MyCRA Specialist Credit Repair Lawyers

Tag: credit file

  • Found your special someone this Valentine’s Day? 7 tips for joining finances

    Valentine's DayHappy Valentine’s Day to all the lovers out there!  If you are one of the lucky ones that has found that right person for you, then you may be looking at joining finances – perhaps moving in together, or taking the plunge and buying a home together. Before you do, read my 10 tips to protect your credit file when you are joining finances. Unfortunately love isn’t enough to ensure our ideas about money are always going to match up. If they don’t – make sure your credit file – your good name stays intact – even if the relationship doesn’t.

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

    1. Take off the rose-coloured glasses.

    Yes, cupid may have got you good. This may be the best person you’ve ever known. But that doesn’t mean they are perfect. No, really it doesn’t! Being in love and in particular new love can be the best feeling in the world. But let’s be honest, it’s not the most practical of states to be in. Sometimes our standards go out the window and we lose ourselves in the process of adding to our ‘relationship’ and creating an ‘us’. Before you join your finances, take off the rose-coloured glasses for just a minute, and put some real thought into how you are going to make the financial relationship work. With Relationships Australia identifying conflict over money as one of the top causes of arguments and relationship breakdowns in Australia, it makes sense doesn’t it?

    2. What’s their history?

    People will do what they’ve always done. You need to know of any skeletons in their closet that may impact your relationship and your credit file. Have a frank and open discussion about the financial decisions you’ve both made in your past.

    If you are joining finances, perhaps entering a mortgage, or even just moving in together and putting the Electricity and Gas on, effectively what you are doing is joining credit history. You need to know if their credit history up till now is clear.

    It might be worth getting a copy of each other’s credit files (you can request a free copy of your credit file and a report will be mailed to you within 10 working days). If there are adverse listings, they will impact your ability to obtain credit together for between 5 and 7 years depending on the listing type. If something on either credit file is amiss or incorrect – it is probably a good time to look at disputing it. Credit listings such as defaults, Judgments, Writs or Clear-Outs can all be removed if it can be proven that the listing was placed unlawfully.

    3. What’s their money mindset?

    Knowing their credit history should give you a good indication of how your prospective partner views money. So will knowing what debts they currently have. It will give you an indication of how they feel about money, and how much debt they consider normal to handle. You can also talk about paying bills. Do they always pay them on time? If not, why not?

    Some of us are great with money and some of us aren’t. If one of each money type get together the potential for both people 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 no fault of their own really, but they have fallen under the financial shortcomings of a partner.

    One partner can end 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 unable to proceed due to debts and bad credit their partner has initiated. The relationship may even have ended years ago.

    4. Do your financial goals match?

    Does one of you envision you both quitting your jobs in a couple of years to go travelling while the other has been saving for their own home? Is one’s greatest goal to pay back the 3 credit cards they’ve maxed out, while the other has plans to be debt free by the age of 40? If you establish some differences in what you want out of life, talk about whether there can be a compromise. You must identify how important each goal is and decide whether you really should be entering into a financial relationship at this stage. If your differences financially are too great – perhaps you can work out a way to still be together, but keep your finances (and credit files) separate unless your goals change.

    5. Identify needs and wants.

    If you decide you want the same things out of life, it might be a good idea to agree on financial priorities, so you don’t blow out all of your good intentions buying things you don’t really need. This could reduce your fights about money and ensure you’re both really on the same page. For instance, if you decide the most important thing is to save for your own home – you can agree that the new car, the expensive dinners and the designer wardrobe are only wants and can be put off until you reach your ultimate goal.

    6. Make a joint money plan.

    It may be a good idea to make a budget plan for you both to stick to, particularly if you have made a big credit purchase like a mortgage, car or business loan. There are a number of great free websites – ASIC’s Money Smart Website is a good place to start. You can decide who is paying bills, how they are going to be paid on time, where the money is coming from, how you are going to save and what money you will have left over for luxuries. If you don’t end up being the person in charge of paying bills – that doesn’t mean you can bury your head in the sand about your finances. Check the accounts every now and then. If there are any problems or your partner has missed payments – you’ll both want to know about it before your credit file is defaulted.

    7. Leave emotion out of it.

    During your financial relationship, things can go wrong – arguments can still occur despite your best efforts to prevent them. When it comes to money, agree for your disagreements to remain business-like. That way you can always keep a dialogue about money and there are no heated emotions attached to your discussions.

    Likewise, if the relationship should turn sour you are still able to separate love and money. There may be less likelihood of post-relationship revenge purchases impacting your credit file. If you do break up and you have joint credit, notify your Creditors that you are no longer together. Make sure you both get separate statements and endeavour to separate credit files (by dissolving joint credit) as quickly as possible in order to keep control over your own credit history and keep your credit file clear.

    If you haven’t been lucky in love, and your partner has left you with a bad credit rating, MyCRA Credit Rating Repair may be able to help. Contact a Credit Repair Advisor on 1300 667 218 for more information and to determine whether you may be suitable for credit repair.

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    Image 2: photostock/ www.FreeDigitalPhotos.net

  • Financial freedom: are you self-sabotaging?

    self-sabotaging financial freedomIn today’s ‘Make Credit Work For You’ post, we look at advice from the Editor of Smart Investor magazine, Nicole Pedersen-McKinnon. Her article “Financial freedom: are you self-sabotaging?” was featured in Sunday’s Sydney Morning Herald. Nicole gives you some excellent advice for how to make the best of your money, and make sure you are not making basic mistakes that could see you taking longer to reach your ultimate financial goal of being debt-free.

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

    Financial freedom: are you self-sabotaging?

    IT’S likely the people around you know whether you’ll ever ”make it”; that is, make and keep enough money to secure the life you crave. They’ll know this simply by observing your behaviour. And they’ll know it quickly.

    If you’re game, ask their opinion to see if they squirm.

    The wrong attitude to your cash – leading you to do the wrong things with it – indicates a ticking financial time bomb. Here are the mistakes that will lead to an explosion:

    ■ Missing the (second) once-in-a-lifetime opportunity to repay your mortgage fast and save a fortune. Official interest rates have returned to the record lows set during the credit crack-up, and home-loan rates have plunged about 4 percentage points. Say they hypothetically stayed here and you hadn’t ever reduced your repayments, the extra $700 or so you would be contributing to a $300,000 mortgage would save you $118,000 and almost 11 years.

    ■ Keeping lazy savings. There is no excuse for holding money in low-interest savings accounts. You should be getting about 5 per cent (taxed) or, better still if you have a mortgage, an effective return of about 5.5 per cent (tax-free) by sticking it in there.

