MyCRA Specialist Credit Repair Lawyers

Tag: credit file

  • Tax fraud worth $33 million linked to identity crime

    Victims struggle with recovery after tax fraud leaves them out of pocket. Could this type of identity crime threaten their  credit file?

    According to public documents, a staggering $33 million worth of suspected fraudulent tax refunds linked to identity crime have been blocked since July this year. Last week SC Magazine released an article ‘ID thieves steal tax returns’ revealing these figures.

    It reports criminals are lodging fraudulent returns with the ATO and also creating fake group certificates linked to real businesses.

    SC reports that the process of finding the fraudsters and reimburing victims is complicated and difficult:

    “Australian Federal Police are understood to be only able to investigate instances of fraud against the ATO if banks supply suspect account details. This is thought to scarcely occur.”

    “The task facing the ATO’s team of anti-fraud investigators is hard to overstate. The $33 million in fraudulent returns blocked since tax time represented a mere 0.67 per cent of total returns processed over the same period. The ATO had withheld pending review 1.2 per cent of returns amounting to $401 million in claims which it considered “overstated” or “potentially fraudulent”.

    And with the lion’s share of legitimate and fraudulent returns filed within four months, the office’s sophisticated fraud-detection systems are put on a hunt for the proverbial needle in the hack stack,” the article says.

    The ATO says it could not comment on investigations, but has promised to reimburse victims, saying they have a:

    “strong focus on raising awareness within the community about the importance of TFN protection and personal information,” it told SC Magazine.

    In the meantime, two of the victims interviewed by SC reported experiencing many issues with attempting to get to the bottom of the fraud themselves. There has reportedly been little assistance from the accountants responsible for lodging the fraudulent claims (they are reportedly not liable having lodged the claim in good faith), and after 30 calls to the ATO from one of the victims, still no answers and no refund yet.

    What we found most interesting about this article, was the last few paragraphs on the Australian Federal Police’s response to SC:

    “Matters of individual tax fraud should be handled by the ATO it [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][the AFP] said.

    It has five officers dedicated to investigating such fraud across Australia. it believed the victims should consult state police.

    For Cameron and Mansfield [the alleged fraud victims featured in the article], it remains unclear who they can turn to for assistance to recoup their lost tax claims.

    Short of obtaining a new TFN, agencies could offer little advice for victims of tax fraud.

    Government agencies broadly suggest victims of identity theft purchase a credit monitoring service and regularly check bank accounts,” the article says.

    The comments illustrate where we believe Australia can do more when it comes to identity theft – identity theft recovery.

    The media seems to frequently speak to identity theft victims, but many of them seem to have been unable to recover their lost monies, to find someone who shoulders the responsibility or gives them the answers or help they are looking for.

    Albeit it is early days for identity theft as a crime, but with a recent survey commissioned by the former Attorney-General revealing 1 in 6 people know someone or themselves have been a victim of identity theft, and the Australian Crime Commission citing identity crime as the fastest growing crime in Australia, it may be a pertinent time for victim recovery to be given more focus.

    In the SC article, it was recognised that the actual victim of fraud was the ATO, whose money was stolen by fraudsters. But what about the person whose identity was stolen? Are they at risk of further fraud in other areas?

    The fraudsters have detailed personal information on the victims, what to say they can’t take credit out in the victim’s name or use the information for other illegal purposes? Where should they go to be given advice on what to do?

    Recently we investigated identity theft recovery, and how it specifically relates to repairing a damaged credit rating. A damaged credit rating from identity theft can hurt the victim sometimes more than the original fraud. Not only can they owe the debt, and all subsequent fees to creditors they can be blacklisted from obtaining further credit in their names for 5 to 7 years. An identity theft victim who is not able to recover their credit rating is facing years of hardship. So where can victims turn for help?

    “Government agencies broadly suggest victims of identity theft purchase a credit monitoring service and regularly check bank accounts”

    This is true, but what was missed from the quotes in this article, was the fact that these victims may be eligible to apply at a Magistrate’s Court for a Commonwealth Victims of Identity Crime Certificate. Were victims told about their options in this regard?

    This Certificate is designed to give Commonwealth identity theft victims some kind of official substantiation to their claims of fraud.

    “A Commonwealth Victims’ Certificate helps support your claim that you have been the victim of Commonwealth identity crime. You can present the Certificate to an organisation such as a Government agency, or a business (such as a financial institution or credit agency).  This may help you negotiate with them to re‑establish your credentials or to remove a fraudulent transaction from their records.

    A certificate does not compel any organisation to take a particular action. It will not automatically re-establish a person’s credit rating or remove a fraudulent transaction from their record. It is also not admissible in any legal proceedings.” The Attorney-General’s website says.

    With recovery obviously so difficult, victims need any help they can get.

    If victims have their credit rating damaged for example, black marks are quite difficult for the individual to remove. When it comes to identity theft in our experience, creditors demand documentary proof to help with establishing that the victim did not initiate the credit in the first place. This certificate could certainly be a very valuable document for victims and we feel would greatly assist victims in substantiating their claims to creditors.

    During our investigations, we found it difficult to establish the ground rules as to what constituted a Commonwealth Indictable Offence, and a State Offence.

    The Attorney-General’s office advised us that the list of offences against the Commonwealth are so great, it is difficult to provide a full list for the public. They say that if any person suspects identity theft, they may be eligible and should just apply  for the Certificate, and a magistrate in their State will decide whether it is possible to obtain one on Commonwealth grounds.

    And as to whether these tax fraud victims would be eligible? A spokesperson for the Attorney-General advised us that that a Commonwealth indictable offence would include some instances of tax fraud:

    “This includes conduct relating to tax fraud such as when an individual dishonestly obtains a financial benefit from the Commonwealth by using another person’s identity,” the spokesperson said.

    They say it is up to the Police to pass on information on the Certificate to victims as they see appropriate for each individual fraud case. Apart from that, information is available on the Attorney-General’s website.

    It may be that the tax fraud victims at this stage have no need or claim for an identity crime certificate. But broadly speaking, it should be something which is promoted by all agencies as an avenue for recovery for victims. It could also be something State-based agencies could also look at adopting for identity theft victims.

    In the meantime, identity theft continues to affect 1 in 6 of us, and while Australia continues to iron out its laws and streamline its investigations, we believe the current victims are unlucky to be at the beginning of our development of effective recovery processes.
    For further help with credit repair information following identity theft, contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit the main website www.mycra.com.au.

    Image: Arvind Balaraman / FreeDigitalPhotos.net

     

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  • Australia’s Household Wealth revealed: The rich getting richer…through buying property

    Statistics show a significant increase in home equity as a contributor to household wealth. A clear credit file has never been more important.

    The Australian Bureau of Statistics released some interesting statistics yesterday on the components of wealth in Australian households. The major contributor for rising wealth in 2010 is shown to be home equity. With more wealthy Australians owning investment property than ever before, it means they are richer than ever before.

    Statistics show a 14% increase in household wealth from 2006.

    “LEVELS OF HOUSEHOLD WEALTH

    In 2009-10, on average, households in Australia held assets valued at $839,000, partially offset by average household liabilities of $120,000. After adjusting for changes in the CPI, the average household net worth of $720,000 in 2009-10 was 14% higher than in 2005-06, and 30% higher than in 2003-04.

    Net equity in home ownership in 2009-10 averaged $297,000 across all households in Australia, and accounted for 41% of total household wealth. Superannuation was the next largest component of household wealth, averaging $116,000, followed by property other than the family home ($100,000).

    HOME OWNERSHIP

    The increased value of households’ equity in their own homes accounted for nearly a third of the 30% real increase in average household wealth between 2003-04 and 2009-10. The contribution that rising home equity values made to wealth increases in that six year period were similar for homeowners living in capital cities and homeowners living outside the capital cities, with the net equity in their homes increasing, on average in real terms, by $78,000 and $75,000 respectively.

    Most Australians aspire to own their home, and home ownership rates are relatively high. In 2009-10, one third (33%) of Australian households owned their home without a mortgage, and 36% owned their home with a mortgage. For these home owners, the average value in 2009-10 was $531,000, up 15% on the CPI adjusted average in 2005-06, and up 26% on the value in 2003-04,” the ABS statistics show.

