MyCRA Specialist Credit Repair Lawyers

Tag: credit rating repairer

  • How Do Bad Credit Defaults Get Removed

    [fusion_builder_container background_color=”” background_image=”https://mycralawyers.com.au/wp-content/uploads/2013/08/Optimized-bad-credit.jpg” background_parallax=”fixed” enable_mobile=”yes” parallax_speed=”0.3″ background_repeat=”no-repeat” background_position=”center center” video_url=”” video_aspect_ratio=”16:9″ video_webm=”” video_mp4=”” video_ogv=”” video_preview_image=”” overlay_color=”” video_mute=”yes” video_loop=”yes” fade=”no” border_color=”” border_style=”solid” padding_top=”40″ padding_bottom=”40″ padding_left=”0px” padding_right=”0px” hundred_percent=”yes” equal_height_columns=”no” hide_on_mobile=”no” menu_anchor=”” class=”” id=”” type=”flex” border_sizes_top=”0px” border_sizes_bottom=”0px” border_sizes_left=”0px” border_sizes_right=”0px”][fusion_builder_row][fusion_builder_column type=”1_6″ layout=”1_6″ last=”false” spacing=”yes” center_content=”no” hide_on_mobile=”no” background_color=”” background_image=”” background_repeat=”no-repeat” background_position=”left top” hover_type=”none” link=”” border_position=”all” border_color=”” border_style=”” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”” margin_bottom=”” animation_type=”” animation_direction=”” animation_speed=”0.1″ animation_offset=”” class=”” id=”” border_sizes_top=”0px” border_sizes_bottom=”0px” border_sizes_left=”0px” border_sizes_right=”0px” first=”true” spacing_right=”2%” min_height=”” type=”1_6″][/fusion_builder_column][fusion_builder_column type=”2_3″ layout=”2_3″ last=”false” spacing=”yes” center_content=”no” hide_on_mobile=”no” background_color=”” background_image=”” background_repeat=”no-repeat” background_position=”left top” hover_type=”none” link=”” border_position=”all” border_color=”” border_style=”solid” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”” margin_bottom=”” animation_type=”0″ animation_direction=”down” animation_speed=”0.1″ animation_offset=”” class=”” id=”” border_sizes_top=”0px” border_sizes_bottom=”0px” border_sizes_left=”0px” border_sizes_right=”0px” first=”false” spacing_right=”2%” spacing_left=”2%” min_height=”” type=”2_3″][fusion_text]

