MyCRA Specialist Credit Repair Lawyers

Tag: credit rating errors

  • End of financial year an important time for your credit file.

    Media Release

    End of financial year an important time for your credit file.

    16 July 2013

    End of financial yearAs the saying goes….there are two certainties in this world – death and taxes. But there is another certainty in Australia. If you have ever taken out or applied for credit, you will have a ‘credit file’ in your name, and a consumer advocate for accurate credit reporting says the end of the financial year should be the time to include an all-important credit check to your financial repertoire.

    Graham Doessel, CEO of MyCRA Credit Rating Repair says obtaining a copy of your credit report regularly is an essential component to maintaining good financial records.

    “Most people don’t think about their credit file until they apply for credit, let alone the implications if they should find out they have a default or other negative listing against their name,” he says.

    Mr Doessel believes most people don’t know they should check their credit file, because they are largely unaware of the frequency of credit rating errors, or listings added unlawfully by Credit Providers to Australian credit files.

    “Unfortunately, paying all of your bills on time doesn’t always guarantee a clear credit file – there can be a number of go-wrongs including billing errors, unfair bills, address mix-ups and mistaken identities – and our growing client base is testament to this issue,” he says.

    Credit reporting agency Veda Advantage alone holds over 16 million credit files in Australia, but currently there are no official statistics on the number of Australians with ‘bad credit’ or negative listings – although in the past there have been reports of that figure being around 3 million. Likewise, there are no statistics for the number of credit listings disputed with individual Credit Providers.

    “This makes it difficult for individuals to get any scope for the likelihood that their credit file may contain errors,” Mr Doessel says.

    He says Australians should check their credit file at least once a year with all relevant credit reporting agencies, to make sure they have the all clear.

    “Although it is not well publicised, Australians can access a copy of their credit report every year for free from Australia’s credit reporting agencies,” he says.

    You can apply for a copy of your credit report from agencies Veda Advantage, Dun & Bradstreet, Experian and Tasmanian Collection Services (if in Tasmania). A free report will be sent within 10 working days, or you can pay to get an urgent report.

    Mr Doessel says the end of financial year is the best time to order a copy of your credit report – as your financial records tend to be in order if you have just completed a tax return.

    “This way, if there are any items you wish to cross-check on your credit file, you will have all the necessary information at your fingertips,” he says.

    If your report comes back with errors, or you feel a listing is unjust or shouldn’t be there, you do have the right to have incorrect information rectified.

    “Depending on the nature of the dispute, this may be fairly straightforward, or you may find that it requires the help of a third party advocate,” he says.

    You can also order a free copy of your credit report through MyCRA – http://freecreditrating.com.au/.

    /ENDS.

    Please contact:

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

    Graham Doessel     -Ph 3124 7133

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

    MyCRA Credit Repair is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files. CEO of MyCRA Graham Doessel is a frequent consumer spokesperson for credit reporting issues and is a founding member of the Credit Repair Industry Association of Australasia.  

    Image: patpitchaya/ www.FreeDigitalPhotos.net

  • Charging for credit repair – What method is best?

    Credit repair is a fairly new phenomenon. But it has been borne out of a real gap in the ability for the average consumer to handle the information on their credit report as it relates to agencies, the creditor and credit reporting legislation. So we are very much needed. But we also need to act with integrity. So what is the best way to charge clients for the service of credit repair? What is in the best interests of the consumer – a fee for service approach or a no-win-no fee approach? And what are the rules for how to best help consumers ethically?

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

    Recently I read an article in the Sydney Morning Herald Tougher Stand Taken on Credit Files about the new credit laws currently in Parliament and how they could help consumers. But it came with it a warning at the end about credit repair companies. It seems on the whole we don’t get a good rap out there. Consumers are warned against credit repairers because we are charging for something people can technically do for themselves.

    Yes, technically they can. There is no secret to that. But in reality, this is not happening.

    Consumers we meet are getting told that they can’t get their listings removed – at best they can be marked as paid if the debt has been settled. They have been told the debt is valid when it isn’t; they have also had information changed on their accounts; they have not been given the right amount of notice and more.

    Consumers are meant to know how to tackle these big guys without knowing the legislation. With this in mind, how are they meant to have success in removing their own credit rating errors?

    However NSW Consumer Credit Legal Centre, Karen Cox, in this article reports on some pretty dodgy practices amongst credit repairers out there, and this is also a concern of mine.

    “Some have used aggressive tactics to try to persuade the lender or credit reporting agency to remove legitimate listings.
    And in some instances that Cox’s staff have dealt with, the credit repair company has persuaded the consumer to enter Part IX insolvency arrangements, which they subsequently administer for a fee,” the SMH reports.

    So how do we rise out of these criticisms as an industry and provide the much-needed ethical version of credit rating repair? By addressing our fees and in turn our ethics.

    Earlier this year, I wrote an article on fee structure in the credit repair industry http://grahamdoessel.com/wp/credit-rating-repair-customer-costs-a-tale-of-two-business-models/, investigating the two customer payment business models current in the credit rating repair industry, ‘fee for service’ and ‘no win no fee’ payments.

    I also found in my research that the credit rating repair industry was falling way down in its credibility. Some companies weren’t advertising their fees, some were charging way too much and delivering too little – and this was creating mistrust across the board and tarnishing the reputation of what is actually a necessary service.

