggestions for establishment of the tort as we head towards an election is unclear.

    Enactment of the Australian Privacy Principles is a step forward, deserving of two cheers even if we ask why has it taken so long and wonder how the APP will be interpreted by the Privacy Commissioner. Rationalisation of credit reporting law, in conjunction with the National Consumer Credit Protection Act 2009 (NCCPA) is also meritorious, although in one of the most messy areas of privacy practice we will need to see how business implements the revised arrangements and whether there is meaningful enforcement by the Privacy Commissioner,” Mr Arnold says.

    It will be interesting to see how the actual application of dispute resolution pans out in the credit reporting landscape including how the changes will alter the Credit Reporting Code of Conduct. We will certainly adopt the ‘wait and see’ approach as to whether the changes will indeed make it ‘easier’ to dispute credit listings and fix unnecessary bad credit as claimed by Attorney-General Nicola Roxon.

    Image: Stuart Miles/ Free Digital Photos.net

     

  • Gillard Government finally recognises the prevalence of credit rating errors, says Graham the ‘Credit Corrector’

    Media Release

    Gillard Government finally recognises the prevalence of credit rating errors, says Graham the ‘Credit Corrector.’

    29 May 2012

    An advocate for accuracy in credit reporting says Australia’s new Privacy Laws finally recognise the prevalence of credit rating errors, and the damage that can be wreaked on the consumer’s reputation and life if they are incorrectly listed with bad credit.

    Graham Doessel – CEO of MyCRA Credit Rating Repairs, and Board Member of the Credit Repair Industry Association of Australasia (CRIAA), says new Privacy Laws which are set to make some massive improvements in the area of correction of inconsistent data on Australian credit files, are long overdue.

    “Someone who presents with bad credit is going to be refused mainstream credit for between 5 and 7 years – depending on the listing type. It’s serious stuff, and if the listing shouldn’t be there, it’s very unfair,” he says.

    Mr Doessel says it is timely that the Government address the difficulties consumers face when they are incorrectly listed with bad credit.

    “Creditors can and do make mistakes when placing listings on credit files, and the onus is on the consumer to identify and address those inconsistencies. But it has very much been a case of David and Goliath – with some consumers finding they are lumbered with listings that just shouldn’t be there due to not having the extensive skills and knowledge required to address their complaints in the appropriate way,” he explains.

    The Privacy Amendment (Enhancing Privacy Protection) Bill 2012, which had its second reading in Parliament last week, is part of the Gillard Government’s ‘modernisation’ of credit reporting, which they say will make the credit reporting regime more flexible and less prescriptive by emphasising industry-led complaint resolution.

    The new laws around complaints correction will:

    • Streamline the correction and complaints process for credit reporting; and

    • Force the Creditor to justify credit listings and actually substantiate the information it reports on credit files; and

    • Allow consumers to complain directly to the appropriate Ombudsman rather than having to go through the organisation’s complaints process first; and

    •  Provide for remedies such as compensation for consumers who are negatively impacted by a Creditor who has failed to comply with credit reporting law (penalties for breaches of the Privacy Act could be up to $220,000 for an individual and $1.1 million for an organisation).

    The introduction of the new laws are too late for Brent Uchtman, who sought MyCRA’s credit repair services last year to fight a disputed credit listing which saw him refused finance.

    Brent applied for a loan after purchasing some land last year, only to be told by his bank that he had a bad credit rating from a phone company that out and out shouldn’t have been there.

    His credit file was finally cleared in November last year, but not before he lost the land contract.

    “I ended up losing the land because someone it got from under me while I struggled with this bad credit,” Brent explains.

    He says his case was slow because the company took so long to provide documentation.

    Mr Doessel says the speed of Brent’s case could have been improved if the Creditor would have had some obligation to substantiate the credit listing, or if the complaint could have been taken directly to the Creditor’s Ombudsman.

    “Finally there is some real incentive for Creditors to take due care with adding listings to credit files and to justify their actions, and we as credit repairers ultimately have a better avenue to help our clients remedy their credit rating errors,” he says.

    /ENDS.

    Graham Doessel – Founder and CEO MyCRA  Board Member CRIAA    Ph: 07 3124 7133

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

    Client details available on request.

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

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

  • Report shows more Australians are forced into accessing fringe credit

    If anyone thought having bad credit meant people were merely unable to purchase big ticket items such as a home or a business – they are sorely mistaken. As our credit repair clients would surely testify, bad credit history permeates through every area of a person’s life, to the point where they can’t even get a mobile phone on a plan. These people, through denial of mainstream credit are forced to seek alternative credit often at higher interest rates – perpetuating the debt cycle even further. This has parallels with a recent study which reports that the high cost of access to basic financial services particularly in remote areas are forcing more and more towards fringe credit as well.

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

    An article published in the Sydney Morning Herald today, titled More of us lacking access to banks revealed the study results – more than 2.9 million adults do not have adequate access to day-to-day financial products such as a basic banking account, car insurance or even a credit card.

    Here is an excerpt from the same story featured in WA Today, Titled More Australians can’t access money: report :

    The research by the Centre for Social Impact – backed by the University of Western Australia – shows the ability to secure as much as $3000 in funds for an emergency through the mainstream financial system is becoming increasingly out-of-reach for Australians.

    Instead, more people are relying on family or friends or turning to fringe credit products, such as payday lenders, who regularly charge substantially higher interest rates than banks.