    ■ Not grabbing gifts such as government allowances, benefits and super giveaways. The big ones you need to apply for include first-home buyer concessions, family tax benefits, baby bonuses or paid parental leave, childcare assistance and the super co-contribution.

    ■ Falling into the yawning traps set by finance companies. The largest are making new spending on 0 per cent balance-transfer credit cards – this will be charged at an eye-watering interest rate. If you are ahead on mortgage repayments, then taking up a thoughtful offer to reduce your repayments is designed to recoup the lender’s lost interest. Also, if you breach the conditions to get the headline rate on savings accounts, you will lose out. You must hit the monthly requirements or the institution wins.

    ■ Staying out of the sharemarket, perhaps in favour of cash or bonds. Yes, the credit crack-up was confronting but you need growth assets such as shares and property to reach your goals. The key is to balance these with more stable, income-producing assets. The fortunes of markets can turn on the head of a pin – witness the 20 per cent share recovery in the past year – and you need to be invested to benefit. Remember this applies to your super, too.

    ■ Over-leveraging. Heed the main lesson of the global meltdown and use investment debt sensibly: limit it to an appropriate amount and have the means to cover it if a market turns hostile.

    And the big one:

    ■ Year after year using credit to spend more than you earn. This short-sighted behaviour has the greatest potential to sabotage your future. To be a financial success you don’t need to be particularly clued up, but you can’t be clueless, either.

    The last point might seem simple, but it can be tempting to bury your head in the sand about what your incoming finances actually are, and live your daily life on credit, spending more than you earn.

    This thinking isn’t limited to those with a low income. In fact, Australian Bureau of Statistics reported late last year that spending more than you earn can occur across every level of income.

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

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

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

    Of the poorest 20 per cent of households, one in five could not pay their bills on time and one in four spent more than they earned,” it was reported in news.com.au in the story News.com.au ‘Aussie strugglers living beyond means’.

    And the end result can be the same. People can bomb out with their finances at every level. And Creditors don’t care what your income is when you’ve defaulted on your credit, only when and how you intend to pay.

    If you have over-extended yourself – even if it hasn’t yet made it to default stage – act now to reduce that debt. Make a plan – find a good financial counsellor (call ASIC’ financial counselling hotline on 1800 007 007 for a reputable one) – and make some tough decisions about your life. By all means necessary, avoid that default or any other impairment to your credit file.

    What Ms Pederson-McKinnon didn’t mention, is another way you could be sabotaging your own financial freedom – by living with defaults on your credit file that shouldn’t be there. A default on your credit file will give you 5 years of blacklisting from mainstream credit, meaning if you need credit during that time you will be paying thousands more (on an average home loan tens of thousands more) in interest over the term of the loan.

    By having your credit file reviewed by a credit repairer to check your suitability, you may find you are one of those lucky ones that is able to have their credit default removed. This process happens legitimately and legally by people who are experts at auditing your Creditor for compliance issues which can deem your credit listing unlawful and therefore removed from your credit file.

    Contact a Credit Repair Advisor if you need more information on credit repair 1300 667 218.

    Good luck with your own path to financial freedom.

    Image: digitalart/ www.FreeDigitalPhotos.net

     

     

  • Lonely hearts ripped out and ripped off this Valentine’s Day by scams.

    romance scamsMedia Release

    Lonely hearts ripped out and ripped off this Valentine’s Day by scams.

    7 February 2013

    A warning this Valentine’s Day for those who use internet dating: be on the lookout for scammers. A consumer advocate for accurate credit reporting warns that getting sucked in by a scammer may not only leave you broken hearted, but can also leave you broke.

    CEO of MyCRA Credit Rating Repair, Graham Doessel warns that because of the personal nature of dating scams, many intimate personal details may be shared, and scammers could not only extract money, but can also garner enough information to steal your identity and take credit out in your name.

    “The costs of identity theft can be significant long term and are magnified by the fact that identity fraud is often not detected until you attempt to take out credit in your own name and are refused due to credit rating defaults from unpaid credit you didn’t initiate,” Mr Doessel says.

    The NSW Fair Trading Commission has issued fresh warnings recently in regards to romance scams, saying consumers are at risk of high debt and dissatisfaction.

    Commissioner Rod Stowe warns if you are looking for love -get introduction agency agreements in writing and beware of predators online and elsewhere.

    “Repeated requests for more money are standard practice for traditional and online romance scammers, whether the requests come from an agency or prospective partners,” he said in a recent media release.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    “Once you’re on the hook, a scammer will reel you in as long as you take the bait. The internet presents a whole range of risks for consumers looking for love. The ACCC [Australian Competition and Consumer Commission] reported Australians lost $21 million to dating and romance scams in 2011. The average loss for a victim reporting a scam to the ACCC was more than $20,000.”

    Romance scams are so rampant in Australia, that the ACCC now requires online dating sites to display scam warnings and will threaten action against companies that fail to comply.

    Scammers target victims by creating fake profiles on legitimate internet dating services.

    The ACCC warns once you are in contact with a scammer, they will express strong emotions in a relatively short period of time and will suggest you move the relationship away from the website, to phone, email and/or instant messaging. Scammers often claim to be from Australia, but travelling or working o/s.

    “They will go to great lengths to gain your interest and trust, such as sharing personal information and even sending you gifts. Scammers may take months, to build what seems like the romance of a lifetime. They will then ask you for money, gifts or your banking/credit card details.” the ACCC warns on their website.[ii]

    The ACCC says scammers can site various reasons for needing money, including to cover the costs associated with non-existent accidents and illnesses, various fees and charges associated with precious goods such as diamonds, gold bullion and gemstones, or to arrange a meeting which never occurs.

    Mr Doessel says it is not always easy to forget a romance scam if the fraud has impacted your credit file.

    “If you fall victim to identity theft, you are hit three times – you may have lost a large sum of money, secondly you may be emotionally heartbroken, then thirdly you are locked out of credit for 5 years because of defaults on your credit file.”

    “You may not even get a mobile phone plan if you can’t prove you didn’t initiate the credit in your name,” he says.

    The ACCC’s SCAMwatch outlines some ways people can protect themselves when dating online:

    – ALWAYS consider the possibility that the approach may be a scam…Try to remove the emotion from your decision making no matter how caring or persistent they seem.

    – Talk to an independent friend, relative or fair trading before you send any money. THINK TWICE before sending money to someone you have only recently met online or haven’t met in person.