    And it seems the richest were able to accumulate even more of the lion’s share over the past 4 years:

    “DISTRIBUTION OF HOUSEHOLD WEALTH

    Between 2003-04 and 2009-10, the share of total household net worth owned by the poorest 20% of households remained at around 1%. In contrast, the share owned by the wealthiest 20% of households increased from 59% in 2003-04 to 62% in 2009-10.

    For high and middle wealth households, the primary residence was a very valuable and widely held asset. The average value of the family home for high wealth households was $813,000 (a third of their assets). With only $60,000 owing on these homes on average, equity in the family home accounted for 34% of the net worth of high wealth households, 95% of which owned their family home. For middle wealth households, slightly fewer (91%) owned the family home, but it was a more significant component of their wealth. With an average home value of $340,000 (61% of their assets) and $91,000 owing on average, home ownership accounted for 58% of the net worth of middle wealth households.

    After the family home, other property was the next largest contributor (19%) to the net worth of the wealthiest 20% of households. With their net holdings averaging $420,000, these households accounted for 84% of all household wealth held in such assets.

    Superannuation was the third largest component (17%) of the asset portfolio of the richest 20% of households. At $370,000 on average in superannuation, these households held 64% of all superannuation assets.

    Wealth in business assets was highly concentrated in high wealth households. In 2009-10, 93% of the net value of incorporated and unincorporated businesses were held by the richest 20% of households, with $289,000 on average held by these households and accounting for 13% of their wealth.

    In low wealth households, the contents of the dwelling accounted for the largest proportion (34%) of their assets, and for more than half of their net wealth. Vehicles accounted for 15% of all assets in low wealth households, but only 3% of middle wealth and 2% of the assets of high wealth households.”

    What these statistics seem to clarify for us, is the massive difference owning property can make to a person’s future accumulation of household wealth. Simply by the act of buying property, people can benefit from rising equity, and increase their overall household wealth by as statistics show on average 30%.

    So if people are not able to borrow for their own home they are missing the chances of receiving this benefit, and at the same time increasing their overall household liabilities through the payment of rent.

    Approximately 3 million Australians* are blacklisted from getting a home loan due to a bad credit rating, despite some of these people being financially able to repay a mortgage.

    We are not advocating those people who are unable to repay debt effectively go into even more debt, but there are thousands upon thousands of Australians who are banned from home ownership, or forced to pay huge interest rates on their home due to negative credit file listings that just shouldn’t be there.

    It is not always cut and dried when it comes to credit file entries. Creditors continually make mistakes with credit files, and ultimately the potential home owner pays the ultimate price for that through credit refusal from the major banks.

    According to a survey by Choice Magazine in 2004, as much as 30% of the credit files in Australia may contain errors. Adverse listings hinder a person’s credit file for 5-7 years, depending on the type of listing, so accuracy is vital.

    With more than 14 million credit files in Australia (14 million files are held by credit reporting agency, Veda Advantage alone) – transferring those figures from the Choice study could mean possibly as many as 4 million errors currently exist on credit files in Australia.

    Recently Today Tonight interviewed Veda Advantage’s Head of External Relations, Chris Gration on the possible number of errors on credit reports.

    “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.

    But in our view, 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.

    Many people are often not aware across the board of their responsibility to check the accuracy of their own credit file, so many errors go undetected. Often it is not until people apply for credit that they learn they have an adverse listing on their credit file, but by then it is too late – they are generally refused a home loan.

    To get the black marks removed can be a battle. 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 negotiating with creditors is not always easy for the individual to undertake, hence the need has arisen for credit repairers, to close that gap and enforce the legislation which creditors are bound to comply with.

    If people are eager to own their own home, have the wages and the savings, but are held back by credit file defaults, it would definitely be worth seeking advice from a credit repairer. In many cases, repairing the inconsistencies on a person’s credit file could lead to the removal of all negative listings, and the chance to apply for a home loan with a clean slate.

     

    Image: ddpavumba / FreeDigitalPhotos.net

    * 3.47 million negative listings in Australia, Veda Advantage November 2008

  • Consumers slugged almost $23,000 more in additional home loan repayments

    Media Release

    1 November 2011

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

    The Reserve Bank of Australia is today tipped to hand over a reduction of a quarter of one percentage point in interest rates, taking the cash rate down to 4.5 per cent.

    Some big banks are expected to respond immediately, with the potential to pass on a saving of $49 per month to the average householder.

    But for those approximately 3 million or more Australians who are living with credit rating defaults, the interest rates cuts will be negligible.

    A national credit rating repairer says those families who are unlucky to have defaults on their credit file for 5 years will be paying a staggering $702.21 more per month with non-conforming loan interest rates.

    “We talk about massive savings for the average Australian with these cuts, we talk about encouraging people to switch lenders to increase competitive rates, but this is not a reality for people with 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,” says Graham Doessel from MyCRA Credit Repairs.

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

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

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

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

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

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

    Mr Doessel says,

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

    Under current credit reporting legislation, it is up to the consumer to check for errors.

    Credit file holders are able to obtain a copy of their credit report from one or more of Australia’s credit reporting agencies for free every 12 months.

    But Mr Doessel says 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.

    “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 and they are generally refused credit or forced to take on non-conforming loans at sky-high interest rates to secure the home,” he says.

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

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

    /ENDS.

    Please contact:  Lisa Brewster media@mycra.com.au

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

    Links:

    1. 3.47 million negative listings in Australia, Veda Advantage November 2008
    2. Based on average loan of $400,000 over 30 years on non-conforming loan interest rate of 95.% vs standard variable rate of 7%
    http://www.mycra.com.au/calculators/do-i-need-credit-repair.php
    3. http://lws.vedaadvantage.com/personal_solutions/personal_default.aspx
    4. http://www.theage.com.au/news/business/record-class-action-possible-against-veda/2007/05/01/1177788141045.html
    5. http://www.mycra.com.au/media/television.php

    Image: jscreationzs / FreeDigitalPhotos.net

  • First home buyers missing key step to finance approval

    Media Release

    23 November 2011

    First home buyers are dipping their feet into the market again – a drop in interest rates and reduced property prices renewing buyer confidence for the first time in two years, but many are missing one vital check to ensure they are finance-ready, the credit check.

    The Australian Bureau of Statistic’s housing finance figures for September show the number of first home buyers, as a percentage of total owner occupied housing commitments increased to 16.4 per cent compared to 15.4 per cent in August.

    The Real Estate Institute of Australia says although the first home buyer proportion is well below the long-run average of 20.1 per cent, it indicates a modest return of first home buyers to the market.

    “The latest figures show that buyers are gradually returning to the market and we should expect modest increases to continue after the decision on interest rates in November which has made housing more affordable for first home buyers,” concluded REIA Acting President, Pamela Bennett.

    First home buyers wishing to take advantage of more affordable conditions need to know there is more to applying for finance than wages and savings records.

    Director of MyCRA Credit Repairs, Graham Doessel says a borrower’s credit file is one of the key factors to home loan approval, and anyone applying for a home loan should obtain a credit report prior to making a finance application, regardless of whether they think they have a good credit rating or not.

    “There are a great number of credit files which contain errors or which shouldn’t be there, and first home buyers need to know any negative listing will stop them from getting a home loan in this market, or force them into a high-interest loan, potentially costing them a staggering $22,000  more in interest over the first 3 years,” he says.*

    The term of a negative listing is between 5 and 7 years, depending on the type and can include black marks from telecommunications and electricity providers as well as banks and finance companies.

    The most common type of listing is a default, which is recorded if an account is in arrears past 60 days. According to Mr Doessel, defaults from telecommunications providers which are listed in error make up a big part of his clientele.

    “As many as 50 per cent of our clients seek credit repair due to bill disputes and internal errors from Telcos that have seen them black listed from credit and unable to get a home loan,” he says.

    He says it doesn’t need to be a big default to be a big detriment to a person’s loan application.

    “Some defaults for unpaid accounts of $300 can stop borrowers from getting a home loan. Lenders are even rejecting loans for too many credit enquiries, such as two enquiries within thirty days or six within the year,” he says.

    House hunters can obtain a copy of their credit file for free every year from one or more of the credit reporting agencies in Australia, and this file will provide details on any negative listings such as defaults, writs and Judgments which may have been placed against their name by creditors.