    Such products have seen a surge in uptake in recent years….

    NAB chief executive Cameron Clyne accepted the banking industry was partly to blame, conceding it needed to lift its game by providing affordable products to more people.

    ”The absence of access to mainstream financial services does preclude people from advancing socially and economically,” he said.

    ”Often it’s the unexpected expenses [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”][such as] if the car breaks down or someone needs to get to a job interview.
    “There’s an obligation for the banking system to improve financial inclusion.”

    Financial inclusion is a big issue. Many people need a fair go – and the chance to borrow small amounts of money at reasonable rates which they might have a chance at paying back, allowing them to actually move forward in life.

    Parallels for bad credit clients

    In our race to ensure we are not throwing money at people when they already can’t handle the credit they have – we have adopted a policy of excluding people who present with bad credit from mainstream lenders. This is responsible lending, but where do those people turn to in emergency situations? The very same places the people surveyed in the WA report do – family, friends or fringe credit.

    It seems a shame to throw people who are already struggling with debt into a ‘debt trap’ of borrowing from pay-day lenders and the like.

    One terrific favour we can do for people we meet who are ‘on the fringe’, struggling with bad credit, is point them in the direction of financial counselling – so that when they are turned away from mainstream credit, they can be given something positive to pull them out of the ‘debt trap’ and deliver them back on the road to financial security.

    And of course, if there is any doubt about whether they should have the bad credit in the first place – then referring them for assessment for credit repair would be the ultimate gift. If they are able to remove the negative history from their credit file which shouldn’t be there, then they have the best chance at a fresh start with credit, and a normal life.[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • How To Save On Your Home Loan and Prevent Mortgage Stress

    A drop in house prices across many parts of the country could see some families owing more than their homes are worth.  Luckily interest rate cuts may offset this change and give people the chance to make some headway on their home loan despite the reduced equity. So what are some real and significant things families can do to actively reduce their home loan and prevent mortgage stress or at worst – bad credit from late payments?

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

    The Australian Bureau of Statistics reported earlier this month that house prices around Australia have fallen by an average of 4.5 per cent over the past 12 months.

    For people who have recently purchased their first home, this could amount to some negative equity – which is quite a frightening prospect for many. For those about to purchase their first home – it could put them off buying all together. But this may not need to be the case. Certainly many buyers in this market should be fairly cautious with where they buy – but it just may be a case of ensuring they look at their purchase as a long term investment – structuring their loan accordingly if possible and allowing for places where they can make extra payments to their loan.

    The Sydney Morning Herald recently ran an article titled Extra payments a winner showing how the recent interest rate cut can actually make a significant difference for home owners if they continue to make mortgage repayments at the previous level.

    “The 50-basis-point cut represents a $96 a month reduction in mortgage payments for home buyers with an average-size loan of $300,000 (assuming the full cut is passed on).

    But for people who can afford to maintain their payments at their current higher level it presents a great opportunity to make inroads into their outstanding principal and build a buffer for tougher times.

    Given the uncertainty in markets, and the economy, it is a good strategy to build greater equity in the home,” the article says.

    They recommend visiting ASIC’s Money Smart website to calculate the potential interest saved on extra payments to their home loan: www.moneysmart.gov.au/tools-and-resources/check-asic-lists .

    The article included this significant advice for borrowers:

    A home borrower’s handbook to keep you out of trouble

    ❏ Know what you can afford. Don’t rely on the lender to tell you what you can borrow. Make your own assessment by writing a household budget with all outgoings and see if there is enough to cover the mortgage repayment. According to Veda Advantage and Fujitsu Consulting mortgage stress reports, the groups that most often get into trouble with repayments are low-income families and young families.

    ❏ Don’t just look at the rate. According to QBE LMI’s 2012 Australian mortgage market study, when people are looking for a loan they place most emphasis on the interest rate and the fees. Options such as redraw, offset and the ability to split the loan between fixed and variable rates are given a low priority.

    ❏ Stress-test your loan. Lenders will check to see if you can continue to make payments if rates go up 2 percentage points. What if rates go up 3 percentage points or more?

    ❏ Watch your credit-card spending. Surveys of people experiencing hardship with home-loan repayments show that large credit-card debts can be the trigger for arrears or defaults.

    ❏ Make extra repayments. According to ING Direct’s Financial Wellbeing Index, 40 per cent of mortgage holders are making extra repayments on their home loans. These payments serve two purposes: they create a buffer that can be called upon if circumstances require; and they speed up the repayment of the loan.

    ❏ Invest in your mortgage. A lump-sum payment that reduces the loan principal is, in effect, an investment with a return equivalent to the mortgage interest rate, free of tax.

    ❏ Deal with problems early. The Legal Aid Mortgage Stress Handbook recommends that borrowers seek advice early from their financial institution or a financial counsellor. Many people leave it too late.

    Unfortunately, for those home owners who have entered into a higher interest rate with a non-conforming loan, the interest rate cuts will be negligible for them. They can be up for tens of thousands of dollars more during the first three years of the loan. Our calculations show on a home loan of $400,000 they could be charged an extra $22,867.15 more in home loan repayments over the first three years of the loan. This is based on average loan of $400,000 over 30 years on non-conforming loan interest rate of 9.5% versus the standard variable rate of 7%.

    To calculate potential savings people can visit the MyCRA Calculator.

