MyCRA Specialist Credit Repair Lawyers

Tag: credit files

  • Know about your credit score before you buy a home.

    Media Release

    buy a homeKnow about your credit score before you buy a home.

    27 March 2014

    A massive overhaul of Australian credit reporting law now means big brother is watching you like never before, and a consumer advocate for accurate credit reporting says there are some actions you should take now to minimise your risk of being locked out of a home loan.

    On March 12, Australia moved to ‘comprehensive credit reporting’ when amendments to the Privacy Act had final implementation.

    Mr Doessel, Non-Legal Director of MyCRA Lawyers, a firm focused on credit disputes, says new information about your credit habits is now open to prospective lenders who check your credit score.

    “More credit information unfortunately means there’s more reason for lenders to say no to your home loan application or to increase the interest rate offered,” Mr Doessel says.

    Recent statistics from credit reporting bureau Veda Advantage reveal 80% of Australians have never checked their credit history and 53 per cent were not aware that they could ask for a copy of their credit file.

    Mr Doessel says “with over 16.5 million consumer credit files held by Veda Advantage alone, we’re talking millions of Australians who may be at a disadvantage under the new laws through simple lack of education.”

    To help promote understanding of our new laws Mr Doessel identifies seven key points which you should be aware of, especially if you intend to buy a home over the next few years.

     7 credit score health tips

     1. Repay all accounts by the due date -especially your credit card and loan accounts. Any time you are more than 5 days late paying your credit card and loan accounts, a notation can be made in your ‘repayment history’ and remains there for two years. If payment on any credit account over $150 (including telco and energy bills) is more than 60 days overdue, you can have a default applied against your name which has a five year ‘shelf-life’.

     2. Repay more than the minimum amount on credit cards. You don’t want to unknowingly end up in arrears and with a late payment notation against your name because you didn’t pay enough.

    3. Be careful with the amount and type of credit you apply for and use. Too many credit accounts and cards could reduce your score, even if you’re not using them. Also restrict the type of credit you apply for. Too many ‘alternative’ or high interest accounts could see you with a lower score. Reducing your number of credit enquiries is also a good idea.

     4. Ask for help if you need it. If you have circumstances which mean you temporarily can’t make repayments on time, contact your Credit Provider as soon as possible – preferably before your accounts are overdue. You can ask for a financial hardship variation to help ease the burden while you get back on your feet.

     5. If you disagree with an account or bill – act quickly. The earlier you can get to the bottom of an unfair bill the less likely it could impact your credit file. If the Credit Provider ends up listing the account on your credit file as either a late payment or a default, you can ask the credit reporting bureaus to list the bill as disputed on your credit file while you sort it out.

     6. Check your credit score. This is available once a year at no charge from Australia’s credit reporting bureaus – Veda Advantage, Dun & Bradstreet and TASCOL (if in Tasmania). You can also pay to have them sent the same day. Try sites like www.freecreditrating.com.au. You’ll see whether you’ve got any black marks and also whether you’ve been the victim of fraud or identity theft. Veda Advantage also allows you for a fee to see your Vedascore.

     7. Dispute errors as soon as possible. Creditors can and do make mistakes. If you find something on your credit file you don’t agree with – get it sorted out. You can ask the credit reporting bureau which holds the listing to identify it as disputed, and then go about fixing the problem.

    There are avenues you can source to dispute your own listing. You can also seek out external help from a third party such as a lawyer focused on credit law, or a credit ‘repairer’.

    Mr Doessel recommends those who use a credit repairer to do their homework to avoid getting ripped off.

    /ENDS.

    For interviews and more information please contact:

    Graham Doessel – Non-Legal Director MyCRA Lawyers Ph 3124 7133

    Lisa Brewster – Media Liaison MyCRA Lawyers media@mycralawyers.com.au Ph 3124 7133

    www.mycralawyers.com.au www.mycralawyers.com.au/blog

    MyCRA Lawyers 246 Stafford Rd, STAFFORD Qld Ph 07 3124 7133

    About MyCRA Lawyers: MyCRA Lawyers is an Incorporated Legal Practice focused on credit file consultancy and credit disputes. MyCRA Lawyers means business when it comes to helping those disadvantaged by credit rating mistakes.