    Here are the two types of payment structure I investigated:

    Fee for service
    ‘Fee for service’ in the credit rating repair industry, means a fixed amount charged to a client for an agreed level of service. This is charged based on the level of service and or performance. This means that the fee structure is provided to the client up front, and as the client approaches each stage of service, the fee for that service will be due.

    No win no fee
    ‘No win no fee’ cost agreements are also known as conditional cost agreements. No win no fee broadly means that the client only pays credit rating repair costs if their claim is successful. I found that the definition of a “successful claim” varied greatly between credit rating repairers.

    I found that no one single method suited the industry entirely. Both had their merits for consumers and should be allowed to co-exist alongside some basic best practice methods which crossed both approaches.

    Pros of fee for service
    Upfront fees give the consumer more reassurance they will be told what they are going to get, how much it will cost, and because money has changed hands – the credit rating repairer will be bound to deliver what they have promised.

    This model allows the credit rating repairer to give better service to the consumer, through the increased level of commitment by the consumer.

    What I found important in a fee for service model, was the refundable assessment fee. This takes the benefits of fee for service to another level – by assuring those that enter into this business payment model are refunded any monies should they not proceed beyond the assessment stage of credit rating repair.

    Cons of fee for service
    The difficulty in a fee for service model is its restriction on consumers who can’t afford upfront payment, and can’t borrow due to a bad credit rating. At the same time, the fee for service credit rating repairer would likely impose less ‘defaults’ on consumer credit files.

    Recently MyCRA Credit Rating Repairs (who runs a fee for service model) implemented a payment plan system, to accommodate those clients who couldn’t afford to pay a large sum up front.

    Cons of no win no fee
    I found hidden costs let down this customer payment method significantly from a ‘best practice’ standpoint. Extra costs; and hidden costs dumped on consumers regardless of their success in credit rating repair can lead to confusion and anger over fees and charges.

    There is also the potential to skip vital steps in assessment which can lead to an inadequate volume of information prior to the engagement of credit repair – potentially leading to promises of credit repair not based in fact.

    Furthermore, should non-payment arise, the company may be forced to place defaults on credit files– a woeful situation that no credit rating repairer wishes to be in.

    Pros for no win no fee
    I found the no win no fee business payment model had merit due to the ability to help those people who otherwise could not afford credit repair.

    Other industries
    In deciding which customer business payment model to adopt for the credit rating repair industry, I address other professions where these debates have occurred.

    The financial planning industry is on the cusp of streamlining a fee for service payment model across the entire financial planning sector. This has been in response to demand for better transparency to combat criticism of conflict of interest – and uses a ‘best interest’ approach.

    This consumer ‘best interest’ approach has strong merit when constructing any best practice customer payment model in the credit rating repair industry.

    In the legal arena, the no win no fee model popular in personal injury claims has been criticised for misleading advertising and hidden costs, something which the credit rating repair industry should keep in mind when making any reforms.

    Recommendations for payment models
    I found both business models had merits for credit rating repair, provided these changes were made:

    – Refundable upfront fees
    –  Full disclosure of all fees, charges, terms and conditions on advertising.

    These changes would make customer payments fair and simple to understand.

    These best practice reforms would create transparency and credibility and would vastly contribute to providing a valid place for credit rating repair in Australasia’s credit reporting landscape in the future.

    Ethics in credit rating repair
    Ethics in credit rating repair should not be an anomaly.

    ”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”][credit rating repair] is a completely unregulated area,” Ms Cox says in the SMH article.

    But this is no longer true. The necessity for regulation has prompted an industry body to form – the Credit Repair Industry Association of Australasia (CRIAA).

    The newly published CRIAA Code of Conduct for the credit rating repair industry gives weight to ethical practice, fee structure and advertising, and sets some benchmarks in this area. See their website for more details as well as the full CRIAA Code of Conduct www.criaa.org.au.

    The opinion of Graham Doessel reflected in this article is personal and does not necessarily reflect the opinion of the CRIAA or any of its members.

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

  • First Home Buyers Dive in Again But Will They Stay In the Water?

    Most agree that First Home Buyers are the key to the Australian housing market. How are they doing? Are they being attracted by the current market conditions? Or are they even able to dip a toe in with the current lending criteria forcing them to save for years just to get up enough deposit? We look at the factors impacting first home buyers – and why those buyers who present with a good income and a good deposit but bad credit can be saved.

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

    Last week AFG announced it had had its strongest July in 5 years…thanks to first home buyers.

    AFG told Australian Broker a “powerful cocktail of incentives” has helped them to process the highest amount of mortgages in July since 2007 – totalling $2.7 b.

    They report the percentage of first-home buyers has climbed to 17.3%.

    “Low interest rates, soft property prices and escalating rents create a powerful cocktail of incentives to get people into the property market,” said AFG’s general manager of sales and operations, Mark Hewitt.

    Is an improving housing market a reality? Or perhaps – as some experts have touted – simply the result of skewed indicators due to the June ending of government incentives in some States?

    Westpac senior economist Matthew Hassan told the Financial Review last week that there were “consistent” indicators from various sources to the “beginning of a stabilisation in prices”.

    But he said it was too early to call a definite improvement. He pointed to the end of various state government home-buyer incentives in June, which had pulled forward demand and artificially inflated buying activity.

    Let’s hope house prices are stabilising, and more and more first home buyers have the confidence (and money) to enter the market again.

    So if you, as a broker are in the right market to see a resurgence of first home buyer activity, what are the factors impacting credit decisions?

    An article in The Australian recently, reported that an average couple will need to save for at least five years to reach the amount required for a first home deposit.