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

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

    /ENDS.

    Please contact:

    Lisa Brewster – media@mycra.com.au

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

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

    Links:

    http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5609.0Main20Features2Sep%202011 opendocument&tabname=Summary&prodno=5609.0&issue=Sep%202011&num=&view=

    http://www.reia.com.au/userfiles/MEDIARELEASE_1320968493.pdf

    * $22,867.15. Based on average loan of $400,000 over 30 years on non-conforming
    loan interest rate of 95.% vs standard variable rate of 7 %.(http://www.mycra.com.au/calculators/do-i-need-credit-repair.php)

    Image: photostock/ FreeDigitalPhotos.net

  • The Christmas credit risks you need to know about

    5 Reasons why the Christmas season is the time you are most at risk of damaging your credit rating

    As credit repairers, our busiest period is in the first few months after Christmas. Clients come to us desperate for help to remove the negative listings from their credit files that are causing them to be refused home loans, car loans, personal loans and even mobile phone plans. At this time it is heads down and tails up for our team as we plough through the many cases we receive.

    Before this time, we thought we’d review why the post-Christmas credit crunch may occur, and hopefully help some of you stay out of trouble.

    Here are 5 Christmas hazards you should be aware of:

    1. Identity theft.

    With identity theft growing in severity and volume to now be the fastest growing crime in Australia, the perfect time for fraud could be the Christmas period. Scammers are out in full force and people can be lax with their personal information – never an ideal combination. Many news outlets report of fraudsters ramping up tactics – accessing people’s bank accounts and using personal information to steal identities and ruin good credit ratings.

    The Government website SCAMwatch has released the 12 scams of Christmas – a report on what consumers should watch out for. A few of the prominent scams for 2011 include:

    Holiday scams. Consumers are warned to look out for fake accommodation vouchers, scam travel clubs and scammers asking you to pay upfront deposits for properties which aren’t actually available for rent.
    Flight scams. Scammers set up fake websites which look genuine and make you believe you are purchasing an authentic flight ticket. When you arrive at the airport you may find your booking was a fake.
    Charity scams. At Christmas many legitimate charities appeal for donations of money, food, clothing and children’s gifts. Unfortunately scammers also try to get your money by camouflaging themselves as genuine charities.
    Online shopping. Beware, scammers post fake classified ads, auction listings, and run bogus websites. If you get caught by a scammer you will not only lose your money but will also never receive the item you were trying to purchase!

    If fraudsters are able to access your personal details in full to commit identity theft – they have basically the key to your good credit rating. They can run up credit all over town in your name. Often it’s not until you go to apply for credit in your own right and are refused that you realise your credit file has been misused.  With adverse listings difficult for the individual to remove, and with defaults remaining on your credit file for 5 years your life is basically set to be turned upside down without the help of a credit repairer.

    2. Overlooking bill payments.

    There is no doubt the lead up to Christmas is busy. Work is incredibly fast-paced, kids have prizegivings, graduations, Christmas parties and holidays, the Christmas shopping needs to get finished, Christmas food needs to be bought, and holidays need to be booked and planned. The fallout from all of this stress can be the little $180 phone bill that gets shoved in a drawer to think about at a later date, or you can even forget to transfer money for the mortgage payment.

    Then you go away for a few weeks in January to unwind trying to put Christmas, work, and stress behind you while you dip your toes in the water and sip your margarita.

    When you get back, there may be a notice in the mail saying the phone company or the bank has listed your account as unpaid and put a default listing on your credit file. Or it may not be until you apply for credit again that you find out about the bill – but by then it is much too late.

    60 days is all it takes to have an unpaid account listed as a default on your credit file.

    Before you get into the Christmas rush, nominate a place for all of your bills and make a point of actioning them all as soon as you can. Don’t let the New Year go by without clearing your debts – especially if you are going on holiday for a significant period.

    3. Moving and transfers.

    Moving house is a very common reason people have bills and even default notices go undetected which can lead to a bad credit rating. As Christmas and New Year is a very common time for transfers and other work changes to occur that could see you moving interstate it is very important to tie up all loose ends in your current address.

    At least two weeks prior to your move, notify all creditors of your change of address and when that will occur and get confirmation of the receipt of your new address in writing or via email from them. When cancelling utility and phone accounts, give those creditors the date of your move and request to settle the account on that date. Ask for confirmation that the account has been settled sent to you via email or to your new address. Make a diary note to chase this up if it has not been sent within a week of your move.

    The number one rule for moving is get all changes confirmed in writing. Otherwise accounts may not be completely settled, and the creditors may not have your new address to send you any outstanding debts, resulting in a bad credit rating which you would only find out about when you are going for credit in a separate instance.

    4. Over committing and spiralling into debt.

    It may be a simple rule, but one which can be difficult to apply when you get caught up in the “Christmas spirit” – don’t spend what you can’t afford.

    You may, as many do, feel the pressure to “give” so much you do so at the expense of your own budget and ultimately end up with a debt you cannot pay back. The end result of this can be getting into more debt to pay the original debt. It eventually catches up with you, and you end up with loan commitments you can’t meet or other bills get neglected because you just can’t afford to pay it all. Creditors start to default your credit file. Your financial freedom is compromised.

    Savings guide Australia offers some tips this season on ways to have a great Christmas without blowing the budget. Our best advice is actually to have a budget and stick to it. Reducing spending on each person by even 20% will make a massive difference at the end of your shopping. You should also write a shopping list and stick to it, minimising the likelihood of impulse buying.

    Remember it’s the thought that counts!

    5. Overlooking errors and omissions from Creditors.

    This is the silly season – and everyone is busy and preoccupied. The volume of transactions may increase while staff decrease, putting stress on Creditors’ systems. For this reason it is crucial to keep an eye on your own finances.

    Check your bank statements (it could even help with Christmas budgeting), check your bills as they come in and make sure everything is as it should be. Know which bills are due and when. If you don’t receive a bill for whatever reason, chase it up. The Creditor will more than likely still have a record of the bill – it may have been lost in the mail or sent to the wrong person. But in the end you are the one who will pay for their oversight.

    This is also a good time to request a free copy of your credit file from one or more of the credit reporting agencies if you haven’t already this year. You will receive a copy of your credit report within 10 working days. You should check that all of your details are correct. Check there are no adverse listings on your credit file which could prevent you from accessing credit in the future. If there are negative listings – defaults, writs or Judgments which you believe contain errors, are unfair or just shouldn’t be there, you have the right to have these entries rectified.

    Make your life easier and ensure you get the best chance of getting the listing/s removed by instilling the help of a credit repairer. Visit MyCRA Credit Repairs for more information on how credit repair works, or call tollfree on 1300 667 218.

    Image: Stuart Miles/ FreeDigitalPhotos.net

    1. Image: Chris Sharp / FreeDigitalPhotos.net 3. Image: Digitalart / FreeDigitalPhotos.net 4. Image: worradmu / FreeDigitalPhotos.net 5. Image: nuttakit / FreeDigitalPhotos.net

  • The identity theft victim’s guide to recovery

    Have you been locked out of your Facebook account? Fallen for a request to give over personal details to a fraudster? Or had that horrible sinking feeling when you realise someone has been taking money out of your bank accounts? Or perhaps as was recently the case in W.A., you may have had a property sold from underneath you while overseas?

    These are all forms of identity theft in varying degrees. Someone steals your personal information in order to set up a fake identity for the purposes of using your good name, your financial identity, and possibly your credit rating for their own purposes.

    You are not alone, and you should not be too embarrassed to take action against this crime, however sheepish you may feel. It is an ever-growing problem – the fastest growing crime in Australia. A recent survey commissioned by the Attorney-General’s office shows 1 in 6 people in this country currently have been victims of identity theft, or know someone who has had their identity misused.

    Some instances of identity theft are relatively easy to recover from, others are a major source of heartache and disruption to people’s lives.

    The Attorney-General has produced an Identity Theft booklet which includes the steps you need to take as soon as you discover you may be an identity theft victim:

    •Immediately inform the police. All incidents of identity theft should be reported to your local police even if only small sums are involved. Ask for a copy of the police report—most banks or other financial institutions will ask you for a copy.