     Link: http://www.veda.com.au/sites/default/files/images/ycai_launch_infographic_final_190913.pdf

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

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  • How Can You Prevent a Data Breach in Your Small Business?

    If we can learn anything from recent reports of more Australian cyber-crime victims, we must learn that personal information is so important to keep safe. Not only is today’s cyber-crook or scammer after your money – they are after the money you can borrow – through obtaining credit in your name. The recent arrests of seven Romanian people in Australia’s largest credit card data theft investigation in which those criminals had access to 500,000 Australian credit cards is a chilling reminder to all Australians that we are not immune to fraud and identity theft. The fact that these criminals were able to gain this information by hacking the databases of 100 Australian small businesses prompts us to look into what Australians can do to protect their customer information within their business network and keep their customer’s personal information and credit files safe.

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

    On Thursday, the Australian Federal Police announced in a joint release to the media, that they have arrested seven people in Romania in Australia’s largest credit card data theft investigation.

    The criminal syndicate had access to 500 000 Australian credit cards and approximately 30 000 credit cards have been used for fraudulent transactions amounting to more than $30 million…

    Stolen credit card data was being used to create false credit cards, enabling thousands of counterfeit transactions to be carried out in numerous overseas locations including Europe, Hong Kong, Australia and the United States.

    After the AFP identified the cause of the data compromise, the investigation grew to involve numerous international law enforcement partners and the Australian banking and finance sector also provided strong support…

    No Australian credit card holders lost money as a result of these fraudulent transactions. Australian financial institutions reimbursed the financial losses of cardholders…

    Abacus Australian Mutuals CEO Louise Petschler said today’s developments show that cyber crime is a global enterprise.

    “It underlines how a coordinated approach by law enforcement agencies, financial institutions, merchants and consumers can help fight card fraud. We all have a role to play to ensure credit card transactions are safe and secure,” Ms Petschler said.

    “Policing is only one part of the solution to stop data compromises – credit cards should be kept in a secure place, ATMS should be checked for any unusual attachments, personal details including PIN numbers should be protected, financial statements should be checked continuously, mail boxes should be secured and if possible, ‘chip and pin’ security implemented on credit cards,” Commander McEwen said.

    The ABC ran a story the same day on this issue, ‘Australian small businesses targetted by data theft syndicate.’

    It featured IT security expert, Nigel Phair from the Centre for Internet Safety at the University of Canberra. He says it proves that many small businesses are not taking data security seriously enough.

    While he’s surprised at the scale of the operation, Nigel Phair isn’t surprised Australia was a target.

    ”We are susceptible. We are a good economy, we are ripe for the picking for these international criminals,” Nigel Phair says.

    He says the issue for small businesses, is they spend next to no money on any IT security.

    He says it is relatively simple for criminals to get hold of those credit card details if a company doesn’t have any such security.

    “It really is a matter of just hacking into the organisation, finding where their credit card details are stored and then stealing them and then transacting them yourself, you know. And then the next question coming out of that is after you do a transaction with a small to medium enterprise, there’s no reason for them to retain your data,” he says.

    “In the small to medium category I would suggest most [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”][small businesses] aren’t adhering to it [best practice when it comes to credit card data].”

    Preventing Data Breaches in Small Businesses

    Following the introduction of amendments to Australia’s Privacy Laws in the form of the Privacy Amendments (Enhancing Privacy Protection) Bill 2012, there will be more protection for individuals in regards to their personal information.

    How this will flow through to small business procedures is still to be officially outlined, as they will be exempt from some of the new laws.

    Small businesses looking to comply as much as possible with best practice guidelines for personal information security right now, should consult the Privacy Commissioner’s guidelines, found on the OAIC website.