    The study by financial comparison company Rate City shows a first home buyer would take five years and seven months to save a 10 per cent deposit of $30,667 for a mortgage size of $276,000.

    And a dual income couple with a mortgage capacity of $540,000 would take more than five-and-a-half years to save a 10 per cent deposit of $60,000…

    A 10 per cent deposit is now the minimum amount required by many lenders, while many banks want at least a 20 per cent deposit before they relax their requirements for mortgage insurance.

    Rate City found it would take a first home buyer 13 years to save the recommended 20 per cent deposit plus $10,000 for fees.

    These people that have saved for 5 to 10 years to be able to buy a home in their area have got to be dedicated. This commitment to frugality is often undermined at the time of finance application by a little thing called the credit file. Well, actually it’s a big thing. The lending criteria for risk-management as it relates to the credit check has changed post-GFC just as the deposit and savings requirements have.

    So how can it be fair that someone who has scrimped and saved for 5 years to get the deposit together can be refused the pot at the end of the rainbow, purely on the say-so of, say a Telco company whose listing may or may not be lawful?

    And how can it be fair that a broker must turn these savers away? Or put them into a loan with a non-conforming lender at high interest rates which sees them struggle just to make ends meet every month?

    These questions often come back with a few different responses from brokers who don’t know about or use the services of professional credit repair firms…

    1. Yes, but if they have done the wrong thing and not paid their credit – they shouldn’t be given any more.

    2. If their listing is not lawful, they should take it up with the creditor before they come and see their broker.

    3. They can refinance the non-conforming loan and get into a standard loan after a few years.

    4. Exactly, I see clients like this, but unfortunately if they have bad credit for whatever reason, they are just not getting a mainstream loan. You can’t remove bad credit until the listing drops off. Don’t touch those clients.

    So what is the reality of bad credit clients? Let’s answer those 4 statements…

    1. If people have done the wrong thing and not paid their credit, they shouldn’t be given any more – it’s true. But what exactly is “the wrong thing?” Moved house and had bills come to their old address despite contacting the creditor to change their details? Had a dispute with a creditor that they thought was resolved? Been the victim of a creditor’s mistake? Had a period of temporary financial hardship which was ignored by the creditor? These are very common scenarios as to why the credit listing is deemed unfair. Often this is reason to request the listings removal from the client’s credit file.

    2. Clients often don’t know they have bad credit until they apply for a home loan. Then often when they attempt to dispute the listing with their creditor themselves, they have little success. There is a host of legislation which must be adhered to when placing listings on credit files. It is the legislation that creditors can hide behind when consumers come to them to dispute their credit listing. Consumers just need someone on their side who is equally knowledgeable in credit reporting and industry legislation, and with the ability to negotiate on their behalf to remove anything which is demonstrated to be unlawfully listed.

    3. Clients could enter into a non-conforming loan for a few years, and sometimes this is the only choice. But it is so much extra money in interest. On an average non-conforming loan of $300,000, the client will pay $15, 046.57 extra at 9% as opposed to a standard rate of 7%. (The cost of employing the services of a credit repairer to restore the good credit rating is miniscule when compared with this). If they are able to remove the bad credit, then they can be sent back to their broker to enter into mainstream credit, and save themselves thousands.

    4. Despite what creditors tell consumers, bad credit can be removed if it is unlawful. There are a host of reasons why it may be unlawful – and credit rating errors are more common than most people think. It has been reported in the past through a study by the Australian Consumer Association (now Choice) that as many as 34% of people surveyed had credit files which contained errors of some kind.

    The solution is, to refer the client to a professional credit repair firm once you find out their credit file is tarnished. They can do the work to repair the credit file whilst keeping in touch with you on their progress. The client can be sent back to you once their credit file has been repaired. You can have the best loan for them lined up and ready to go.

    Talk to a Credit Repair Advisor at MyCRA Credit Rating Repairs on 1300 667 218 if you think we can help you save more bad credit clients.

    Image: jannoon028/ www.FreeDigitalPhotos.net

  • Credit Repair Guide – Consumer Advocate Graham Doessel Answers Your Questions About Fixing Bad Credit

    [fusion_builder_container type=”flex” hundred_percent=”no” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” overlay_color=”” video_preview_image=”” border_color=”” border_style=”solid” padding_top=”” padding_bottom=”” padding_left=”” padding_right=””][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”true” min_height=”” hover_type=”none” link=”” border_sizes_top=”” border_sizes_bottom=”” border_sizes_left=”” border_sizes_right=”” first=”true”][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hue=”” saturation=”” lightness=”” alpha=”” content_alignment_medium=”” content_alignment_small=”” content_alignment=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” class=”” id=”” margin_top=”” margin_right=”” margin_bottom=”” margin_left=”” fusion_font_family_text_font=”” fusion_font_variant_text_font=”” font_size=”” line_height=”” letter_spacing=”” text_transform=”none” text_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

    Credit Repair is still a relatively unknown profession outside of the finance industry.

    It is often not until a person is refused a loan due to adverse listings on their credit file that they begin to look for avenues to fix what is being said about them on their credit report – especially if they believe they have an incorrect credit report.

    Research on the subject can produce some contradictory advice, so we thought we would clarify the basics of credit restoration or credit repair as an industry in Australia, and explain the instances in which it will be the best solution for those people who are refused mainstream credit due to defaults, Writs or Judgments on their credit file.

