MyCRA Specialist Credit Repair Lawyers

Tag: credit file

  • The dead not protected from identity theft

    Even in grief identity theft can strike us and affect our credit file and the clear credit file of those we leave behind. Grieving relatives may need to protect themselves and their loved one’s good name against this fraud, following a recent spate of identity theft of deceased individuals.

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

    There are so many things to think about when someone dies and it is very unfair that grieving relatives need to think about possible identity fraud on top of everything else, but the fact is it may be necessary to protect not only their memory, but the good credit file of the living.

    Last year a Sydney court sentenced a man and a woman to two years jail for identity theft.

    The Courier Mail ran details of the story in September last year, in which the court heard the couple “spent nine years trawling cemeteries across Australia collecting the details of dead people, with Queensland targets including a disabled man and a baby less than two days old.”

    “The couple created fake “identity kits” using the details of the deceased, including bogus passports, Medicare cards, drivers’ licences and bank accounts, which they sold to criminals for up to $30,000 each”, the story said.

    In October, The Australian ran a story ‘Backlog of births, death records prone to identity theft’, detailing the possible prevalence of these instances of ID Theft. It told of data processing backlogs at some government birth, deaths and marriages registries that have left the door open for fraudsters to assume the identities of dead Australians.

    The fixing of the identity loophole had been delayed by a dispute with developer UXC, whose contract with the NSW Registry was terminated in 2009. The registry said it had received $2.9 million in damages as a result.

    A new contract had now been negotiated with Objective Consulting for $11.4m, with the first release of a new registry due in June next year.

    Queensland too is yet to digitise its birth, death and marriages records to enable automatic cross-checking between births and deaths data.

    “The project is currently in the final stages of contract negotiation with digitisation currently scheduled to run from early 2012 to 2014,” a Queensland Births, Deaths and Marriages Registry spokeswoman said.

    Queensland’s 2009-10 budget had allocated $20.8m for digitisation of records.

    The spokeswoman said when digitised, its operators would be required to complete an electronic search of Queensland death records before releasing a birth certificate.

    Software developer John Doolan, who has worked with birth, deaths and marriages registries across the Australian eastern seaboard for more than 20 years, said the enormous backlog in unmatched birth and death records was a headache.

    “We are aware of cases of false identities that have been created and stolen,” said Mr Doolan, the chief executive of KE Software, which has different versions of its software operating in Queensland, NSW, Victoria and Tasmania.

    The ability of a person involved in immigration fraud, tax evasion, social security rorts and even terrorism to obtain a legitimate birth certificate by using a dead person’s identity is still possible at these registries.

    While states are rushing to digitise this process, relatives should be aware of how a deceased person’s personal information could be compromised, and act quickly to protect their  credit file and good name in death.

    – Relatives can start by obtaining several copies of their loved one’s death certificate, and providing one to each credit reporting agency in Australia. The credit reporting agency can then ‘flag’ the credit file so that no future credit is issued in that name.

    – Also pay particular attention to how much information is given away in the obituary. As in life, in death, personal information is a valuable commodity. Restrict the publication of any details which could allow fraudsters to piece together details to create a false identity.

    – It is also important to provide a death certificate to financial institutions and notify all other credit facilities of the death, particularly where joint accounts may be involved. This could prevent the other person attached to the joint account of the deceased having their clear credit file compromised by possible identity theft.

    If fraudsters gain access to someone’s good name – living or dead they may be able to drain bank accounts, or open new lines of credit in the person’s name.

    Often people don’t find out about the identity fraud until they attempt to take out credit and then find out they have a bad credit score due to a series of defaults they have no knowledge of. It was reported that in the case heard by the Sydney courts, the names of the deceased were used to create false Medicare cards, birth certificates, drivers’ licences, bank accounts and credit cards. Forged documentation and identities were sold to criminals, including members of the Lone Wolf bikie gang, so they could apply for passports.

    Any kind of credit account (from mortgages and credit cards through to mobile phone accounts) which remains unpaid past 60 days can be listed as a default by creditors on the victim’s credit rating, and those defaults remain there for 5 years.

    Relatives left with the task of trying to repair the credit file of their deceased, particularly the credit files of joint account owners can find the task a difficult one. To restore the clear credit file the identity theft victim needs to prove to creditors they did not initiate the credit. Not only are victims generally required to produce police reports, but large amounts of documentary evidence to substantiate to creditors the case of identity theft.

    If people need help credit rebuilding and restoring credit activeness following identity theft, please contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit the main website www.mycra.com.au

    Credit rebuilding is not easy for anyone to undertake themselves, particularly those who are facing grief. Many times when restoring credit individuals will be told that listings can be marked as paid, but this does not give the victim a clear credit file.

    Using a credit repairer skilled in credit reporting legislation will help to enforce rules creditors are bound to comply with, and coupled with negotiations will ensure the best chance at a clear credit file.

    Image: Arvind Balaraman / FreeDigitalPhotos.net

     

     

  • Home owners with credit file defaults forking out $15,000 more in interest

    Australians who are living with defaults on their credit file could potentially be hit with a whopping $15,046.57 or more in additional home loan repayments over the first three years of their loan if they are lucky enough to get one.

    Although this week’s predicted 0.25 per cent interest rate cut did not occur, each previous one had the potential to pass on a saving of around $50 per month to the average householder for a mortgage of $300,000 if the full amount was passed on.

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

    But for those Australians who are living with credit rating defaults, last year’s interest rates cuts, and any which are predicted in the near future will be negligible.

    Our calculations show families with a $300,000 loan who are unlucky to have defaults on their credit file for 5 years, who are able to secure a loan with a non-conforming lender will be paying a staggering $417.96 more per month in interest rates.

    We talk about massive savings for the average Australian with these cuts, we talk about encouraging people to switch lenders, but this is not a reality for people with defaults. Most banks won’t lend them money, forcing them into non-conforming loans and paying top dollar because their credit file shows they are a bad risk – and it may not be true.

    It is a fact in our experience that there are many families living with unfair defaults.

    It is not known for sure how many of the over 14 million credit files in Australia could contain errors or inconsistencies.

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

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

    Transferring those figures from the Choice study to the number of credit files in Australia today, could take the figures to over 4  million errors, inconsistencies or flaws.

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

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

    We feel based on the ACA study and the Choice survey that the real figure across the board is likely to be in the middle somewhere – much higher than 1%. With 14.6 million Australian Veda Advantage credit files alone 1 per cent of errors amounts to 140,000 Australians’ financial lives potentially in ruins through no fault of their own.

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

    Unfortunately consumers are often not aware across the board of their responsibility to check the accuracy of their own credit file, so many errors go undetected.

    Errors do occur, but often it is not until people apply for a loan that they learn they have an adverse listing on their credit file, but by then it is too late to correct errors and they are generally refused credit or forced to take on non-conforming loans at sky-high interest rates to secure the home.

    When disputing any adverse listing, it is up to the credit file holder to provide reason as to why the creditor has not complied with legislation.

    Unfortunately many people find this process difficult at best – negotiating with creditors is not always easy for the individual to undertake.  Our job as credit repairers is to check the creditor’s process of listing defaults for legislative and or compliance errors, any such errors could deem the credit file default listing unlawful, at which time we advise the creditor to remove the default.

    If you want a home loan, or to re-finance, but are weighed down by credit rating defaults, contact us to see how we can repair credit fast.

    Image: renjith krishnan / FreeDigitalPhotos.net

    Image: digitalart / FreeDigitalPhotos.net

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • As confidence returns, home buyers need to fix credit problems

    Good news may be on the horizon for the Aussie mortgage market. Mortgage sales for January 2012 have revealed a significant return in confidence for home buyers. But with that renewed confidence should come a forewarning for home buyers about how to make the most of preparations of savings records, wages and stability through matching it with a credit ‘clean up’ for easier finance approval.