    – NEVER give credit card or online account details to anyone by email.

    – Be very careful about how much personal information you share on social network sites. Scammers can use your information and pictures to create a fake identity or to target you with a scam.

    – If you agree to meet in person, tell family and friends where you are going…

    – Where possible, avoid any arrangement with a stranger that asks for up-front payment via money order, wire transfer or international funds transfer. It is rare to recover money sent this way.

    -If you think you have provided your account details to a scammer, contact your bank or financial institution immediately.

    – Money laundering is a criminal offence: do not agree to transfer money for someone else.

    If you think you may be ‘dating’ a scammer, contact the ACCC on 1300 795 995 and if you have given over money, contact Police immediately.

    MyCRA Credit Rating Repair’s website also contains information on identity theft and your credit rating www.mycra.com.au.

    /ENDS.

    Please contact:

    Graham Doessel – Ph 3124 7133

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

    http://www.mycra.com.au/ 246 Stafford Road, STAFFORD QLD.

    Ph: 07 3124 7133

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

     

    ——————————————————————————–

    [i] http://www.fairtrading.nsw.gov.au/About_us/News_and_events/Media_releases/2013_media_releases/20130131_valentines_day_warning.html

    [ii] http://www.scamwatch.gov.au/content/index.phtml/itemId/694213

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  • Know the credit file risks before co-financing with a sibling

    siblings co-financingMedia Release

    Know the credit file risks before co-financing with a sibling.

    1 February 2013

    Real estate agents have recently reported an increase in siblings co-financing on homes in order to break into the property market, but this has a consumer advocate for accurate credit reporting concerned that some siblings could be getting financially involved without understanding the full implications for their future.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says real risks can arise when anyone co-finances, for both their relationship and their credit rating.

    “I understand it is hard for young people to get a toe in the property market, but it is so important for them to understand, when you co-finance, you must trust your personal credit rating to your sibling for the life of the agreement,” Mr Doessel says.

    Real estate agents say brothers and sisters purchasing together now make up 10 per cent of traffic at open houses and inspections.

    The trend, which has grown in the last three months, allows buyers to afford mortgages that would otherwise be beyond their reach on a single-income.

    “It is how they’re affording to break into the property market,” agent Silvia Vitale of Laing + Simmons Potts Point told the Sunday Telegraph this week.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    But Gold Coast mortgage broker, Heather Nyssen, recently discouraged the trend, saying that siblings are usually quite young when they enter the financial partnership, and due to changes in circumstances can end up restricted by the obligation in later years.

    “In some cases they buy it so one or other can live in it, or they buy as an investment property, but they often end up in a bad position,” she told Australian Broker on Thursday.[ii]

    Mr Doessel agrees “Not only can the obligation restrict financial decisions in the future, but there is the potential for something to go wrong which sees both credit files defaulted if one sibling makes a mistake.”

    He says if repayments on any accounts linked to the property are not made on time, both parties could be held responsible and defaulted or a late payment notation listed on both credit files accordingly.

    “Rates, energy and of course finance repayments need to be paid on time every time to avoid a late payment notation on your credit file, and paid within 60 days to avoid a default listing,” he says.

    Defaults remain on a person’s credit file for five years, and late payment notations for two years.

    “If you have a default listing it can be difficult to get additional finance, a credit card, or even a mobile phone plan. If you have too many late payment notations against your name, it may also weigh negatively on your ability to obtain credit,” Mr Doessel says.

    He recommends those siblings wanting to co-finance on a property take these things into consideration:

    1. Know about your sibling’s credit history. If your sibling has financial skeletons in the closet, you should be wary about leaving your credit rating at risk. It would be a good idea to order a copy of your credit rating (your credit report) to make sure each of you is fully aware of the other’s financial history.

    For assistance to obtain your credit report at no cost, contact MyCRA http://www.mycra.com.au/credit-file-request/

    2. Ask what debts they currently have. This will give you an indication of how your brother or sister feel about money, and how much debt they consider normal to handle.

    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 important they view 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 your sibling wants 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. Get all agreements in writing. Consider getting a solicitor involved to draft up a formal agreement. You may be family, but in 5 or 10 years your responsibilities and needs may have changed and you need to know what your legal rights and obligations are.

    6. Leave emotion out of it. As much as you may love your sibling – arguments can occur – particularly when money is involved. If the financial relationship is ‘strictly business’, it may be easier to separate the property from all other credit the individuals may possess. This is especially true if the property is purely an investment and neither sibling is living in the property.

    /ENDS.

    Please Contact:

    Graham Doessel Ph 3124 7133

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

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

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

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

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

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

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

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

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

    How could I be affected by defaulting on my loan?

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

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

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

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

    Ask for help early!

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

    Steven Münchenberg, chief executive of the ABA, says:

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

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

    ■ deferring home loan repayments;

    ■ restructuring business loans without incurring fees;

    ■ giving credit card holders an emergency credit limit increase;

    ■ providing payment holidays on personal loans or credit cards;

    ■ refinancing loans at a discounted fixed rate;

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

    ■ deferring repayments on equipment finance facilities.

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

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

    Tips for Applying for financial hardship

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

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

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

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

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

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

    Image: khuruzero/ www.FreeDigitalPhotos.net

     

  • Are relaxations to guaranteed loan requirements right or wrong?

    security guarantee loanBanks have begun to relax Guaranteed loan criteria in a bid to encourage more first home buyers into the market. The relaxations from some banks will now include those outside the immediate family.  The banks seem eager to increase business in what are cautious times for home buyers. But should we all jump in? We look at what you are really risking with your asset and your credit rating by guaranteeing a loan for a family member or friend and perhaps for borrowers, when using a guarantor that is not a family member.

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

    Loan Market Melbourne broker Alexander Heifetz has recently claimed several banks have made available to borrowers ‘Family and Security Guarantee Loans.’ The recently amended policies remove certain restrictions for Guarantors, meaning a Guarantor will no longer have to be a parent, sibling or spouse of the borrower for a Security Guarantee, which was formerly known as a Family Guarantee.

    Mr Heifetz explained in a recent press release:

    “This change in policy is going to help certain first home buyers with healthy incomes but limited savings enter the property market with help from guarantees who traditionally haven’t been allowed to put their support behind a low-deposit holder’s mortgage,” Mr Heifetz says

    “Most Guarantee loans are a single loan secured by both properties: the property purchased by the first home buyer and guarantors’ property. The benefit of this option is that there is no requirement to make a Lenders Mortgage Insurance (LMI) payment and that you don’t have to demonstrate that a deposit you have was genuinely saved,” he says.

