MyCRA Specialist Credit Repair Lawyers

Tag: credit file

  • A schoolie’s guide to the financial future: 5 important credit lessons.

    Media Release

    A schoolie’s guide to the financial future: 5 important credit lessons.

    While schoolies across Australia are celebrating finishing twelve years of education and looking forward to a bright future of bigger and better things, a consumer advocate for accurate credit reporting says when the good times are over, school leavers should prepare themselves for their new financial life as young adults.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says many young people amble through their early years with credit, making mistake after mistake that can cost them dearly down the track.

    “Young people can often get into a really bad pattern with credit, taking out credit cards, putting cars and electrical goods on credit and getting behind in repayments which sees them taking out new credit just to pay off the old credit.”

    “Before they know it, they’re 20 years old and facing bankruptcy or Court Action and years of being locked out of the finance market coming into the crucial years when they need it most,” Mr Doessel says.

    He says young people have got to be wise and ensure they are making credit work for them.

    He provides some advice for those young people coming of financial age:

    5 Important Credit Lessons For School Leavers

    1. Your credit file follows you…everywhere in Australia.

    Once you turn 18, you can become credit active, and can take out credit in your name. The history of your credit activity, good and bad is detailed on your credit file, which can be accessed by those thinking of lending you money.

    Your credit file lists personal details like name and address, but also any times you have applied for credit, any defaults (overdue accounts), court judgements, writs and bankruptcies.

    This credit file stays with you for life, and is added to by Creditors over your life.

    2. Overdue accounts are considered bad credit history.

    Many young people don’t realise how easy it can be to end up with a bad credit rating. Any account which is 60 days overdue (this ranges from mobile phones to credit and store cards, car loans to mortgages), is then considered in default. The Creditor then has the right to list this default on your credit file.

    “Even too many credit enquiries can show negatively on your credit report – so don’t apply with too many lenders – by all means do your homework but don’t sign up or give over your details until you’re sure you want the credit,” he says.

    3. Bad credit history matters.

    A single default for as little as $100 can stop you from getting mainstream credit in the current market for the term of the listing – which is five years.

    You may be forced to pay a whole lot more in interest to secure credit because of the risk of lending to someone with a bad credit rating.

    “Endeavour to pay all of your accounts on time. If you can’t pay, then contact your Creditor to work something out. You have to think ahead about what you want to achieve in another five years and whether the choices you make now could hinder those future plans,” Mr Doessel says.

    4. With all financial dealings, and especially credit – cover yourself at all times

    If you’re dealing with a Creditor in a tough situation, get the name of the person you’re dealing with, write down what is said and if a resolution is reached – get it confirmed in writing.

    If you need to cancel an account, don’t assume its cancelled until you receive written confirmation. If you are moving, provide a forwarding address.

    “This can be a common reason people get bad credit when they move – they may cancel a phone or electricity account and be left with a bill they weren’t aware of,” he says.

    Protect your credit file from misuse by keeping your personal information closely guarded. Your personal information is the key to your financial identity.

    “At all times – online, while making purchases, while banking, you need to be aware of the ways your identity could be compromised. You may not have a lot of money in your accounts – but you may have access to credit – and crooks can open accounts in your name and leave you with debts you can’t afford and your financial future ruined,” Mr Doessel says.

    5. You are responsible for the accuracy of your credit file

    Creditors can and do make mistakes with credit files all the time, but the responsibility to ensure your credit file reads accurately rests with you. Make it a habit to check your credit file once every year. This is free to do annually. All you do is contact the credit reporting agencies Veda Advantage (www.vedaadvantage.com.au), Dun & Bradstreet (ww.dnb.com.au) and Tasmania’s TASCOL (www.tascol.com.au).

    They will mail you a report within 10 working days.

    If you believe there has been a mistake on your credit file, then you have the right to have the mistake rectified. This may not be easy, but it is a point worth fighting for.

    For more information on your credit rating, see the MyCRA Credit Rating Repairs website www.mycra.com.au.

    /ENDS.

    Please contact:

    Graham Doessel – Director Ph 3124 7133

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

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

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

    Image: photostock/ www.FreeDigitalPhotos.net

  • Protecting Mr and Mrs Average from Identity Fraud

    Media Release

    Protecting Mr and Mrs Average from ID Fraud

    Every Australian is at risk of identity theft, and the government’s expansion of laws may help to put a price on what has been up to now a lucrative, faceless crime resulting in innocent people ripped off, and left with an uncertain financial future, a credit rating repairer says.

    MyCRA Credit Repairs CEO, Graham Doessel says improvements to identity fraud laws through the Crime Bill, passed by the Government on Wednesday are long overdue to increase protection to Australians for what is now termed “the fastest growing crime in Australia.”[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    “This is more than just basic credit card skimming or accessing bank accounts. Identity fraud comes about when a person’s good name has been misused, and that generally means fraudsters have been able to open credit accounts in their victim’s names – leaving the victim in debt and usually with a string of defaults against their name,” Mr Doessel says.

    The Australian Crime Commission’s CEO, John Lawler revealed at a national conference for credit professionals in September that identity crime is a “key facilitator” for organised crime groups because it is an anonymous crime which can facilitate significant fraud.

    “Every single person in this room and the various sectors and organisations that you represent are targets for organised crime,” he told the Conference.[ii]

    “Criminals will exploit technology to not only carry out new crimes but commit traditional crimes on a much larger scale.”

    The ACC estimates organised crime is currently costing the Australian economy at least $15 billion per annum – and that the impacts of this are significant and growing.

    Mr Lawler says the amount of personal information requested, stored and shared online provides organised crime with a larger pool of victims and data to harvest.

    “Organised criminals seek to conduct significant research on their intended victims and tailoring their operations to target weaknesses,” he says.

    Mr Doessel says this means when fraudsters ‘get someone’ with identity fraud the victim can have their life turned upside down.

    “Recovering from identity fraud is never an easy task. Creditors need proof the victim didn’t initiate the credit. But many people don’t know how the fraud eventuated, and even if they do there’s no guarantee they can recover their good credit rating,” he says.

    He welcomes increases to penalty units within the Crimes Act from $110 to $170, their first increase in 15 years.