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

    According to AFG (Australian Financial Group), mortgage sales for January 2012 have soared above figures for last year. It released its AFG Mortgage Index last week in which it showed national mortgage sales increased by 40% this January compared to last year. AFG says the changes mark a return to more normal trading levels.

    Sales in Queensland were up 80.6% and in South Australia 84.5%, with other states showing significant uplifts compared to January 2010 ? WA (+ 37.4%), Vic (+25%), NSW (+14.5%).

    January also saw WA take over from NSW as the most popular state for First Home Buyers. Almost one in five new mortgages (19.1%) in WA was arranged for First Home Buyers compared to 14.0% in NSW. Through the second half of last year, NSW led the country as the most active First Home Buyers market.

    However NSW retains its position as the most popular state for investment, with 40.2% of loans there arranged for investment purposes, compared to 36.8% in Victoria, 34.9% in Queensland, 32.6% in Western Australia and 32.0% in South Australia.

    Although confidence might have returned, there will still be a significant number of home buyers who fail to realise their home ownership dreams due to a bad credit report. It is estimated there are approximately 3.47 million Australians who have a bad credit rating (negative listings on their credit file). (Veda November 2008).

    As credit repairers, we meet many people who seek help to fix credit problems, and astoundingly, many of those people should qualify for a home loan. It may surprise people to know that many prospective borrowers we see have significant savings records, or even currently own property and have good income. They can be knocked back for finance by a bad credit history that should not be there.

    Do you need a credit clean up?

    Many credit files contain errors or inconsistencies due to simple human error from creditors, or from creditors simply not complying with credit reporting legislation. Often it is not until people apply for a home loan that they find out about them. Even if people already own property, they can be banned from refinancing, investing, or from upgrading their home due to credit rating defaults or other credit file problems.

    Any negative listing – from defaults, to Judgments and even excess credit enquiries will stop most people from getting a home loan in this market, or force them into a high-interest loan, costing them thousands more in interest.

    Negative listings remain on a person’s credit file for 5 -7 years, depending on the listing type. These black marks can show up for outstanding bills as low as $100.

    Credit file errors

    A survey by Choice Magazine as far back as 2004 points to approximately 30% of the credit files in the survey likely to contain errors. That’s a staggering amount of credit file errors potentially out there.

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

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

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

    The nature of credit reporting is that there is much opportunity for human error and these errors are usually not uncovered until people go about checking their credit file. Often people are unaware of their responsibility to maintain the accuracy of their own credit file – and so they don’t find out about their credit issues until they apply for a home loan.

    Then, once people find problems with their credit file – they often find the process of removal of errors from their credit report difficult.

    What is the best way to fix credit problems?

    Current legislation does allow people to have inconsistencies removed from their credit file, but in reality many people are not successful when they attempt to fix it themselves.

    Often it is because they are not schooled enough in the legislation or can’t devote the necessary time to it to ensure a successful credit repair. Sometimes people who attempt to fix credit problems themselves can do more harm than good through lack of knowledge, or difficulty in negotiating with creditors or by alerting them too early to mistakes on the credit file.

    A borrower’s credit file is one of the key factors to home loan approval. People should not underestimate this factor.

    Make it right with a credit file check and credit clean up before you apply for a home loan

    It is important to get it right, and the onus is on the credit file holder to maintain its accuracy. House hunters can and should request a free copy of their credit file every year from one or more of the credit reporting agencies such as Veda Advantage, Dun and Bradstreet or Tasmanian Collection Services (TASCOL) if Tasmanian.

    A free copy of their credit report will be mailed to them within 10 working days. A creditor may have place a negative listing with all or one of these credit reporting agencies. If there are any inconsistencies, they should seek a reputable credit repairer for a credit clean up.

    ABS Statistics differ

    AFG statistics are currently projecting significantly more confidence than the latest data from Australian Bureau of Statistics figures shows, particularly in Queensland.

    The November Lending Finance Statistics show the number of owner occupied housing commitments in Queensland stayed flat in October to November, recording a 0.0% change in Queensland.

    We will watch avidly to see if data from AFG matches with the ABS’ review of January housing finance and lending statisitcs due out in March.

    For brokers, agents and property owners – rising mortgage rates in many states and particularly in post-flood ravaged Queensland, would be very good news indeed.

    Image: Danilo Rizzuti/ FreeDigitalPhotos.net

  • MyCRA clients tell their stories: Telco mistakes threatening home ownership

    Two of our credit repair clients share their stories on how their good credit rating suffered at the hands of Telco mix-ups. Their stories demonstrate how bill and service disputes can be difficult for customers to resolve, and can ultimately lead to a bad credit rating.

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

    DANIEL

    A NSW client, Daniel and his young family were shocked when they applied for a home loan last year to find they were refused due to a whopping $8,000 debt and five years of bad credit when a botched phone plan with Telstra in 2006 came back to haunt them.

    Daniel was told by the lender there was no way he would be given a home loan with a black mark against his name – a mark Daniel says was a huge mistake.

    “I was on a 10MB plan initially, but wanted to start using the internet from my phone. I contacted Telstra to get upgraded to 1GB, which the operator agreed to. It wasn’t until I got the bill for $4,000 that I saw the operator hadn’t changed the data allowance and I was still on 10MB,” he explains.

    Daniel says he spent more than 3 months in contact with Telstra attempting to resolve the problem, and was passed on from one person to another.

    “All the operators said they didn’t have the authority to remove this bill or change it. No one was willing to help they all just kept passing me around operators which lead to hours on end being caught up on the phone without getting answers,” he says.

    “After a few months they disconnected my phone, but I had no idea they had referred the debt to a collection agency, and banned me from credit for 5 years.”

    Thousands of Telco customers are living with negative listings on their credit file that just shouldn’t be there, and this should serve as a warning to all credit active individuals to check the accuracy of their own credit rating.

    Consumers need to know that mistakes do happen for a variety of reasons, and often it is not until people apply for credit in a separate instance that they find out – by then it is too late.

    An annual report released November last year by the Telecommunications Industry Ombudsman (TIO) reporting on the number and nature of consumer complaints in the 2010-11 year, revealed a staggering 18 per cent increase in complaints from the previous year.

    The TIO report attributes the rise in complaints to them to mobile phone service faults and increased smart phones use.

    “The record number of complaints made to the TIO is disappointing. Customers who have complained to us have been frustrated not only by mobile telephone problems, but also by deficient customer service and complaint handling,” Ombudsman Simon Cohen said.

    Daniel says trying to get the mistake fixed up and rebuild his credit file himself, was problematic.

    “I tried to clear it with Baycorp, they told me if I paid the debt they would reduce it to $6,000 – which I did. Unfortunately that didn’t clear my credit file, it was only marked as ‘paid’ and was no use to me getting a home loan,” he says.

    Many people have trouble resolving errors themselves, because they aren’t familiar with the legislation and find it difficult to negotiate with creditors.

    Customers can often be given the run-around by creditors, and can find it difficult to apply the letter of the law to their own circumstances when they have no knowledge of what the rules are. Sometimes that can do their case more harm than good.

    Daniel’s case has since been resolved, and MyCRA Credit Repairs have been successful in recovering the $6,000 he paid out to Baycorp.

    “We’re relieved to be finally getting a home, but the whole thing has left us very disappointed in big corporations – you really don’t get looked after,” he says.

    BRENT

    Another client, Brent from Western Australia had a contract with provider, ‘3’ in 2009 that went badly.

    About 3 months into his phone contract, Brent experienced numerous problems with his phone, sending it to be repaired 3 times before requesting a replacement. He posted the phone back to Sydney and received a new phone.

    A month later Brent’s phone was barred, and he received a phone call from 3 stating that he owed $1200 for the phone which 3 said was never returned.