    The Privacy Commissioner, Timothy Pilgrim says appropriate security safeguards for personal information need to be considered across a range of areas. This could include maintaining physical security, computer and network security, communications security and personnel security. To meet their information security obligations, agencies and organisations should consider the following steps:

    • Risk assessment – Identifying the security risks to personal information held by the organisation and the consequences of a breach of security.

    • Privacy impact assessments – Evaluating, in a systemic way, the degree to which proposed or existing information systems align with good privacy practice and legal obligations.

    • Policy development – Developing a policy or range of policies that implement measures, practices and procedures to reduce the identified risks to information security.

    • Staff training – Training staff and managers in security and fraud awareness, practices and procedures and codes of conduct.

    • The appointment of a responsible person or position – Creating a designated position within the agency or organisation to deal with data breaches. This position could have responsibility for establishing policy and procedures, training staff, coordinating reviews and audits and investigating and responding to breaches.

    • Technology – Implementing privacy enhancing technologies to secure personal information held by the agency or organisation, including through such measures as access control, copy protection, intrusion detection, and robust encryption.

    • Monitoring and review – Monitoring compliance with the security policy, periodic assessments of new security risks and the adequacy of existing security measures, and ensuring that effective complaint handling procedures are in place.

    • Standards – Measuring performance against relevant Australian and international standards as a guide.

    • Appropriate contract management – Conducting appropriate due diligence where services (especially data storage services) are contracted, particularly in terms of the IT security policies and practices that the service provider has in place, and then monitoring compliance with these policies through periodic audits.

    He goes on to say that in in seeking to prevent data breaches, agencies and organisations should be considering their other privacy obligations to do with data collection and retention. Some breaches or risks of harm can be avoided or minimised by not collecting particular types of personal information or only keeping it for as long as necessary.

    Consider the following:

    •What personal information is it necessary to collect? – …“Personal information that is never collected, cannot be mishandled,” he says.

    • How long does the personal information need to be kept? –…”destruction or de-identification of information that this no longer required will usually be a reasonable step to prevent the loss or misuse of that information).”

    For a full and complete picture of the OAIC Privacy Guidelines, including the relevant Privacy Principles and obligations you may be subject to, we recommend you read the above information in its full context, in this article: the Office of the Australian Information Commissioner, Data breach notification: a guide to handling personal information security breaches – April 2012.

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  • Brokers and clients disadvantaged by clients navigating the ‘minefield’ of credit reporting

    Media Release

    Brokers and clients disadvantaged by clients navigating the ‘minefield’ of credit reporting alone

    Brokers who don’t have contact with a reputable credit rating repairer to refer bad credit clients to, may be missing out on valuable commission through lost deals, and in some cases may also be doing their clients a disservice, says a leading credit rating repairer and advocate for credit reporting accuracy.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says whilst many people whose credit history shows up with defaults have obtained that default justly, there are also many whose credit file contains errors and omissions and he says those people should be given the chance to clear their name.

    “I would like to say it is as easy as calling the Creditor to sort out the mix-up, but in reality clearing bad credit is a minefield, and a credit rating repairer can be invaluable,” Mr Doessel says.

    Generally when a client presents to a broker with bad credit they have two options:

    (1) Send them packing to resolve the mix-up or to wait until the credit listing “falls off” their credit file in 5 or 7 years before they apply again.

    (2) Organise a non-conforming loan at a higher interest rate to absorb the risk associated with lending to those with bad credit.

    When faced with a credit rating error, Mr Doessel says the clients who are sent away may not always be able to resolve their credit reporting dispute themselves.

    “Credit reporting is governed by mountains of legislation across different industries, so it is not always about right or wrong, but how the letter of the law applies in each case. We have seen many clients who are defaulted despite doing the right thing and despite working actively to try and resolve the situation themselves,” he says.

    He says many brokers put credit repair in the “too hard” basket and prefer to steer their clients to the non-conforming market – at least for the first few years of the loan when they can then refinance.

    “There are a couple of reasons why a non-conforming loan will not always be the best choice for the client. Firstly, they can lose thousands on interest even over the first three years, and secondly with the market the way it’s been more home owners are stuck, finding they can’t refinance due to lack of equity in the home,” he explains.