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

    As Credit Repair Lawyers, we find clients are often unaware of just what is involved with repairing their credit rating. Most times they don’t even know what’s on their credit rating until they apply for a loan and are refused – let alone know what to do to fix it. And even those savvy clients who have done a bit of homework and attempted to correct a wrong credit listing by themselves can get brick-walled by their Creditor, told that the listing can only be marked as paid but will not be removed. So often their broker will suggest professional a credit repair law firm to them, or they may have found us on an internet search.

    Here are some of the main questions we get asked by our new credit repair clients – we hope they help you too if you want to know more about what credit repair is all about.

    What is professional credit repair?

    Professional credit repair involves a credit repair law firm working on your behalf to remove inconsistencies or errors which are found on your credit file, in order to give you the best chance of obtaining credit with the lender of your choice.

    How have professional credit repairers come about?

    The Credit Repair Industry in Australia has grown significantly over a short period of a couple of years. There are many reasons for this.

    • One is due to the tightening of bank lending criteria following the Global Financial Crisis (GFC) and then the Banking Royal Commission.
    • The decline in sub-prime lenders has meant that many non-conforming loans that were previously available to many people have since folded.

    Put simply, credit repair has grown from the need for potentially millions of credit file holders with black marks on their credit report to find some way to buy a home, a car, get a credit card and even a mobile phone plan.

    Because of tight lending criteria, the need for greater accuracy in credit reporting has arisen.

    When deciding whether to lend someone money, banks are looking at any reason people may default on a potential loan – which includes any suspect credit history.

    The mistakes creditors make every day in reporting negative listings may have previously gone unnoticed, but since the GFC, the royal commission and now Covid, they can be the very reason many people are refused credit.

    So with many instances of credit reporting ‘inconsistencies’, coupled with very little consumer knowledge on credit reporting law and a great need for a third-party negotiator when dealing with creditors, the credit repair industry has been driven forward.

    What are credit rating errors?

    Credit rating errors are quite common, and the onus of ensuring the accuracy of your credit file rests with you.

    But how do you know if a listing has been placed accurately on your credit file, or if it should be there in the first place?

    A credit repair lawyer with their knowledge of credit reporting legislation will find and address those instances where a credit listing may have been placed unlawfully on your credit file.

    Credit rating errors could be anything from

    • the listing placed on the wrong credit file; to
    • the basis of the credit listing being unfounded; to
    • incorrect notices being provided to the client; right through to
    • system errors and incorrect spelling, to name a few examples.

    Is credit repair legal?

    Yes. Credit repair lawyers work to ensure accurate and legal credit reporting.

    Creditors are bound by a large volume of legislation and codes of conduct to do with placing information on consumer credit files.

    These laws are in place to protect consumers from unfair and damaging credit reporting.

    What a credit repair lawyer does is investigate the procedures taken by the creditor when placing the listing on the credit file, and if necessary, alert creditors and other relevant authorities to the instances where they believe the listing was placed on the credit file unlawfully and for this reason request the listing’s removal from the client’s credit file.

    “If the listing has been placed unlawfully on the credit file, then it should not be there and should be removed.”

    What’s the process to fix my bad credit?

    Credit repair law is not an exact science, because every case is different but there are some common threads which run through credit reporting law which we follow.

    1. Firstly, we order a copy of your credit files on your behalf from one or more of Australia’s credit reporting bodies which tells us exactly who and what we are dealing with in relation to your bad credit.
    2. Then we investigate any avenues for disputing your credit listing or listings with your creditor.
      1. This involves requesting documentation from your creditor about your account, and
      2. cross referencing the procedures taken prior to and during the listing of the default, writ or Judgment with our knowledge of credit reporting legislation.
      3. This can be a lengthy process of review, and likewise, the creditor can at times take a while to provide the information they should.
    3. After we have all of the information, and reviewed it all against the legislation, we have the basis for a case for default, writ or Judgment removal.
    4. Then we formally communicate with your creditor to request the removal of what we would then deem to be a listing placed on your credit file unlawfully.

    This process can be a bit ‘back –and- forth’, as there are procedures that we, and they have to follow in accordance with industry and the law as well as negotiations which take place behind the scenes with creditors.

    The complaint may also need to be escalated to a higher authority such as an industry Ombudsman if there is no satisfaction with the creditor.

    If the creditor agrees to remove the listing, you will need to contact the credit reporting body to confirm it has been removed.

    The reason for this is that you do not create a credit ‘enquiry’ on your credit file by requesting information about your own credit report.

    If you want the best chance of obtaining credit, then you want to reduce the number of credit enquiries as much as possible.

    How long will it take to fix my bad credit?

    The length of time it will take to remove bad credit from your credit file is very much an unknown factor.

    It could depend on the particular facts relating to your application, including the evidence required to support each party’s claims; on the amount of cooperation we receive from your creditor/s including how quickly they respond to our requests; on the number of issues raised in your application; the volume and relevance of information and supporting documents provided by you and the complexity of the legislation relating to your particular defaults.

    We have had a previous success rate of up to 91.6% of removal on every case we take on, and this is on average taking 45 – 60 days (but as little as a couple of weeks) to achieve once we have deemed you suitable for credit repair.

    If my credit file shows an outstanding amount, should I pay it off?

    It depends on the nature of your credit listing dispute. We have in the past negotiated for the removal of many credit listings which still hold an outstanding amount. Your credit repair lawyer can give you further advice based on your individual case. This is why at MyCRA, the costs involved are not based on the amount owing but are on a per-listing basis. For more information on MyCRA Lawyers costs, visit our main website.