    Brent spent a few months dealing with 3 trying to track down the phone in their warehouse and the postal system, before they eventually located it.

    It wasn’t until he applied for a loan and was turned away that he found out 3 had placed a default on his credit file anyway, despite an agreement to put a note on the account so that the outstanding amount for the missing phone did not get referred to a debt collector.

    MyCRA Credit Repairs fought for Brent to have the default removed from his credit file.

    It is so important for people to cover themselves when resolving bill and service disputes with Telcos or any creditor for that matter.

    People should never assume mistakes are rectified until they have confirmation in writing from the company. If you have a problem with a bill or service, take extensive notes and names and request confirmation of all decisions and outcomes in writing.

    If people are worried about what may have been reported about them on their credit report, they are entitled to obtain a copy of their credit file for free from the credit reporting agencies in Australia once every 12 months.

    The report is mailed to the credit file holder within 10 working days. If consumers find errors, or listings which they believe are inaccurate or unjust they have the right to have them removed.

    For help with rebuilding a credit history and repairing your bad credit rating contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit the main website, www.mycra.com.au.

    Image: Stuart Miles / FreeDigitalPhotos.net

     

     

  • 5 things every young person needs to know about credit

    It’s back to school for most teenagers in Australia. Here is a lesson you might not learn there…Just because you currently aren’t credit active, does not mean you can’t learn about how to make credit work best for you when you are. We show you how the actions you take NOW could lead to being unable to get a phone, a home, a car in the future because of a surprise bad credit rating.

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

    We believe this important financial information should be taught in high schools across the country. So if you know a student or young adult, flick them this link or print this page. We want all young Australians to have the luxury of a clear credit rating when they turn 18 and beyond.

    1. What is a credit rating?

    Once you turn 18, and become ‘credit active’, a credit file is initiated in your name. This contains all financial information on you, including any credit you have taken out, the amount of credit, and any negative listings – like court Judgments, writs, bankruptcies, clear outs, and defaults. A default occurs when an account has not been paid more than 60 days, and the creditor (bank, telephone company, electricity company etc) places a record of this ‘default’ on your credit file to alert future creditors. A clear out is when the creditors are unable to get hold of you over late payments, agents have been sent to your house and they record this as a ‘clear out’. By accessing your credit file, a potential creditor can assess your credit rating, based on any negative listings which are present there.

    2. What happens to me if my credit file has negative listings on it?

    Generally, a negative listing on your credit file tells banks or other people you might want to borrow money or services from, that you have had problems repaying credit in the past. They will most often decide that you are a bad ‘risk’ to lend money to, and will refuse you the car, money, credit card, electricity account or mobile phone plan.

    A negative listing stays on your credit file for 5-7 years, depending on the listing and ‘drops off’ after this time. A negative listing will affect you for the entire time it is present on your credit file. You need to ask yourself: what do I want to be doing in 5 years????

    3. How do I end up with a negative listing on my credit file?

    It is estimated there are approximately 3.47 million Australians with negative entries on their credit file. (Veda Advantage 2008).
    The most common negative listing is a default. This is put there when you don’t pay your bills on time.
    But there are other reasons why you could have a negative listing, which are not always completely your fault.

    Change of address. Sometimes people move and their mail continues to be sent to the old address. This is a really common scenario, particularly for young people who tend to move around a lot, or go overseas. The problem is – you don’t know your bills are late and don’t know you are being defaulted. It is important to update contact information regularly with anyone you have taken credit out with. No news is not good news!!!

    Identity theft. Sometimes people’s personal information can be used for purposes of fraud – for crooks to construct a fake identity, and use it to take out credit. The thing is, they are using your name so you are the one that ends up with the bad credit rating, and it can be a nightmare to recover the good credit rating you once had.

    It is important to keep all your personal information as secure as possible. One important change you can make right now, is to change the way you use the internet.

    Keep your passwords and social networking settings as strong as possible.

    The information you post today, could come back to haunt you in a big way.

    There are reports from Australian Federal Police of the likelihood of crooks scrolling through thousands of social networking pages looking for personal information from young people – who usually have the most lax privacy settings. That information is not used right away, but the data is ‘warehoused’ until the young people turn 18. They can then use that information to construct a fake identity (identity theft) and go on a ‘spending spree’ with the young person’s clean credit file. You could be ruined by identity theft before you even take out your first piece of credit yourself.

    Share accommodation. Any accounts which have your name on them, regardless of who intends to pay them are your responsibility – this includes rent. Sometimes people get caught out sharing houses, and someone leaves bills unpaid which then have dire consequences for your future.

    Mistakes. Sometimes mistakes happen. The wrong person gets the bad credit rating. The wrong details get put in the computer. Creditors are human. Don’t let a mistake affect your credit file.

    Too many credit enquiries. Only apply for credit you feel you have a very good chance of being approved for, and only apply for credit you have full intention of pursuing. Sometimes too many credit queries are enough to get you declined for credit.

    4. How do I know what is said about me on my credit file?

    Many people don’t know this, but it is so important for everyone to keep track of the accuracy of your own credit file. To avoid the disappointment and embarrassment of finding out about your bad credit rating only after being declined credit, we recommend you check your credit file every 12 months to ensure there are no black marks against your name, just as you would check your bank statements or your super account.

    You can request a copy of your credit file for free from the major credit reporting agencies – Veda Advantage, Dun & Bradstreet, or Tasmanian Collection Services (if you are Tasmanian). Your credit report will be provided within 10 working days – or for a fee it can be provided urgently.

    5. What do I do if something is not right – there are errors on my credit report?

    Don’t put up with any errors or inconsistencies on your credit report – a clear credit rating is your ticket to financial freedom.

    Most times a credit reporting agency will tell you that defaults are never removed, but can be marked as paid. You are then stuck with a dodgy credit rating for 5 years. But you shouldn’t have to put up with it, as it is possible to have many defaults removed.

    If there are errors, inconsistencies, or the listing should not be there, you do have the right to have it removed. The best course of action is to ask for help from a credit rating repairer. They can then use their knowledge of credit reporting legislation to see where any errors in credit reporting were made, and help to enforce the legislation that creditors are bound to comply with. If they are successful, you not only get help with removing credit file errors, but many times you are able to start off with a completely clean credit rating. You have a clean slate and can go for any credit you need.

    For more information contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit the main website.

    Image: imagerymajestic / Freedigitalphotos.net

    Image: David Castillo Dominici / Freedigitalphotos.net

  • How to prevent identity theft and keep your clean credit rating

    Identity theft is an ever-increasing cause of a bad credit rating. We answer some of the most common questions people have about identity crime and explain how it can affect your credit file. By GRAHAM DOESSEL CEO of MyCRA Credit Repairs and www.fixmybadcredit.com.au.

    8 Most Common Questions about Identity Crime Answered

    1. Who is affected by identity crime?

    It is reported that 1 in 6 people in Australia is a victim or knows someone who has been a victim of identity theft or fraud in the past 6 months.

    Victims are not always ‘gullible’ as may be the impression in the wider community. Many experts say it is not a matter of if you experience an identity theft attempt, but when.

    2. Who commits identity theft or fraud?

    It can originate from someone you know – for example an acquaintance obtains identity documents or credit card details to impersonate you. Or more increasingly it comes from professional fraudsters whose main occupation is to steal personal information and financial details in order to commit fraud.

    3. Where does identity theft originate?

    Fraudsters are after your personal information. The internet is a big source of personal information and its ever increasing use makes you more vulnerable to identity crime than ever. This means identity crime can have very long arms – often it originates from overseas crime syndicates. Social networking, online banking, company databases and email scams can all be havens for today’s cyber- criminal.

    You can also fall victim to a number of rampant telephone scams, credit card skimming, or criminals can also take to going through your rubbish bin for anything they may be able to use to steal your identity.