    Attorney-General Nicola Roxon said the change would mean a person dealing in the proceeds of crime would see their fine rise from $165,000 to $255,000.[iii]

    The Age reported yesterday that the changes could see those people who use a carriage service like the internet or a mobile phone to obtain identity information with the intention of committing another offence could be sentenced to five years in jail.[iv]

    The crime of identity fraud has also expanded to include a number of activities such as flying interstate or booking domestic flights online using a fake identity.

    Mr Doessel says prevention is always better than the cure when it comes to identity fraud.

    “Australians need to understand that their personal information is a valuable commodity and should look at where it might be at risk of misuse. Keep your computer protected, don’t give your personal information to anyone who doesn’t need it and cross-shred all personally identifiable documents at home rather than throwing them straight in the rubbish,” he says.

    “Fraudsters are even going through rubbish bins to find what they need. So last month’s bank statement could be the missing link fraudsters needed to set up new accounts in your name.”

    He says if people worry they may be vulnerable 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.

    /ENDS.

    Please contact:

    Graham Doessel – Director Ph 07 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://www.attorneygeneral.gov.au/Media–

    [ii] http://www.crimecommission.gov.au/media/presentation-to-dun-bradstreet-consumer-credit-conference-2012

    [iii] http://www.attorneygeneral.gov.au/Media-releases/Pages/2012/Fourth%20Quarter/21November2012Makingcriminalspay.aspx

    [iv] http://www.theage.com.au/national/government-cracks-down-on-identity-fraud-20121121-29qnf.html#ixzz2CuXawkmr

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

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

    Media Release

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

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

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

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

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

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

    1. Identity theft.

    Identity theft and fraud has grown in severity and volume to now be the fastest growing crime in Australia.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

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

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

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

    2. Overlooking bill payments.

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

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

    3. Moving and transfers.

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

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

    4. Over committing and spiralling into debt.

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

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

    5. Overlooking errors and omissions from Creditors.

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

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

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

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

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

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

    /ENDS.

    Please contact:

    Graham Doessel – Director Ph 3124 7133

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

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

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

    Image: sixninepixels/ www.FreeDigitalPhotos.net

     

     

    ——————————————————————————–

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

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

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

    Media Release

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

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

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

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

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

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

    September’s key figures reveal owner occupied housing commitments rose 0.9% to 46,395, up from an upwardly revised 45,983 in August.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

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

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

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

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

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

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

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

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

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

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

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO Ph 3124 7133

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

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

    246 Stafford Rd, STAFFORD Qld

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

    ——————————————————————————–

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

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

  • Beware Christmas ‘spamvertising’ could threaten your credit file

    Fraudsters are out in full force this festive season and are planting cyber-bombs for you to unknowingly let off in your computer. We look at some of the things to watch out for, and what falling for a scam or downloading a virus could do to your credit file.

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

    According to an article ‘Cybercriminals start spamvertising Xmas themed scams and malware campaigns’ in online tech magazine ZD Net, security researchers from Symantec are warning about a recently intercepted flood of Xmas themed malicious and fraudulent campaigns.

    “Over the past year, we’ve seen numerous attempts to entice users into clicking on these links, by impersonating a legitimate message or notification from a respected, trusted and well known brands. These are prone to intensify over the next two months,” ZD Net’s Dancho Danchev writes.

    In an example of spamvertising, recently cybercriminals spamvertised millions of emails impersonating the popular e-card service 123greetings.com in an attempt to trick end and corporate users into clicking on client-side exploits and malware serving links, courtesy of the Black Hole web malware exploitation kit.

    According to Security experts Sophos, Black Hole malware is marketed and sold to cybercriminals in a typical professional crimeware kit that provides web administration capabilities. But it offers sophisticated techniques to generate malicious code. And it’s very aggressive in its use of server-side polymorphism and heavily obfuscated scripts to evade antivirus detection. The end result is that Blackhole is particularly insidious.

    Users are advised to avoid clicking on links found in such messages, and to report them as spam immediately.

    Malware—short for ‘malicious software’—is the term often used to refer to any type of malicious code or program that is used for monitoring and collecting your personal information (spyware) or disrupting or damaging your computer (viruses and worms). Some programs (spyware) collect various types of personal information or interfere with control of your computer in other ways, such as installing additional software or redirecting web browser activity.

    The purpose of malware can be to obtain personal information for identity theft and login details – especially for banking sites.

    If fraudsters get their hands on your personal information, they can steal passwords to your bank or credit accounts and they can also create a patchwork quilt of information that can allow them to eventually have enough on you to request duplicate identity documents, and apply for credit in your name.

    Running up credit all over town, perhaps buying and selling goods in your name, or in some cases mortgaging properties – the victim can have a stack of credit defaults against their name by the end of their ordeal – and sometimes no proof it wasn’t them that didn’t initiate the credit in the first place.

    Recovery can be slow, and in some cases victims have had no way to prove they weren’t responsible for the debt – with fraudsters leaving no trail and the actual identity theft happening long before the fraud took place.

    So to prevent devastating identity theft, which leaves you in debt and can leave your credit file tarnished and without any way of obtaining new credit for years to come, make it your business to educate yourself on internet and or computer risks. And think before you click this Christmas….it could save your financial future.

    If you need help to recover your credit file after identity theft – you may be suitable for credit repair. Contact a Credit Repair Advisor at MyCRA Credit Rating Repairs for help 1300 667 218 or visit the main website for more information www.mycra.com.au.

    Image: digitalart/ www.FreeDigitalPhotos.net

  • More positivity for housing: ABS Housing Finance figures continue to climb for September

    Good news again for the property market, with data from the Australian Bureau of Statistics recording another increase in Housing Finance figures. Some economists say Australians are starting to make the most of interest rate cuts. We look at the ABS Statistics, and look at the importance of credit file education to a possible new buyer’s market.

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

    Figures released today by the Australian Bureau of Statistics on September 2012 Housing Finance figures show owner occupied housing commitments rose 0.9% from August to 46,395, up from an upwardly revised 45,983 in August.

    An increase of 1.0% was predicted by economists.

    CommSec chief economist Craig James (featured in The Australian today) says the ABS data suggests home loan value could be on the rise.

    “The data shows that loan value is rising at a faster rate than the actual number of loans,” he said.

    “That suggests that there’s increased confidence by borrowers, or that home prices are edging a little higher.”