    •Close all unauthorised accounts. Contact the credit providers and businesses with whom any unauthorised accounts have been opened in your name. Remember this includes phone and other utility providers, department stores and financial institutions. Inform them that you have been a victim of identity theft and ask them to close the fraudulent accounts.

    •Alert your bank or financial institution. Contact your bank or financial institution immediately and cancel all cards and accounts that may have been breached. Ask for new cards and accounts with new Personal  Numbers (PINs).

    •Get a copy of your credit report. Inform the credit reporting agencies that you are a victim of identity theft. Ask that an alert be placed on your file that advises this. This should stop additional fraudulent accounts being opened in your name.

    •Review your credit report carefully. Ensure you can authenticate all ‘inquiries’ made into your credit history. Contact all companies and organisations that have made inquiries under your name that you did not authorise.

    •Keep all documentation. Take notes that include dates, names, contact details and what was said during your contact with those agencies. Follow up all conversations and requests in writing, and send these by certified mail if you need to post them. Keep copies of all forms and correspondence.

    •Report loss or theft of documents to the relevant government or private sector agencies. Contact the relevant government and private sector agencies if you have lost specific documents or items, or had them stolen.

    •Contact the Office of the Privacy Commissioner if you feel your privacy has been breached. If you feel that your privacy has been breached because of identity theft, or an agency or organisation is being difficult about rectifying privacy matters, then you can contact the Office of the Privacy Commissioner. Their Enquiries Line is available to help you work out if a privacy breach may have occurred. However, it is important that if you intend to lodge a complaint, that you first try and resolve matters with the agency or organisation concerned.

    Government-assisted Recovery

    Recovery from identity theft can be assisted in some instances if you are eligible to apply for a Victims of Commonwealth Identity Crime Certificate. Generally Police will advise you if the crime against you falls under this jurisdiction. It can improve the chances of recover greatly by having this certificate to provide to Government agencies, and financial institutions in which a Commonwealth indictable offence was committed against you.

    The Attorney General’s website says a Commonwealth identity crime occurs where a person makes, supplies or uses identification information (yours, or a third party’s). They do this intending that either they or someone else will pretend to be you or another person (who is living, dead, real or fictitious), and the act of pretending would be done to commit or help commit a Commonwealth indictable offence.

    But the instances in which an actual Commonwealth indictable offence is committed may be less common.

    Examples of victims of Commonwealth identity crime are:

    ■your birth certificate was used by someone else to falsely claim a payment from Centrelink in your name
    ■a person pretended to be you by using your identification details to have your Medicare rebates redirected to their bank account
    ■a person used your credit card without your permission to purchase and import illegal substances
    ■a person established a false business in your name to fraudulently claim GST, and
    ■a person used your passport or citizenship details to pass themselves off as you and travel overseas.

    The common identity theft victim who has had their personal details stolen and fraudsters have taken out credit cards in their name, it seems would not be eligible for the Commonwealth Victims of Crime certificate.

    For other very common type of identity theft through scams that were initiated outside Australia where victims have provided personal details and money – the Government’s SCAMwatch website warns victims recovery and restitution may also be difficult for victims:

    “due to the ‘fly by night’ nature of many scammers, it is extremely difficult to track them down and take action against them. Though it depends on the circumstances of each case, the ACCC may not be able to take action or enforce Australian Court orders against the many scammers that are based outside of
    Australia.” the SCAMWatch website explains.

    Identity theft and credit ratings

    If your bank accounts have been skimmed, the bank may have insurance to cover your loss due to this fraud. But if your credit rating has been damaged, and there are defaults, writs and Judgments on your credit file that should not be there, recovery can be a complicated matter. Basically your credit reports show you as owing debts and you are considered unsuitable to lend money to.

    Some identity theft victims find they hit a wall when attempting to recover their credit rating as the laws which govern credit reporting and the listing of negative data on people’s credit files are difficult for them to navigate. Victims say it is up to them to prove the case of identity theft, to prove to creditors they did not initiate the credit and some say this is confusing and frustrating for them.

    Instilling the services of a credit repairer may be helpful to your case, as the credit rating recovery can be enhanced by having a person better skilled at dealing with creditors and with complete knowledge of relevant laws and regulations which would apply to your circumstances.

    The way lending works in Australia, one default makes it just as difficult to get credit as does 3. So even if people can strike a helpful creditor in one or two instances, they may be unsuccessful in removing all negative listings by themselves. Each default remains on a person’s credit file for 5 years, so if you want the best chance of getting a home loan, a car loan or even credit cards and mobile phones over the next 5 years, it could be best to leave it to the professionals.

    For more help with clearing a credit rating following identity theft, contact MyCRA Credit Repairs Tollfree 1300 667 218 or visit our main website www.mycra.com.au.

    Image: graur razvan ionut/FreeDigitalPhotos.net

  • Top 25 worst internet passwords 2011 – is yours on the list?

    Here is the list you need to read – the top 25 worst internet passwords for 2011. That’s the 25 most frequently used passwords which are most commonly successful in gaining entry into other people’s internet accounts.

    If you would like to prevent identity theft and credit file misuse, scan this list, and if your password is on it, please invent a stronger one.

    ‘Splashdata’, a Californian company which sells security services and password software has created these rankings based on millions of stolen passwords posted online by hackers.

    1. password
    2. 123456
    3.12345678
    4. qwerty
    5. abc123
    6. monkey
    7. 1234567
    8. letmein
    9. trustno1
    10. dragon
    11. baseball
    12. 111111
    13. iloveyou
    14. master
    15. sunshine
    16. ashley
    17. bailey
    18. passw0rd
    19. shadow
    20. 123123
    21. 654321
    22. superman
    23. qazwsx
    24. michael
    25. football

    The Brisbane Times reported today SplashData CEO Morgan Slain urges businesses and consumers using any password on the list to change them immediately.

    “Hackers can easily break into many accounts just by repeatedly trying common passwords,” Slain says. “Even though people are encouraged to select secure, strong passwords, many people continue to choose weak, easy-to-guess ones, placing themselves at risk from fraud and identity theft,” he says.

    There are a number of ways hacking internet passwords can be lucrative for identity thieves beyond simply gaining access to bank accounts:

    1. Scammers who hack in to your Facebook or Twitter accounts can send messages to your friends pretending to be you, and ask for money from them. Recently a Gold Coast woman had her Facebook and Hotmail accounts hacked, and her friends were continually asked for money in her name. She is still attempting to recover her accounts.

    2. Fraudsters can also be after personal information from your online accounts, with the view to setting up fake identities. The personal information posted in Facebook could be enough to request replacement copies of identification, and then take out credit in your name, which can easily lead to a damaged credit rating, often without your knowledge.

    3. Passwords for one account may be the same passwords used for other accounts and services. What would happen if the fraudster could gain access to your ebay account or your gmail?

    4. Gaining access to a person’s personal hotmal or gmail account could certainly give the hackers enough information over time to commit identity fraud or at the very least a chance to send fake emails to contacts in your address book.

    5. Weak staff passwords can put businesses at risk of fraud and also credit file misuse.

    The Government’s Stay Smart Online website says attacks using stolen passwords occur more than people realise.

    “A password on your computer is like a lock on your front door—it prevents strangers walking into your house and stealing your possessions,” the website says.

    Stay Smart Online’s Top tips for passwords:

    • Set strong passwords, particularly for important online accounts and change them regularly—consider making a diary entry to remind yourself.
    • Never share your password with anyone. A password is meant to be a secret known only to you.
    • Memorise your password if you can. To make a password easy to remember, think of a phrase and then change some of the characters to make it a strong password. If you need to write it down in order to remember it, hide it somewhere safe.
    • Use different passwords for different accounts—otherwise if one is compromised it may give an attacker access to your other online accounts. For example, use a password for online banking that is different to the ones you would use for email or social networking.
    • Don’t save passwords for important accounts in your web browser—otherwise anyone using your computer could access these accounts.
    • Be careful using your password on a public internet terminal (such as an airport or internet cafe).
    • Never send your password via email or store your passwords in plain text on your computer.