    4. Why is identity theft increasing?

    The pay-offs are huge for criminals. It is estimated identity crime costs Australians $1 billion a year.* In cyber circles alone, world estimated costs for cybercrime are staggering.

    Cyber-crime expert Mischa Glenny says that while there are no precise figures out there, the White House suggested in 2009 that cybercime and industrial espionage inflicts damage of around U.S.$1tn per year, which is almost 1.75% of GDP.

    “Traditional bank robbers must be absolutely gobsmacked when they hear sums like this being hoovered up by cyber-criminals week in, week out,” he says.

    5. How can I be affected by identity crime?

    We consider if someone is alerted to having money stolen from credit cards early, or perhaps is able to call their bank and stop fraud in its tracks – that they are the lucky ones.

    The unlucky identity theft victim is unaware of the fraud until their identity is misused, and their credit rating with it. When identity theft damages your credit rating – it is because the fraudster has been able to overtake credit accounts, or has gained access to enough personally identifiable information about you to forge new identity documents.

    This gives the fraudster access to credit cards, loans, even mortgages which allows them to extract significant amounts of money without you realising it straight away.

    If credit accounts are not repaid – after 60 days you may be issued with written notification of non-payment and the intention for the creditor to list a default on your credit file. It is at this moment that some people who were previously unaware of any problems find out they have been victims of this more sophisticated type of identity theft.

    But often the credit file holder has also had their contact details changed – and this means it is not until they apply for credit in their own right and are refused that they find out about the identity fraud. This can be a significant time after the initial crime.

    6. When would I know if I have been a victim of identity theft?

    Some signs to watch out for include:

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

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

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

    Credit refusal

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

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

    7. What can I do if I suspect I am a victim of identity theft?

    Notify Police immediately. Many people do nothing due to embarrassment, or because they don’t believe the fraud was significant enough. But is only through this crime getting reported that statistics get collated, and we start to have any chance of catching the criminals.

    Notify creditors. You may need to cancel credit accounts.

    Obtain a credit report. This report is free once per year for every Australian who holds a credit file. It will indicate to you whether any of your contact details have changed, or whether there have been credit enquiries on your account. If you act quickly enough, you may be able to stop your credit rating from being affected by black marks which would come from fraudsters obtaining credit in your name.

    Notify credit reporting agencies of the possible fraud. They will be able to put an alert on your credit file.

    Police may assist you in obtaining a Victims of Commonwealth Identity Crime certificate, if they believe you are eligible. You can apply to a magistrate in your State for this certificate, which may help in recovering your credit rating or credit accounts. Victims need to have had a Commonwealth Indictable Offence committed against them. For more information, visit the Attorney-General’s website www.ag.gov.au.

    8. What steps can I take to prevent identity theft?

    – Keep virus software up to date on your computer. Install automatic updates and perform regular virus scans.

    – Keep your privacy settings secure on all social networking sites.

    – Keep 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.

    – Check all your credit card and bank statements each time they come in.

    – Cross-shred all personally identifiable information which you no longer need.

    – Buy a safe for your personal information at home.

    – Do not give any personal information or credit card details to anyone via phone or email unless you are sure the site is secure, and or you can verify the company details.

    – Be aware of who gets our 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?

    – Keep up to date with the latest scams by subscribing to the government’s ‘SCAM watch’ website. For a list of ways your computer can put you at risk, visit the governments Stay Smart Online website www.staysmartonline.gov.au.

    – Check your credit file regularly.

    If you or someone you know needs help recovering their credit rating following identity theft, contact MyCRA Credit Repairs, www.mycra.com.au or call tollfree on 1300 667 218 for confidential advice and help restoring your good name.

    * OECD Committee on Consumer Policy, Online Identity Theft, February 2009, p. 37

    Image: Salvatore Vuono / FreeDigitalPhotos.net

  • Australia Day – New Australians left in the dark over credit system

    Media Release

    New Australians left in the dark over credit system

    24 January 2012
    Australia Day is the time when thousands of new Australians are welcomed into the country’s dynamic multi-cultural society, but a national credit repairer says the road to financial success in Australia can be a harsh one for new migrants.
    He says new Australians don’t get enough help to make the most of their finances, and to ensure they are never blacklisted once they become credit-active.
    MyCRA’s CEO, Graham Doessel says he deals first-hand with many new migrants who have struggled to come to terms with a credit system which is far different to the one they are used to, and ultimately their Australian credit rating can suffer.
    “I am seeing more new Australians caught out with the system here, being banned from new credit – can’t get a home or car loan and often from fairly small amounts in arrears on their credit accounts,” Mr Doessel says.
    Australia’s credit reporting system is fairly unique in the fact that it is currently a negative reporting system. There is no way of balancing out a bad credit report with good repayments, and any negative listing remains on a person’s credit file for 5-7 years.
    Once an individual is 18 and is credit-active, they have a credit file issued in their name. It is even at this early stage where some new migrants come unstuck. Sometimes in those early stages the credit file can be issued under the wrong name.
    “Creditors have been known to mix up names or put someone’s last name as their first name. This could potentially open up a can of worms in terms of correct listing,” he says.
    Creditors can also place a default on the wrong person’s file.
    “We have a case at the moment where a lady had a default listing placed on her file which was for a male with a similar name. It wasn’t until our client applied for a loan that she found out about the default placed on her file from someone else’s account,” he says.
    It is suggested that new Australians make a point of ensuring continuity with their name on any credit they take out and requesting changes to any bills or documentation which come back incorrect.
    They should also check their credit file to make sure everything reads correctly.
    “It’s actually not just new Aussies who are kept in the dark. Many Australian-born Aussies are unaware they should be checking their credit file regularly and that they can obtain a credit report for free every 12 months,” Mr Doessel says.
    Many people are unaware that once an account goes past 60 days in arrears, it will be listed as a default on the person’s credit file for 5 years.
    A common reason people can have defaults go unnoticed is after they move house or when they go overseas for extended holidays. They fail to divert their mail, and do not receive the written notification of either the late account, or the creditor’s intention to list the late payment as a default on the person’s credit file.
    “Identity theft is a major problem in this country, and many new migrants are not aware of the frequency of attacks, or the need to safeguard their personal information. They end up with their identities stolen, and credit taken out in their name,” Mr Doessel says.
    Sometimes migrants can become victims of identity theft before they even get on the plane. In December, 2010 Immigration Minister, Chris Bowen warned new migrants of online scams that often leave them without a visa and at a loss for the money they have spent. (2)
    “It is vital that people are aware of fraudsters’ tricks before handing over money for immigration assistance which is never provided,” Mr Bowen said.
    Mr Doessel is offering new migrants free information on using credit in Australia, and how they can best keep their credit file clean. Contact info@mycra.com.au or call tollfree 1300 667 218 for more information.
    “We should use Australia Day to help our fellow Aussies, and raise awareness of the problems our new migrants face, so we can all experience financial success,” he says.
    /ENDS.
    Please contact:

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

  • How to improve your credit score: what to do when you have a bad credit history

    Help for frustrated Australians who find out they have a bad credit rating.

    By GRAHAM DOESSEL – CEO and founder of MyCRA Credit Repairs and www.fixmybadcredit.com.au.

    There are approximately 3 million Australians* with adverse listings on their credit file, also known as a ‘bad credit rating’. Adverse listings can include, default listings, writs, Judgments, bankruptcies*, even excess credit enquiries. All of these can impact your ability to obtain credit. The consequences of having any issues with your credit file include home loan refusal, personal loan declined, and even being turned away from getting a mobile phone plan.

    One problem is many people go searching on the internet for help with ‘improving their credit score’. This is most commonly an American term which has no bearing on Australian credit reporting law.