    Although these types of products are becoming increasingly popular, Mr Heifetz suggested that borrowers and guarantors considered the implications before signing a Security or Family Guarantee

    An article published last week in Australian Broker features further comment from Heifetz about the possible impact of guaranteed loans. He told Australian Broker while he appreciates that it’s a difficult time for both lenders and first home buyers, brokers need to make sure they’re helping clients view guarantee loans as a last resort – because it’s brokers in the end who are likely to be blamed when things go wrong.

     “It comes back to brokers – banks have a bunch of lawyers who will stand up for them, but brokers are the middle men and they’re the ones who will be crucified.”

    He offers solutions such as borrowers purchasing a less expensive property, or for those considering going guarantor to look at the possibility of gifting additional money or taking out a small loan as an alternative.

    Figures from Insolvency and Trustee Service Australia (ITSA) show that 441 people (non-businesses) went into bankruptcy as a result of liabilities on loan guarantees in the last financial year, and 12 entered debt agreements for the same reason, according to the ITSA’s 2011-12 Annual Report.

    If 453 people became insolvent due to liabilities on loan guarantees last year, how many more were forced to sell both homes but remained solvent? How many were forced to take over repayments on the loan for their child or family member? How many still were encumbered with a negative credit listing and refused credit for 5 years due to their family defaulting on the loan? How many didn’t know the loan was in arrears until their credit rating was impacted?

    Whilst there may be ways a borrower and guarantor can more ‘safely’ access a guaranteed loan without necessarily risking the property of the guarantor for the entire term of the loan, caution should still be exercised.

    From a credit repairer’s point of view, I would rarely recommend borrowers choose a guaranteed loan if they have other options open to them. There are just too many variables. There is no control over repayments. Now, with late payment notations on credit files, not only must repayments on the loan be made within 60 days to avoid a default listing, it must be made on time or face a late payment notation. Too many of those, and these late payment notations could impact your ability to get credit for two years.

    So as Mr Heifetz says, guaranteed loans should be viewed as a last resort – and I believe should not be heralded as a chance to boost first home buyer numbers.

    It is true house prices are still too high for many first home buyers – but banks could also relax other lending criteria such as lowering deposit requirements or allowing more gifted deposits for first home buyers – so why don’t they? And if they don’t want to bear that risk, why should we?

    Adding to the debate is Malcom Bartley, director of finance brokerage B Debt Free who has questioned why a non-family guarantor would want to make themselves so “financially vulnerable”.

    “Anything that is not direct family must be related to a business transaction. That benefit must be identified before the guarantor can be put in a position of risk. No one will take the risk just because they’re a nice guy,” he told Australian Broker on Friday.

    He warned such situations could give birth to a third-tier industry where there would be opportunities for a business to provide equity to first home buyers to obtain a government grant while they stamp the difference.

    “There’s a huge misunderstanding of the debt administration in this country – and there are groups out there that’re saying ‘if you’re in trouble come to us, we’ll buy your property and we’ll let you buy it back’” Mr Bartley says.

    He boldly said lenders need to call non-family guarantors what they really are.

    “If you’re going to call a savage canine that rips people to shreds a ‘puppy’, that’s not a lie, but it doesn’t give the true description, does it?”

    Whether or not you agree with Mr Bartley’s argument, there is no denying that any borrower who seeks help from a guarantor who is not a trusted friend or family member needs to ask two questions: what does the guarantor stand to gain from this transaction? and what could I lose?

    The risks for both guarantors and borrowers needs to be understood and weighed heavily, with the full gamut of legal advice, before any party risks their asset and their credit rating.

    Image: Ambro/ www.FreeDigitalPhotos.net.

  • Bankruptcy and Debt Agreements should be a last resort for debt struggles.

    debtMedia Release

    Bankruptcy and Debt Agreements should be a last resort for debt struggles.

    17 January 2013

    Australians experiencing severe debt problems are turning to Debt Agreements over Bankruptcy, with a recorded increase of 68% in Debt Agreement numbers since 2007, but a consumer advocate for accurate credit reporting warns that both alternatives fall under the Bankruptcy Act 1966, and should be encouraged only as a last resort for consumers struggling with debt.

    New figures provided by Insolvency and Trustee Service Australia (ITSA) show that bankruptcies declined 20% between 1 January 2007 and 31 December 2012, with 150,353 bankruptcies recorded during this period. During the same period, there were 49,034 new debt agreements made, which represents a 68% increase.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    Reforms to the Bankruptcy Act in 2007 in the form of the Bankruptcy Legislation Amendment (Debt Agreements) Act 2007, aimed to improve the operation of the debt agreement regime.

    Attorney-General Nicola Roxon recently said debt agreements provide better outcomes for someone’s financial circumstances, and may allow those people in debt the chance to save their home.

    “Debt agreements give many Australians in financial distress an alternative option to get back on their feet sooner than bankruptcy,” Ms Roxon said.[ii]

    “Debt agreements in many cases can be the smarter way forward especially as bankruptcy can leave a financial legacy that can affect people for years.”

    But CEO of MyCRA Credit Rating Repair, Graham Doessel says whilst formal Debt Agreements may be preferable to Bankruptcy in many cases, it is important for consumers to know that both options are part of the Bankruptcy Act 1966, and therefore when proposed or implemented, record a Bankruptcy Notation on the consumer’s credit file.

    “A formal Debt Agreement may be a nice form of Bankruptcy, but make no mistake – it is still part of the Bankruptcy Act 1966. Both options will impact a consumer’s credit file and ability to obtain credit for 7 years. But what’s more, the debtor will be allocated a Bankruptcy number, which remains part of their credit history for life,” Mr Doessel says.

    The debtor’s name and other details appear on the National Personal Insolvency Index (NPII), a public record, for the proposal and any debt agreement.[iii]

    He says other than difficulties obtaining credit, having a Bankruptcy recorded can also impact business situations, and in some cases may impact employment opportunities.

    “You can’t get away from this notation, and answering the question ‘Have you ever been Bankrupt or entered into a Debt Agreement?’ incorrectly constitutes fraud,” he says.

    He says consumers owe it to themselves to exhaust all other options before they enter a Debt Agreement.

    “Talk to your Creditors – most don’t want to have to commence legal action against you, and will try to help you with repayment variations if they can,” Mr Doessel says.

    If Creditors have not commenced legal action yet, a consumer struggling to make repayments may be entitled to relief under financial hardship provisions.