    How Do Bad Credit Defaults Get Removed…

    [/fusion_text][/fusion_builder_column][fusion_builder_column type=”1_6″ layout=”1_6″ last=”true” spacing=”yes” center_content=”no” hide_on_mobile=”no” background_color=”” background_image=”” background_repeat=”no-repeat” background_position=”left top” hover_type=”none” link=”” border_position=”all” border_color=”” border_style=”” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”” margin_bottom=”” animation_type=”” animation_direction=”” animation_speed=”0.1″ animation_offset=”” class=”” id=”” border_sizes_top=”0px” border_sizes_bottom=”0px” border_sizes_left=”0px” border_sizes_right=”0px” first=”false” spacing_left=”2%” min_height=”” type=”1_6″][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container][fusion_builder_container background_color=”” background_image=”” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ background_repeat=”no-repeat” background_position=”left top” video_url=”” video_aspect_ratio=”16:9″ video_webm=”” video_mp4=”” video_ogv=”” video_preview_image=”” overlay_color=”” video_mute=”yes” video_loop=”yes” fade=”no” border_color=”” border_style=”” padding_top=”20″ padding_bottom=”20″ padding_left=”” padding_right=”” hundred_percent=”no” equal_height_columns=”no” hide_on_mobile=”no” menu_anchor=”” class=”” id=”” type=”flex” border_sizes_top=”0px” border_sizes_bottom=”0px” border_sizes_left=”0px” border_sizes_right=”0px”][fusion_builder_row][fusion_builder_column type=”1_6″ layout=”1_6″ last=”true” spacing=”yes” center_content=”no” hide_on_mobile=”no” background_color=”” background_image=”” background_repeat=”no-repeat” background_position=”left top” hover_type=”none” link=”” border_position=”all” border_color=”” border_style=”” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”” margin_bottom=”” animation_type=”” animation_direction=”” animation_speed=”0.1″ animation_offset=”” class=”” id=”” border_sizes_top=”0px” border_sizes_bottom=”0px” border_sizes_left=”0px” border_sizes_right=”0px” first=”true” spacing_right=”2%” min_height=”” type=”1_6″][/fusion_builder_column][fusion_builder_column type=”1_1″ layout=”2_3″ last=”true” spacing=”yes” center_content=”no” hide_on_mobile=”no” background_color=”” background_image=”” background_repeat=”no-repeat” background_position=”left top” hover_type=”none” link=”” border_position=”all” border_color=”” border_style=”” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”” margin_bottom=”” animation_type=”” animation_direction=”” animation_speed=”0.1″ animation_offset=”” class=”” id=”” border_sizes_top=”0px” border_sizes_bottom=”0px” border_sizes_left=”0px” border_sizes_right=”0px” first=”true” spacing_right=”2%” spacing_left=”2%” min_height=”” type=”1_1″][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” content_alignment_medium=”” content_alignment_small=”” content_alignment=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” class=”” id=”” font_size=”” fusion_font_family_text_font=”” fusion_font_variant_text_font=”” line_height=”” letter_spacing=”” text_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]How do defaults get removed


    1.)  Firstly, [fusion_popover title=”Tell Us What Really Happened” title_bg_color=”” content=”Tell us what really happened – not what you think will help, or what you think we might want to hear. Why Is This Important?  The more information we have, the better your chances of MyCRA Lawyers legal team finding a reason to remove the bad credit listing.  Also, if you don’t tell us everything, we may formulate an approach based on the information you provide that could turn out to be a waste of your time and your money.  This may also limit your chances at a second approach or attempt.” content_bg_color=”” bordercolor=”” textcolor=”” trigger=”hover” placement=”Right” class=”” id=””]we ask you what really happened[/fusion_popover] so we understand your specific situation.

    2.)  We then confirm the listings on your [fusion_popover title=”Credit Files” title_bg_color=”” content=”There Are Four Main Credit Reporting Bodies In Australia:  Veda Advantage (Veda), Dun & Bradstreet (DnB), Experian and Tasmanian Collection Service.  MyCRA Lawyers routinely removes defaults, Court Judgments and other bad credit listings from your Veda and DnB credit reports.  MyCRA Lawyers can help you get a copy of both your Veda and your DnB credit files while you’re on the phone with us.” content_bg_color=”” bordercolor=”” textcolor=”” trigger=”hover” placement=”Right” class=”” id=”credit-files”]Credit Files[/fusion_popover] to further assess your specific situation.

    3.)  You are then advised the most appropriate course of action, [fusion_popover title=”Not All Defaults Need To Be Investigated” title_bg_color=”” content=”Once we have had a look at your full credit file, we can advise you on the best options available to you.  This may include an alternative action that you can do yourself at no charge, or sometimes to do nothing at all.  Doing nothing may be the best option if for example, the default listing has almost run it’s course and is about to be automatically deleted by the credit reporting body due to the passage of time.” content_bg_color=”” bordercolor=”” textcolor=”” trigger=”hover” placement=”Right” class=”” id=””]including which defaults Do NOT need to be investigated[/fusion_popover].

    4.)  Then we request from your creditor(s), a list of [fusion_popover title=”Specific Documents” title_bg_color=”” content=”The specific documents requested are those that relate to notices sent to you, information on your file, when specific actions were taken, histories of the account, histories of the payment and missed payments etc.  Your creditor is required to have copies of these documents.” content_bg_color=”” bordercolor=”” textcolor=”” trigger=”hover” placement=”Right” class=”” id=””]specific documents[/fusion_popover] and information about your file and history with them.