    For people considering a non-conforming loan due to bad credit that should not be there, it would be extremely beneficial for them to instead look at disputing the credit listing and having their credit rating repaired. If they were successful in having listings removed from their credit report which either should not be there or were put there in error, they could restore their good credit rating in this instance and apply for a standard home loan – potentially saving themselves thousands.

    But instead it is often the case that people get a negative credit listing after a dispute with a creditor or worse – surprise bad credit – and are under the impression they have to put up with the hand they are dealt with. Some contact their creditor, and are told that they can have the listing marked as paid if the account was paid, but the listing is never removed from their credit file. The ‘paid’ listing is unfortunately still going to be a detriment to their ability to qualify for a home loan and they are stuck with the tag of ‘bad credit’ for between 5 and 7 years depending on what’s on their credit file.

    However, if the listing was put there unlawfully or unjustly, then the credit file holder does have the right to have those inconsistencies addressed and potentially removed from their credit file. It takes lots of knowledge of the relevant legislation and some good negotiation ability to be able to formulate a successful case to remove a listing. Which is where credit rating repairers come in – to act on the credit file holder’s behalf and enforce that legislation creditors are bound to comply with, helping to demand accuracy in credit reporting and negotiate for the removal of those listings which shouldn’t be there.

    In this market – it can make all the difference for a potential borrower – and be a fight entirely necessary to make to ensure people get the home loan they deserve.

    For help and advice on credit rating repair, contact MyCRA Credit Rating Repairs on 1300 667 218 or visit our main website www.mycra.com.au.

    Image: chainat/FreeDigitalPhotos.net

  • How to help more clients… A former award winning broker shows why the millions of Aussies with bad credit are not lost

    Those brokers who are just in it for the money are few and far between in this market.  Those that have hung around despite all the market conditions thrust upon them must have a passion for the job, and a drive to see people realise their dreams of home or business ownership. We show you why more of the people you come across every day could end up being your biggest fans and clients for life.

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

    As brokers, you are restrained by so many conditions which are simply out of your control in the current market.

    Left over from the Global Financial Crisis (GFC) are tighter lending conditions and nervous borrowers. Put this together with regulations for National Consumer Credit Protection (NCCP) compliance, and the result is unfortunately a diminished client base.

    Let’s face it – in this market, if you have to pick between a client with a perfect application or one which is slightly tarnished or impaired with bad credit (paid or unpaid), then it’s likely that you’ll choose the squeaky clean one…no headaches, no worries…and no extra indemnity insurance on a non-conforming loan.

    But most brokers do not know there is another way.

    In more than 9 out of 10 cases, bad credit history can actually be repaired. Engaging credit rating repair for a bad credit client gives the client the home at the best possible interest rates, and you the commission – and trail.

    Everyone wins.

    Plus, all parties are doing their part to help improve consistency in credit reporting through ensuring creditors enter listings fairly and accurately.

    For those who don’t know, here is how credit rating repair works…

    Bad credit can occur for a number of reasons:
    • Due to a dispute on a bill, such as a telephone or power bill;
    • Because of a change of address;
    • A major sudden upheaval such as illness or death;
    • Identity theft or fraud; or
    • Simple human error by the creditor

    The creditor defaults the consumer on one or more of their credit records held by the three (soon to be four) Credit Reporting Agencies in Australia.

    Defaults and other negative listing entries are strictly controlled by several pieces of legislation and several more codes of conduct. This aspect itself creates many grey areas and of course, is subject to interpretation.

    Consumers are blessed in Australia to live in a place where they are highly protected. Some of these protections are spelled out throughout the several thousand pages of legislation that works with and around Credit Reporting Law.

    Because the legislation is lengthy and involved, it gives those that are informed quite a lot of power. This knowledge is sometimes weighted heavily on the side of the creditor and leaves consumers with little ability to effect change in their own circumstances.

    For this reason, credit rating repairers have grown in popularity, as we are often the only people on the side of the consumer with the knowledge needed to fight the case on their behalf.

    As credit rating repairers we know this legislation. We review and consult it on a daily basis, looking to discover new and interesting methods to have bad credit set aside.

    During the process of discovery, we receive mountains of paperwork from your client’s creditors – which often include account statements, invoices, contracts and file notes.

    We review this documentation, constantly referring back to the legislation to formulate a case for your client. Once we are aware of any errors in the way the listing was added to your client’s credit report, we alert the creditor that the listing may be unlawful and request its immediate removal.

    At this stage it can sometimes get interesting, as many creditors genuinely believe that what they have done has been lawful and it’s up to us to educate them on where they have made errors.

    Occasionally, this can be a lengthy process and sometimes it may require the assistance and rulings of external governmental bodies.

    In more than 9 out of 10 cases, your client will be victorious. They can then go back to you to have their mortgage approved, their home loan settled, and their family can move into their very own home.

    I’m imagining a blue, round kiddie pool in the backyard, with a little sandy coloured puppy chasing the kids as they run up the slide to the cubby house, laughing and giggling all the way. That was my backyard a few years ago. My kids are all grown up now – one is about to get married. But those fond memories of us as a young family in our own home still remain.

    That is the power you have in your hands right now – to make someone’s dreams come true.

    Contact MyCRA Credit Rating Repairs tollfree on 1300 667 218 to speak with a consultant about our broker referral system.

     

    About Graham Doessel and MyCRA Credit Rating Repairs.