    If you suspect your password has been stolen, you may be extremely vulnerable to identity theft. You should contact Police immediately, even if nothing appears to have been tampered with yet. You should also get a copy of your credit file and check for any suspicious new enquiries or changes in contact details. If there seems to be any discrepancies notify creditors straight away to prevent fraudsters ruining your credit rating. If there are defaults or other negative listings on your account that you didn’t initiate, you would find it helpful to use a credit repairer to help recover your good name. Contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit our main website www.mycra.com.au.

    Image: Salvatore Vuono/ FreeDigitalPhotos.net

  • September Lending Finance Statistics, ABS

     

    The Australian Bureau of Statistics released its September Lending Finance figures today – showing a continued small percentage rise in finance numbers.

     

    SEPTEMBER KEY POINTS

     

    SEPTEMBER 2011 COMPARED WITH AUGUST 2011:

    HOUSING FINANCE FOR OWNER OCCUPATION

     The total value of owner occupied housing commitments excluding alterations and additions rose 0.8% in trend terms and the seasonally adjusted series rose 0.7%.

    PERSONAL FINANCE

     The trend series for the value of total personal finance commitments rose 0.2%. Fixed lending commitments rose 0.6%, while revolving credit commitments fell 0.3%.
     The seasonally adjusted series for the value of total personal finance commitments fell 2.5%. Revolving credit commitments fell 7.3%, while fixed lending commitments rose 1.7%.

    COMMERCIAL FINANCE

     The trend series for the value of total commercial finance commitments rose 0.3%. Revolving credit commitments rose 0.6% and fixed lending commitments rose 0.1%.
     The seasonally adjusted series for the value of total commercial finance commitments fell 10.0% in September 2011, after a 7.7% rise in August 2011. Revolving credit commitments fell 15.3%, after a 6.2% rise in the previous month. Fixed lending commitments fell 7.3%, after an 8.5% rise in the previous month.

    LEASE FINANCE

     The trend series for the value of total lease finance commitments rose 0.6% and the seasonally adjusted series rose 1.3%.

     
    FIRST HOME BUYERS RE-ENTER MARKET

    The Real Institute of Australian announced last week that housing first home buyers are dipping their feet into the market again – a drop in interest rates and reduced property prices renewing buyer confidence for the first time in two years.

    REIA housing figures for September show the number of first home buyers, as a percentage of total owner occupied housing commitments increased to 16.4 per cent compared to 15.4 per cent in August.

    The REIA says although this proportion is well below the long-run average of 20.1 per cent, it indicates a modest return of first home buyers to the market.

    “The latest figures show that buyers are gradually returning to the market and we should expect modest increases to continue after the decision on interest rates in November which has made housing more affordable for first home buyers,” concluded REIA Acting President, Pamela Bennett.

    First home buyers wishing to take advantage of more affordable conditions need to know there is more to applying for finance than wages and savings records. Many will neglect one vital check which may mean their finance application is rejected.

    Anyone applying for a home loan should obtain a credit report prior to making a finance application, regardless of whether they think they have a good credit rating or not.

    The last survey on errors within credit files was conducted by the Australian Consumer Association (now Choice magazine) in 2004. The study found that 34% of the credit files of those surveyed potentially contained errors of some kind.

    “In our view, there are serious, systemic flaws which are leaving an increasing number of Australian consumers vulnerable to defamation, mis-matching and harassment,” the report said.
    The possible volume of errors on credit files means every buyer should make obtaining a credit report one of the first steps to securing a home loan.

    Buyers can obtain a credit report for free every year, but most don’t know it.

    They are also seldom aware that if they find defaults, writs or Judgments which they believe have errors, are unjust or are completely innacurate, they have the right to have them removed. This is possible in a number of ways, but for most people who are time poor or not familiar with credit reporting legislation, they can contact a credit rating repairer to do the job for them.

    To request a credit file check or have existing errors repaired, contact MyCRA Credit Repairs on 1300 667 218 or visit our website www.mycra.com.au for more information.

    Image: Idea go/FreeDigitalPhotos.net

     

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Image: Salvatore Vuono/ FreeDigitalPhotos.net

    Image: photostock/ FreeDigitalPhotos.net

  • Thousands of Christmas flights won’t be honoured

    Media Release
    4th November 2011

    Australian travellers may be left stranded at the airport holding bogus airline tickets at Christmas time after suffering at the hands of scammers.

    A government agency has warned Australians about cheap flight deals through fake travel websites which have travellers believing they have purchased legitimate airline tickets, but all they have done is been skimmed of their money and left vulnerable to identity theft.

    With a current warning issued by the Australian Competition and Consumer Commission’s SCAMwatch website (www.scamwatch.gov.au ) for flight booking scams, a national credit repairer, MyCRA’s, Graham Doessel says people could find it is more than just Christmas that is ruined.

    “It’s all bad for these poor scam victims. At best they can be left with no holiday – but at worst fraudsters can take their personal details and use them to construct a fake identity which would allow them to borrow in their name – the ramifications of that can last for years,” Mr Doessel says.

    SCAMwatch says it has received a number of reports of fraudulent traders who have copied the ABN and look of legitimate travel websites.

    “Some victims have lost in excess of $1000 for fake international flight bookings, while others report instances of identity theft after interactions with the fake trader,” the SCAMwatch website warns.

    Currently the Australian Crime Commission sites identity theft as the fastest growing crime in Australia, and a recent study presented by the Attorney-General’s office revealed 1 in 6 people have had their identity stolen or misused in some way.

    Identity theft occurs when criminals use a person’s personal details, usually to obtain credit in their name. The benefits can be lucrative, gaining access to large amounts of credit – enough even to mortgage a property in the victim’s name. It is often not until the victim goes to apply for credit in their own right and are refused because of credit rating defaults they didn’t initiate, that they realise they have had their credit file misused.

    “Unfortunately identity theft can turn the victim’s life upside down. Adverse listings can be difficult to have removed, simply because it is up to the victim to prove to creditors they didn’t initiate the credit,” Mr Doessel says.

    MyCRA advises people to take these precautions when booking travel:

    – Be wary of any offer that comes via an unsolicited email.

    – For legitimate-looking websites, check the URL is correct for that company. If it looks suspicious – it may be a fake. Do the research on the airline or travel agency’s own website or contact the company directly to verify details in the offer.

    – Never make the purchase through a link in an email.

    – Take five minutes extra to research the company that is offering the deal to ensure they are genuine.

    – If the flight seems too cheap – it may be a fake.

    – For people who think they may have fallen prey to a scam, they should  contact Police, and if they think their personal details may have been compromised – obtain a copy of their credit file.

    Australians are able to obtain a free copy of their credit report every 12 months from one or more of the credit reporting agencies.

    “If someone suspects fraud, their credit file could show changes, which if detected early, would prevent their good name from being ruined. If there are any unusual credit enquiries, or some attempt to alter personal contact details this should be a red flag. People should alert creditors to prevent their credit rating from being ruined and protect their ability to obtain credit in the future,” he says.

    For more information on identity theft, people can visit the MyCRA Credit Repairs website www.mycra.com.au.

    /ENDS.

    Lisa Brewster – Media Relations   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.

    Image: Free DigitalPhotos.net

  • Bad credit ratings forcing people out on the fringe

    If people need access to money – and quickly – there are a number of options. Whilst many people may not be able to walk in to a bank and withdraw from their savings, they could use their credit card, extend their mortgage or take out a personal loan to cover that unexpected expense. But what about the over 3.47 million Australians (Veda Advantage – 2009) who are living with a negative listing on their credit file – also known as a ‘bad credit rating’?

    When times get tough, many of these people are left with very few choices. Negative listings are recorded on a person’s credit file for between 5 and 7 years, depending on the type of listing. How many people would NOT have surprise expenses during that period? Not many.

    People with adverse listings can be the lepers of the finance world. Particularly those people with a significant number of negative listings on their credit file. No one wants to touch them. No one that is, except for those ‘informal’ finance companies such as pay-day lenders and pawnbrokers.

    Last Friday, the Sydney Morning Herald ran a story titled ‘Finding favour on the fringes’ in which Bina Brown writes of the fine line between meeting a legitimate market demand and preying on desperate people. The SMH reports that 500,000 people a year access $800 million in short-term credit facilities. Pay-day loans are typically considered to be loans taken for less than $500 for two to four weeks.