    From March 2013, the Consumer Credit Legislation Amendment (Enhancements) Bill 2012 will take effect, allowing for greater ease of request for financial hardship variation and will generally be encouraged as a deterrent to any kind of credit file blemish or prior to someone having a court Judgment or a last resort-Bankruptcy filed against them.[iv]

    Mr Doessel says it is important for people not to bury their head in the sand, and to recognise and address financial difficulty early.

    “By catching it early, and avoiding a Default, Writ, Judgment or Bankruptcy on your credit file, when you’re back on your feet you could have the option to borrow again – even for basics like a credit card or mobile phone plan,” he says.

    ‘Dealing with debt: Your rights and responsibilities’ is a government publication which gives people information on dealing with debts, debt collectors and disputes. It is available through the ASIC (www.asic.gov.au ) or ACCC websites www.accc.gov.au.

    /ENDS.

    Please Contact:

    Graham Doessel – PH 3124 7133

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

    http://www.mycra.com.au/ 246 Stafford Road, STAFFORD QLD. Ph: 07 3124 7133

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

    ——————————————————————————–

    [i] http://www.itsa.gov.au/dir228/itsaweb.nsf/docindex/Statistics+%26+Research-%3EStatistics

    [ii] http://www.attorneygeneral.gov.au/Media-releases/Pages/2013/First%20Quarter/10January2013-Debtagreementsbetterpaththanbankruptcy.aspx

    [iii] http://www.itsa.gov.au/dir228/itsaweb.nsf/docindex/Bankruptcy-%3EPersonal+Insolvency+Information-%3E3.+Debt+agreements

    [iv] http://www.mondaq.com/australia/x/175676/Consumer+Credit/Treasury+releases+amended+NCCP+Enhancements+Bill

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

  • Is your New Year’s Resolution to buy a home? Check your credit rating doesn’t have a shady past first.

    new year's resolution to buy a homeMedia Release

    Is your New Year’s Resolution to buy a home? Check your credit rating doesn’t have a shady past first.

    8 January 2013

    As the calendar has rolled to the 2013 New Year, many Australians have declared their intentions to knuckle down and put together a deposit for a home – but a consumer advocate for accurate credit reporting warns – before people apply for a loan, they should check they don’t have a shady past with credit they are not aware of.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says there are many reasons people can embarrassed with a bad credit rating and refused a home loan at the time of finance application, and the reason is not always as simple as failing to make payments on time.

    “People have got to be dedicated to be able to get together the minimum 10 per cent deposit that is generally required to buy a home today, but some people are getting to the credit check and are told they have bad credit history and they have no idea why,” Mr Doessel says.

    Prospective buyers may apply for a loan, only to be refused due to credit file defaults which show up on their credit report. Any creditor is able to place a default on a consumer credit file if a repayment is later than 60 days. Credit listings range in duration from 5 to 7 years depending on the listing type.

    Mr Doessel says home buyers do not always have bad credit because of something they have done wrong.

    “Paying your bills on time should, but doesn’t always guarantee a clear credit file. As credit repairers, we see a multitude of instances where the creditor has made a mistake and placed a default or other listing on the consumer’s credit file when it shouldn’t be there. Often it’s not until the credit file holder applies for credit that they are made aware of it, but at that time it’s too late, they often lose the home they are buying,” he says.

    “Credit file mistakes are common, and can be because of simple human or computer error but the end result is that the consumer is blacklisted from credit for at least five years unless they can prove the listing is unlawful.”

    Consumers can check their credit file for free every year, by requesting a copy from Australia’s credit reporting agencies.

    “It is good financial practice to request a copy each year, but there is never a more important time to make sure your credit report is accurate as BEFORE you apply for a home loan, so you don’t lose the home you have your heart set on. Credit reporting mistakes do happen, but the watchdog is you,” he says.

    If a default has been listed ‘unlawfully’ you have the right to request its amendment, or removal from your credit file.

    “If there is something amiss on your credit report, if you find have a shady past with credit that you believe is unfair, don’t let that one notation ruin your life. It’s not easy to dispute a credit listing, but if it shouldn’t be there, it’s a point worth fighting for,” Mr Doessel says.

    People can visit http://www.mycra.com.au/credit-file-request/ for help to get their credit report.

    /ENDS.

    Please contact:

    Graham Doessel – CEO Ph 3124 7133

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

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

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

    Image: digitalart/ www.FreeDigitalPhotos.net

  • Great shot, wrong target: Gillard Government’s draft legislation to regulate small business credit completely misses the point

    regulate small business creditMedia Release

    Great shot, wrong target: Gillard Government’s draft legislation to regulate small business credit completely misses the point.

    21 December 2013

    The Federal Government has published draft legislation which proposes regulating small business credit, but an advocate for accurate credit reporting has criticised moves to regulate access to credit for small businesses, saying what is needed is not less credit, but simply a better credit reporting structure.

    Small business publication, SmartCompany, reported…that draft legislation put out by Financial Services Minister Bill Shorten’s office proposes prohibiting people from “engaging in credit activities” in relation to a small business credit contract or a small business consumer lease unless they hold an Australian credit licence.

    “Responsible lending obligations do not apply to small business credit contracts or to investment credit contracts generally, but only to specific classes of these contracts,” a spokesperson for Mr Shorten told SmartCompany.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    “The substantive obligations in the National Credit Code do not apply to small business credit contracts and to small business consumer leases. Other than the unjust contract provisions, these provisions also do not apply to investment credit contracts.”

    The spokesperson declined to comment on whether the proposed legislation will make it tougher for small businesses to obtain credit.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says the proposed changes would be widely criticised by small business advocates as stifling the flow of business credit in Australia and that the changes are unnecessary form of “hand holding” for Australian business owners.

    “Australian small businesses are already doing it tough getting credit out there post GFC – this is going to mean they will struggle even further to expand and there will be less start-ups,” Mr Doessel says.

    But he does say any changes to credit reporting for small businesses would be welcomed.

    “There is a gaping hole in the basic rights afforded to commercial credit file holders before recovery is commenced, and this needs to be dealt with,” he says.

    In the consumer landscape, if an account is overdue, then the account holder is afforded a 30 day right to remedy under the Credit Reporting Code of Conduct. This is meant to ensure that fair and reasonable means have been taken to attempt to recover the outstanding amount before further action is taken, and before the consumer’s credit file is defaulted.

    As commercial credit is not covered under the Code, this right is currently not provided to commercial credit file holders – and Mr Doessel says many times small business owners have been caught out.