    Mr Doessel wants to help educate brokers and consumers alike on some of the myths surrounding credit files:

    1. Consumers always know they have bad credit before they apply for a loan.
    There can be many reasons for people not to know they have bad credit until they apply for a loan. They may have moved, been hospitalised, been an identity theft victim or even been a victim of error with their creditor. If the client was not notified prior to the default, in many instances the listing has been placed on the credit file unlawfully, and should be disputed.

    2. Credit file listings are always correctly placed on credit files.
    Credit reporting mistakes can and do happen –but most consumers are unable to recognise credit file errors. Some estimates point to as many as 34% of credit files containing errors or omissions. [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    Credit reporting agency Veda Advantage recently admitted about 1% of material errors detected by their system alone.[ii] But many more may go undetected by credit reporting agencies, creditors and consumers until it’s too late and the consumer is refused a home loan.

    3. Credit file complaints are easily disputed.
    Some brokers assume if the listing is there – the client must be deserving of it. But in reality, once a listing has been placed on a credit file, it is very difficult for individuals to have removed. So even if the listing shouldn’t be there, most often people are forced to put up with it. Often they are told the listing can be marked as paid, but will not be removed from the credit file.

    4. If a Default or Clear-out is on the credit file it can never be removed prior to the end date.
    Some brokers assume credit repair must be a ‘con’, as in their experience listings are never removed. In truth, unless the client can show why the listing was placed unlawfully on the credit file it will not be removed. It is up to the client (or the credit repairer acting on their behalf) to show reason as to why the listing was placed unlawfully, and negotiate its removal.

    The process of credit repair involves an audit-like investigation of the entire case to determine, based on legislation whether the credit listing was placed unlawfully on the credit file. If this is determined, the credit repairer will formally negotiate the removal of the listing from the credit file on the client’s behalf.

    5. A bad credit client should be steered to the non-conforming market.
    If a broker considers duty of care to their client, and they believe the client should be able to obtain mainstream credit, except for bad credit history – then another step must be inserted in the process – deciding on the possible validity of the bad credit before providing non-conforming finance options to them.

    “As a successful broker in the non-conforming market for many years, with many cases I was left scratching my head as to why these perfectly suitable clients who had nothing wrong bar their credit rating errors did not have other options than to enter a loan at sky-high interest rates just to break in to the property market. That is precisely why I founded a credit repair business in the first place,” Mr Doessel says.

    6. Credit repair is a waste of money.
    If a potential borrower is able to have their unfair credit listing removed, they can reduce their interest charges by thousands just by entering a loan with a mainstream lender.

    On a loan amount of $350,000, a borrower would pay $487.62 more in interest each month over the first three years in a non-conforming loan at 9% interest vs the standard variable rate of say 7%.

    When we look at that in total, the borrower would be up for a staggering $17,554.34 more just in interest alone over those first three years.

    7. All credit repairers are the same
    Consumers do need to be aware there are some agencies out there who are happy to take money, but don’t add enough benefit to be of value over what an individual could do themselves. People looking for a reputable credit repairer should ask plenty of questions, do their homework on the company, and request some testimonials from past clients before they commit.

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO MyCRA PH 3124 7133

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

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

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

    ——————————————————————————–

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

    (2) http://au.news.yahoo.com/today-tonight/latest/article/-/10670080/credit-ratings-check/

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

  • Bill shock and telco complaints finally actioned: New Telco Consumer Protection Code approved by ACMA

    It has finally come to pass – telcos have a compulsory and enforceable code to govern their behaviour towards consumers. This new code is aimed at giving consumers the transparency and clarity with their telco use that has been severely lacking in the industry and which has led to bill shock, debt issues and more unfair credit listings such as credit rating defaults.  We report on the new code governing telcos, the possible benefits for the future, and explain how the previous code has impacted telco customer credit files.