    Here is an excerpt from the ABS release:

    SEPTEMBER KEY POINTS

    VALUE OF DWELLING COMMITMENTS

    September 2012 compared with August 2012:

     The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.7%. Investment housing commitments rose 1.1% and owner occupied housing commitments rose 0.5%.
     In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 3.8%, with investment housing commitments rising 8.6%.

    NUMBER OF DWELLING COMMITMENTS

    September 2012 compared with August 2012:

     In trend terms, the number of commitments for owner occupied housing finance rose 0.5%.
     In trend terms, the number of commitments for the purchase of new dwellings rose 3.0%, the number of commitments for the purchase of established dwellings rose 0.5%, while the number of commitments for the construction of dwellings fell 0.3%.
     In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 19.3% in September 2012 from 18.6% in August 2012.

    Over the past six months, the Reserve Bank of Australia has shaved a full percentage point from the key interest rate. As a result, standard variable mortgage rates have on average come down by 55 basis points to 6.85 per cent.

    This seems to finally be making an impact on Housing Finance, with both August and September data showing a recorded increase in commitment numbers.

    The ABS reports that in original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 19.3% in September 2012 from 18.6% in August 2012. Between September 2012 and August 2012, the average loan size for first home buyers rose $400 to $289,300.

    As more buyers enter the market, we feel it is worthwhile to ramp up our education efforts around credit history. Many people do not know what a credit file is – many more don’t know the process for being listed with bad credit, and more again assume that if there was something amiss with their credit file, that they would somehow be informed. They don’t realise that the onus is on them to check their credit history on a regular basis (at least once per year) just to make sure that errors have not been made on the credit file. Errors can happen to anyone – from all walks of life.

    People may believe their credit history is clean, but creditors can and do make mistakes with credit reports, and often it is not until people apply for finance that they have any idea they have bad credit. At this time the process of investigation and complaint can be stressful and can sometimes mean the prospective borrower misses out on the home loan while the discrepancy is addressed.

    The process of clearing an unfair credit listing can sometimes be very time consuming – especially if the creditor has not cooperated with requests to supply documentation in a timely fashion, or the matter has to be referred to a third party for investigation.

    So the message is, if people are thinking about buying a home in the near future – they should grab a copy of their credit file, and make sure it has the “all clear” before they apply for finance, and before they get their hearts set on any particular home. This is free for all credit active Australians once every year and we encourage any home buyer to request a copy of their credit report. It takes 10 working days or for a fee to the credit reporting agency, it can be sent urgently. But what it does is give peace of mind – not only to the Purchaser, but to the Broker or Bank Manager, and in some cases a clear credit file can help get the deal over the line with the Agent and Seller.

    If there are any inconsistencies or out and out errors on the credit file, the advantage to getting those removed is generally thousands and thousands of dollars in interest saved. A clear credit file allows purchasers to capitalise on those interest rate cuts with the mainstream lender of their choice rather than being forced into the non-conforming sector at much higher interest rates.

    To find out more about the benefits of using a credit rating repairer to dispute credit listings, see our recent post How Do I Fix My Bad Credit? Or contact a Credit Repair Advisor at MyCRA Credit Rating Repairs on 1300 667 218 or visit the main site for more information www.mycra.com.au.

    Image: Idea go/ www.FreeDigitalPhotos.net

  • Award winning broker turned advocate for credit reporting accuracy reveals the surprise bad credit stopping Aussies refinance.

    Media Release

    Award winning broker turned advocate for credit reporting accuracy reveals the surprise bad credit stopping Aussies refinance.

    Australians are looking to refinance at a rate of knots, but a consumer advocate says some home owners are discovering they have bad credit history when they attempt to refinance, despite believing their repayment record has been impeccable.

    Frugality sparked by the GFC and improved banking competition have pushed the number of refinanced properties to a 20-year high.

    Consumers have been urged to move their mortgage away from the ‘big four’ banks as a response to the raising of home loan rates, but a consumer advocate warns that many home owners may discover they have bad credit history, even if they think their repayment history has been impeccable.

    Former broker turned consumer advocate for credit reporting accuracy, Graham Doessel CEO of MyCRA Credit Rating Repairs, says it is essential that all existing home owners check their credit file is accurate before making an application for finance.

    “For many home owners it may have been years since they applied for major credit so it is important to know if their good name is compromised in any way before they make an application,” Mr Doessel explains.

    He says regardless of whether people have been diligent payers, creditors can and do make mistakes with credit reporting.

    “People can have many errors thrust upon them unknowingly – bill mix-ups, computer errors and human error can all contribute to these surprise black marks. Unfortunately any black mark on your credit rating will be an automatic decline with most lenders,” he warns.

    “Creditors don’t always comply with the law, and sometimes they make mistakes.”

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

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

    Under current credit reporting legislation, consumers are entitled to obtain a copy of their credit report from the credit reporting agencies once a year.

    People need to contact all the credit reporting agencies to request their report – as creditors have access to 3 agencies within mainland Australia and 4 in Tasmania. The report must be provided to them in writing within 10 days of the request.

    He says listings are not removed by creditors unless the file holder can provide adequate reason and lots of evidence as to why the listing should not be there.

    “Credit repair requires knowledge of the legislation, lots of evidence and perseverance. But for those people whose financial freedom is hindered because their credit file contains errors, it is a point worth fighting for,” he says.

    Despite credit file errors – there may be other reasons refinancing is not an option. Currently many home owners are facing falling property prices. Negative equity can halt any refinancing plans.

    Mr Doessel says home owners also need to also calculate the in and out fees that may be present on any new loan to ensure the switch is really saving them money.

    People who want more information on credit repair, or who wish to obtain a free copy of their credit file can contact MyCRA Credit Rating Repairs on 1300 667 218 or visit their website – www.mycra.com.au.

    /ENDS

    Please contact:

    Graham Doessel – CEO Ph 3124 7133

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

    www.mycra.com.au www.mycra.com.au/blog 246 Stafford Rd, STAFFORD Qld

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

    http://www.news.com.au/money/property/property-price-falls-lock-homeowners-into-loans/story-e6frfmd0-1226305228916#ixzz1qHuXqibk
    http://www.mycra.com.au/media/television.php
    http://www.smh.com.au/articles/2004/02/09/1076175103983.html

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

     

  • What you need to know about the internet to save your teenager’s future credit file

    Media Release

    What you need to know about the internet to save your teenager’s future credit file

    Young Australians are putting their good credit rating at risk every time they post personal information publicly on the internet, even before they are ever credit active, a leading credit repairer warns.