    “The common courtesies which consumers are afforded and which many assume stay with them in the commercial sphere just don’t apply – many don’t realise just how big a risk commercial credit is.”

    “It’s like the ‘wild, wild west’ out there with some lenders defaulting small businesses with little to no warning,” he says.

    Once a default is placed on a commercial credit file, then the length of time it remains on the credit file is legislated by the Privacy Act 1988.

    “A commercial credit file holder is still subject to 5 years of bad credit if they end up with a default listing, the ramifications are still the same – they are generally refused mainstream credit, refused mobile phone plans, car finance and credit cards – but the rules for how the default gets there in the first place are just not there,” Mr Doessel says.

    “In theory, you can be one or two days late in paying a commercial account and you can have your ability to obtain credit ruined. There is no right of redress, as there is no legislation governing notification requirements in the commercial credit sphere.”

    Mr Doessel says the Government has completely missed the mark on what small businesses need to thrive and survive.

    “Most don’t need restrictions on available credit, they just need the basic credit reporting rights that they deserve,” he says.

    /ENDS.

    Please contact:

    Graham Doessel – Director Ph: 3124 7133

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

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

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

    ——————————————————————————–

    [i] http://www.smartcompany.com.au/politics/053547-government-sneaks-in-draft-legislation-to-regulate-small-businesses-access-to-credit.html?utm_source=SmartCompany&utm_campaign=82bc6a73e2-Friday_21_December_201221_12_2012&utm_medium=email

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

  • Are you getting bad credit for Christmas?

    Media Release

    Are you getting bad credit for Christmas?

    An advocate for accurate credit reporting warns every credit-active Australian should make sure they’re not getting bad credit for Christmas, as surprise bad credit can happen to anyone, even those who pay all their bills on time.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says it is important for Australians to understand how easy it is to wind up with a bad credit rating and not know it.

    “There are no class lines, whether rich or poor if you have taken out credit then you could be at risk. I would like to say it is always cut and dried – don’t pay, get bad credit but in reality it’s not that simple. The only way to be sure is to check your credit file regularly,” he says.

    A default listing can be placed on a consumer credit file if a bill payment is late more than 60 days.

    But Mr Doessel says there are many reasons why a consumer can be defaulted other than simply choosing not to make bill payments on time.

    “Creditors don’t always comply with the law, and sometimes they make mistakes – wrong names, wrong addresses, as well as human and computer errors,” he says.

    He also says certain circumstances can leave consumers more vulnerable.

    “Identity theft, separation from your spouse, bill disputes, overseas trips and even moving house would definitely be situations where afterwards I would be checking my credit file to make sure it was clear,” he says.

    Mr Doessel says unfair credit listings should be disputed, as negative listings such as defaults will mean credit refusal or higher interest rates for the term of the listing.

    He says listings are not removed by creditors unless the credit file holder or a third party acting on their behalf can provide adequate reason and lots of evidence as to why the listing shouldn’t be there.

    “It’s not easy to dispute a credit listing – but it is a point worth fighting for,” he says.

    Consumers are entitled to obtain a free copy of their credit report from Australia’s credit reporting agencies once per year. This is sent within 10 working days of the request.

    “If you have some time off soon, this might be a great time to do your credit file check. If there is something amiss on your credit report, you can dispute it with your Creditor yourself or you can contact a professional credit repairer to do it for you,” Mr Doessel says.

    People can visit http://www.mycra.com.au/credit-file-request/ for help to get their free credit report.

    /ENDS.

    Please contact:

    Graham Doessel – CEO Ph 3124 7133

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

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

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

    Image: posterize/ www.FreeDigitalPhotos.net

  • Aussies “On the Move” need clear strategy to tie up financial loose ends.

    Media Release

    Aussies “On the Move” need clear strategy to tie up financial loose ends.

    Australian residents are as mobile as ever, according to a recent Australian Bureau of Statistics report, but an advocate for accurate credit reporting warns every time Australians move, they run the risk of damaging their credit rating by not tying up loose ends on their accounts.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says it is vitally important that consumers have a strategy for making a clean break at each residence to maintain the integrity of their credit rating.

    “Time and again we have the situation where clients apply for a home loan and are refused because they have ‘surprise bad credit’, which when we track it back for them is due to the fallout of accounts sent to their previous address,” Mr Doessel explains.

    The recent ABS report ‘Still on the Move’ examines internal migration across Australia between 2006 and 2011 censuses. The report revealed that 41.7% of Australian residents had moved in the five years prior to the August 9 2011 Census night.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    Mr Doessel says the rate of Aussies on the move is reflected in the volume of moving-related credit issues, and these are not always the fault of the consumer.

    “For example, we had a client who needed their credit rating repaired because their Energy Provider could not work out that cancellation of their old account and installation at the new address meant that they had actually moved. Their final account was sent to their old address because they had not specifically provided a forwarding address,” he says.

    Mr Doessel provides 5 tips for keeping your credit rating in check when moving house:

    1. Let all your Creditors know you will be moving and give them a forwarding address.

    You are obliged to update your Creditors with your forwarding address when you move. When you make that call to your Credit Provider, be sure to make a note of the day, time and person you spoke to about the request.

    “Often we have people say they have told their telco or their energy company they are moving, and provided a forwarding address, but mail has still gone amiss and the client has ended up paying for it. If you have specific details of your call – the Creditor may be able to bring up the recording and verify your request,” Mr Doessel says.

    2. If ending an account with a Provider, request a final account.

    If you need to cancel your account, such as an Energy or home phone account when you move, make sure you request a final account for services. There may be incidental charges, or pay out fees as well as days accrued in the new bill period. Pay that notice as soon as possible.

    3. Don’t assume your account is finalised until you get it in writing.

    Once you have paid your final account, request a statement be sent in writing verifying the account is at an end. If you don’t receive that notice, chase it up.

    4. Cancel any direct debits.

    Places such as gyms and childcare centres operate payments via a separate direct debit company. If you have any direct debits set up, you should notify the company of the cancellation and of your forwarding address.

    Mr Doessel explains, “Don’t assume correspondence with your gym is enough to cancel that account. You will have signed a separate contract with the direct debit company, and you are just as obligated to them if you have missed payments, for whatever reason.”

    5. Redirect mail.

    Despite providing a forwarding address, and despite your attempts to finalise your accounts, there can be instances where a Credit Provider continues to send mail to your old address.

    “Creditors can and do make mistakes, and one common mistake is simple computer or human error with billing systems. To prevent their oversight from costing you your good name through bad credit, consider redirecting mail through Australia Post to your new address,” he says.