    Graham Doessel is the founder and CEO of MyCRA Credit Rating Repairs – Australia and New Zealand’s leading credit rating repair specialists.

    Graham’s origins are in finance, and he formed/owned the award-winning non-conforming brokerage “Mortgage Now.”
    Graham is a consistent spokesperson in the media for credit reporting issues in Australia and New Zealand.

    MyCRA Credit Rating Repairs, now in its fourth year of operation, has recorded an impressive track record of up to 91.7% rate of removal of inconsistent or inaccurate negative data from the Australian and New Zealand credit reports of both consumers and commercial entities.

    Graham and MyCRA Credit Rating Repairs are proud to be a part of developing a self-regulating framework for the credit rating repair industry through the lead role in the formation of a credit rating repair industry body.

    MyCRA Credit Rating Repairs is nominated for the 2012 Telstra Small Business Awards and the 2012 Start-Up Smart Awards.

  • Protect your credit file when co-borrowing for a home

    Got some savings, want to start in property but can’t afford a home loan on your own? You are part of a growing trend of Australians who are seeking out home buying ‘partnerships’ to get into the property market. We look at how this is happening, and what you should be aware of to protect your clear credit file when entering into this type of joint debt arrangement.

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

    In Broker News yesterday, it was noted there has been an increase in the number of first homebuyers partnering up to buy property. BN reported research from Mortgage Choice revealing up to two-thirds of first homebuyers will be planning to buy with someone else. De facto couples, friends, relatives and even work colleagues have been entering into home buying partnerships  to be able to afford property:

    “Sharing a home loan commitment with one or more people provides borrowers with the opportunity to split the cost of the property and the associated expenses, so that loan repayments are noticeably less than what they would be if they were buying solo. Another benefit is if the combined funds equate to a deposit of 20% or more of the purchase price, it will negate the need for lenders’ mortgage insurance,” company spokesperson Belinda Williamson said.

    But with those benefits come some things to be wary of. Some of us are great with money and some of us aren’t. If one of each type get together – the potential for both to be financially damaged is greatly increased. As credit rating repairers, every day we meet people who need help with fixing credit rating issues due to the financial shortcomings of a partner.

    De-facto couples

    When de-facto couples decide to take out a home loan together, as with married couples there can be many ways that joint debt can go wrong. Living together can increase the risk of credit file damage, just through the sheer volume of credit accounts that one or the other or both needs to be responsible for. The lines can get blurred, and if things go bad, joint debt can be difficult to fix. Very often one partner ends up with a bad credit score, simply because the other person on the account has not made repayments to the account. Often people are unaware their partner is generating defaults on their credit rating until it is too late. They apply for credit in their own right and are refused.

    Relatives

    Family joint debt can go really well, or really badly. There is generally a large element of trust. But as with de-facto couples emotion can get in the way of good business sense. People can make promises out of love without official documentation. If things go badly, it can not only damage the financial futures of the parties involved, but break down the family.

    Friends and work colleagues

    If the financial relationship is ‘strictly business’, it may be easier to separate the home loan from all other credit the individuals may possess. This is especially true if the property is purely an investment and neither person is living in the property.

    What happens if it all goes wrong?

    When we take out a home loan with someone else, and even rates, utility and phone accounts, we are very reliant on the partner to keep up their end of the credit repayments.

    A bad credit score due to a default (late payment of account past 60 days) lasts for 5 years, a ‘clearout’ listing is 7 years. During this time it is near to impossible to get another home loan, or credit card, or even a mobile phone plan while this negative entry appears on your credit report.

    So many times we hear clients say “I’m not sure how this happened – how can my clear credit file be damaged by something someone else did?”

    Unfortunately with any joint debt, both credit files are at risk if repayments aren’t made.

    How can I cover myself and my credit file?

    Here are some ways we can enjoy the benefits of getting into a home loan partnership without the pitfalls that could crop up for our credit file:

    1. Know about your new financial partner’s past credit history. People will do what they have always done. If they have financial skeletons in the closet we should be wary about leaving our credit rating at risk.

    2. Ask what debts they currently have. This will give you an indication of how they feel about money, and how much debt they consider normal to handle. Does this match with yours?

    3. Talk about paying bills. Do they always pay them on time? If not, why not? This will give you a good indication of how this person regards money and credit repayments.

    4. Ask what their financial goals are for the future. Do they match yours? If you intend to hold on to the property whilst the partner intends to sell in a few years to repurchase, are you prepared to pay them out? Will anyone be living in the property? How will you divide expenses on the property?

    5. Verify their answers about existing and past debt. Ask them if you can see a copy of their credit file. A copy of your credit report is free every year from one or more of the credit reporting agencies in Australia. It will be sent within 10 working days.

    6. Get all agreements in writing. Consider getting a solicitor to draft something up if necessary.

    “Clearly putting the ground rules in place from the start, preferably with the assistance of a solicitor drawing up a formal agreement, will go a long way to ensure all parties acknowledge their responsibilities and agree on unexpected contingencies,” Mortgage Choice’s Ms Williamson said.

    7. Leave emotion out of it. As much as you may be friendly with or even love the person you are buying the property with – people fall out. As much as possible try and detach your emotions while entering into the ‘business transaction’ you are making, so that if something does go wrong between you, your clear credit files remain intact.