    The Australian credit reporting system is currently a ‘negative’ reporting system. Only negative entries are included, and generally when a lender requests a credit report and sees listings on your credit file, they will be seeing these entries as negative. The laws are currently undergoing changes – but as a general rule – you don’t want late payments, defaults or credit errors holding you back from an otherwise perfect ability to service a loan or forcing you into choosing a loan at sky-high interest rates. You could pay thousands extra on a higher interest rate than your standard variable rate.

    So you may be wondering, how then, can I fix my bad credit?

    Well it depends on what comes up on your credit report….

    The first thing you need to do is request your credit report. This can be obtained from one or more of the credit reporting agencies, and is a file on all of your credit information. You can request a copy of your credit file for free every 12 months.

    If there are any adverse listings on your credit file which you believe are incorrect, contain errors or just should not be there – then you have the right to have those credit file errors removed.

    The problem with attempting to dispute errors on your credit file with creditors yourself is two-fold. Without knowledge of the legislation, people almost invariably get caught in legal ‘loop-holes’ which see the default, writ or Judgment left on the credit file, or at best see the listing marked as ‘paid’. Both of these results DO NOT give you that home or car loan as lenders still consider even a paid listing as bad credit history.

    Secondly, by talking to creditors themselves about credit file errors, people can accidentally ‘alert’ creditors to any mistakes they may have made in the initial method of credit reporting – allowing them to fix up their mistakes and negate the need to remove the credit file default which was placed in error.

    If you are just starting out and wondering “How can I repair my bad credit?” then the best course of action is to instill the help of a credit repairer before you do anything yourself. They can help you get a copy of your credit file, and go through the bad credit history with you. They can then use their knowledge of credit reporting legislation to see where any errors in credit reporting were made, and help to enforce the legislation that creditors are bound to comply with.

    If they are successful, you not only get help with removing errors, but many times you are able to start off with a completely clean credit rating. You have a clean slate and can go for any loan you choose at the best interest rates.

    Once you have those defaults removed, then you can certainly ‘improve’ your credit history in the future with these 5 easy steps:

    1. By ensuring all bills are paid on time. Keep track of and be aware of any stray bills – particularly when major changes are occurring in your life like moving house, divorcing, death, and illness.

    2. By using credit. Having no credit history means there is nothing to calculate and the risk appears high to lenders. We should start by borrowing something small. Repaying mobile phone plans, internet accounts, or store credit on time will appeal to anyone checking our credit report.

    3. Obtain a credit report every 12 months. This ensures there are no errors on your credit file. Sometimes human error means the wrong person gets the bad credit file entry, or adverse listings are entered incorrectly or unlawfully. If in doubt, talk to a credit repairer.

    4. Beware excess credit enquiries. Only apply for credit you feel you have a very good chance of being approved for, and only applying for credit we have full intention of pursuing.

    5. Show stability. If you are thinking about applying for major credit in the near future, consider that lenders are looking for a stable address, stable income stream and regular savings as well as a squeaky clean credit file to help with assessing your suitability for a loan.

    * Veda Advantage 2009

    * MyCRA Cannot remove bankruptcies from credit files

    Image: graur razvan ionut/ FreeDigitalPhotos.net

  • Telstra’s at it again. And this time it may affect YOU.

    Your credit file could be affected by errors in the telecommunications industry…here is a media release we sent out last month about a significant data breach which occured with Telstra’s customer files. We are eager to see what the Privacy Commissioner’s findings will be on this incident.

    Media Release

    12 December 2011

    A massive data breach of Telstra’s customer database has potentially put around 800,000 of its customers at grave risk of having their passwords stolen and their personal information pilfered by identity thieves.

    The data breach which occurred last Friday, saw detailed personal information which was supposed to be available to Telstra customer service agents only, exposed and openly accessible on the internet.

    The Sydney Morning Herald reported on Friday a user of the Whirlpool forum stumbled upon the “Telstra bundles request search” page after doing a Google search for a Telstra customer support phone number they were told to contact.[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]

    SMH reported the information of any Telstra customer was searchable even by last name, bringing up the customer’s account number, what broadband plan they were on, what other Telstra services they were signed up to and notes associated with the customers’ accounts including in many cases their usernames and passwords.

    There were also other details about technician visits, SMS messages sent to private mobile numbers and credit check details.

    Telstra has reportedly reset approximately 60,000 customer passwords as a precaution.[ii]

    Telstra bundle customer, Graham Doessel is one of those potentially at risk.

    He also happens to be the CEO of a company dealing in credit repair for people who have been unlawfully blacklisted from borrowing facilities. He says as much as 50% of his clientele who present with credit file errors and inconsistencies are Telco customers, and many of those are Telstra customers.

    “This data breach is a crucial example of how errors occur so easily in the Telco industry. Unfortunately they have the potential to severely damage someone’s financial future.”

    “Every day we deal with customers who can’t get a home loan, because their credit rating is damaged by improper execution of policies and procedures in the Telco industry,” Mr Doessel, of MyCRA Credit Repairs says.

    Mr Doessel is concerned he is amongst those Telstra customers whose personally identifiable information may have been viewed, and copied for purposes of fraud during the time the information was readily available on the internet.

    “The issue is about both our possible stolen passwords, and our possible stolen personal details – a huge commodity for fraudsters. What’s to say fraudsters haven’t jumped on the internet while this information has been available and copied it?”

    “Personal details are the building blocks for constructing a fake identity. Once someone has fake ID documents, they can take out significant amounts of credit in the victim’s name. Often people don’t find out about it straight away and that can result in defaults from creditors and massive long term credit issues,” he says.

    Mr Doessel recommends anyone who feels they may be at risk by this data breach take a few precautionary steps to ensure their credit file is protected:

    1. Change passwords. Even if Telstra hasn’t advised you otherwise, go in and change your password. If you have that same password for unrelated accounts, change that as well.

    2. Contact creditors and advise them you may be at risk of identity theft. This will allow them to ‘flag’ your accounts and halt any suspicious activity.

    3. Check your credit file. Obtain a free copy of your credit file and check there is nothing suspicious already present on your credit file.

    4. Alert credit reporting agencies. They can put an alert on your credit file which informs you of any changes to contact details, or suspicious credit enquiries you may not have initiated.

    The Privacy Commissioner, Timothy Pilgrim made a statement yesterday:

    “I have opened a formal investigation into the Telstra data breach. At a briefing today Telstra has assured our office that the immediate problem has been rectified and that personal data is no longer accessible.

    I have asked that Telstra also provide me with a detailed written report on the incident, including how it occurred, what information, if any, was compromised and what steps they have taken to prevent a reoccurrence. I will consider all the information provided by Telstra and hope to be in a position to issue an investigation report in late January 2012,” Mr Pilgrim says.

    It is uncertain exactly what and or how much the Privacy Commissioner could determine Telstra would be liable for.

    A recent decision handed down by the Privacy Commissioner only last week, saw one individual complainant awarded $7500 in compensation after a Leagues Club was found to have breached their privacy.[iii]

    This is not the first time a major data breach has occurred with Telstra. In October 2010, a mailing error saw around 60,000 letters containing personal customer information sent to other customers.

    The Privacy Commissioner found the privacy of Telstra customers was only breached in 2010 due to human error, and did not occur due to any systemic failure of Telstra’s processes or procedures, therefore they were not required to pay damages in this instance.[iv]

    /ENDS.

    Please contact:

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

    Graham Doessel – Director info@mycra.com.au

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

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

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

  • Personal information…the gateway to identity theft

    Hackers access databases searching for personal information that can be extracted and misused or traded to fraudsters for purposes of identity theft. We look at how your identity and ultimately your clean credit file can be put at risk. By GRAHAM DOESSEL.

    It’s Saturday night in Las Vegas. Thousands of pairs of shoes sit neatly in boxes on warehouse shelves in the dark. The store’s customers and staff are at home enjoying their evening. In the credit information office, the lights are off, the filing has been done. But in the dark, thousands of the store’s computers are being remotely accessed by hackers.