    The article quotes a report ‘Measuring Financial Exclusion in Australia’ prepared by the Centre for Social Impact (sponsored by NAB). The Centre looked in to the growing demand for this ‘fringe’ credit market, and the rapidly expanding network of companies willing to supply it.

    The report says “Financial exclusion exists where individuals lack access to appropriate and affordable financial services and products – the key services and products are a transaction account, general insurance and a moderate amount of credit.”

    How the fringe credit market works

    “Lender fees vary, but $25 to $30 per $100 advanced would be typical. A loan of $1000 for three months might attract a fee of about $450, or ultimately $111 a week for 13 weeks in scheduled repayments.

    While many consumer groups are against this type of lending since it is often vulnerable people who access the loans, industry proponents argue anyone can find themselves short of cash and short-term credit can make a considerable difference to people’s lives.

    Both sides admit there are rogue players in the industry, such as those who charge an upfront fee of $30 on a $100 loan plus the interest rate which is capped at 48 per cent a year.

    They then set a two-week period to repay the loan (which the broader industry believes to be too short a time period).

    If the loan can’t be repaid after two weeks or the next pay date, they charge another $30 and give them another two weeks and so on. If the client defaults on the loan they charge $75.” SMH reports.

    Reforms to legislation

    Under the Consumer Credit and Corporations Legislation Amendment (Enhancements) Bill 2011 before Federal Parliament the most a person borrowing $100 can be charged is $100, although this would exclude any default fees.

    The proposed reforms have also included a cap on the upfront fee that can be charged on small amount loans (loans for $2000 or less for less than two years) of 10 per cent of the loan amount, plus an interest rate of 2 per cent a month. A parliamentary committee reviewing the legislation is due to report by November 14.

    These reforms would be welcomed, to ensure that those people who don’t have access to standard credit are not digging an even bigger hole for themselves by being forced to pay exorbitant fees and interest charges when they are obviously in desperate need of a break.

    If not fringe credit, then what are the options for those who are financially excluded due to a bad credit rating?

    Well, it depends on what a person’s credit file reads like.  If the person has entered into a debt agreement or bankruptcy – the options are unfortunately limited, access to these types of loans may be necessary. An alternative could also be found in Government assistance.

    In many other cases, there may be no need for people to be disadvantaged in this way by a bad credit rating. Particularly if their credit file shows defaults, writs or Judgments which they believe are inaccurate, unjust or just should not be there.

    Credit repair allows the consumer to have the black mark/s completely removed from their credit rating. This gives them the lending options that they would have had prior to the blemishes on their credit file.

    So, they can borrow at a lower interest rate with the lender of their choice (provided they meet all other criteria of course). This can potentially save them thousands of dollars in interest alone.

    Credit repair is the best solution for those potentially hundreds of thousands of Australians who may be living with a bad credit rating and who are completely capable of repaying a loan. It was bad luck or creditor error that instigated the adverse listing in the first place.

    Many people are victims of simple and sometimes complicated errors with billing procedures from creditors, are victims of identity theft, have had joint lending situations go wrong (such as divorce, guarantors etc) or have had the default listed incorrectly. Despite all of these very fair complaints many consumers have been unable to settle the account themselves with the creditor and unable to remove the offending default, writ or Judgment from their credit file.

    How likely would it be that a credit file would contain errors?

    It is astounding how common credit file errors may be, considering the debilitating effects for the credit file holder once they have a negative listing on their file.

    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 mean potentially 4 million errors currently exist on credit files in Australia.

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

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

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

    So rather than allowing their credit file to continue to plague them, navigating the world of ‘bad credit history’ finance, or the ‘fringe credit market’ which can sometimes leave them with more problems than when they started, people should be educated on the possibility that their good name can be restored.

    So if people know anyone, or are in the situation themselves where they do have a bad credit rating which shouldn’t be there – it could be good advice to get them to seek out a reputable credit repairer to review their credit file and help them back to financial freedom.

    Contact MyCRA Credit Repairs tollfree on 1300 667 218 or click here to find out the 6 simple steps to credit repair.

    Image: Nutdanai Apikhomboonwaroot/ FreeDigitalPhotos.net

  • Don’t throw away your identity on rubbish day

    Rubbish day will never be the same again…not when fraudsters are sniffing around rubbish bins like alley cats at night looking for any kind of personally identifiable information on unsuspecting residents.

    If people think there’s nothing that can be done with that old electricity bill, or scoff at credit card offers and bin them immediately, they may be surprised to know that the information they throw away could be pilfered and those criminals could be putting everything they hold dear at risk.

    A growing crime known as ‘dumpster diving’ threatens the bank accounts, and the good name of many Australians every night. Personal information has become such a valuable commodity, criminals are willing to rifle through people’s rubbish to obtain it.

    Here’s how it happens…

    At night criminals are out on the streets of Australia going through rubbish bins. They are hunting for personal information to commit identity theft. This may not be their first time at a particular rubbish bin. They may be adding information to what they already have.

    Or piecing together information from a variety of sources including the internet, until they have enough to go about obtaining duplicate copies of identification documentation.

    Once this happens, they are able to take out credit such as loans, cards and even mortgage properties in the victim’s name.

    This comes as Today Tonight  in its story ‘Identity Theft Alert‘ interviewed Rob Forsyth from security company SOPHOS on 14th October.  It was revealed that 2 in 5 Australians put old bank statements and other key personal papers into recycling.

    Mr Forsyth says no suburb is immune to fraudsters rifling through that rubbish on the hunt for personal information.

    “They know, because it’s public information which councils have pick-ups on which day, and whether it’s garden waste or recycled waste, and they will cruise through those streets in the middle of the night and go through the garbage bins,” Mr Forsyth says.

    He says once they have enough personal information, they will on-sell that information abroad – including dumped bank statements, credit card offers, phone bills, which already bear the person’s name and address.

    The Australian Crime Commission cites identity theft as the “fastest growing crime in Australia” , and a survey commissioned by the Attorney-General’s office in June revealed 1 in 6 people had been or knew someone who had been a victim of identity theft or misuse.

    There are significant long-term implications for the identity theft victim past the initial monies lost if fraudsters gain access to a person’s credit rating.

    If an account – fraudulent or otherwise – goes unpaid past 60 days, the creditor will list the non-payment as a ‘default’ on the person’s credit file. This default will remain on the credit file for 5 years and can severely hinder  any chances of obtaining credit during that time.

    Often the first time victims of identity theft and subsequent fraud find out about the crime is when they go to apply for a loan or credit card and are refused due to defaults they were not aware of.

    Adverse credit file listings such as defaults are not removed easily, and at this stage, victims have to do a whole lot of work to try and prove to creditors they were not responsible for the unpaid accounts, including providing Police reports.

    Information should be treated with the respect it gets in criminal circles.

    Here’s some simple ways to protect personal information from identity theft:

    – Buy a shredder and cross -shred every piece of personally identifiable documentation that is no longer required before putting in the rubbish bin.

    -Buy a safe for personal documents at home

    -Put a lock on the letterbox to avoid mail being stolen.

    -NEVER give out personal information to any person or entity without verifying their identity .

    -Personal information is valuable – always question the need for people to have it. If in doubt – opt out.

    – Obtain a credit report regularly. People who may be vulnerable to identity theft can contact one or more of the major credit reporting agencies in Australia and request a copy of their credit file.  A credit file report is free for Australians every 12 months.

    For a fee, Veda Advantage offers credit file holders an alert service, which tracks any changes to their credit file within a 12 month period.This could detect suspicious entries such as new credit enquiries or changes in contact details which would point to an identity theft attempt, allowing steps to be taken before the fraud affects the person’s good credit rating.

    Personal information is so valuable to fraudsters. Shred it before you bin it, and lock it up if you want to keep it. Filter who gets it.  Protect your identity and your credit file integrity.

    For more information on identity theft and credit repair, people may contact MyCRA Credit Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

    Image: Grant Cochrane / FreeDigitalPhotos.net

  • Let me count the ways…identity theft news

    This week the media has reported on a number of major instances of identity theft which all confirm the fact that as the Australian Crime Commission (ACCC) reports, identity theft is the “fastest growing crime in the country”.