    If you have more questions about credit repair, contact our team on 1300 667 218 or visit the main website www.mycralawyers.com.au.

    Images: Stuart Miles/ www.FreeDigitalPhotos.net

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  • Mistake On Your Credit Report? Here’s How To Correct Them

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    Mistake on your credit report? It can be remedied! If your credit file has incorrect information, or the default listing is wrong, we look at what you can do to fix your bad credit in Australia.

    Bad credit is not pretty. Many times people don’t find out about a default or a mistake on their credit file until they are sitting in front of the lender – mortified, frustrated and heartbroken at the loss of a mortgage, business loan or car loan. This ‘bad credit’ listing will remain on your credit file for the next five years, and for the next five years you will be restricted on your access to credit and forced out of the mainstream market. Heck, even a mobile phone plan is looking unlikely. All because a credit provider decided you had been late paying an account.

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

    But what if the creditor has gotten it wrong? What if the wrong information is on your credit file or a mistake has been made on your credit file?

    Firstly, you are not alone. Thousands, maybe millions of Australians are facing this issue of credit rating errors caused by a mistake right now. Some of those people have tried to dispute an unfair credit listing, and many of those people have been unsuccessful. They have been told that credit listings are never removed, that they will remain on your credit file until the ‘drop off’ date. If they have been paid, they can be marked as such, but there will still be some notation on your credit file.

    Don’t buy into it!

    If a credit listing has been placed unlawfully on your credit file, if there is any mistake in any aspect of the credit listing, or the listing just should not be there, then you may have the right to have those inconsistencies removed.

    Some basic things to look for with default listing rules:

    1. More than 60 days must have elapsed since the account was officially in arrears.

    2. You must have received written notification of the default before it was listed.

    If either of these has not occurred, then you should contact the creditor in writing to request the default’s removal – as the creditor has not followed basic rules whilst listing the default on your credit file and it has been ‘unlawfully’ placed on your credit file.

    3. Has the default been listed for more than five years?

    The listing should have ‘dropped off’ your credit file, and you should request the creditor remove the default from your credit file.

    When it’s a little more complicated, or you want to ensure you have the best chance of the incorrect or mistaken listing being completely removed from your credit file, often it is best to seek professional help.

    Dangers In Disputing Your Credit Listings Yourself…

    Often you only get one shot in disputing a credit listing. If you alert creditors in the wrong way that you have issues with a credit listing, there is a danger they may make changes to records to correct the mistake, or delete certain records from their files in order to solidify evidence that the listing was applied correctly.

    Listings are not removed by creditors unless the credit file holder can provide adequate reason and lots of evidence as to why the listing should not be there, and this lack of evidence can also let people down in their case for removing an incorrect listing.

    Professional Credit Repair Law Firms

    A credit repair lawyer is uniquely qualified in disputing defaults and other credit listings which should not be there. They will investigate the disputed credit listing, request further information as required and draft a considered complaint to your creditor. They are well versed in the approx. 8,000 pages of legislation which relates to credit reporting, and they can cross-reference this legislation as it applies to your particular case.

    You may have a listing removed due to the creditor not complying with some of the more well-known credit reporting legislation, or a credit repair law firm could find more specific evidence which can aid the case for removal of the credit listing which you may never have found yourself. It is in the investigation and presentation of the case for removal and finally in the negotiation with the creditor that people can see the true value of a credit repair lawyer.

    Credit repair lawyers also know what avenue to take if the creditor refuses to remove the listing, and will if necessary escalate your complaint to courts.

    Who Chooses Credit Repair?

    People choose to use a credit repair lawyer when they don’t have the time, patience, negotiating ability, temper, or knowledge of legislation to dispute their credit listing mistake with the creditor themselves. People who want the best chance of getting a default removed will use a professional experienced credit repair law firm, just as most people would use a lawyer if they were defending themselves in court. It’s a bit like David and Goliath in many cases – so credit repair lawyers like MyCRA Lawyers provide the benefit of their experience to tackle the big guys on your behalf.

    Volume of Credit Rating Errors Or Mistakes

    A Veda Advantage (now Equifax) spokesperson, was recently interviewed by Channel 7 Australia’s Today Tonight, about the possible number of errors which are contained on Australian 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 an Australian Consumer Association (now Choice) survey from 2004 revealed that 34% of the credit files surveyed in their small scale study contained errors or inconsistencies.

    A similar study was conducted in 2015 and in January 2016, where it was revealed that 12 years on, approximately 30% of credit ratings still contain mistakes.

    We think the current real figure is probably somewhere in between that. But in any case, there are far too many people with inconsistent credit reports and far too many people left in the dark about how to correctly dispute them.

    So it’s important to raise awareness, and show people how to give themselves the best chance at clearing bad credit.

    Image: digitalart/ www.FreeDigitalPhotos.net

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  • Telco consumer code on third rewrite for June deadline

    A third shot at a telecommunications consumer code has recently been submitted by Telcos to the Australian Communications and Media Authority (ACMA). The Code submission is an attempt to self-regulate a heavily criticised industry and prevent Government intervention by the end of June deadline.  The Code is intended as a resolution to an 18-month investigation by the ACMA into telco customer complaints. As Telco disputes make up a heavy part of credit rating errors to date, we have been watching the outcome of this situation and how it could impact the consumer’s ability to resolve disputes, and prevent credit file errors and default listings which should not be there.