    The personal information of the shoe store’s customers is likely being transferred. It is likely this information will now be sold on the black market to fraudsters. This information could now be used to further attack those unsuspecting customers. Those customers could now be a target for identity theft and receive phishing emails in order to get further information from victims, including the credit card number.

    This may have been how the saga transpired for shoe company, Zappo.com on the weekend. In a story from the Sydney Morning Herald this morning it was reported that on Sunday Amazon.com owned shoe retailer Zappos.com announced it was hacked. Hackers broke into the credit card database. Up to 24 million of its customers’ personal information may have been accessed. The company said customers’ credit card information was not stolen, but names, phone numbers, email addresses, billing and shipping addresses, along with the last four digits from credit cards and more may have been accessed in the attack.

    Here is an excerpt from that story, titled ‘Zappo’s customers details walk out the door’:

    It is not yet known how hackers gained access to the database or if a zero day exploit was used, but a security expert said it is likely customer data will now be sold in the cyber underground.

    Robert Siciliano, a McAfee consultant and identity theft expert, told Mashable he expects whoever hacked Zappos’s site to now sell the data to people who run phishing scams.

    “They’ll sell it 10,000 accounts at a time, short money, like $100,” he said adding there is enough information for a hacker to approach affected users as either Zappos or the credit card company and then ask them for more data — the classic phishing scam — which might be supplemented with a voicemail “vishing” attack as well, Mashable reported.

    Zappos said it was contacting customers by email and urging them to change their passwords.

    Las Vegas-based Zappos said the hackers gained access to its internal network and systems through one of the company’s servers in Kentucky.

    And in the news last week, we get an insight in to the type of crime ring that hackers may sell this information to. AFP report titled ’50 held in Puerto-Rico based identity ring’.

    The U.S. Justice Department announced late last week it has charged 50 people with conspiracy in a scheme to acquire personal identification information on US citizens in Puerto Rico and then sell it through fraudulent documents.

    Typically, the documents consisted of forged Social Security cards and birth certificates. They were sold for prices ranging between $700 and $2,500.
    The documents were sold from April 2009 until December 2011 to buyers throughout the United States.

    “The alleged conspiracy stretched across the United States and Puerto Rico, using suppliers, identity brokers and mail and money runners to fill and deliver orders for the personal identifying information and government-issued identity documents of Puerto Rican US citizens,” said Assistant Attorney General Lanny Breuer in a statement.
    The indictment alleges that identity brokers ordered the forged documents for their customers from Puerto Rican suppliers by making coded telephone calls.
    They would refer to “shirts,” “uniforms” or “clothes” as codes for various kinds of identity documents.
    “Skirts” meant female customers and “pants” meant male customers who needed documents in various “sizes,” which referred to the ages of the identities sought by the customers.

    Payment was made through money transfers while the documents were sent by mail.

    Some of the persons receiving the forged documents used them to obtain drivers licenses, US passports and visas, the Justice Department reported. Others are accused of using the documents to commit financial fraud.

    Sure this crime went on in the U.S. but it couldn’t happen here – could it?

    Well, to begin with – how many Australians have credit card details registered with Amazon, for example? We might live on an island, but U.S. crime can always reach our shores via the internet. Just look at the Sony PlayStation saga as a specific incident of how our details are not immune to theft on overseas shores.

    With identity theft being the fastest growing crime in Australia – it seems criminals here will be hot on the heels of the U.S. with newer, better, more sophisticated ways to get something for nothing.

    Interestingly, many hacks are actually not instigated to commit identity theft, but are statements to different industry bodies. For example the recent Robin Hood-style hacking of Texas security analysis company, Stratfor on Christmas Eve. Hackers obtained thousands of credit card numbers and other personal information from the firm’s clients and started making payments to several charities.

    “The assault was believed to have been orchestrated by a branch of the loosely affiliated hacker group called Anti-Sec and appeared to be inspired by anger at the imprisonment of Bradley Manning, the US army private accused of leaking US government files to WikiLeaks. An online statement from the group said the attack would stop if Manning was given ”a holiday feast … at a fancy restaurant of his choosing”,” the Brisbane Times reports.

    MP Malcolm Turnball and billionare businessman David Smorgon were amongst the victims who had relatively small amounts extracted from their credit card and donated to charities such as Save the Children, Red Cross and CARE.

    But for those hackers whose main aim is to extract details from databases and onsell them to fraudsters – we should all be very wary. And unfortunately, there is always that element of doubt about the security of our personal information in company databases.

    A leading fraud expert made this suggestion for online credit card use:

    In a story the Courier Mail featured in October last year, titled ‘Queensland Police Fraud chief Brian Hay calls for banks to bring in credit cards that can only be used in Australia to stop cyber-crime’, Det. Supt. Hay made some valid suggestions about how Australians can protect themselves from this type of fraud. One included for shoppers to have a credit card specifically for online purchases with a small credit limit. This is good advice to follow to prevent having large amounts extracted from credit cards if the companies with those details are ever hacked.

    Unfortuanately, it doesn’t stop identity thieves ‘phishing’ for further information on their victim for purposes of full-blown identity theft.

    If credit is taken out by fraudsters in the victim’s name, they can end up with defaults on their credit file – and this is not easy to recover from. First the victim has to prove they didn’t initiate the credit themselves. This would require documentary evidence and Police reports. But the identity theft victim would be virtually banned from obtaining credit until they are able to wade through the mess that has been created for them on their credit report, and clear their good name.
    For help with credit repair following identity theft, contact MyCRA Credit Repairs on 1300 667 218 or visit our main website www.mycra.com.au.

    Image: Danilo Rizzuti / FreeDigitalphotos.net

     

  • Australian Bureau of Statistics Housing Finance Nov 2011

    The ABS has today released its new figures on Housing finance for November. The number of committments for owner occupied dwellings has risen 1.4% – higher than was expected by economists.

    Positive results for the housing market, but home buyers will still have to work hard to ensure they meet banking criteria, including presenting with a clean credit file.

    By GRAHAM DOESSEL.

    The Herald Sun reported Macquarie senior economist Brian Redican as saying the November  data was encouraging.

    “Definitely, we are seeing a step in the right direction,” he said.

    Mr Redican said the housing sector might receive a boost from the two successive interest rate cuts by the Reserve Bank of Australia (RBA) late last year, and the prospect of more cuts to come in 2012.

    “I think it does have to have a positive impact.

    “These numbers don’t reflect those cuts yet and it will have to take a few more months for that to flow through.

    “What it does do is just make housing more affordable for those people that were thinking of going into the housing market.”

    ABS HOUSING FINANCE NOVEMBER 2011

    NOVEMBER KEY POINTS
    VALUE OF DWELLING COMMITMENTS

    November 2011 compared with October 2011:

    The trend estimate for the total value of dwelling finance commitments excluding alterations and additions was flat (0.0%). Investment housing commitments fell 0.5%, while owner occupied housing commitments rose 0.2%.

    In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 2.1%.
    NUMBER OF DWELLING COMMITMENTS

    November 2011 compared with October 2011:

    In trend terms, the number of commitments for owner occupied housing finance rose 0.6%.

    In trend terms, the number of commitments for the purchase of established dwellings rose 0.8% and the number of commitments for the purchase of new dwellings rose 0.5%, while the number of commitments for the construction of dwellings fell 0.9%.

    In seasonally adjusted terms, the number of commitments for owner occupied housing finance rose 1.4%.

    In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 20.0% in November 2011 from 19.1% in October 2011.

     

    With talks of a weakening economy, we don’t imagine banks will be easing up on their lending criteria. It will still be essential for borrowers to have a squeaky clean credit file, which could involve people checking their credit report for errors if they are unsure why they may be refused finance.