    For more information on fixing bad credit or protecting your credit file, contact us at MyCRA Credit Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

    Image: savit keawtavee / FreeDigitalPhotos.net

  • Interest rate cuts no help for millions of Aussies living with credit file defaults

    Home loan rates were reduced on 1st November, but for millions of Australians who are living with defaults on their credit file, they will be hit with $22,867.15 (1) more in home loan repayments over the first three years of the loan.

    The Reserve Bank of Australia has cut interest rates for the first time in more than 2½ years, lowering its key cash rate by 25 basis points to 4.5 per cent.

    Many big banks have already passed on the reduction, potentially saving the average householder about $49 per month. We talk about massive savings for the average Australian with these cuts, we talk about encouraging people to switch lenders to increase competitive rates, but this is not a reality for people with credit rating defaults.

    For those approximately 3 million or more* Australians who are living with defaults on their credit file, the interest rates cuts will be negligible. Most banks won’t lend them money, forcing them into non-conforming loans and paying top dollar because their credit file shows they are a bad risk – and it may not be true. *(3.47 million – Source Veda Advantage Nov 2008).

    For the five year term of the default they will be paying a staggering $702.21 (1) more per month if they enter a non-conforming loan at higher than standard interest rates.

    (1) Based on average loan of $400,000 over 30 years on non-conforming loan interest rate of 9.5% vs standard variable rate of 7%.

    And the alarming part of this is that many of the defaults sitting on Australian credit files today simply should not be there.

    There are more than 14 million credit files in Australia (14.7 million files are held by credit reporting agency, Veda Advantage alone), and approximately 3.47 million negative listings, but the number of possible errors which exist is not certain.

    The possible volume of errors on Australian credit files was exposed by a small scale study conducted in 2004 by the Australian Consumer Association (now Choice Magazine). It revealed about 30% of Australian credit files were likely to contain errors.

    “In our view, there are serious, systematic flaws which are leaving an increasing number of Australian consumers vulnerable to defamation, mis-matching and harassment,” the ACA report said.

    Transferring those figures from the Choice study to the number of credit files in Australia today, could mean potentially 4 million errors currently exist on credit files in Australia.

    Recently Channel 7’s Today Tonight interviewed Veda Advantage’s Head of External Relations, Chris Gration on the possible number of errors on credit reports. He admitted errors within their system alone amounted to 1%.

    “We give out about 250,000 credit reports to consumers every year. But only in 1 per cent of cases is there a material error on the file, so a default or an enquiry that’s incorrect,” Mr Gration told Today Tonight.

    Even if as little as 1 per cent of those 14 million credit files contained errors, that would still currently leave 140,000 credit files in Australia containing errors that just shouldn’t be there.

    Under current credit reporting legislation, it is up to the consumer to check for errors. Credit file holders are able to obtain a copy of their credit report from one or more of Australia’s credit reporting agencies for free every 12 months.

    But consumers are often not aware across the board of their responsibility to check the accuracy of their own credit file so many errors go undetected until such time as people apply for credit such as a home loan.

    But by then the matter is urgent, and they are generally forced to take on non-conforming loans at sky-high interest rates to secure the home. Or give up on their dreams of home ownership altogether, at least until the default listing runs its term. (Unless of course they or their broker are familiar with how credit repairers work).

    Many people don’t realise that any person who finds inconsistencies on their credit file has the right to have the discrepancy rectified. As many people find out – that is easier said than done.

    When disputing any adverse listing, it is up to the credit file holder to provide reason as to why the creditor has not complied with legislation. Unfortunately many people find this process difficult – negotiating with creditors is not always easy for the individual to undertake.

    That’s where credit rating repairers come in to close that gap.

    Credit repairers check the process of listing defaults for legislative and or compliance errors, any such errors could deem the credit file default listing unlawful, at which time the creditor is advised by the credit repairer to remove the default. This usually results in a clean credit record allowing people to borrow with the lender of their choice.

    So if people are forced to pay thousands more in interest due to credit rating defaults, which leaves them struggling to get ahead on their mortgage OR if a new loan applicant finds they are surprised with a bad credit report which could see them entering into a high interest loan, it may be worth contacting MyCRA Credit Repairs tollfree on 1300 667 218 to find out whether they may be a suitable candidate for credit repair.

    Image: Salvatore Vuono/ FreeDigitalPhotos.net

    Image: photostock/ FreeDigitalPhotos.net

  • Till debt do us part: Navigating joint finances

    Some people are great with money – but can still experience financial downfalls and sprial into debt and a bad credit rating due to the shortcomings of their partners.

    Often people are unaware their partner is generating defaults on their credit rating until it is too late. They apply for credit in their own right and are unable to proceed due to debts and bad credit their partner has initiated while they are together.

    Often we hear from clients “I’m not sure how this happened – how can I be responsible for something my partner did?” Unfortunately when couples go into joint debt, both credit files are at risk if repayments aren’t made.

    So how do people protect themselves, their assets and their good credit rating, BEFORE they marry or move in together?

    Recently savingsguide.com.au looked into this issue in their post ‘The Debt Affair: When your partner is hiding debt’.

    They talk about establishing financial boundaries when people are new in a relationship. The article talks about the signs to watch out for when people suspect their partner is hiding debt.

    Some of those include:

    -Assume that the truth may be stretched when it comes to money
    -Often money problems can be a result of another issue: stress, addiction, self-esteem.
    -Discussing money is taboo
    -Do their spending patterns show they spend more than they have?
    -Ask for full disclosure

    People should remember that relationships in their new stage are some of the most exciting times in our lives. But when it comes to taking the next step and moving in together, everyone should ask about their partner’s financial past.