    5.)  We then review the information provided by both you and your creditor, and compare that with up to approximately 8000 pages of legislation, looking for [fusion_popover title=”Legislative Breaches” title_bg_color=”” content=”Legislative or Compliance Breaches may deem the credit file listing unlawful and require it’s immediate removal.” content_bg_color=”” bordercolor=”” textcolor=”” trigger=”hover” placement=”Right” class=”” id=””]legislative and/or compliance breaches[/fusion_popover].

    6.)  We then uncover those legislative or compliance breaches and advise your creditor that the default listing has been placed unlawfully and needs to be removed immediately. [fusion_popover title=”Australia’s Only Audited Success Rate” title_bg_color=”” content=”We know you’ve probably heard all the horror stories about the dodgy ‘credit repair companies’ ripping people off and making unsubstantiated claims, so we decided to have the same Auditor that does our annual Law Firm Trust Account Audits (As required by The Queensland Law Society) take a look at, and formally Audit or Successful Removal Resolution Results.  The Auditor came back with the Audit Certificate confirming MyCRA Lawyers is successful in achieving a removal resolution in 91.6% of matters fully investigated.  (The certificate is available on our website if you’d like even more assurance that MyCRA Lawyers is the only safe choice in investigating the validity of listings on your credit rating.)” content_bg_color=”” bordercolor=”” textcolor=”” trigger=”hover” placement=”Right” class=”” id=””]This happens in 91.6% of cases.[/fusion_popover].

    7.)  You are then advised of the successful default removal resolution.  29.6% of the successful removal resolutions are achieved in seven days or less.

    8.)  Once your creditor has acknowledged the removal request, the default is normally permanently removed from your credit file(s) in just 10 business days.

    You can then go on to apply for your home loan or finance and move in to your very own family home.

    To get started, Pick up your phone now and call MyCRA Lawyers now on 1300-667-218 for a 100% confidential, no obligation free chat.

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    If you’d like more information
    or just want to chat about your situation, please call 1300-667-218 and speak confidentially with one of our friendly, helpful team.  There is no cost and no obligation.

    [/fusion_text][fusion_button link=”” color=”default” size=”medium” stretch=”” type=”3d” target=”_self” title=”Arrange a call back” button_gradient_top_color=”” button_gradient_bottom_color=”” button_gradient_top_color_hover=”” button_gradient_bottom_color_hover=”” accent_color=”” accent_hover_color=”” bevel_color=”” border_width=”” icon=”fa-phone-square” icon_position=”left” icon_divider=”no” modal=”call_back” animation_type=”0″ animation_direction=”left” animation_speed=”1″ animation_offset=”” alignment=”center” class=”” id=”” border_radius=”25″]No Time Now? – Click To Arrange A Call Back[/fusion_button][fusion_modal name=”call_back” title=”We Can Call You Back” size=”large” background=”#ffffff” border_color=”#c4c4c4″ show_footer=”no” class=”” id=””][contact-form-7 id=”6642″ title=”Online Enquiry”][/fusion_modal][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • TESTIMONIAL: Dr Kamal Zgheib Thanks MyCRA Lawyers For Erasing His Bad Credit

    [fusion_builder_container background_color=”” background_image=”” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ background_repeat=”no-repeat” background_position=”left top” video_url=”” video_aspect_ratio=”16:9″ video_webm=”” video_mp4=”” video_ogv=”” video_preview_image=”” overlay_color=”” overlay_opacity=”0.5″ video_mute=”yes” video_loop=”yes” fade=”no” border_size=”0px” border_color=”” border_style=”” padding_top=”20″ padding_bottom=”20″ padding_left=”0″ padding_right=”0″ hundred_percent=”no” equal_height_columns=”no” hide_on_mobile=”no” menu_anchor=”” class=”” id=””][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”][fusion_text]Dr Kamal Zgheib had a default that was proven to be placed unlawfully and was then removed in less than a month.

