MyCRA Specialist Credit Repair Lawyers

Tag: credit file default

  • Aussies squirreling away savings with credit cards falling out of favour

    Has job uncertainty, slow wage rises and the mounting cost of living got you focused on saving and paying down your debts? This is a trend seen amongst more and more Aussies this year. We’re cutting up our credit cards and replacing them with debit cards. We’re choosing personal loans over chunks of credit card debt and we’re choosing to put our plans for a home loan on ice. These are the latest findings from Veda’s Consumer Credit Demand Index for the September quarter. We look at this report, and the projections for credit use and the Australian economy in the future.

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

    Veda’s Consumer Credit Demand Index shows a shocking 10 per cent drop in credit card applications in the September quarter – reaching their lowest level in 9 years.

    Overall consumer credit demand contracted by 1.4% for the September quarter, continuing Australian consumers’ trend of cautious spending and debt reduction.

    Veda’s general manager of consumer risk, Angus Luffman, told the Herald Sun this week there are several reasons why people have moved away from unsecured debt such as credit cards.

    “Unsecured credit demand is all about the intention to spend,” he says. “Clearly we’ve had an environment over that period where we’ve seen consumers far more circumspect about spending.

    “Also, there is more information now required for a credit card application.”

    In their release to the media, Mr Luffman also blames the increasing use of debit cards for the reduction in credit card applications.

    “There’s been a 3 per cent growth for the year up to August in debit cards and when you think about the numbers of payments in a year, that means a lot of payments,” he says.

    Personal loan applications picked up notably in the September quarter, helped by a notable rise in auto loans which has coincided with a 9% increase in new car sales for the month of September.  The continued growth follows the June quarter which recorded the highest number of auto loan applications since 2007.

    Mortgage applications have flat-lined over the past year, despite RBA rate cuts this year.

    “We have now seen three quarters of relatively flat mortgage enquiries after two years of decline.   As foreshadowed by the stabilisation in Veda mortgage enquiries in recent quarters, the pace of year-on-year decline in Australian house prices is now easing.  This is expected to continue, but the flat level of mortgage enquiries suggest house price growth will be kept in check over the coming months,” Mr Luffman says.

    He says the impact of the Federal Government’s cash handouts has now faded with consumer credit demand decreasing relatively quickly in the September quarter.

    “The latest data suggests that lower interest rates are not having an effect on demand for consumer credit.  In the current environment, the short term outlook for consumer spending and credit growth is modest.   As households face increased expenditure, uncertainty around wage growth and levels of unemployment they will continue to be cautious, save and pay down debt.  This trend is likely to continue given the Federal Government’s pull-back on welfare benefits such as the baby bonus and health insurance rebates.”

    Whilst we are continuing to save and not spend, banks will continue to hold the reigns tight on lending criteria. It is important for anyone who is focused on saving (whether that be for a home or for the future) to know that a good clean credit history is essential to approval for any credit. If you are not applying for credit as regularly as you were, you should request a free annual copy of your credit report. This will allow you to stay on top of your credit history and ensure that no mistakes have been made with your credit rating which could see you refused credit for a five year period.

    If an account has shown to be more than 60 day in arrears, the Credit Provider can list your credit file with a default. Sometimes this occurs by mistake. Sometimes the Credit Provider defaults the wrong credit file, or they don’t notify you before they list the default, or it out and out shouldn’t be on your credit file.

    It is up to you to detect these errors – but many people don’t know about them until they apply for credit and are refused.

    The benefit of checking your credit report when you don’t need credit is if there are any mistakes or errors on your credit file you have plenty of time to get it corrected.

    If you want to know what is being said about you on your credit report, or if you have detected a credit file error that you need to dispute, you can contact MyCRA Credit Rating Repairs on 1300 667 218 or visit our main site for more information www.mycra.com.au.

  • Mobile bill shock could cost you your home

    Media Release

    Mobile bill shock could cost you your home

    Botched phone plans and lack of data usage monitoring is leaving many Australians stressed over their mobile bills, with bills so large many simply can’t pay up or absolutely refuse to pay up and many more are having their good credit ratings completely destroyed.

    Consumer advocate, Graham Doessel of MyCRA Credit Rating Repairs says there is an alarming number of credit listing complaints from Telco consumers relating to internet data usage on mobile phones.

    He says consumers are confused when it comes to data allowance on their smartphones, and the providers are not helping.

    “Often clients claim they go over 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 the company over these billing issues,” he says.

    Mr Doessel says 28 per cent of his credit repair clientele in the financial year to date were Telco customers. See Table (A)

    “Sometimes consumers reluctantly pay the bill, think the matter is settled, only to find they are defaulted anyway, and others just refuse to pay the bill until they get some resolution. Either way, they are faced with at least 5 years of bad credit from the episode unless they can make a successful complaint,” he explains.

    This reflects findings from the Telecommunications Industry Ombudsman (TIO) report on its services for the last financial year, which was released today.

    The TIO’s findings show mobile phone users are increasingly unhappy with the service they receive, with a 9 per cent rise in complaints about mobiles last financial year.

    Ombudsman Simon Cohen said two out of three complaints made to the TIO were about mobile phones, with the biggest percentage rise about disputed internet usage charges (150 per cent).

    “Complaints about unexpectedly high bills and unnecessary financial overcommitment point to the urgent need for strong spend management rules, including those that are included in the new ‘Telecommunications Consumer Protection Code’,” Mr Cohen said.

    The ‘Telecommunications Consumer Protection Code’ has recently been pushed through with the guidance of the Australian Communications and Media Authority (ACMA) which will amongst other things, force telcos to provide their customers with notifications when they have used 80% and 100% of their data allowance in the plan.