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

    IT News recently reported on developments of the Telecommunications Consumer Protection (TCP) Code in its article ACMA Sets June Deadline for Consumer Code.

    It reports that the ACMA has committed to deciding on whether to accept or reject a revised telco industry code on customer service and advertising by the end of the month, in preparation for registration and implementation by August 1.

    “We indicated that the previous ones that they had lodged with us wouldn’t secure registration,” ACMA chairman Chris Chapman told iTnews.

    Here is an excerpt from that story:

    It is understood the watchdog has already held meetings to discuss the May revision of the code, the largest revision of which included the concession for telcos to print unit pricing for SMS messages, phone calls and data blocks on outdoor advertising and flyers.

    It has previously opposed the move as unnecessary, despite attacks by consumer representative group ACCAN.

    Chapman threatened in April to directly regulate the industry if it ultimately declined to register the code, even on minor grounds.

    At the time, Chapman said the March revision of the code would be the final one for consideration. But ongoing discussions with industry led to one more version of the document ultimately being considered…

    It was initially submitted to the ACMA for registration in February but has since undergone two revisions as the ACMA declined to register the revised code over concerns it did not meet all recommendations laid out by the inquiry.

    “We absolutely believe that this code is complete, that it meets not just the requirements of the [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”][Reconnecting the Customer] enquiry, it also meets the test of being the best and most sensible code we can put in place to enhance consumer protections and provide a win-win for consumers and the industry,” Communications Alliance chief executive John Stanton told iTnews.

     

    The ACMA  formally invited the industry to incorporate the following changes to its Telecommunications Consumer Protection (TCP) Code in its report Reconnecting the Customer:

    1.Clearer pricing information in advertisements allowing consumers to more easily compare services.
    2.Improved and more consistent pre-sale information about plans.
    3.Developing meaningful performance metrics which allow consumers to compare providers.
    4.Tools for consumers to monitor usage and expenditure.
    5.Better complaints-handling by providers.

    A shake up in the Telco industry is long overdue. Australians have been caught out time and again with botched bills and unresolved disputes with their Telco providers and their credit files have been damaged as a result.

    The Telecommunications Industry Ombudsman (TIO) revealed its findings on the extent of discontent within the industry in a survey of more than 500 Telco customers who had lodged complaints between July and August 2010.

    The TIO survey revealed more than half of consumers reported contact with their service providers five or more times before ringing the TIO. It also revealed most consumers reported spending three hours or more unsuccessfully trying to solve their complaint, with one in 5 saying they spent more than nine hours.

    “Consumers who come to the TIO report spending substantial time and effort solving their complaints,” said Ombudsman Simon Cohen.

    “They report being transferred from department to department, not being transferred to supervisors and, perhaps most frustratingly, getting no solution or a broken promise for their efforts. They are – by any measure – resilient consumers.”

    When disputing bills with the Telco industry, many people are unfairly penalised with a bad credit rating when the matter could have been dealt with better by the Telco in the first place. There is a great number of Telco credit file listings which contain errors, or have been put there unjustly or unfairly. Under current legislation, people do have the right to have credit file discrepancies resolved. But unfortunately it can be difficult for customers if they are not aware of the appropriate legislation and don’t have time to negotiate with creditors.

    MyCRA sends out complaints regularly to the TIO requesting investigations into errors that have found their way onto customer credit files.

    Hopefully these changes will result in less confusion and complaints in general amongst Telco customers and fewer people who have their good name destroyed unnecessarily due to credit file defaults which should not be there.

    For help with removing credit rating errors from credit files, contact MyCRA Credit Rating Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

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

  • The Top 7 Credit File Myths Costing Brokers More Than $50,000 Every Year

    Media Release

    The Top 7 Credit File Myths Costing Brokers More Than $50,000 Every Year

    7 June 2012

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

    Credit reporting is governed by mountains of legislation across different industries. Often we can assume that this system is working, but in reality it doesn’t always work effectively.

    The fall-out from this is credit rating errors on consumer and business credit files that affect your brokerage business.

    Here are 7 myths about credit files that could be costing you thousands in lost commission:

    1. Consumers always know they have bad credit before they apply for a loan.

    Many brokers assume if a client’s credit check reveals a negative listing on their credit file that wasn’t disclosed, they must have been trying to hide it. Whilst this is sometimes the case, there can be many reasons for people not to know they have bad credit until they apply for credit.

    If your client has moved addresses they may not have received the appropriate warning notices or notification of the credit listing; or they may have been the victim of identity theft; been hospitalised; been incarcerated ;  been traveling overseas or been a victim of a system error or human error with the creditor.

    All of these instances can see people end up with a bad credit listing without them knowing it. In many instances the listing has been placed on the credit file unlawfully. Rather than turn these clients away, why not refer them for credit repair.

    2. Credit file listings are always correctly placed on credit files.

    Credit reporting mistakes can and do happen – and it is up to the consumer to ensure that their credit file reads accurately. But if many are not aware they even have bad credit, many more are unable to recognise credit file errors.

    Wrong names, wrong addresses, incorrect notification provided, a Creditor not adhering to the letter to credit reporting legislation, and a Creditor entering a listing which the Client believes should not be there can all potentially be grounds for requesting for the removal of the listing. Credit file errors happen every day. So if the client is at all unsure about the validity of the listing, and the method in which it was listed, they are likely candidates for successful credit repair.

    3. Credit file complaints are easily disputed.

    Some brokers assume that if the listing should not have been there, that it should be fairly easy for the client to request its removal. They assume if the listing is still there – the client must be deserving of it.