    Click the video below now.[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container][fusion_builder_container background_color=”” background_image=”” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ background_repeat=”no-repeat” background_position=”left top” video_url=”” video_aspect_ratio=”16:9″ video_webm=”” video_mp4=”” video_ogv=”” video_preview_image=”” overlay_color=”” overlay_opacity=”0.5″ video_mute=”yes” video_loop=”yes” fade=”no” border_size=”0px” border_color=”” border_style=”” padding_top=”20″ padding_bottom=”20″ padding_left=”0″ padding_right=”0″ hundred_percent=”no” equal_height_columns=”no” hide_on_mobile=”no” menu_anchor=”” class=”” id=””][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”][fusion_youtube id=”lXWWL1rj-FU” width=”600″ height=”350″ autoplay=”no” api_params=”” class=””/][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container][fusion_builder_container background_color=”” background_image=”” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ background_repeat=”no-repeat” background_position=”left top” video_url=”” video_aspect_ratio=”16:9″ video_webm=”” video_mp4=”” video_ogv=”” video_preview_image=”” overlay_color=”” overlay_opacity=”0.5″ video_mute=”yes” video_loop=”yes” fade=”no” border_size=”0px” border_color=”” border_style=”” padding_top=”20″ padding_bottom=”20″ padding_left=”0″ padding_right=”0″ hundred_percent=”no” equal_height_columns=”no” hide_on_mobile=”no” menu_anchor=”” class=”” id=””][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”][fusion_text]Here’s the Transcription:

     

    Hello Kamal speaking

    good afternoon Kamal, Graham Doessel from Mycra Lawyers in Brisbane, how you going?

    I’m good, good thank you. How are you?

    Good, Do you have a couple seconds?

    Yes,  I do actually have a patient in my room, I’m just printing something for him, just one moment.

    Ok thanks

    Ok, so ah, yeah, is there anything that I can do for you at the moment?

    Absolutely, absolutely. Its um – are you talking to me or the patient?

    ahh you haha

    hahaha. Yeah, i just noticed the email that you sent through to lauren this morning

    Yes

    Thank you so very very much for your kind words that’s amazing

    Thank you i really appreciate it

    I was wondering if I used that in my marketing?

    of cause

    do you mind if i leave your name in there?

    Yes 100%, but if you want me to send you the same email to you sir i have no problem with that

    no that’s fine I’m happy to use the one I’ve got here that’s fine. Thank you so very very much and look if we can be of any help with anything at any stage in the future…?

    Thank you so much i will tell all my doctors friends, family and I will recommend them to you, because for me –

    it’s so easy to get bad credit isn’t it? (Yeah) It’s so easy to get bad credit and so hard to get rid of.

    that’s right it was for me impossible to get any loan, without your help, cause you know I had two default unjustified and um I dunno if Lauren knew about it, I contacted Veda and the default has been removed completely, probably she doesn’t know yet haha, but i wanted to let her know, and my Veda score is the highest in Australia, its 911.

    That’s fantastic

    So yeah

    So it’s just that default that was making it hard yeah?

    Yes, my Veda score was 452 (yep) 20% bottom, you know, bottom, I mean sub zero, and now it’s 911, (yep) it’s the highest in the country. It’s in the 81 – 100%, so it’s the – it’s an excellent score – Excellent.

    That’s amazing

    So you’ve got below average, you’ve got average; you’ve got good, very good, and excellent. For mine its excellent thanks to you.

    I’m very very glad to hear that very glad to hear that. (Thank you) So the only thing that I’ll block out of this thing is your personal email address

    Beautiful

    Fantastic

    I’m more than happy for you to do that, yeah. And if you would like me to do some testimonial on YouTube for example, I’ll get my partner, shes in IT and ah she knows, well a lot about computers, I’m more than happy to organise a YouTube testimonial regarding umm you know… regarding the ahhh…. you know our chat and explaining what your firm has done to me.