    The National Identity Fraud Awareness Week, running this week from 17-23 October has thrust identity theft issues in Australia right into the spotlight.
    It almost looks like there has been a ‘storm’ of identity theft – with warnings and recorded cases in most major news over the past few days.

    The press coverage of major identity theft news in this country is interesting. It brings to light the possibility that this news could happen on any given week, and that because of the NIFAW, these instances have been given extra attention by the press. This should cement for Australians the emergence of a very real crime with often dire consequences.

    Identity theft can not only impact a person’s finances, but also their ability to borrow in the future. By extracting personal details and using those to take out credit in their victim’s name, fraudsters can take a person’s good credit rating and basically destroy it.

    A significant amount of a person’s ability to borrow in the future rests on their credit file, which is the file the credit reporting agencies keep on each person who is credit active in this country. If a potential borrower has any adverse listings showing up on their credit file, lenders will generally refuse credit. The catch is…adverse listings remain on credit files for 5-7 years depending on the type of listing. So an identity theft victim can have that crime impact them for a significant time following the event if their name has been used to obtain credit in fraudulent circumstances.

    And recovery is not as simple as calling creditors and explaining what has happened. Under Australian credit reporting law, often the victim requires a great deal of documentary evidence, including Police reports to prove they did not initiate the credit.

    So identity fraud awareness should continue every day, with more focus from Governments, Police, Companies’ and most importantly, consumers on ways to stay protected from identity crime.

    The ACCC’s website has a great host of information on identity crime, which includes a list of preventative tips, which people should print out, talk about and put into practice in their lives.

    Here are some of those media reports which we found significant:

    Credit card fraud

    Raids in Sydney’s Ashbury and Haymarket yesterday uncovered a substantial identity crime operation. Police found 12,000 fake credit cards, with a face value of $30m, a number of blank NSW driver’s licences, computer files and equipment allegedly used in the manufacture of fraudulent documents.
    The Daily Telegraph reported in its story ‘Fake credit cards worth $30m seized along with drugs and cash’ that each card had a credit limit of $2500.

    Amongst the seizures were $20,000 in cash, 90 grams of amphetamines, drug paraphernalia and designer clothing and jewellery valued at about $100,000.
    The operation was carried out by the Identity Security Strike Teams (ISST)  – made up of  Australian Federal Police, NSW Police Force, Roads and Traffic Authority and the Department of Immigration and Citizenship.
    The teams investigate serious and complex identity security matters forming a collaborative network among law enforcement agencies to effectively deal with this crime.

    Bank account fraud

    The Sydney Morning Herald reported this morning on a fraud scandal involving two major Australian banks. The story ‘Citibank left with
    $500,000 fraud bill after impostor scam    ’ details the findings of a NSW Supreme Court judgment from an incident in which Citibank and National Australia Bank and their customers were caught up in a circumstance of fraud.

    In November 2010, Citibank’s Sydney branch received a fax from what appeared to be a Citibank client instructing the transfer of US$500,000 from his multi-currency at call account, to a NAB account jointly held in his name.

    Using the SWIFT international clearing house system of international funds transfers, Citibank transferred the money to the NAB account. A few days later, NAB’s World Square branch received faxes of three international telegraphic transfer application forms, each ostensibly signed by the same client.
    The first form, dated in October, requested a transfer of $15,000 to an HSBC Hong Kong account.

    The second and third forms, dated November, both requested $225,000 transfers to HSBC Hong Kong accounts.

    The Herald reports the NAB assistant branch manager checked the signature on the forms against the client’s signature on its verification system, and as there were sufficient funds, transferred the sums.
    However, the faxed instructions to both banks were false.
    The client and the joint signatory on the NAB account had sued the banks, and had since settled and had their money returned.

    Judy Hitchen, a spokeswoman for Citibank said the customers were ”the unfortunate victims of a sophisticated identity theft”.
    ”The court noted that there was no allegation of negligent conduct or failure by the banks to meet relevant banking standards. In fact, through verification and control systems in place at the time, we were able to constrain the losses by detecting and preventing a subsequent attack on the customers’ account,” she said.

    The case is being investigated by Australian and overseas police.

    Dumpster diving to steal personal information

    Today Tonight also hit identity theft this week, with a story on what is known as ‘dumpster diving’. The story titled ‘Identity theft alert’ featured cyber-fraud hunter from SOPHOS, Rob Forsyth. He revealed that dumpster diving – where crooks go through people’s rubbish bins looking for personal information – is a ‘nightly epidemic’.

    “They [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”][fraudsters] know, because it’s public information which councils have pick-ups on which day, and whether it’s garden waste or recycled waste, and they will cruise through those streets in the middle of the night and go through the garbage bins,” Forsyth said.

    Today Tonight revealed that two in five Australians put old bank statements and other key personal papers into recycling.

    Identity fraudsters will return over weeks, compiling piece by piece, until the jigsaw is complete, and then selling that abroad – dumped bank statements, credit card offers, phone bills, which already bear the person’s name and address.

    “That waste paper is worth millions to the right people,” Crime Stoppers Australia CEO Peter Price said.
    Recycling robbery is now his number one target in a national identity fraud awareness campaign being launched next Monday.
    “In some instance there’s a black market where people actually bid for this information, almost like an on-line auction, and they’ll start using that information to buy stuff almost immediately,” Price explained.

    Once the information is stolen, your identity is shipped around the world in seconds, and that’s when the cyber hunters come in.

    Identity theft and cyber fraud cost Australia $8.5 billion every year. One in five Australians will be hit, more than four million people, and it’s getting worse every day.

     

    Data breach threat prevented

    Australian Super account fraud has been a growing phenomenon in Australia, with Police announcing official warnings in June for Super account holders to take care of their accounts and look for any changes that may point to identity theft.

    It was revealed on Tuesday that an Australian Super Fund’s computer system was exposing its members to a possible data breach.

    The Sydney Morning Herald reported in its story ‘Super bad: First State set police on man who showed them how 770,000 accounts could be ripped off’ about an account holder (who happened to be a security consultant) of Superannuation fund First State, stumbling upon a major flaw in the company’s data base. The error allowed the account holder to download the account information of First State customers.

    “…the details revealed on the statements were a fraudster’s dream, including full names, addresses, email addresses, membership number, age, insurance information, superannuation amount, fund allocations, beneficiaries and employer information.

    Nigel Phair, a former cyber cop turned cyber crime consultant, said the information obtained could be used to take over customer accounts. “Since superannuation is a set and forget saving mechanism, account holders may only suspect an account takeover when they receive their annual statement (assuming they read it in detail),” he said.

    First State Super, which sent a letter to some members on October 7 informing them of the breach, has over 770,000 members and over $30 billion in funds under management. A large portion of its members are NSW public sector employees and their spouses, including police, politicians and magistrates.

    Thanks to the good work of the account holder, the data breach threat was fixed immediately, but Phair says had this exploit been discovered by someone with malicious intent then the outcome would have been significantly more serious.

    A recent global survey reveals widespread concern over data breaches and the security of personal information. A survey conducted online by Harris for US-based identity management specialist SailPoint, showed the majority of adults in the United States, Great Britain and Australia are worried about possible exposure of their personal information, and a large percentage of adults have lost confidence in how companies protect their personal information.
    For people who need help with credit repair following identity theft, or for extra information on credit files and identity theft, call MyCRA Credit Repairs tollfree on 1300 667 218 or visit the main website www.mycra.com.au.

    Image: thanunkorn: FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • National Identity Fraud Awareness Week: Keeping your credit file safe from fraud

    Identity theft and fraud is again on the agenda for Australians. This week is National Identity Fraud Awareness Week (NIFAW) – which runs from 17 to 23 October.

    To tie in with this week, the Australian Federal Police have today gone live with an Identity Fraud survey on their website, aimed at empowering people to protect themselves from the serious consequences of identity crime.

    We encourage everyone to take this survey. Currently the statistics on identity theft may be skewed due to a lack of reporting of the crime. Sometimes this is due to embarrassment, and other times it is because people believe the financial loss is minimal. Unfortunately, that may paint a less scary picture of identity fraud than should be the case.

    The Herald Sun in its article,’If you think you’re identity is safe, think again’ reported NIFAW spokesperson, Peter Campbell as saying it was worrying that most Australians underestimated the prevalence of identity fraud in this country.