    Mr Doessel says Australians who have moved and have now been lumbered with surprise bad credit need not put up with it for 5 or even 7 years.

    “If your Creditor has an incorrect address for you and they have placed a default or Clear-out on your credit file then you should dispute your credit listing and insist your credit file reads accurately,” he says.

    /ENDS.

    Please contact:

    Graham Doessel – Ph 3124 7133

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

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

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

     
    ——————————————————————————–

    [i] http://www.abs.gov.au/websitedbs/censushome.nsf/home/CO-68[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Stay safe on Australia’s biggest day of online commerce

    Media Release

    Stay safe on Australia’s biggest day of online commerce

    Buying presents online is bigger than ever this year, and it has been announced by online commerce experts that Sunday December 9 2012 is predicted to be the biggest day of online retail in Australia’s history.

    With this in mind a consumer advocate for accurate credit reporting is warning Australians to be vigilant with their personal information, as credit card fraud is not the only way unsuspecting consumers can be ripped off online.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says those consumers buying online should be careful giving out not only banking details but other pieces of personal information to unfamiliar online retailers, as this information may be used or stored for purposes of identity theft.

    “If you are caught out with bank fraud, your bank may be able to monitor your accounts and in many cases reimburse you for stolen funds, but identity fraud is not so simple.”

    “Identity theft is about building up a profile on the victim, and if fraudsters are able to do this they can request replacement copies of identification in your name and gain access to your credit rating, so it may be your personal details that the crooks are really after,” he says.

    Ebay, Paypal and Australia Post recently predicted Sunday December 9, 2012 will be Australia’s biggest online retail day, with 2.3 million Australians expected to visit Ebay alone on this day.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i] Whilst these retailers are familiar and trusted companies, some retailers are not always what they seem.

    The Australian Federal Police released a statement on Monday warning all consumers they need to keep close their personal information as they would if they were physically at the store.

    AFP National Manager High Tech Crime Operations Neil Gaughan:

    “Consumers need to ensure they protect their personal and financial information. Following basic security measures will prevent fraud and the disappointment and stress of financial loss when goods thought purchased are not received.” [ii]

    NSW Fair Trading, independent organisation Internet Fraud Watchdog and Western Union also launched the “Be Vigilant, Verify and Be Vocal” campaign against fraud in Sydney on Wednesday.

    Their campaign features Olympian Giaan Rooney, who was herself a victim of fraud earlier in the year when fraudsters racked up $17,500 on her credit card.

    “Fraud transcends the whole community. No-one is immune, it cuts across all Australians immaterial of age or status,” she says.[iii]

    These warnings seem fitting in light of security company McAfee’s recent survey on Australian online retail transactions.

    McAffee’s study featured a survey of 1005 Australians and found that one in three did not know how to recognise a secure web address. Over half also said they would provide their name and age, and 38% say they’d give their phone number to online retailers.[iv]

    But Mr Doessel says these basics of safe online commerce need to become common knowledge, as consumers can not only face a loss of money, but can potentially end up identity theft victims. He says this starts with two important points:

    “If the web address does not start with https:// your personal or financial details may not be safe – and the website may not be legitimate. Verify this before you proceed with entering your details,” Mr Doessel says.

    He also says people are giving away too much information to online retailers and there is a risk of that information going to identity thieves – whether that be due to a data breach or via a fraudulent retailer.

    “You have to think – does this store really need my date of birth? Only give information that is necessary for the transaction – and if your date of birth is one of them, I would be questioning why,” he says.

    Mr Doessel says identity theft can happen to anyone, and the victim may not always know the exact circumstances leading to debts in their name.

    “Sometimes the actual identity theft can have happened years ago, and it’s not until the victim applies for credit and is refused that they find out. The victim will have five to seven years of being blacklisted from credit unless they are able to prove they didn’t initiate the credit in the first place,” he says.

    He says if people worry they may have fallen victim to identity theft they should check their bank and credit card statements thoroughly and should also order a copy of their credit report – which would indicate if their credit file had been misused.

    “Contact Police immediately and also alert your Creditors and the Credit Reporting Agencies which hold your credit file if you are at all suspicious of identity theft before it leads to fraud,” he says.

    Victims can also use the services of a credit rating repairer to recover their good name following identity theft.

    Please contact:

    Graham Doessel – CEO Ph 3124 7133

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

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

    246 Stafford Rd, STAFFORD Qld

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

     

    ——————————————————————————–

    [i] http://auspost.com.au/about-us/biggest-online-shopping-day.html

    [ii] http://www.afp.gov.au/media-centre/news/afp/2012/december/stay-safe-during-the-festive-season.aspx

    [iii] http://www.tradingroom.com.au/apps/view_breaking_news_article.ac?page=/data/news_research/published/2012/12/340/catf_121205_143800_0813.html

    [iv] http://www.smartcompany.com.au/internet/052956-virus-experts-warn-beware-of-the-12-online-scams-of-christmas.html?utm_source=SmartCompany&utm_campaign=6debdba9e3-Friday_16_November_201216_11_2012&utm_medium=email

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

  • Buying a home? 5 things you need to know about Australia’s new credit reporting laws before you apply for finance.

    Media Release

    Buying a home? 5 things you need to know about Australia’s new credit reporting laws before you apply for finance.

    Some major changes have occurred to Australia’s Privacy Laws, and home buyers need to know about them before they apply for finance. A consumer advocate for accurate credit reporting warns potential home buyers they need to get up to speed with some of the main changes to credit reporting which could see more people refused a home loan in the coming months and years ahead.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says some simple mistakes made with repayments now, could see people blacklisted from credit even before the Privacy Amendments (Enhancing Privacy Protection) Bill 2012’s March 2014 deadline for implementation.

    “Potential home buyers need to know that from this point on, they need to make every credit repayment on time to avoid having late payment information show up on their credit history and potentially ruin their chances of getting the home they want,” Mr Doessel says.

    Mr Doessel explains more about this change, and other factors in Australian credit reporting which impact your credit rating:

    1. Repayment History Information

    From December 2012, whether or not a credit account was paid on time will be part of your credit history and will be used when a lender is assessing your suitability for a home loan.

    The notation will remain as part of your credit history for 2 years.

    The Government intends for these reforms to decrease levels of over-indebtedness in the market.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    But Mr Doessel is worried it could push more borrowers into higher interest rate loans due to being refused credit with mainstream lenders.

    “Many people pay bills late, for a variety of reasons – this doesn’t necessarily mean they intend for the account to go into default. But these late payers could find they end up refused credit, or charged thousands more in interest due to these notations,” he explains.