    If potential borrowers need help with credit repair, they can contact us at MyCRA Credit Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

    Image: Idea go/FreeDigitalPhotos.net

     

     

     

     

     

  • How to keep your credit rating healthy

    7 ways to keep a squeaky clean credit file and get that home loan or finance….

    By Graham Doessel.

    Many people don’t realise how easy it is to get a bad credit rating, or how difficult credit repair can be.

    A clear credit file is so important because it is the key to your financial freedom. In today’s economic times, it is essential that your credit file be kept clear of any black marks.

    Any defaults (overdue accounts which have lapsed past 60 days), writs, judgements or bankruptcies which are recorded on your credit file will remain there for 5 years.

    A bad credit rating can prevent you from obtaining a mortgage, car or personal loan with banks but many don’t know it can also prevent you from obtaining a simple mobile phone plan.

    So how do you go about avoiding a credit rating default and keep your credit rating looking as healthy as possible? Outlined below are 7 essential tips:

    1. Use credit
    It may be tempting to get rid of all credit. But it is easier to obtain credit for a mortgage or business loan if there is some kind of reference of your credit history on your credit file. Taking out small accounts such as a mobile phone plan may be a good choice as long is each payment is made on time.

    2. Pay bills on time
    If you pay all accounts on time and by the due date, there is less chance you could receive a default listing on your credit file. If you can’t pay your account by the due date don’t bury your head in the sand – call the creditor and try to work out some type of payment plan.
    This contact may be enough to ensure your credit rating is not tarnished. If you receive a bill you don’t agree with, it is still essential to pay the account by the due date to avoid a default listing. Better to make the payment and be reimbursed for the difference than be paying for 5 years for someone else’s mistake.

    3. Be smart with credit
    Credit should be the key to financial freedom, but often it is the source of a great many problems in people’s lives. Yahoo’s Money and Your Life website has help for managing debt and finances. This article has some great tips for keeping credit under control and making it work for you http://au.pfinance.yahoo.com/moneyand yourlife/managing-debt/article/-/8044026/expert-tips-for-cutting-credit-card-debt/.

    4. Be aware of excessive credit enquiries.
    You should only apply for credit if you feel you have a very good chance of being approved. Declined credit applications on your credit file can hinder your chances of obtaining a home loan. Likewise, you should only apply for credit you have full intention of pursuing. Every application is noted on your credit file, but not whether it was approved. If you go ‘credit shopping’ and apply for credit everywhere – the lender may consider you a bad risk due to those excessive credit enquiries showing up on your credit report.

    5. Educate yourself on ways your credit rating can be damaged
    It may not be simple overdue accounts which leave you with a bad credit file. People who have recently divorced or separated are particularly vulnerable to problems due to joint accounts. Also victims of identity theft can have a number of defaults on their credit file they are unaware of. Often times simple errors can occur which you aren’t aware of until you apply for credit and are flatly refused.

    6. Check your credit file regularly
    It’s important to check your credit file and understand what lenders may be seeing on your credit rating. Usually every 12 months should pick up any discrepancies that may need addressing.

    Under current legislation you can obtain your credit report for free from the major credit reporting agencies Veda Advantage, Dun & Bradstreet, and TASCOL (Tasmanian Collection Services). Your credit report will be sent to you within 10 working days.

    7. Fix credit rating
    If you do find credit rating defaults that you believe have errors, are unjust or you feel just shouldn’t be there – there is a good chance they can be removed. Many creditors will tell individuals that a default can never be removed, but can be marked as paid if it has been paid. This may not be enough to ensure credit is obtained with many lenders.

    You may be better off seeking the services of a reputable credit repair company than attempting to negotiate with creditors on your own to fix your credit rating. The credit repairer will negotiate on your behalf, working with creditors and understanding current legislation and how it applies to your credit file.
    Sometimes if individuals are unskilled in the current legislation they can do more harm than good when it comes to credit rating repairs.

    Visit the MyCRA Credit Repairs website www.mycra.com.au to get more information or help with your credit file or contact us tollfree 1300 667 218.

    Image: digitalart/ Freedigitalphotos.net

  • Mixed messages about protecting personal information

    Don’t give away your personal information to anyone – especially to strangers who come knocking at your door.  Seems like the golden rule to live by nowadays to avoid identity theft and scams…unless the person knocking is from the Australian Bureau of Statistics.

    The government has been very busy telling people to be careful with their personal information. With identity theft now the fastest growing crime in Australia it is no wonder. The Government’s SCAMWatch website continually warns the public about scammers who are trying to steal their personal and financial information by masquerading as a variety of people at their door.

    Here is a list of some of the ways SCAMwatch says people have been caught out by door to door scams:

    Home maintenance scams: scammers try to sell home maintenance services, like roofing or gardening services, and then bill people for additional work they did not agree to.

    Charity scams: These scams play on people’s generosity and involve a scammer posing as a genuine charity in order to fraudulently collect money.

    ATO scams: Australian Taxation Office—door-to-door scam. People claiming to be consultants from the ATO ask people to sign up to a fictional government program promising financial incentives, including a reduction in taxes. In return for signing up, scammers ask people for personal information such as credit card information or banking details.

    Survey scams: Sometimes scammers pretend to conduct a survey so they can get personal details or to intitally disguise their sales pitch.

    Digital television scams: door-to-door salespeople offering to sell people conversion equipment and falsely claiming to represent the government.

    People can not only stand to lose out financially, but if they have given over crucial personal information to the door-knocker, and they turn out to be a crook, that can also lead to identity theft. The victim could possibly have fraudsters not only drain their bank accounts, but take out credit in their name. The road to recovery is long and arduous as it can be difficult for people to prove they didn’t take the credit out themselves.

    It may have surprised many to then read a report in The Australian titled ‘Pushing the Limits of Privacy’ on Monday about a couple who felt pressured to give over their personal information to Australian Bureau of Statistics officers.

    The couple were randomly selected to participate in an extensive survey where they were required to provide financial and personal information to the ABS for their Survey of Income and Housing 2011-12.

    The couple felt “uncomfortable” doing this for a couple of reasons. According to the story, they had just returned from a long overseas trip and had no time to view any previous material the ABS had sent them by mail. The couple were simply greeted fresh by someone at the door “demanding” they book in an interview with an officer to give over their personal information and provide documentary evidence to boot.

    The couple had been victims of credit card skimming while overseas.

    “Interpol had warned them to be especially careful about giving anyone any financial information at all because their experience raised their risk of identity theft,” the story says.

    So they were quite “uneasy”. They sat at an interview in their home, answering important questions like date of birth, place of birth, citizenship status – all normal questions for the ABS to ask, but also normal questions for fraudsters looking to extract identity information from their victim.

    So why were the couple forced to give over their personal information if they felt uncomfortable about it?

    The story explains that in general, ABS collation is compulsory. Failure to comply can result in fines of $110 a day, at the discretion of the magistrate who will hear the case once the person has been charged.

    There are exemptions on offer, and the couple may have been able to apply for one, but it appears in the story they were not given an option to apply for an exemption.

    ABS spokesman Rod Smith expressed disappointment at the couple’s experience. “If it happened exactly as you’re suggesting, that’s not how we train our people to behave in public,” he says.

    The Australian Bureau of Statistics is by law allowed to regularly compel a random section of the population to be involved in more extensive surveys in which they are personally interviewed by ABS representatives, and their information is then used for more in-depth surveys.

    This makes sense – the ABS surveys are a great snapshot of the population. They are necessary for understanding the people who inhabit this country.

    The Personal Fraud Survey 2007 alone has helped us to understand so much more of how identity theft and fraud has affected Australians in reality.