    “The harsh reality is if you’re a teenager in Australia today you are not immune to identity fraud. Even though you are not yet credit active the personal information you make public today could be used against you in the future,” CEO of MyCRA Credit Repairs, Graham Doessel says.

    He says many teenagers do not know the risks of having a public ‘profile’ on sites like Facebook and Twitter, but fraudsters do.

    “With the volume of personal information that is publicly available about our young people on social network sites, what’s to say fraudsters can’t pull that information and use it to build a profile that could allow them to create a fake identity?” he says.

    Late last year, the Australian Federal Police’s national co-ordinator of identity security strike team, Ben McQuillan spoke about the dangers of identity crime at a forum on money laundering and terrorism.

    He warned forum listeners about the new trend of ‘warehousing’ which involves storing data for a time, making it harder for a victim or bank to trace where and when the data was stolen.

    ”If people know your full name, your date of birth, where you went to school and other lifestyle issues, and they were to warehouse that data, there is a prospect that could then be used to take out loans or credit cards or to create a bank account that could then be used to launder money,” Mr McQuillan told the Sydney Morning Herald.

    Mr Doessel says identity theft is not only about the initial loss of monies, but if the fraud amounts to credit accounts in the young victim’s name going undetected and unpaid past 60 days, creditors will issue defaults.

    “It need not be major fraud to have a detrimental effect. Credit file defaults for as little as $100 can stop someone from being able to obtain credit for 5 years. So any misuse of someone’s credit file can be extremely significant,” he says.

    He says the onus is on the victim to prove to creditors they didn’t initiate the credit.

    “The fact that the perpetrator is long gone and the actual act of identity theft happened years earlier will only add to the difficulty for the young person in recovering their good name,” he says.

    Experts recommend parents and young people continue to update their skills on how to be cyber-smart. The government’s ‘stay smart online’ website offers some top tips about using the internet which can be discussed with young people at home and school.

    Top tips

    Make sure your computer is secure-follow the advice in the Secure your computer section of this [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”][stay smart online] website.

    Set strong passwords, particularly for important online accounts and change them regularly-consider making a diary entry to remind yourself.

    Stop and think before you share any personal or financial information-about you, your friends or family. Don’t disclose identity information (drivers licence, Medicare No, birth date, address) through email or online unless you have initiated the contact and you know the other person involved.

    Don’t give your email address out without needing to. Think about why you are providing it, what the benefit is for you and whether it will mean you are sent emails you don’t want.

    Be very suspicious of emails from people you don’t know, particularly if they promise you money, good health or a solution to all your problems. The same applies for websites. Remember, anything that looks too good to be true usually is.

    Limit the amount and type of identity information you post on social networking sites. Don’t put sensitive, private or confidential information on your public profile.

    When shopping online use a secure payment method such as PayPal, BPay, or your credit card. Avoid money transfers and direct debit, as these can be open to abuse. Never send your bank or credit card details via email.

    When using a public computer, don’t submit or access any sensitive information online. Public computers may have a keystroke logger installed which can capture your password, credit card number and bank details.

    /ENDS.

    Please contact:

    Lisa Brewster: Media Relations media@mycra.com.au Ph 3124 7133

    Graham Doessel: CEO Ph 3124 7133

    246 Stafford Road, STAFFORD QLD.

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

     

    ——————————————————————————–
    http://www.cybersmart.gov.au/News%20Article%20List/2012/01/Connecting%20generations%20and%20educating%20each%20other.aspx http://www.smh.com.au/technology/technology-news/police-warn-of-sophisticated-plan-to-steal-identities-20111108-1n5l8.html#ixzz1dB4ctHcT
    http://www.staysmartonline.gov.au/teens

    Image: Just2shutter/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • 7 steps to fix bad credit history: A home buyer’s guide

    Media Release

    7 steps to fix bad credit history: A home buyer’s guide

    Buying a home can be nerve-wracking. There’s the deposit – have I saved enough? There’s your income – do I earn enough? There’s the home – have I paid the right price?

    When all of these factors combine to give you, on the face of it, a good chance of approval for finance then there’s the issue of choosing the right home loan, at the right rate, with the right factors for your future. So you go through all of these sometimes stressful aspects of property buying, and you make the official application for finance with your chosen lender. It all looks good…

    Until you are slapped in the face with an APPLICATION DECLINED. You should qualify for a home loan, but you don’t because your credit report shows up with a default.

    You have no idea what the default is for – you always pay your bills on time – but that little default from what looks like a utility company, is messing with your future. How can they refuse me a home loan based on this, you ask?

    Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs, says this is a scenario which frequently sees many Australians denied a home loan.

    “A default will impact your ability to obtain credit generally for the entire time it is listed on your credit file – which is 5 years. So – for 5 years you will have a hard time getting credit anywhere, from mortgages to car loans to credit cards and even mobile phone plans,” Mr Doessel says.

    He says people who find themselves the bearer of bad credit have two options. They can wait for 5 years, or they can investigate the validity of the listing.

    “Mistakes can and do happen. Mistakes in credit reporting are most times only picked up by the credit file holder, so if you think there is something amiss with your credit file it is up to you to put it right,” he says.

    7 Steps to Fixing Your Bad Credit History

    1. Determine what account the default is for.

    If you don’t have a copy of your credit report, you will need to order one. If you haven’t ordered a copy in the last 12 months, it will be free from the credit reporting agencies in Australia. They are Veda Advantage, Dun & Bradstreet, and Tasmanian Collection Service (if in Tasmania). You may have listings with one or all of these credit reporting agencies. They will take 10 working days to send you a copy of your report. For a fee you can have one sent to you urgently.

    On your credit file, will be the company the default is with, and an account number. This should correspond with an account you have with them. If it doesn’t, or if you don’t have any accounts with the company in question, there is a good chance there may be a mistake on your credit file.

    2. Gather all your information first, and try and determine how the default made its way to your credit file.

    3. Before you call the company in question, sort out what you know about the situation.

    Have they made a mistake? How have they made it?

    4. Write to the Creditor to ask for information on the account.

    You may need to find out more about how the default got there. Every company keeps a record of its customers and you can write to them and request your account records to date.

    5. Decide on how you’re going to tackle them.

    Now you want to try and negotiate for the Creditor to remove your default. Don’t go in guns blazing – bear in mind, there is nothing to say they have to remove the default. What you want to do is encourage them to do the right thing by you.