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

    The TIO’s annual report also shows a rise in complaints about credit default listings. Complaints about consumers being credit default listed while their debt was in dispute increased 18 per cent from 3,700 to 4,370. There was also a 16 per cent increase in complaints about consumers being credit default listed without proper notification, up from 3,220 to 3,730.

    “I am very concerned about the increase in the number of complaints where credit default listings are disputed,” Mr Cohen said “Credit listings can have very significant impacts on people – affecting applications for credit, including for housing and personal loans. Any credit default listing should only occur after the correct procedures have been followed.”

    Mr Doessel says preventing a credit file default on your mobile phone bill often comes down to awareness of legalities.

    “Many people don’t know the rules well enough when dealing with these big companies, so it can be a little like David and Goliath and many times the big guy wins,” he says.

    He gives some ideas on what you can do if you disagree with a mobile phone bill:

    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.

    3. 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.

    4. 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 decide your case. Make sure you provide as much evidence as you can for the Ombudsman to make an informed decision – you may only get one chance at it.

    5. 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 champion for the removal of credit file listings which contain errors or inconsistencies or just out and out shouldn’t be there. The credit repairer may escalate the matter to the TIO on the client’s behalf if necessary, but it may not be the only option.

    “A good credit repairer will conduct an audit-like investigation to uncover errors or non-compliance that may still see the default removed, even where an Ombudsman has sided with the Credit Provider,” Mr Doessel explains.

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO MyCRA Ph 3124 7133

    Lisa Brewster – Media Relations MyCRA Ph 3124 7133 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 leader in credit rating repairs. We permanently remove defaults from credit files.

     

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    http://www.tio.com.au/publications/media/mobile-phone-complaints-rise-against-overall-decrease-in-telco-complaints-during-2011-12

    http://www.tio.com.au/publications/media/mobile-phone-complaints-rise-against

    Image: maya picture/ www.FreeDigitalPhotos.net

     

  • How to dispute a bill and keep a clear credit file

    What many credit repairers don’t want you to know…There’s a wrong way to dispute your bill. The wrong way can lead to bad credit history – leaving you unable to obtain credit for 5 to 7 years. Here is how you should dispute your telephone, internet, energy or basically any bill which you disagree with before it ruins your credit file.

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

    Customers who refuse to pay a bill because they believe it has errors are making a grave mistake that could harm their ability to get credit in the future.

    One of the most common mistakes people make which leads to bad credit history is not paying a disputed bill by the due date.

    Creditors make mistakes with billing all the time, otherwise however infallible they may like to think their system is, otherwise there would be no need for professional credit repair.

    It can be really difficult getting the matter resolved with some creditors. But no news is definitely not good news.

    Where many customers go wrong, is assuming just because they have spoken to someone on the phone about the bill, they are no longer obliged to pay it by the due date.

    Under current credit reporting legislation, an account which is more than 60 days late can be listed by the creditor as ‘unpaid’ on the customer’s credit file. This is regardless of whether the customer believes there are errors in the details of the bill or with the payment amount.

    Many clients dispute the offending bill with the company and made the mistake of leaving the bill unpaid well past the due date while waiting for correspondence from the company. Many are not aware they have incurred a default anyway, until they apply for credit in a different circumstance.

    These defaults remain on a person’s credit file for 5 years. Under current legislation, defaults generally don’t get removed from a credit file, but can be marked as paid if they have been paid.

    Currently, defaults – even those that are marked as ‘paid’, will prevent you from obtaining a home loan with most lenders. In fact, even having a few too many credit enquiries can be enough for an automatic decline.

    So it’s really important we don’t leave ourselves open to having a default listing slapped on our credit file, ruining our good name.

    Here is the process people should take when disputing a bill in Australia:

    1. Contact the bill provider as soon as you receive the bill and attempt to resolve the discrepancy.

    2. Make a note of the date of all conversations, the name of each person you speak to and the nature of the discussion with each. Note any resolutions that were reached and ask that those be emailed or sent to you in writing.

    3. If the credit provider fails to honour the discrepancy, advise them you will be contacting the appropriate ombudsman.

    4. If the due date for the bill approaches and the issue has not been resolved, pay the bill by the due date. You can always seek reimbursement at a later date, but this will prevent a default for that bill being listed on your credit file.

    5. If there is still no resolution, take the matter further, usually with the appropriate Ombudsman.

    So don’t assume anything or take someone’s word for it, get it in writing and preserve your clear credit file.

    If you already have bad credit history from a bill dispute that went wrong – it may not be all lost. The best way to fix your credit score is to seek professional credit repair.

    Australian credit reporting legislation allows for you to resolve any inconsistencies on your credit report. But the problem with attempting to dispute errors on your credit file with creditors yourself is two-fold. Without knowledge of the legislation, people almost invariably get caught in legal ‘loop-holes’ which see the default, writ or Judgment left on the credit file, or at best see the listing marked as ‘paid’.

    Both of these results DO NOT fix your credit rating because lenders still consider even a ‘paid’ listing as bad credit history. Secondly, by negotiating with creditors, people can also accidentally ‘alert’ creditors to any mistakes the creditor may have made in the initial method of credit reporting – allowing them to fix up their mistakes and negate the need to remove the credit file default which was placed in error.

    Good professional credit repair gives you the best chance at fixing your credit.  A credit repairer can help you get a free copy of your credit file, and go through the bad credit history with you. They can then use their knowledge of credit reporting legislation to see where any errors in credit reporting were made, and help to enforce the legislation that creditors are bound to comply with.

    If they are successful, you not only get help with removing errors from your credit file, but many times you are able to start off with a completely clean credit rating.