    In reality, once a listing has been placed on a credit file, it is very difficult to have removed. So even if the listing shouldn’t be there, most often clients are forced to put up with it for 5-7 years, depending on the listing type. Often clients are told the listing can be marked as paid, but will not be removed from the credit file (unless of course they are lucky enough to know about professional credit rating repair).

    4. If a Default or Clearout is on the credit file it can never be removed prior to the end date.

    On the other hand, if brokers are aware how difficult removing adverse listings can be, sometimes when they see the option of credit repair, they assume it must be a ‘con’, as in their experience listings are never removed from a credit file before the drop off date.

    In truth, unless the client can show why the listing was placed unlawfully on the credit file it will not be removed. So in the case of overdue accounts that have been listed as defaults or clearouts on the credit file, 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 the listing’s removal.

    There is a lot of legislation which clients need to be up to speed with and it is very difficult for them to apply the letter of the law to their own circumstances – which is precisely why people assume it can’t be done.

    The process of credit repair involves the investigation of the credit file, the request for information on the account from the Creditor, and the determination based on legislation as to 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.

    Whilst currently there is no legislative obligation for the Creditor to remove the listing, escalation of the complaint to industry Ombudsmen and the Privacy Commissioner can all improve the chances of removal in justified cases. This legislation is also set to change in the coming months to improve credit listing complaints processes.

    5. Bad credit clients aren’t worth the trouble.

    If you have done a lot of work with a client, only to find out they have bad credit it can be tempting to close the door on them and move on to someone who can be helped more easily. It is true bad credit clients will be rejected by mainstream lenders, but in the interests of good customer service, we should look at alternatives before turning them away.

    You could refer the client for assessment for credit repair as a first option. It saves you time, the credit repairer does all the work from there, and if the client should otherwise qualify for a loan apart from their bad credit, it makes sense to ascertain whether that bad credit history can be removed prior to looking at other options for lenders or simply turning them away.

    6. A bad credit client should be steered to the non-conforming market.

    Instead if you look at your duty of care to your clients, and you believe the client should be able to obtain credit, then the non-conforming market may not be the best option as a first step.

    It would seem fitting that it be ascertained whether or not the bad credit history is valid before providing non-conforming loan 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.

    7. Credit repair is a waste of money.

    Credit repair is not cheap, but it’s not easy either. And it is certainly valuable. You could actually be saving yourself and your clients tens of thousands of dollars.

    Clients

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

    When we look at that in total, the client would be up for a staggering $17,554.34 more just in interest alone over those first three years. It is well worth considering clearing the client’s bad credit and getting them into a standard loan as a first option.

    Brokers

    You can generate goodwill from clients who are saving money and potentially generate great income for yourself.

    Credit rating repair is not suitable for everyone. But for most people who get taken on, the success rate is high. For example, MyCRA have a proven track record of up to 91.7% success rate for every case they take on. This means that whilst not every file can be cleared, there is a good chance.

    If you had only two clients returned to you every month with a cleared credit file it would add $52,120 per year in lost commission to your income. This figure is based on closing two extra deals for mortgages of $355,000 each month, with an upfront commission rate of 0.6%.

    $355,000 x 0.6% comms = $2130 commission

    2 per month is $4260 per month x 12 months (or 24 a year) = $51,120 in comms

    So if you are keen on helping those people you thought were lost, why not go back through your existing databases and restore some hope to those clients that you had previously turned away by referring them for credit repair.

    About Graham Doessel and MyCRA Credit Rating Repairs.

    Graham Doessel is the founder and CEO of MyCRA Credit Rating Repairs – Australia and New Zealand’s leading credit rating repair specialists.

    Graham’s origins are in finance, and he formed/owned the award-winning non-conforming brokerage “Mortgage Now.”
    Graham is a consistent spokesperson in the media for credit reporting issues in Australia and New Zealand.

    MyCRA Credit Rating Repairs, now in its fourth year of operation, has recorded an impressive track record of up to 91.7% rate of removal of inconsistent or inaccurate negative data from the Australian and New Zealand credit reports of both consumers and commercial entities.

    MyCRA Credit Rating Repairs is nominated for the 2012 Telstra Small Business Awards and was placed 24th in the 2012 Start-Up Smart Awards.

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO MyCRA  Ph 3124 7133

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

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

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

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

  • More Aussies struggling with less people candidates for mainstream credit

    A recent survey shows the number of Aussies struggling to meet their credit commitments is increasing. Will late payment notations to be included on credit files as part of the new credit laws prevent this figure from continuing to increase in the future?

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

    Results from Veda Advantage’s bi-annual Australian debt study late last month showed more and more Australians are at risk of falling into a debt spiral during an economic downturn.

    Findings show that 21% of Australians are struggling to pay their current credit commitments. Despite this, a quarter also admitted they will apply for yet more credit to help them cope with an economic downturn.

    Veda’s analysis of consumer behaviours if there is a period of economic stress shows:

    • Most (66%) Australians would draw on household savings;
    • One in four (25%) would increase their credit card limit, mortgage or loan;
    • One in three, or almost 5.5 million, would borrow from family;
    • Over 3.6 million (21%) would draw on their superannuation.

    Veda claims the introduction of late payment notations to credit files as part of comprehensive credit reporting should prevent more people from falling into a debt spiral.