    6. It is going to be hard going.

    Most people find it really hard to correct their credit listing themselves –especially if it’s complicated. For one, the Creditor has to comply with a whole heap of legislation that crosses different codes, and if you don’t know legally where they may have made errors – it’s pretty hard to persuade them they have done the wrong thing. And also it’s taking the time to get to know it. Secondly, negotiating anything on your own behalf can be tricky – the old foot in the mouth routine can get you into trouble and see you stuck with the listing for the whole term. In reality, many people trying to fix their own credit rating get told they can have the listing marked as paid, but it is never removed. This is not enough to guarantee you the home loan. If you were able to show cause as to why the listing was put on your credit file unlawfully, there is a chance it will actually be removed.

    7. Consider getting a professional on board. For a pain-free approach – at any time, you can hire the services of a credit repair professional. Most of them will look after getting a free copy of your credit file for you, order your documents from the Creditor as well as directly negotiate with them to remove your bad credit, based on the relevant legislation applicable to your case. And most importantly, they will probably think of things you had never thought of to strengthen your case for the default removal. This is your best chance at getting the listing removed completely from your credit file, which will allow you to apply for finance with a mainstream lender again.

    Mr Doessel says credit repair is not suitably for everyone, and sometimes if people have ‘done the crime’, they may need to do the time. He says if you are a serial offender for late payments, or if you are currently struggling to keep your head above water, then new credit- especially major credit such as a mortgage- is NOT going to make it all better.

    “But if you have been unfairly treated, or there has been a mistake on your credit file, then you have a right to insist on that inconsistent listing to be removed or corrected,” he says.

    /ENDS

    Please contact:

    Graham Doessel – Founder and CEO MyCRA Credit Rating Repairs Ph 3124 7133

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

    Ph 07 3124 7133 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.

    Background

    Some reports suggest there may be 14% of Australians with adverse listings on their credit file. http://www.savingsguide.com.au/how-do-i-check-my-credit-file-for-a-bad-credit-rating/

    It is not known for sure how many of the over 16 million credit files in Australia could contain errors or inconsistencies. [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”][1][i]

    Recently a Veda Advantage spokesperson commented on the possible number of errors on credit reports within Veda. He admitted errors within their system alone amounted to 1%.

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

    I estimate the real figure across the board for credit file errors not detected by agency systems could be much higher.

    The possible volume of errors on Australian credit files was exposed by a small scale study conducted in 2004 by the Australian Consumer Association (now Choice Magazine).

    It revealed 34% of the credit files surveyed contained errors. [1][iii]

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

    Transferring those figures from the Choice study to the number of credit files in Australia today, could balloon the figures to almost 5 million errors, inconsistencies or flaws.

    ——————————————————————————–

    [i][i] http://www.mycreditfile.com.au/about/

    [i][ii] http://www.mycra.com.au/media/television.php

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

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Parent equity loans skating on thin ice with credit rating

    Media Release

    Parent equity loans skating on thin ice with credit rating

    Predictions of a rise in parent equity loans following the pulling back of first home buyer’s grants in some states has a leading credit rating repairer worried about the possible impact on parental credit ratings in the crucial pre-retirement years.

    CEO of MyCRA Credit Repairs, Graham Doessel says a possible rise in parent equity loans is a dangerous trend. If the loan falls into arrears, parents would be liable, forcing them to work much longer than anticipated to pay off the debts that impact their own credit rating.

    “Many people go guarantor for their children, without assessing the risks to their own finances should the repayments not be met. If the child falls into arrears with payments, the parent is liable for any debt, and they are also blacklisted from credit accordingly,” Mr Doessel says.

    1300 Home Loans managing director, John Koldenda recently told Australian Broker he predicts a surge in popularity for the parent equity type of loan following the wind up of first home buyer subsidies in each State.

    “These loans have many benefits including allowing children to avoid expensive Lenders Mortgage Insurance that is paid by borrowers – often young people – with low equity,” he said.[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 says whilst there are advantages for the child, if repayments are not made, the disadvantages stretch to both parties.

    “If the adult child fails to make repayments the parent is liable for this debt, if that extends past 60 days, the creditor can place a default on both credit files. In some cases parents are not aware repayments have stopped, and it’s not until they attempt to take out credit themselves and are refused that they realise there is a problem,” Mr Doessel says.

    He says a default of this nature on someone’s credit file can severely hinder chances of obtaining credit, and defaults remain on a person’s credit file for 5 years.

    “Worst case scenario, is the bank begins to use the property the guarantor put forward as collateral, to recover lost debts. There is a danger the guarantor can lose their home. Those people who were so close to financial freedom are now facing debt, and a shaky retirement,” he says.

    The Sydney Morning Herald Personal Loans Smart Guide[ii] provides some important questions for people to consider when making the decision whether or not to go guarantee a home loan:

    •How much is being borrowed?

    •How responsible is the borrower?

    •How stable is their employment?

    •Does the borrower have any other means of repaying the loan should he or she fall ill, be injured or become unemployed?

    •Can I afford to repay the total sum of the loan?
    “By far and away the most important question parents need to be asking is ‘could we make the repayments on this loan should our child be unable to?’ If there is any doubt of this, it may be best not to guarantee the loan,” Mr Doessel says.

    If people do decide they want to proceed with a parent equity loan, he recommends taking a few additional things into consideration before signing on the dotted line:

    1. Seek third party and or legal advice prior to any agreement being made.

    2. Insist there is adequate insurance to cover anything that may go wrong during the term of the loan, such as life insurance and income protection insurance.

    3. Set a specific amount that will be guaranteed

    4. Ensure there is an ending to the time period of the guarantee

    5. Request a copy of all bank statements during the course of the guarantee, so that parents are aware of any late payments. This way, payment problems can be addressed prior to any defaults, and while the parent’s good credit rating is still intact.

    /ENDS

    Please contact:

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

    Graham Doessel – Director Ph 3124 7133

    http://www.mycra.com.au/ 246 Stafford Road, STAFFORD QLD. Office 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.brokernews.com.au/article/parents-to-step-in-as-fhb-boosts-end-129917.aspx

    [ii] http://www.smh.com.au/money/tools-and-guides/step-4-going-guarantor-20100529-wmcd.html

    Image: jannoon028/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Mobile Phone Bill shock – Have YOU been a victim?