    “A total of 52 per cent of those surveyed estimated that less than 100,000 Australian were victims,” he said.

    “However, this latest survey shows the true figure to be 2.6 million – a very significant difference. Mr Campbell says these victims all lost over $1000.

    “We all need to be aware of the risks and take responsibility for our personal information to prevent becoming a victim.”

    An important point coming from these statistics, is the impression amongst Australians that identity fraud is not serious, or doesn’t really have the potential to ruin someone’s life. Even at low amounts, fraud can have significance beyond the minimal monetary loss.

    When identity fraud is initiated due to criminals having access to a person’s personal details and new credit is issued in the person’s name – often the victim is unaware of non-payments until they have defaults attributed to them on their credit file. Many people don’t pick up on it until they attempt to take out credit in their own right and are refused because they have these adverse listings they have no knowledge of.

    The difficulty in this instance is in investigating the origin of the fraud, and convincing creditors the credit file holder has been the victim of identity fraud. This generally requires lots of documentary evidence that may or may not be available, and Police reports.

    Not only can people potentially lose money through identity fraud, they can also lose their ability to obtain credit in the future.

    Defaults through late payments, once listed by creditors remain there for 5 years if the victim is unable to convince them the fraud occurred and have the adverse listing/s removed. People can’t even get a mobile phone plan when they have defaults, let alone personal loans or mortgages.

    The other nightmare that can come about when fraudsters’ gain access to their victim’s credit file, is the potential that they can generate significant amounts of credit debt in the victim’s name. Some victims have had large amounts of credit taken out in their name, white goods and cars purchased, even in some cases properties mortgaged and sold in their names.

    The AFP urges people to take a stronger stance on personal protection from identity fraud, as the circumstances in which fraud occurs are not always simple.

    “Identity fraud is an emerging threat to Australia and is growing rapidly.  Be aware that identity fraudsters are specialists at manipulating their victims, including their trust, friendliness, loneliness, fears, concerns or financial situation”, Commander Chris McDevitt from the AFP says.

    The AFP hosts multi-agency Identity Security Strike Teams (ISST’s) in Sydney, Brisbane and Melbourne.  The teams work closely with state law enforcement partners, financial institutions and government agencies to address the issue of identity theft for financial gain.

    Whilst banks have fraud insurance to help reimburse identity fraud victims, Australians should be aware there is no ‘reimbursement’ for future monies lost due to identity fraud affecting a person’s credit file 5 years. A bad credit rating can severely financially disadvantage individuals. People are unable to obtain credit through normal channels while defaults are present on their credit file. Often they are forced into finance at higher interest rates which can cost them tens of thousands over the term of the default.

    Our message at MyCRA Credit Repairs is: please take steps to protect your credit rating from fraud!

    Educate yourself – visit the government sites like SCAMwatch, Stay Smart Online, and the Attorney-General’s website. If people are interested in keeping up to date with what could be occurring – say in cyber-circles they can visit technology sites like ZD Net Australia or even subscribe to MyCRA’s RSS Feed for updates on security issues affecting credit files.

    Know what’s on your credit file – grab a free copy of your credit file today from one or more of Australia’s credit reporting agencies, Veda Advantage, Dun & Bradstreet, and TASCOL in Tasmania which will be mailed to you within 10 days.

    Your credit report is free every 12 months – take advantage of this by ordering a copy every year. Make sure there are no defaults currently attached to your file. If they shouldn’t be there or there are errors – you may be eligible for credit repair.

    If you feel vulnerable to fraud, for a fee Veda offers an ‘alert’ service, which informs you of ANY changes to your credit file such as a change of contact details or a credit enquiry, which would point to you being a victim of identity theft – possibly BEFORE there are harmful defaults put against your name.

    For more information on identity theft, or help with credit repair following identity theft, contact MyCRA Credit Rating Repairs tollfree on 1300 667 218 or visit our website www.mycra.com.au.

    Image: Chris Sharp / FreeDigitalPhotos.net

  • Internet dating scams rampant in Australia

    Lonely hearts watch out – your wallets or your good credit rating could be next!

    It was revealed by Queensland’s Courier Mail last week that more than $15 million was lost by victims of dating scams last year. This was perpetrated by overseas criminals mainly from West Africa, masquerading as online love interests.

    In response, dating websites in Australia will be now be required by the Australian Competition and Consumer Commission to display scam warnings in an attempt to combat one of the fastest growing types of scam, preying on lonely people. It is threatening action against companies that fail to comply.

    A top-level fraud conference on the Gold Coast was told almost 600 Australians had lost $15.1 million to cyber-criminals posing as potential partners, with one-in-five being duped of more than $100,000.

    Police Commissioner Bob Atkinson said romance scams had become the “fraud of choice” and victims were being left financially and emotionally crushed.

    “We’re seeing thousands of Australians sending millions of dollars to criminals overseas every month,” he told the International Organised Fraud Symposium at Sanctuary Cove.

    “Apart from losing large amounts of wealth and in some cases their homes as a result of this brutal type of offence, some people take suicide as an option,” he said.

    And the victims? Mostly elderly widows.

    Queensland Police Fraud Squad chief superintendent Brian Hay said women “are twice as likely to be victims”.

    “It’s particularly savage. We’re talking about vulnerable people who put their heart on the line and lose their house and life savings as well,” he said.

    How the scams work

    The Government’s SCAMWatch website explains in more detail how these dating scams work.

    “Scammers target victims by creating fake profiles on legitimate internet dating services. Once you are in contact with a scammer, they will express strong emotions for you in a relatively short period of time and will suggest you move the relationship away from the website, to phone, email and/or instant messaging. Scammers often claim to be from Australia, but travelling or working overseas.

    They will go to great lengths to gain your interest and trust, such as sharing personal information and even sending you gifts. Scammers may take months, to build what seems like the romance of a lifetime and may even pretend to book flights to visit you, but never actually come. Once they have gained your trust they will ask you (either subtly or directly) for money, gifts or your banking/credit card details. They will pretend to need these for a variety of reasons.” The website explains.

    How scams affect the victims

    For people who have fallen for this type of scam, generally they are robbed of money. But in some cases, the fraudsters can have enough personal information about their victims to be able to get credit cards or loans or even mortgage properties in their name.

    The costs of identity theft can be significant long term for the victim and are magnified by the fact that  identity fraud is not often detected until the victim attempts to take out credit in their own name and is refused due to credit rating defaults they didn’t initiate.

    It can be quite a shock for someone to realise their entire financial freedom has been taken away, along with any monies that have been stolen from them. Basically someone with credit file defaults finds it extremely difficult to obtain credit for 5 years while the listing is part of their credit record.

    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. Credit rating defaults remain on credit files in Australia for 5 years. The consequence of people having a black mark on their credit rating is generally an inability to obtain credit.

    Repairing a credit rating in Australia can sometimes be difficult for the individual to undertake. By law in Australia, if a listing contains inconsistencies the credit file holder has the right to negotiate their amendment or removal, but the difficulty is, to clear their good name, 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.

    SCAMwatch outlines some ways people can protect themselves when dating online:

    -ALWAYS consider the possibility that the approach may be a scam…Try to remove the emotion from your decision making no matter how caring or persistent they seem.
    -Talk to an independent friend, relative or fair trading agency before you send any money. THINK TWICE before sending money to someone you have only recently met online or haven’t met in person.
    -NEVER give credit card or online account details to anyone by email.
    -Be very careful about how much personal information you share on social network sites. Scammers can use your information and pictures to create a fake identity or to target you with a scam.
    -If you agree to meet in person, tell family and friends where you are going. If this includes overseas travel, consider carefully the advice on www.smarttraveller.gov.au before making any plans.
    -Where possible, avoid any arrangement with a stranger that asks for up-front payment via money order, wire transfer or international funds transfer. It is rare to recover money sent this way.
    -If you think you have provided your account details to a scammer, contact your bank or financial institution immediately.
    -Money laundering is a criminal offence: do not agree to transfer money for someone else.

    For more information, or for people who need help restoring a credit rating following identity theft contact MyCRA Credit Repairs tollfree 1300 617 218 or visit the website www.mycra.com.au.

    Image: renjith krishnan/ FreeDigitalPhotos.net