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

    Telcos have by the skin of their teeth missed government regulation. The final draft of a new Telecommunications Consumer Protection Code (TCP) submitted by telco industry body the Communciations Allicance has been approved by the Australian Communications and Media Authority (ACMA) it was announced yesterday.

    A couple of weeks ago we reported telcos had submitted their last version of the Code to the ACMA in the post Telco consumer code on third rewrite for June deadline.

    The ACMA announced in a release to the media yesterday A Better Deal For Australian Telco Customers, that it had agreed to register the telco’s version of the Code, which is aimed at giving “long-suffering telco customers materially greater protection on the big telco issues such as bill shock, confusing mobile plans and poor complaints-handling,” the ACMA says.

    A public inquiry conducted by the ACMA estimated that the annual recurring costs associated with the industry’s unsatisfactory performance under the previous code included $1.5 billion associated with consumers choosing the wrong plan, $108 million for the costs of telephone complaints and $113 million for the costs of writing off bad debts.

    “The ACMA will very closely monitor its [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 TCP Code’s] progress and will not hesitate to communicate to industry the need for further change, if that need arises. This is an important point as the code will apply to every service provider in Australia. Compliance with the code is no longer an option. The ACMA obviously stands ready to use its powers of investigation and enforcement if participants choose not to comply with these new code obligations (which include an obligation to report their compliance performance to the industry’s new compliance monitoring body, Communications Compliance),” Mr Chapman says.

    How have telco customers been affected?

    Recently the Telecommunications Industry Ombudsman (TIO) surveyed its services. It counted 52,231 new complaints about telcos received between January and March 2012. Almost two-thirds were about mobile phone services.

    The TIO reports new complaints about over-commitment caused by inadequate spend controls increased to 4,282 in the January-March 2012 quarter, compared to 2,181 in the same quarter in 2011. In the same periods, new complaints about disputed internet charges increased from 981 to 2,823 (180 per cent).

    “It is well known that more internet browsing and downloads are now done on mobile phones and other mobile devices. With this change in consumer behaviour, we have seen complaints about excess data charges almost treble over the last year,” Ombudsman Simon Cohen said. “The incidence of these complaints will reduce if consumers are only contracted for services they can afford, and where spend management tools such as notifications and usage meters are accurate and reliable”.

    And customer credit files?

    Almost 26% of MyCRA’s credit repair clientele in the past 12 months were Telco customers.

    Often this was due to botched phone plans and lack of data usage monitoring. Consumers have been confused when it comes to data allowance on their smartphones, and the providers have not been helping. Often clients have claimed they have gone over their data limit really quickly, or the plan they were put on was not appropriate for what they intended to use their mobile internet for.

    The problems have also extended to complaints. Many customers can have had great difficulty in cancelling the accounts or coming to a resolution with telcos over these billing issues. Sometimes consumers have reluctantly paid the bill, thought the matter was settled, only to find they were defaulted anyway, and others have just refused to pay the bill until they got some resolution. Either way, customers have been faced with at least 5 years of bad credit from these often unfair credit listings unless they have been able to make a successful complaint.

    What the TCP Code will mean for consumers

    The Sydney Morning Herald yesterday reported in the story ‘Bill shock’ code set to save $1.5b on phone bills that the new 102 –page code will be enforced from September 1, and progressively phased in over the next two years.:

    “[We] are hopeful that its adoption will result in clearer advertising, easier comparison of products, better information about contracts and better tools to help consumers avoid bill shock,” Teresa Corbin, CEO of the Australian Communications Consumer Action Network (ACCAN), which proposed the code told SMH.

    It also reported on a significant change to data usage notification rules:

    “…customers will receive warning messages when they have reached 50 per cent, 85 per cent and 100 per cent of their monthly allowance for calls, messages and data,” SMH reports.

    The basic benefits are explained in more detail in the ACMA article Fair call—new telco code to benefit consumers:

    Under the new code, telco providers must be clear about what they are offering in their phone plans and stop using confusing terms like ‘cap’ (unless the offer refers to a ‘hard cap’—an amount that cannot be exceeded).