    Botched phone plans and lack of data usage monitoring is leaving many Australians shell shocked over their mobile bills, with bills so large many can’t pay up or refuse to pay up, and more are copping defaults on their credit file. There is an increasing number of credit listing complaints from Telco consumers relating to internet data usage on mobile phones. We have seen it here, and the Telecommunications Ombudsman has also released similar findings in its annual report today. We look at the finding in this report, and the plight of telco customers with bad credit history.

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

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

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

    Almost 26 per cent of our credit repair clientele in the 12 months to July were Telco customers.

    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.

    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 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.

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

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

    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.”

    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.

    Here’s 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 be final. Make sure you provide as much evidence as you can for the Ombudsman to make an informed decision – you may only get one shot at it.

    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.

    Image: posterize/ www.

  • Fraudsters pinch Australian Crime Commission logo to scam consumers

    Don’t be fooled with unsolicited emails, no matter how ‘official’ they look. The Australian Crime Commission (ACC) announced last week it has been made aware of a number of scams using the ACC name and logo to lure consumers into paying thousands of dollars into fraudulent bank accounts. We describe the details of this scam, and look at what you could be giving away that could lead to bad credit history.

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

    The ACC was last week alerted to a fraudulent email pretending to be from ACC Chief Executive Officer John Lawler, which asks the consumer to pay $900 into a Nigerian bank account in order to receive US$5 million.

    The email is sent from a non ACC email address. The ACC says all legitimate ACC emails contain @crimecommission.gov.au.

    They say the ACC will never request money from individuals in this way.

    Identifying characteristics of these emails may include:

    • Reference to the Department of Homeland Security
    • Reference to the Chief Executive Office of the Australian Crime Commission
    • Reference to Nigerian based banks
    • Requests for recipients to send amounts of money,” the ACC media release explains.

    This comes hot on the heels of another scam using the ACC name to rip off Australians.

    In late September the ACC became aware of a scam that falsely used the ACC, Australian Federal Police (AFP) and Australian Security Intelligence Organisation (ASIO) logo in an attempt to lure consumers into paying large sums of money for fake criminal background checks.

    The fraudulent criminal background checks were being initiated by criminals using dating websites.

    The ACC says the scams highlight the prevalence and scope of frauds being initiated by criminals operating in the cyber environment.

    Criminals are prepared to go to great lengths to pilfer the money or personal details of their victims. To target Australian victims, the average cyber-criminal or scammer needs to be pretty savvy. Most Australians are aware of the obvious scams (although they still do catch out some), but elaborate ones such as the recent investment super scam has meant many well-educated and intelligent people become victims.

    It’s do with the logos, the proof, the fake websites, and the fake statistics. You just don’t assume that people would go to those lengths to steal your money –right? Wrong! The more elaborate the scam, the more likely it will catch out those with serious money. If the prototype works – fraudsters can use it again and again to catch out thousands before they are shut down.

    The other danger with receiving unsolicited emails, is that you can unknowingly download a virus by clicking on a link or attachment. This virus can cause your computer to be part of a botnet, or it can use keyloggers to record your keystrokes and take your passwords and usernames for important sites you use online. So even if you don’t fall for the scam, you can still fall victim to scammers.

    Scams can bring profits in a myriad of ways. Fraudsters can swipe small amounts over a widespread group – or they can concentrate on draining the bank accounts of a few. What they can also do, is misuse or even on-sell the personal details of the victim for purposes of constructing a fake identity to steal credit.

    If successful, crooks can access credit cards, goods or even larger items like houses and cars. This leaves the victim in debt, and it will also leave the victim with a series of credit defaults attached to their name. It is just debilitating for the victim, who then has to go and try to prove to creditors they didn’t initiate the credit in order to clear the bad credit history.

    To prevent this from happening to you, we have compiled a quick list of some ways you can prevent becoming a scam or identity theft victim:

    1. Keep virus software up to date on your computers. Install automatic updates and perform regular virus scans.
    2. Be careful with unsolicited emails. Check the email address before you click on links and attachments.
    3. Keep your privacy settings secure on all social networking sites.
    4. Keep your passwords and PIN numbers secure. Don’t carry PIN numbers with your credit/debit cards, change passwords regularly and use a variety of passwords for different purposes.
    5. Check all your credit card and bank statements each time they come in.
    6. Cross-shred all personally identifiable information which you no longer need, rather than throwing it straight in the bin.
    7. Buy a safe for your personal information at home.
    8. Do not give any personal information or credit card details to anyone via phone, online or email unless you are sure the site is secure, and or you can verify the company details.
    9. Be aware of who gets your personal information and for what purposes. What can these people do with the information they are gathering? For instance, is it really necessary for the site you are registering on to have your date of birth?
    10. Keep up to date with the latest scams by subscribing to the government’s ‘SCAM watch’ website.
    11. Check your credit file for free every 12 months. By requesting a copy of your credit file from one or more of the major credit reporting agencies, Veda Advantage, Dun & Bradstreet and Tasmanian Collection Service (TASCOL) you can be aware of any discrepancies which may need to investigated. Often it is only through a credit check which comes back with defaults on your credit file that  you may realise you have been a victim of identity theft.
    12. Report any incident of identity theft, no matter how small, or even if you have been reimbursed for the damage – to the Police. The more of us that report identity theft, the more effective will be our Government and Police response to it.

    For further information, visit these helpful links:

    ACCC’S SCAMwatch www.scamwatch.com.au for help with how to spot a scam and how to keep personal details safe.

    To report a scam, telephone them on 1300 795 995

    Stay Smart Online www.staysmartonline.gov.au for help with how to secure your computer, and how to keep abreast of cyber-related crime.

    MyCRA Credit Rating Repairs www.mycra.com.au for help with recovering your credit file following credit defaults from identity theft. Call 1300 667 218 to speak with a Credit Repair Advisor.

    Image: fotographic1980/ www.FreeDigitalPhotos.net

  • They’re ba-ack again! Fraudsters change tactics on Microsoft virus scam

    If you own a computer – or a telephone for that matter – you may be vulnerable to computer-related scam attempts. The old Microsoft virus scam may have been shut down, but a new one has popped up in its place. We look at the current computer cold call scam warning, what you should do if you are called by these scammers, and what the ramifications of falling for this scam could be for your financial identity and credit file.