    Veda’s Matthew Strassburg says “…the changes to credit reporting will make credit reports fairer and more accurate for consumers looking to borrow. The new information will include a person’s current credit limit, number of credit cards and if someone has failed to make the minimum payment on a credit card or loan on time.”

    I agree, accuracy in credit reporting in Australia is paramount. Late payment notations would certainly see less people given access to mainstream credit. But the question is – how fair will this system be?

    25% of people surveyed by Veda said they would increase their credit card limit, mortgage or loan if they fell into ‘economic stress.’ But Veda fails to mention the definition of ‘economic stress.’ Possibly if the stress was certain to be temporary – some people would nominate increasing their credit limit or redrawing on their mortgage as a possible short term solution to ride out the bad period. It is not certain from the results published how many people surveyed would actually choose more credit – especially new loans as a solution to a long term financial problem.

    If some of those 25% who nominated ‘more credit’ as a solution intended to use credit for an extended period of economic stress, then certainly the introduction of late payments as part of comprehensive credit reporting would stop some in their tracks from gaining more credit – and rightly so, there are better solutions to debt stress than more debt.

    But what if the issue is a temporary one? How can mainstream lenders truly tell if someone is a bad credit risk if they have been late making one payment? At least with a default recorded – it shows the credit file holder had been at least 60 days in arrears with their repayments.

    There are so many grey areas with the introduction of these new laws, and I am nervous that more consumers than necessary could suffer a reduction in access to mainstream credit. Could more be forced to access the non-conforming market at high interest rates as an alternative? Doesn’t this further perpetuate the debt cycle and lead even more people to experience financial stress?

    One important point the Veda survey highlighted was the lack of impetus to seek help if people did fall under economic stress. It is important that people know that they can seek help if they are falling into difficulty making repayments – or they feel they may in the future.

    Veda’s analysis indicates that despite 21% of the population saying they are having difficulty coping or are unsure how they will make the next payment, only one in five had sought professional financial counselling.

    Mr Strassberg added: “People having trouble repaying should seek help from a financial professional before it’s too late, particularly lower income earners with competing debt repayments.”

    Certainly financial counselling, possibly seeking a financial hardship variation, and generally contacting a creditor prior to letting a repayment fall into arrears or into default is always the better option to avoid debt stress and bad credit history.

    If you or someone you know has bad credit history which shouldn’t be there – contacting a professional credit rating repairer can help you get your life back on track and potentially remove credit rating errors permanently.

    Image: Stuart Miles FreeDigitalPhotos.net

  • Gillard Government finally recognises the prevalence of credit rating errors, says Graham the ‘Credit Corrector’

    Media Release

    Gillard Government finally recognises the prevalence of credit rating errors, says Graham the ‘Credit Corrector.’

    29 May 2012

    An advocate for accuracy in credit reporting says Australia’s new Privacy Laws finally recognise the prevalence of credit rating errors, and the damage that can be wreaked on the consumer’s reputation and life if they are incorrectly listed with bad credit.

    Graham Doessel – CEO of MyCRA Credit Rating Repairs, and Board Member of the Credit Repair Industry Association of Australasia (CRIAA), says new Privacy Laws which are set to make some massive improvements in the area of correction of inconsistent data on Australian credit files, are long overdue.

    “Someone who presents with bad credit is going to be refused mainstream credit for between 5 and 7 years – depending on the listing type. It’s serious stuff, and if the listing shouldn’t be there, it’s very unfair,” he says.

    Mr Doessel says it is timely that the Government address the difficulties consumers face when they are incorrectly listed with bad credit.

    “Creditors can and do make mistakes when placing listings on credit files, and the onus is on the consumer to identify and address those inconsistencies. But it has very much been a case of David and Goliath – with some consumers finding they are lumbered with listings that just shouldn’t be there due to not having the extensive skills and knowledge required to address their complaints in the appropriate way,” he explains.

    The Privacy Amendment (Enhancing Privacy Protection) Bill 2012, which had its second reading in Parliament last week, is part of the Gillard Government’s ‘modernisation’ of credit reporting, which they say will make the credit reporting regime more flexible and less prescriptive by emphasising industry-led complaint resolution.

    The new laws around complaints correction will:

    • Streamline the correction and complaints process for credit reporting; and

    • Force the Creditor to justify credit listings and actually substantiate the information it reports on credit files; and

    • Allow consumers to complain directly to the appropriate Ombudsman rather than having to go through the organisation’s complaints process first; and

    •  Provide for remedies such as compensation for consumers who are negatively impacted by a Creditor who has failed to comply with credit reporting law (penalties for breaches of the Privacy Act could be up to $220,000 for an individual and $1.1 million for an organisation).

    The introduction of the new laws are too late for Brent Uchtman, who sought MyCRA’s credit repair services last year to fight a disputed credit listing which saw him refused finance.

    Brent applied for a loan after purchasing some land last year, only to be told by his bank that he had a bad credit rating from a phone company that out and out shouldn’t have been there.

    His credit file was finally cleared in November last year, but not before he lost the land contract.

    “I ended up losing the land because someone it got from under me while I struggled with this bad credit,” Brent explains.

    He says his case was slow because the company took so long to provide documentation.

    Mr Doessel says the speed of Brent’s case could have been improved if the Creditor would have had some obligation to substantiate the credit listing, or if the complaint could have been taken directly to the Creditor’s Ombudsman.

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

    /ENDS.

    Graham Doessel – Founder and CEO MyCRA  Board Member CRIAA    Ph: 07 3124 7133

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

    Client details available on request.

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

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