    Otherwise they may be forced to suffer with a bad credit rating due to mistakes made by partners – past or present.

    Bad credit is such a phenomenal problem in this day and age, with lots of people living beyond their means and creditors eager to issue defaults.

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

    People should sit down together before any ties are made and discussing what financial position the other is in. Ask whether they have any debt; talk about paying bills; get a general feel for how this person regards money and finances. If they appear too blasé about money, this should ring alarm bells. It may not mean the relationship needs to end, but it should mean you keep finances separate for a significant period of time. You could also suggest getting a copy of your credit files to see if there are any blemishes.

    A credit file is compiled on any person who has ever been ‘credit active’. It lists personal details like name and address, but also any times the person has applied for credit, any defaults (overdue accounts), court judgements, writs and bankruptcies.
    Prospective partners can request a copy of their credit file for free from the major credit reporting agencies – Veda Advantage, Dun & Bradstreet or Tasmanian Collection Services (if you are Tasmanian) and Experian. This will be provided within 10 working days.

    Any black marks on a person’s credit file remains on their file for 5 years and can greatly hinder a person’s chances of receiving further credit.
    A bad credit rating sticks. Most clients find they are black listed from credit for a five year period following a default on their record. Even having too many credit enquiries or a default from a simple unpaid phone bill can be enough to be refused a home loan with most lenders in the current economic climate.

    My CRA Credit Repairs has some tips for people entering into a new ‘financial’ relationship:

    •When you enter into any financial agreement with another person – don’t bury your head in the sand when it comes to the repayments. Regularly check your statements and bills so you can catch problems early.
    •Be aware that as high as emotions can run, they can also get just as low. Your financial generosity now could become the very thing that is used against you if the relationship sours. Consider carefully how secure you would be in each transaction if things did take a turn for the worse.
    •Consider keeping some things separate. Just because you have bought a home together doesn’t mean you can’t keep other bank accounts, credit card and previous homes in your name only.
    •Get a copy of your credit file regularly. This will notify you of any problems before you apply for credit in the future.

    Contact MyCRA Credit Repairs on 1300 667 218 for help with credit repair.
    Image: photostock/ FreeDigitalPhotos.net

  • Caught affluenza? How it can affect your credit rating health

    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.

    The Wikipedia explanation of affluenza refers to it as “a painful, contagious, socially transmitted condition of overload, debt, anxiety and waste resulting from the dogged pursuit of more.”

    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.

    Recently Fran Sidoti from SavingsGuide.com.au posted an interesting article about this topic titled Affluenza, And What It Might Mean For You. She says it starts by wanting a big house, and then all of those things that go in it, and with it – but that when we have everything, we are still not happy. She suggests we take a step back and employ old-fashioned values like “building a strong family, especially with an awareness of role models like grandparents who wouldn’t recognise affluenza if it bit them. A respect for hard work and the money it earns is crucial, as is emphasis on philanthropy and charity.”

    Australians Clive Hamilton and Richard Denniss’ book, Affluenza: When Too Much is Never Enough, poses the question, “If the economy has been doing so well, why are we not becoming happier?”

    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.

    Affluenza pulls no punches, claiming our whole society is addicted to overconsumption. It tracks how much Australians overwork, the growing mountains of stuff we throw out, the drugs we take to ‘self-medicate’ and the real meaning of ‘choice’. Fortunately there is a cure. More and more Australians are deciding to ignore the advertisers, reduce their consumer spending and recapture their time for the things that really matter.”

    How many of us know someone who has gotten really sick – so sick that they lose everything – the house, the car, the job. If they are lucky enough to survive it, they always seem to have this new-found view of money. They often make that life changing decision to cut back on all those material things. They say they appreciate that the real joy in this world comes from spending time with family and friends and also dedicating some time to themselves.

    A new perspective on credit

    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.

    How healthy are we looking?

    It is perfectly okay to use credit, 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.

    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.

    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.

    A clean slate

    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.

    Visit MyCRA’s website www.mycra.com.au for more information on credit repair.

    Image: Salvatore Vuono/ FreeDigitalPhotos.net

    Image: photostock/FreeDigitalPhotos.net

  • Identity theft is losing your good name

    Media Release:

    A prominent Welsh comedian has called for governments to insist on stricter checks by creditors to help combat the growing issue of identity theft.

    Bennett Arron, who was a keynote speaker at the AusCert 2011 Information Security Conference Overexposed, says creditors merely reimbursing identity theft victims in lost monies is not an adequate solution to identity fraud, and can still leave victims financially crippled if their credit file has been tarnished.

     “Many companies and banks are too quick to take on clients and say that they will take any consequences themselves. What they don’t understand is that it’s not the money aspect which is the problem it’s the affect it has on [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”][the victim’s] credit rating”, Mr Arron says.

    Arron was a victim of identity theft in the 1990’s in the UK, which left himself and his pregnant wife homeless and penniless.

    “There were thousands of pounds of debts – in my name. So as far as the Credit Companies were concerned, the debts were mine. It took me almost two years to clear my name and regain a good credit rating” he says.

    The fraudster, who had moved into Arron’s old address, received a pre-printed shopping card with Arron’s personal details on it, which he then used to purchase credit in several places. Arron says at the time, if more checks had been carried out the fraudsters may not have gotten away with it.