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

    Remember the scam going around where fraudsters were claiming to be from Microsoft and were cold calling in Australia to offer “technical support” to remotely assist in clearing viruses off home computers?

    First detected in 2010, the ‘Microsoft Phone Scam’ was clever, and caught out thousands. Callers knew the victim’s name and address. These fake security engineers were claiming to see problems with the victim’s computer and asking whether the victim had noticed their computer becoming slower recently.

    They went on to offer to take over the machine and fix the problems. The scammers were using legitimate remote access software, such as LogMeIn, TeamView and Ammyy.

    Scammers then requested money for this ‘service.’ On top of that, it put the victim’s personal and banking details at risk. It also gave the scammers remote access to their computer, which can potentially lead to infected computers and pilfering of personal information via keyloggers.

    Gizmodo’s recent article ‘Global Operation Sees Infamous ‘Microsoft’ Scammers Finally Taken Down [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”][Updated]’ explained the extent of the success of the scam prior to its takedown:

    Three years on from the first report into the ACMA about the Microsoft scammers, over 10,000 complaints have been recorded. The ACMA says that the worst point came two years ago, when every second complaint to the agency was about the Microsoft scammers. This was in 2011 — a year when scam activity had doubled on the previous period. 52 per cent of the 83,000 scam complaints the ACMA received in 2011 presented as phone scams. All in all, in that 12 months, Australians lost a total of $85.6 million to various scammers.

    Gizmodo reported international efforts from Australia, Canada and the United States brought down U.S. based scammers only a couple of weeks ago. The scammers became the first individuals to be caught in connection with the scam. They’ve had their assets frozen and they are presumably now awaiting a hearing over fraud charges.

    Not to be dismayed, scammers have obviously thought the gig was too lucrative to dismantle yet – and they have changed tactics – hitting those original victims with yet another scam. As if they hadn’t suffered enough!

    On Friday Stay Smart Online issued a warning that computer-related scams were doing the rounds again. It may be important for those who may have been targeted last time.

    “Following international efforts by agencies to close down the infamous ‘Microsoft imposter scam’, reported earlier this month, examples of scammers responding with new approaches have been noted.

    This includes scammers making follow up calls to previous targets of the original scam, offering apologies and refunds in response to the closing down of (fake) support they provided previously.

    Scammers may also claim to be from a foreign government, foreign law enforcement agency or bank, and offer to recover the money you initially lost, in return for a fee,” SSO notes in its warning.

    Your personal information in the wrong hands can lead to identity theft which threatens the health of your credit rating. Fraudsters can duplicate your identity and take out credit in your name – leaving you with debts you didn’t initiate and bad credit from outstanding accounts in your name.

    Think recovery would be easy? Think again!

    Clearing bad credit history is always difficult for individuals to undertake. Most enquiries will result in Creditors telling you that bad credit is there to stay for the term of the listing (usually 5 years). The only thing you can do to change that is to prove there is an inconsistency by demonstrating that the listing was put there unlawfully. An identity theft victim’s task is then to prove that they did not initiate the credit in the first place, but proof is not always easy to obtain – especially when you have no idea of exactly how the fraud occurred. Many people don’t know they are victims until they go to obtain credit and are refused because their credit file is riddled with defaults.

    So what should you do if you get a phone call from one of these guys? SSO gives this advice:

    Suspect: Don’t accept anything at face value. Don’t make a payment over the phone or online without first checking the details.

    Think: Recognise the signs. If you’re being pressured to act, disclose personal details or send money to a stranger, it’s almost certainly a scam. (Microsoft never makes unsolicited phone calls about its products.)

    Report: Act to report the scam. Tell SCAMwatch and help stop scammers in their tracks.

    Ignore: Never respond. Hang up or delete the SMS or email after reporting.

    If you have had your credit file destroyed by identity theft, and need help recovering your good name – contact a professional Credit Repair Advisor on 1300 667 218 or visit the MyCRA Credit Rating Repairs website www.mycra.com.au. Professional credit repair can offer you the best chance of being able to clear bad history from identity theft for good.[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • It’s not credit for Christmas, says DnB

    Christmas credit may not be ‘on the cards’ for shoppers this year. Due to concern about financial security in Australia, it is predicted shoppers will continue to tighten their purse strings over the Christmas period, with less predicted to spend money on non-essential items and credit usage predicted to drop, according to credit reporting agency Dun & Bradstreet.

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

    Findings from Dun & Bradstreet’s latest Consumer Credit Expectations Survey, which measures expectations for savings, credit usage, spending and debt performance during the December quarter 2012, show half of Australia’s households are less likely to spend on non-essentials in the coming months.

    The survey showed:

    • One in three (29%) are more inclined to save than they were 12 months ago.
    • 56 per cent of Australians are concerned about their personal financial situation.
    • 37 per cent of households less likely to use a credit card to pay for non-essential items over Christmas compared to the same period last year, while just 16 per cent plan to apply for a new credit product or limit increase.

    Dun & Bradstreet notes that the Reserve Bank’s decision to lower interest rates due to slower economic growth comes as households reduce debt and increase savings as a buffer against economic instability, including the risk of rising unemployment. The bank is now predicting more moderate and sustainable credit growth off the back of this trend in consumer behaviour.

    Dun & Bradstreet General Manager, Danielle Woods, says the conservative consumer outlook could have a significant negative impact on businesses reliant on the Christmas rush.

    “An increasing number of Australians are concerned about their financial security and this is weighing heavily on their plans for the Christmas period,” Ms Woods said.

    “Prioritising saving over non-essential spending is a positive for the balance sheets of Australian households and the Reserve Bank is certainly encouraging this behaviour, in light of uncertain employment conditions. However, it could have detrimental flow on effects for businesses that are looking to Christmas to drive an uplift in sales.”

    However DnB also says, while consumers are planning to avoid non-essential spending and non-essential credit usage during the Christmas period, a significant proportion will need to rely on existing lines of credit to cover the cost of living.

    Forty per cent of 35-49 year olds will use credit to cover expenses they couldn’t otherwise afford, up from 35 per cent during the December quarter 2011. In addition, 60 per cent of this demographic are expressing concern over their financial situation and one in three (35%) would last no longer than one month on their current savings without full-time employment.

    This survey reveals a similar sentiment from Australian Bureau of Statistics figures released in September this year, showing 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 revealed in news.com.au ‘Aussie strugglers living beyond means’.