    But in this day and age the prospect of a stranger coming into our home for an interview where we give over our personal information can sound quite confronting to some. Many mistrust those that show up at the door claiming to be from one company or another. Those that let people in – well we often read about them in the news as the country’s latest scam victim.

    To be compelled to participate may be too much for some people –as it was for this couple who had just had a brush with credit card skimmers. Other groups of people may also have a problem with this type of interview:

    “The very fact that someone can come in to a private home to ask these questions may upset those who are particularly sensitive: refugees from totalitarian regimes, for example, or from countries where rule of law and due process are unknown; people, especially the elderly or the physically vulnerable, who live alone; even people, introverts for example, who have never been traumatised but simply have a more highly developed sense than most of the divide between personal and public,” the story says.

    This brings to light the issue that possibly in this day and age, the selected people for this in-depth type of survey need to be well informed by the ABS of their right to seek exemption from participation in the survey despite its compulsory nature. In this way, they will feel less pressure to give over something which has turned into a valuable commodity – their personal information.

    If people are unsure of what to do if someone comes to their door, SCAMWatch has this advice:

    Protect yourself from door-to-door & home maintenance scams

    If someone comes to your door, ask to see their identification. You do not have to let them in, and they must leave if you ask them to.

    Check that the trader is registered on the Australian Government’s business.gov.au website.

    Do not agree to offers or deals straight away: tell the person that you are not interested or that you want to get some advice before making a decision.

    If you are interested in what a door-to-door salesperson has to offer, take the time to find out about their business and their offer.

    Carry out a web search on the business to see if there are other consumers who have commented on the quality of their work – many scams can be identified this way.

    ALWAYS get independent advice if an offer involves significant money, time or commitment.

    Read all the terms and conditions of any offer very carefully: claims of free or very cheap offers often have hidden costs.

    Always check that goods or services were both ordered and delivered before paying an invoice.

    Contact your local office of fair trading if you are unsure about an offer or trader.

    For help with repairing a credit rating following identity theft, contact our main website www.mycra.com.au or phone 1300 667 218.

    Image: nuttakit / FreeDigitalphotos.net

  • 2012: A new year, a new money plan

    5 steps to help clear your debts; clean up your credit file and pave the way for new finance goals in 2012.

    For those of you who have made a New Year’s Resolution in 2012 to get back in control of your finances and reign in all those outstanding debts from last year, you are not alone.

    According to a recent survey by ING Direct, of the two thirds of Australians who will make a New Year’s resolution for 2012, more than half will focus on their finances.

    ING Direct says among those making financial resolutions, 34 per cent resolved to save more in 2012, 24 per cent resolved to reduce their debt, 16 per cent said they intended to take control of their spending and another four per cent said they planned to switch banks in the New Year.

    ING’s Executive Director Brett Morgan says “It’s good to see Australians are focusing on the importance of financial goals for 2012 and there are steps we can take to stay on track with these resolutions throughout the year.”

    “Make sure your resolutions aren’t too big or difficult to achieve. It also helps to quantify your goals – aiming to save $50 each week is a more concrete goal than simply aiming to ‘save more’.”

    So here are five practical, positive steps anyone can take to improve their finances.

    1. Understand your debt.

    Before you can start saving a significant amount, you need to really understand how much you owe. Savingsguide Australia recommends for anyone who has made a New Year’s resolution to get out of consumer debt, they should first tally up everything they owe.

    “Without the big number, however terrifying it is, you won’t be able to start a serious schedule of getting yourself clear of consumer debt,” Savingsguide recommends.

    The good news is – generally with Christmas and New Year celebrations and expenses out of the way – the next month’s credit card statements should automatically look better before you even start.

    2. Make a plan to repay your debt.

    Most people with significant debt generally have it stacked up on a credit card – or cards. Unfortunately most are at high interest rates which make it often impossible to get on top of. Many experts recommend switching all debt to one card with a lower interest rate, or even swapping to a personal loan. But the best advice we can give on credit card debt is to repay above the minimum amount set by the bank – which will allow you to actually make progress on clearing the debt because you will be saving interest.

    If you continue to have multiple cards, the Government’s Money Smart website has these recommendations:

    Dealing with multiple credit cards

    Got more than one credit card? Step your way to credit card freedom and feel the stress go away.

    Step 1: Keep up your repayments
    Pay off as much you can on the total amount owing on the main credit card you are using each month. This will let you take advantage of any interest-free period and help you pay off the whole debt (not just the interest, fees and charges).

    Step 2: Pay the smallest debt or highest interest rate
    Choose one of the two strategies below:
    Pay off the smallest debt first – Continue making minimum payments on all cards but aim to clear the one with the smallest debt first. Then work on paying off the next smallest debt, and so on. You will reduce the risk of incurring multiple charges for late or missed payments and save on annual fees. The money you save can be used to pay off other debts.
    Pay off the card with the highest interest rate first– Continue making minimum payments on all cards but pay off the credit card with the highest interest rate first, then work your way through your other cards. This may save you money on interest payments.

    Step 3: Close the account as you clear each card
    Whatever option you choose, stop using all but one of your credit cards (and try to only use it for emergencies). As you clear each card, cut it up and close the account. If you don’t, you may still have to pay fees on the account, even if you aren’t using it.

    Step 4: Lower the limit on your last card
    Finally, lower the limit on your last credit card to an amount that you can repay within 3 months, say $2,000.

    3. Be more aware of what you are spending.

    Make a resolution to not bury your head in the sand about bills. Pay them straight away if you can or diarise their repayment. Read all of your bank and credit card statements when they come in. While you are attempting to implement the new savings pattern, read and keep all of your receipts.

    If you are not particularly organised – you may even like to resort to the ‘shoebox method’ – which is basically keeping every receipt for the week or month in a shoebox, and transferring it after that time onto a spreadsheet which allows you to track your spending and gives more focus to where you might be blowing out your budget.

    You may find after reviewing your spending you can see where you are wasting money. Maybe taking lunch to work or eating out less can make a significant dent in your spending – or perhaps just skimping on all those takeaway coffees will give you enough extra money that you can squirrel away.

    4. Commit to savings.

    Savingsguide’s Must Do Moves for 2012 include striving to save 20 percent of your income, albeit after repayments are made on existing debt. They also advise setting up a separate savings account which can’t be accessed easily.

    “Look for an account with a high interest rate and rewards for accounts that don’t have withdrawals,” they recommend. “Set up automatic deductions, and don’t touch it.”

    5. Clear your credit file of errors.

    There is no point making a significant dent in your consumer debt and saving regularly if you are unable to make use of your new found financial prowess. Many people find they do all the hard work of saving towards a home or car loan, only to find their past comes back to haunt them.

    They may apply for a loan, only to be refused due to credit file defaults which show up on their credit report. Basically any creditor is able to place a default on a person’s credit file if a repayment is later than 60 days. There may be times when this has occurred and you are unaware of it.

    Whatever the situation, credit file defaults need to be treated very seriously. They are most times an instant negative for any bank who is thinking of lending you money. And the thing is…they hang around for 5 years. What are your financial goals 5 years from now????

    It is good financial practice to get a copy of your credit report each year, and make sure everything is as it should be. This report is FREE every year from the credit reporting agencies. You may have listings with one or more of the credit reporting agencies.

    There is a potential for errors to be present on your credit report.

    Credit reporting mistakes do happen, but the watchdog is YOU!

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

    Many people get the run around from creditors when they try to do this – or they get bogged down in all the legalities. Unfortunately the potential is there to ruin your chances of getting the default removed if it is not handled the right way. We suggest you get a credit repairer on the case, they know the legislation and can work within it to force creditors to honour their obligations under Australian law and negotiate the removal of any errors from your credit report.

    Visit MyCRA’s main site www.mycra.com.au for more information.

    Image: digitalart/ FreeDigitalphotos.net

    Image: tungphoto/ FreeDigitalphotos.net