    “The perpetrator had even used a false date of birth – but no one verified it” he says.

    Arron went on to make a TV documentary, called How to steal an Identity, in which he demonstrated how easy it was to steal an identity in the U.K. He obtained a driver’s licence in the name of the then home secretary, Charles Clark.

    Arron has since been speaking out about his experience with identity theft, in an attempt to raise awareness of the issue globally.

    A national credit repairer says Arron’s case is a pertinent example of how many people can be caught out with identity theft. He says mail getting into the hands of a fraudster is a common way people can become victims of fraud. The effects can be felt for up to 5 years in Australia if someone’s credit file is affected.

    “Unfortunately more and more of our clients are faced with the issue of identity theft. Once the fraud impacts someone’s credit rating, they are often unable to obtain even a mobile phone in their name.  It need not be large-scale fraud to be a massive blow to the victim’s financial future” Graham Doessel, Director of MyCRA says.

    Once an unpaid account goes to default stage, the account may be listed by the creditor as a default on a person’s credit file. Under current legislation, defaults remain on the credit file for a 5 year period.

     “What is not widely known is how difficult credit repair can be – even if the individual has been the victim of identity theft, there is no guarantee the defaults can be removed from their credit file. The onus is on them to prove their case and provide copious amounts of documentary evidence” he says.

    The Australian Crime Commission now sites identity theft as the fastest growing crime in the country, costing upwards of $1billion to the Australian economy, and possibly affecting at least 500,000 Australians per year.

    “Identity theft and its consequences is a red-hot issue right now because we are all feeling vulnerable to it. Recent worldwide data breaches such as from Sony PlayStation have left many of us feeling insecure about who to trust with our personal information, and what power our governments have to protect us should it occur” Mr Doessel says.

    Mr Doessel says the best defence an individual can take against identity theft is to get educated on how their personal information can be put at risk.

    “Register for the government’s Scamwatch alert system, which keeps you updated on the latest scams to be wary of. Also check out the Office of the Australian Information Commissioner’s website (formerly Privacy Commissioner’s website) which has a host of information on how to maintain the privacy of your personal information when using the internet and mobile phones.”

    “You also have to think like a criminal – ask yourself – what kind of information am I leaving open out there for fraudsters to use? Buy a shredder and cross-shred any personal information at home that you don’t need to keep on file; keep your details secure on social networking sites; and ensure your credit card transactions online are from a secure site and you know who you are transferring money to” he says.

    Education also extends to knowing what is on your credit file.

    “Often credit file discrepancies can be the first sign we have been victims of identity theft. We recommend every person who is credit active obtain a free credit report to ensure that everything on their file is as it should be. That way if there are any problems, they can be rectified while there is no urgency” he says.

    Under current legislation a credit file report can be obtained for free every 12 months from the major credit reporting agencies Veda Advantage, Dun and Bradstreet and Tasmanian Collection Service and is sent to the owner of the credit file within 10 working days.

    For those who are vulnerable to identity theft, they can pay extra with Veda Advantage to have their file on an ‘alert’ system, which tracks any changes to their credit file that may occur within a 12 month period.

    If people find defaults on their credit file after the credit check, they can contact a credit repairer to have them removed.

    “Unfortunately in most cases, attempting to remove the default themselves can do more damage than good by not understanding the process fully, almost like trying to defend themselves in court. They might do OK, but they only get one shot at it and if they don’t get it 100% right, they will be unsuccessful. There is no appeal in most cases” he says.

    “Using a credit repairer usually gives people the best chance of getting defaults, writs and Judgments completely removed from their file if they contain errors, are unjust or just shouldn’t be there. Complete removal gives people back their right to obtain credit in the future,” he says.

    /ENDS

    Quotes:

    FROM EXCLUSIVE INTERVIEW WITH BENNETT ARRON & MY CRA CONDUCTED 20/5/2011

    Links:

    ACCC IDENTITY THEFT REPORT:

    Link1

    Link2[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Vanuatu – What can we learn to help our businesses in Australia..

    VANUATU… It is a beautiful place and the people are some of the warmest, most friendly people I have ever encountered..

    [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”]

    Pele Islane Vanuatu
    This is the view we had eating lunch on Pele` Island at Vanuatu

    Yesterday we did a tour of Pele Island. Prior to leaving the main Island (Efate), we stopped at a local supermarket and were asked that, if we could afford it, to buy a few books and pencils etc. for the school kids as they don’t have much… We bought a few items and were on our way.

    The island was beautiful and the snorkeling was breathtaking… (pardon the pun..)

    Then we walked 600m through a jungle track to the local primary school that services the 4 vilages on the island.. There were 72 children at the school and they were amazing..

    They sang 4 songs for us with the power of professionally trained performers.. absolutely amazing…

    Our tour guide, Morris (from Evergreen Tours) is a local from the island and was a support teacher at the school for a number of years.. He showed us the facilities at the school which included the 1 (one) text book that the teachers work out of for the grades 5 and 6 kids.. it was many years old and pages 1 – 14 were missing…

    We finished our look around the school grounds and handed our megre offerings of the few books and pencils to the head teacher.. and left..

    Today we went shopping and have been trying to find a few extra things (more exercise books, pencils, dictionaries etc) for the kids and have the realisation that we may make a small difference but how much we take for granted in good old Australia…

    Most locals make approx $1.50 – $3.00 per hour and yet the prices are higher than in AU.. they do everything with the biggest, warmest genuine smiles I have ever seen..