    So it seems the trend is continuing that most people are batting down the hatches and reducing their spending in order to pay down debts – but there are sections of the community who are still struggling due to rising costs of living and over-commitment. This seems apparent regardless of income. So for those people, credit for Christmas may be a reality.

    Causes for over-commitment can be a simple inability to manage money – wanting more than they can afford. Or in some cases, over-commitment can be a gradual thing – sometimes caused by expensive credit as a result of bad credit history. There have been reports that possibly as many as 3,000,000 Australians are impacted by bad credit history.

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

    If the person with bad credit history wants to try and start again with credit, it may be possible to wipe the slate clean  and remove bad credit history, particularly if it should not be there, or was incorrect in the first place.  If the credit file contains inconsistencies, that person may be a good candidate for credit repair.

    A credit repairer can work with creditors on behalf of the client to identify inconsistencies and negotiate to clear the credit file of those defaults, clear-outs, writs and Judgments which contain errors, are unjust or just should not be there. A clear credit rating would give them the financial freedom to use credit whenever they need to at competitive rates.

    For advice about credit repair contact a  Credit Repair Advisor on 1300 667 218 or visit MyCRA Credit Rating Repairs website www.mycra.com.au.

     

  • Has your tax file number been given out to debt collectors?

    If you have a tax bill you haven’t paid – be aware your tax file number may have been given out to debt collectors contracted by the Australian Tax Office. This is despite the recent warnings from the ATO that compromised tax file numbers are leading to identity theft. We look at the story behind this recent revelation and report on the prevalence of tax file number – related identity crime. Identity theft can lead to credit fraud which can leave you in debt and with bad credit history.

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

    The Herald Sun reported yesterday in their story ‘Debt collection agents given tax file numbers’ that the ATO gives out the tax file numbers of consumers whose debt they are referring to debt collection agencies. The numbers are used for identification purposes.

    “THE tax file numbers of Australians are being passed on to contracted third-party debt collection agencies by the Australian Tax Office, despite the ATO claiming compromised tax file numbers are leading to identity theft,” the lead in states.

    This surprising revelation comes after the Herald Sun revealed this month there had been a surge in compromised tax file numbers. See last week’s post ‘Over 23,000 accounts of tax file number identity theft last year.’

    The newspaper published data from the Australian Taxation Office showing over 23,300 Australians had their tax file number compromised in the 2012 financial year. This was up from 22,000 last year.

    Likewise, ATO’s August campaign involved urging consumers to keep their tax file numbers safe to avoid identity theft. They revealed that scams such as fake job ads and bogus ATO emails were leading to compromised tax file numbers and identity theft. Here is an excerpt from their media release ‘Scammers target job seekers’ with comment from Tax Commissioner Michael D’Ascenzo:

    “Personal information can be used by scammers to lodge false tax returns in your name, enable the use of your credit cards or even result in people taking out a loan in your name. In some cases, identity crime can take years to resolve.”

    This year there have been over 6,000 reports from the community about bogus e-mails using the ATO brand, and over 4,000 reports of attempted phone scams.

    At this time of year when many people expect refunds, scammers use the opportunity to pretend to be from the ATO.”
    Only certain people and organisations can ask for your TFN, the most common being:

    • the ATO, when discussing your tax records
    • your employer, but only after you start work
    • your bank or other financial institutions
    • Centrelink, and
    • your superannuation fund.

    It was not mentioned which people and organisations are commonly recipients of Australian tax file numbers.

    ATO response on tax file number referral

    The ATO told the Herald Sun that contractors use the numbers for identification purposes only and said there is no risk because strict security requirements are placed on them.

    Here is an excerpt from the Herald Sun story:

    Four companies are contracted to do debt collection for the ATO and only two responded to queries from the Herald Sun asking about security arrangements or how many staff would have access to public tax file numbers.

    The ATO stated: “The four debt collection agencies we use are subject to strict security and privacy provisions as part of their contract. Any breach could nullify the contract and result in prosecution.

    “No taxpayer information, including tax file numbers, is to be sent overseas.”

    The ATO added that every two years it checked the premises and IT systems of third-party debt collection companies, and the last checks were done between July and October this year with no major risks or breaches identified.

    But the country’s biggest accountancy body has expressed concerns about the use of tax file numbers when not necessary.

    “If the tax office is sharing TFNs with third parties, regardless of the contractual arrangement, then there is a concern and a great risk … that the information is distributed, that the information could be misused somewhere along the line,” CPA Australia head of tax Paul Drum said.

    “In that regard, it seems unusual that the Tax Office would need to provide a TFN when the information provided to the debt collectors includes a claims reference number anyway.”

    Whilst the security checks employed by the ATO seem acceptable, I too question the requirement for sharing of this crucial financial information to outside bodies if not absolutely necessary.

    In this day and age when instances of identity fraud are reportedly on the rise, and becoming more sophisticated by the day; when we are urged by Government, by law enforcement, by banks, even by the ATO to regard our personal information as a valuable commodity – it seems unusual that the policy for sharing this crucial financial information still remains in place.

    Identity crime and your credit file

    Compromised personal information in any form is a big threat to our credit file health.

    If fraudsters get hold of your identity information they can duplicate it, and attempt to take credit out in your name. If successful, they can borrow anything from credit cards, mobile phones, cars, even mortgage properties. They are never so kind as to pay that debt back – so your credit file, your good name is left compromised and you are left with debt you didn’t initiate.

    It can be difficult to correct any credit file discrepancy – but identity crime can be even more difficult to remove from your credit history – because you have to prove – somehow – that you didn’t initiate the credit in the first place. This can involve evidence that you may or may not have. You may not be able to get any documentation, and also the identity theft could have occurred long before you find out about it.

    If you find out any personal information is compromised, or you know you are the victim of identity theft, the best place to go first if the Police.

    Once you are in a position to try to recover your good credit history, a Police report will go a long way to proving your innocence.

    Police may also advise you of other avenues open to you as well as an identity theft victim, such as requesting a Victims of Commonwealth Identity Crime Certificate.

    If you need help recovering your credit file health for whatever reason, contact a Credit Repair Advisor on 1300 667 218 or for more information visit the MyCRA Credit Rating Repairs website www.mycra.com.au.

    Image: Arvind Balaraman/ www.FreeDigitalPhotos.net