    Customers will also benefit from better spend management tools designed to avoid ‘bill shock’. These include improvements in billing processes and credit management, and the introduction of notifications about data usage and expenditure thresholds.
    Some of the changes will be phased in to help providers adjust their systems. From 27 September, customers will be able to more easily compare costs and plans, with telcos required to provide unit pricing for national calls, standard SMS and downloading 1 MB of data in advertisements…

    From 1 March2013 customers buying a new service will receive a two-page document called the ‘Critical Information Summary’. This includes essential information about service, pricing and complaints-handling, as well as volumetric information so consumers can easily understand how many two-minute calls or texts they can make under their plan.

    The new code will mean faster, better complaints-handling, with urgent complaints resolved within two days. All of these new measures will be monitored and the telcos subject to new benchmarking standards.

    For customers having difficulty paying their bills or meeting unexpectedly high bills, telcos must advise consumers about spend management tools, hardship advice and options to restrict a service.

    A new industry compliance body is being formed to ensure all industry participants comply with the new code.

    We eagerly await the September implementation of the TCP Code, and the positive impact this will have on our customer’s credit files and hopeful reduction in the number of unfair credit listings originating from telco customers.

    Image 1: Danilo Rizzuti/ www.FreeDigitalPhotos.net.

    Image 2: Sydney Morning Herald[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • FREE paper shredder and Identity theft kit to all new MyCRA clients

    Identity theft is the fastest growing crime in Australia, and it is one which can DIRECTLY lead to a bad credit score.

    If fraudsters are able to assume someone’s identity, they may be able to take out credit in the victim’s name – leaving them with a long list of defaults they have to PROVE they weren’t responsible for!!!

    It is essential that all credit file holders safeguard their personal information and protect themselves from identity theft, preventing an unnecessary bad credit score.

    For this reason, MyCRA Credit Repairs are GIVING AWAY paper shredders, and with that, an extensive 5-page Identity Theft Kit, plus a quick one-page questionnaire to help clients get up to speed with where they may be lacking in identity theft security.

    The paper shredder, the Identity Kit and the questionnaire will be available to any clients who sign up with us today and pay a mimumum $200 non-refundable payment.

    The full $200 will be credited directly to the client’s credit repairs costs.

    No client should put up with what a bad credit score does to their life if they don’t have to!

    If there are inconsistencies on a person’s credit file there is a good chance they can be removed.

    In the past, MyCRA has achieved up to 91.7% default removal of all cases we take on…could this be you or your client?

    So START NOW and get on board TODAY to receive this unique offer – we are saving a client’s credit file now, as well as the clear credit file they will have in the future.

    Limited numbers apply, and only for a limited time.

    Thanks – Graham Doessel, MyCRA Credit Repairs, www.fixmybadcredit.com.au

    Terms and conditions apply – see us for details.

     

    Image: Chris Sharp / FreeDigitalPhotos.net

    Image: David Castillo Dominici / FreeDigitalPhotos.net

     

     

  • Bill to fight global cybercrime coming in New Year

    The war on global cybercrime and identity theft continues…

    The Government’s Cybercrime Legislation Amendment Bill 2011 is set to be passed through the Senate in the New Year, according to reports from The Australian Newspaper ‘Australia to join global anti-cybercrime fight’ today.

    Attorney-General Robert McClelland told a Council of Europe meeting yesterday in France that the Government’s Cybercrime Bill will have the “endorsement of Parliament in the new year,”

    “For our part, there is no doubt that once Australia has taken the necessary steps to provide for accession to the Convention on Cybercrime, we will be better placed to take on the challenge globally,” he said in a keynote address.

    “Our domestic laws will criminalise more nefarious cyber activity and give our crime fighters the right modern tools.

    “Information required to prosecute cyber criminals will be protected from destruction whilst law enforcement agencies seek warrants for its access,” he says.