    Most of the clients that you (Our brokers and referrers) refer to MyCRA either didn’t know they had defaults or didn’t realise the implications of having the defaults before you explained it to them. In some cases, this new knowledge has cut them deep and it takes a little while for them to come to terms that they don’t have the same options as someone with clean credit.. A few kind words and a friendly smile can make a huge difference..

    Just a quick reminder that I am making myself available to groups to do presentations on credit rating repairs and how a broker / referrer can make more money and settle more loans.. If you have a group of 50 or more that you think would benefit from a quick 20 – 30 minute presentation followed by question time, please email me in info@mycra.com.au and we will try to slot you in..

    I have learnt a lot from these wonderful people and it will stay with me for a lifetime..[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Australians are battling with creditors and agencies over their credit rating

    CREDIT rating defaults are very easy to come by, but not so easy to remove on your own, according to credit repair company MY CRA.

    Director GRAHAM DOESSEL says it would surprise most people that thousands of Australians have black marks against their names, and many are unaware they have them until they apply for credit. When they attempt to remove those blemishes themselves, they are coming up against a brick wall.

    “Every day I deal with people who have experienced difficulty in removing defaults themselves with the credit reporting agencies. Effectively even if the default is not yours, even if you have suffered from identity theft, many times all a credit reporting agency will do is mark the listing as paid.”

    “In these economic times, any black mark will stop people obtaining a home loan with most lenders.  In fact at the moment, even having a few ‘credit enquiries’ on record can be enough for an automatic decline, even if there are no defaults” Mr DOESSEL says.

    There are different types of what may be considered ‘bad’ credit ratings from external administrations and bankruptcies through to credit defaults and even excess credit enquiries. If people have overdue power bills, rent and phone bills of more than 60 days late then a provider has the right to notify you of their intentions to record this default on your credit file.  This default will stay on record for 5 years regardless of whether it has been paid.

    “A couple we worked with recently went to apply for a home loan and were told the loan was denied because they had a default on their credit rating.  They were really surprised as they had genuine savings and what they thought was no debts.  It turned out they had missed a payment of $180 on an electricity bill and the company had listed the default on their credit file even though the bill had later been paid.  They were not notified of this listing”.

    “When they attempted to clear the default they had a terrible time and were eventually told by VEDA that defaults are never removed but can be marked as paid. The couple thought this was not good enough and contacted us (My CRA) to see what could be done.  We were able to step in and actually remove the default.  Luckily the couple were able to purchase a home in the future” Mr DOESSEL says.

    Mr DOESSEL says this is a common complaint amongst his clients “Generally speaking, because people don’t have experience and don’t know the appropriate legislation, the creditors bluff their way out of doing anything. Many clients are jaded wasting months and sometimes missing out on houses, basically getting very frustrated with the whole process”.

    A study conducted by AUSTRALIAN CONSUMER ASSOCIATION (now CHOICE magazine) in 2004 found as much as 30% of all credit files contained errors. Often the defaults have been listed without due process followed and before clients have been notified of the creditor’s intention to list a default.

    Under the current legislation, errors on your credit file can and should be removed. So with the difficulties faced by clients in negotiating with creditors, third party credit file repairers like MY CRA have been sought out by time poor and frustrated clients.

    The process of removing a default, writ or judgment is much easier than doing it alone. The client obtains a copy of their credit file, notifies in writing the black marks they feel are listed incorrectly or unjustly and together with authority forms, forwards it all on to the credit repairer.

    The credit repairer then deals with the appropriate parties and negotiates on a person’s behalf to erase these blemishes.

    Mr DOESSEL says if the default, judgment, writ or other black mark is listed incorrectly, unjustly or just shouldn’t be there at all, provided you are using an experienced and skilled credit repair company, then there is a strong chance it can be erased.

    Currently MY CRA’s had up to a 91.7% success rate in default removal and can be removed from as little as 3 days but average is around 45 – 60 days.

    “For example, we had a client who had a single default with a phone company which was due to a mix up with addresses. They had failed to contact her about it, and it was only when she applied for store credit a couple of months later that she became aware of the default. We were able to remove that default in 4 days for her” Mr DOESSEL says.

    He says if people don’t have the time or patience to deal with creditors and need an absolutely clear credit file, then they would be suitable candidates for MY CRA services.

    The MY CRA website has more information for people who are struggling with their credit file. There are fact sheets on how to go about removing defaults and more information on credit and its consequences in AUSTRALIA today. www.mycra.com.au

    ###

    Please contact:

    Graham Doessel      http://www.mycra.com.au/

    Ph: 07 3124 7133

    246 Stafford Road, STAFFORD QLD.

    Link to info on ACA report:

    http://www.theage.com.au/news/business/record-class-action-possible-against-veda/2007/05/01/1177788141045.html

    About MyCRA.com.au

    MyCRA.com.au is 100% Australian owned and operated and we are based in Stafford, a northern suburb of Brisbane in Queensland.

    My CRA was developed for the sole purpose of giving clients access and ability to work with their Credit File.   This is in order to give them the best chance of getting approval, getting a lower interest rate or just to reduce the upfront fees that can be associated with obtaining credit

    We have more than 30 years combined experience in working with and helping clients with their credit files. We are  the fastest known credit file repair agency in Australia and can often remove judgments in as little as 3 days.