    2. Types of credit

    The new laws will now allow information on the type of credit accounts you have, and when they were opened and closed to be shown on your credit history. This will give lenders more ability to determine the relevance of each listed credit account for your specific situation.

    3. Credit limit of each account.

    The credit limit on each credit account will be used to assess the potential volume of credit the potential borrower could have access to.

    But there will be no way of telling what level of debt you actually have only what you could potentially redraw to.

    “It may be worth reducing unnecessary credit limits on your accounts before you make your application,” Mr Doessel says.

    4. Beware excess credit enquiries.

    Whenever a person other than you makes an enquiry on your credit history – that enquiry is recorded on your credit file.

    Mr Doessel says some lenders will decline a finance application due to too many credit enquiries, such as two enquiries within thirty days or six within the year.

    “By all means ask questions, and do your research on the best home loan for you, but when it comes to giving over your details, and making applications, leave that until you have decided which lender suits you best, to avoid being disadvantaged,” he says.

    5. It will still be up to you to ensure your credit file is accurate.

    With all of the new information available to lenders about your credit history, it is more important than ever for that information to be accurate.

    You can apply for your credit report for free every year by making a request to Australia’s credit reporting agencies – Veda Advantage, Dun & Bradstreet and Tasmanian Collection Services (if in Tasmania).

    “It is up to you to ensure your credit file reads accurately,” Mr Doessel says, “and the saving grace for this legislation is the improvements set to be implemented in 2014 around access and correction of your credit file.”

    From March 2014, Creditors will be forced to justify disputed credit listings. Notably, your Creditor will have to substantiate the information they report on your credit file if you dispute it.

    “This change is crucial, considering the power the Creditor has to impact your ability to obtain credit for years to come. Up till now, there has been little obligation within the legislation for the Creditor to justify credit listings, nor remove incorrect data,” Mr Doessel says.

    If the dispute escalates, you can complain directly to the Creditor’s Ombudsman, and in some instances may have a right to remedy under the direction of the Privacy Commissioner.

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

    /ENDS.

    Graham Doessel – PH 3124 7133

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

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

    246 Stafford Rd, STAFFORD Qld. 4053
    MyCRA Credit Rating Repair is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

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    [i] http://www.attorneygeneral.gov.au/Media-releases/Pages/2012/Fourth%20Quarter/29November-2012-FamiliestobenefitasprivacyreformspasstheParliament.aspx

    Image: vichie81/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Miss a bill payment by one day and risk your credit rating: New Privacy Laws passed today.

    Media Release

    Miss a bill payment by one day and risk your credit rating: New Privacy Laws passed today.

    29 November 2012

    [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”][UPDATE: Listen to the with Privacy Commissioner, Mr Timothy Pilgrim and Graham Doessel on News Talk 4Bc ]

    The credit history of Australian consumers is about to go under the microscope following the passing in Parliament today of amendments to Australia’s Privacy laws, and a consumer advocate for accurate credit reporting says many consumers will not be prepared for the changes around credit reporting which are about to take place.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says most Australians won’t know that from December 2012, they need to make bill payments to licenced Creditors on time, every time to avoid having a late payment recorded against their name. He is calling for greater consumer education to avoid unfair and surprise bad credit.

    “Many people pay bills late, for a variety of reasons – this doesn’t necessarily mean they intend for the account to go into default. People who pay bills late often, by accident or otherwise need to be told that this habit could have a detrimental effect on their ability to obtain credit in the future.”

    Mr Doessel goes on to say “I believe the Government should do its best to ensure that every credit active individual knows about these important changes to credit reporting law prior to the reporting of repayment history on Australian credit files.”

    Amendments to Australia’s Privacy Act in the form of the Privacy Amendment (Enhancing Privacy Protection) Bill 2012 – which includes major changes to Australia’s credit reporting laws were passed in Parliament today and come into effect from March 2014.

    Privacy Commissioner Timothy Pilgrim has also warned consumers that they need to prepare for the changes around credit reporting.

    “If a person misses making a payment from as early as December 2012, it will be able to be recorded on their credit record and may affect their ability to access credit in the future. People will not only need to be vigilant about paying their bills on time, they should also make sure that the information held by these organisations is correct. In most cases they can do this for free’,” Mr Pilgrim said in a statement to the media.[i]

    Mr Doessel reiterates the importance for every consumer to ensure their credit report reads accurately in the coming months.

    “There will be so much more information open to lenders now, and consumers should routinely check their credit file, to ensure there are no inconsistencies, and to generally be aware of what is being said about them on their credit report that could see them refused credit in the future,” he says.

    Every credit file holder is able to obtain a copy of their credit report for free every year from one or more of Australia’s credit reporting agencies – Veda Advantage, Dun and Bradstreet and Tasmanian Collection Services (if in Tasmania).

    A report will be mailed to them within 10 working days. Or for a fee to the credit reporting agencies, they can request an urgent copy.

    “It is the consumer’s responsibility to maintain the accuracy of their own credit file, and it will be more important than ever now. People should be encouraged to request a free credit report every year – regardless of whether or not they intend to apply for credit in the near future,” Mr Doessel says.

    If consumers find inaccurate information or inconsistent data on their credit report they do have the right to have that information rectified.

    Mr Doessel says whilst new laws covering credit corrections within the Privacy Amendments (Enhancing Privacy Protection) Bill 2012 are intended to make the process of disputing unfair or inconsistent entries easier, lack of knowledge of credit reporting legislation could still disadvantage the consumer.

    “As it currently stands, disputing an unfair credit listing is a bit like a battle between David and Goliath, with the consumer rarely holding enough knowledge of what constitutes an unlawful credit listing to be able to remove it from their credit file on their own. It will be interesting to see if this will change after the March 2014 deadline,” he says.

    /ENDS.

    Graham Doessel – Ph 3124 7133

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

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

    246 Stafford Rd, STAFFORD Qld. 4053
    MyCRA Credit Repairs is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files.

     

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    [i] http://www.oaic.gov.au/news/media_releases/media_release_121129_privacy_changes.html[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

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

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

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

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

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

    And alarmingly:

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

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

    “However, members of my staff did speak to two customers who had sent [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][money] to the criminals – around $300 via Western Union. Unfortunately, there is no hope of retrieving that money and it is lost to fraud,” he says.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Image: imagerymajestic/ www.FreeDigitalPhotos.net

    Image 2: nuttakit/ www.FreeDigitalPhotos.net

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