    Back in June we blogged about this Bill, ‘Government brings in new laws in war against cyber-crime and identity theft’ following the Government’s signing of the cybercrime treaty in May, and as it made swift changes to some of Australia’s laws to allow the Bill to be passed and implemented with ease. The changes were seen as a necessary response to the growing threat of cybercrime and the global nature of the crime.

    Australia will be joining the Council of Europe Convention on Cybercrime, of which more than 40 nations have already signed or become a party to the Convention, including the USA, UK, Canada, Japan and South Africa.

    The Convention allows countries to co-operate in investigations to deal with international crimes committed on computer networks, such as online fraud.

    The Bill will also give Australian police greater powers to force internet service providers to retain data of customers who are suspected to have committed a cybercrime while the matter is being investigated.

    The convention has been criticised by some such as Kapersky Lab’s CEO Eugene Kapersky, who says if non-European, non-English speaking countries will not “join the club” there will be failure.

    “Do you think it’s real that if a government computer in Russia is infected, that they will let the US in? Or that the White House will let Russia in? And then China or Latin America? Forget about it,” Kaspersky told SC Magazine.
    “It hasn’t worked in 10 years.”

    Instead, Mr Kaspersky advocates the need for an “internet Interpol” to manage international crime investigations and liaise with national police forces.

    Currently there appears to be great difficulty in investigating and prosecuting international cybercrime rings –especially in respect to online fraud cases. Much of the internet-generated identity theft is not initiated on Australian shores. The worldwide web provides easy international access, meaning elaborate schemes intended to commit identity fraud can be generated from any country and impact ordinary Australians.

    In fact, current advice about overseas scams on the government’s SCAMWatch website is almost a disclaimer for failure to prosecute perpetrators of overseas scams:

    “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.

    Anything which increases the likelihood of accountability for identity theft and fraud as it relates to the global market should be seen as a positive step, as would the implementation of some of Kapersky’s ideas.

    One thing which is certain is we can never rest on our laurels. Constant monitoring and improvement needs to continue and be pushed for to keep up with the vast array of changes technology and the crime that ultimately follows it.

    For more information on identity theft related to credit files, contact MyCRA Credit Repairs tollfree on 1300 776 218 or visit the main website www.mycra.com.au.

    Image: digitalart/ FreeDigitalPhotos.net

  • New credit reporting laws could see millions of people refused home loans

    The Federal Government is preparing to roll out its new credit reporting laws.

    Its comprehensive credit reporting system will allow lenders more access to a potential borrower’s credit information – but the move to positive credit reporting could disadvantage millions through allowing late payments to be noted on Australian credit files.

    This new aspect to credit reporting virtually ensures there is no room for error with consumers or creditors when it comes to loan repayments or people may face a bad credit rating.

    The Government proposes to bring in  ‘repayment performance history’ to credit files – which among other things will allow for credit providers bound by the National Consumer Credit Protection Act to make late payment entries on a person’s credit file if payments are late even as little as one day.

    In these harsh economic times, the ‘noting’ of late payments on a person’s credit file will most definitely impact on the consumer’s ability to obtain finance.
    Lenders are sure to see late payments as a potential credit risk. If the late payment of a few days is due to delays in bank processing of transfers or direct debits, paying at Australia Post, BPay etc. – these things are beyond the control of the average consumer yet that is exactly who will get hurt.

    Under current credit reporting legislation, late payments are not noted on a person’s credit file until they pass to the ‘default’ stage – which is more than 60 days in arrears. The creditor is also bound to fulfil a series of requirements to give the consumer the opportunity to rectify the situation before listing the default. This legislation will remain, but the ‘repayment performance history’ will also be added. The potential for error in this instance is high.

    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 (Veda Advantage, 2009), but the number of possible errors which exist is not certain.

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

    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 the problem is, 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 home loan that they learn they have a bad credit rating, 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.

    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.

    The job of 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 the creditor is advised to remove the default.

    Given the difficult process of default removal, it is worrying for consumers that getting ‘late payment’ errors removed from credit files may be just as problematic.

    If people want to obtain more information on removing errors from credit files, they can contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit the main website www.mycra.com.au.