    G- well that’s – that’s absolutely wonderful yeah absolutely

    And Lauren Andrew ahhh Phillip Anthony, Cory – they are all amazing, you know? I can’t tell you how beautiful the service was, it’s amazing, its changed my life. Its changed my life and its saved me thousands of dollars because you know the bank wanted to give me 10% because of my credit file. My excellent – my credit history now, its back on track

    fantastic, congratulations Kumal that’s amazing

    thank you so much sir, thank you so much. Thank you.

    do you mind if i pull this phone call from our server and Ill just use your kind words in an audio testimonial as well is that ok?

    100%

    ahh thank you so much

    Thank you

    Thank you Kamal, I really really appreciate it.

    Thank you so much bye bye

    Bye bye[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container][fusion_builder_container background_color=”” background_image=”” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ background_repeat=”no-repeat” background_position=”left top” video_url=”” video_aspect_ratio=”16:9″ video_webm=”” video_mp4=”” video_ogv=”” video_preview_image=”” overlay_color=”” overlay_opacity=”0.5″ video_mute=”yes” video_loop=”yes” fade=”no” border_size=”0px” border_color=”” border_style=”” padding_top=”20″ padding_bottom=”20″ padding_left=”0″ padding_right=”0″ hundred_percent=”no” equal_height_columns=”no” hide_on_mobile=”no” menu_anchor=”” class=”” id=””][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”][fusion_imageframe lightbox=”no” lightbox_image=”” style_type=”none” hover_type=”none” bordercolor=”” bordersize=”0px” borderradius=”0″ stylecolor=”” align=”none” link=”” linktarget=”_self” animation_type=”0″ animation_direction=”down” animation_speed=”0.1″ hide_on_mobile=”no” class=”” id=””] [/fusion_imageframe][fusion_text]

     

    If you want a clean credit rating, call MyCRA Lawyers now on 1300 667 218 for an obligation free chat[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container][fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_4″ last=”no” spacing=”yes” center_content=”no” hide_on_mobile=”no” background_color=”” background_image=”” background_repeat=”no-repeat” background_position=”left top” border_position=”all” border_size=”0px” border_color=”” border_style=”” padding=”” margin_top=”” margin_bottom=”” animation_type=”” animation_direction=”” animation_speed=”0.1″ class=”” id=””][/fusion_builder_column][fusion_builder_column type=”1_2″ last=”no” spacing=”yes” center_content=”no” hide_on_mobile=”no” background_color=”” background_image=”” background_repeat=”no-repeat” background_position=”left top” border_position=”all” border_size=”0px” border_color=”” border_style=”” padding=”” margin_top=”” margin_bottom=”” animation_type=”” animation_direction=”” animation_speed=”0.1″ class=”” id=””][fusion_text]

    [contact-form-7 id=”6642″ title=”Online Enquiry”]

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  • Interest rates cut to record lows at 2.5%

    interest rate cutsThe Reserve Bank of Australia has cut its cash rate to a low 2.5% – lower than during the GFC. The Sydney Morning Herald says several banks wasted no time in passing on the rates cut to their home loan customers. National Australia Bank and Bank of Queensland said they would both pass on today’s 0.25 percentage point cut in interest rates to the home loan customers in full. This is good news for home buyers with a good deposit and a good clean credit file – but maybe not such great news in the long term for the Australian economy.

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

    As Australian Broker reported today, the speech made late last week by RBA governor, Glenn Stevens, also indicated another rate reduction was on the cards, with Stevens admitting the RBA was becoming increasingly concerned about major areas of the Australian economy, particularly the passing of  mining and credit growth ‘booms’.

    Many brokers will be taking this information straight to clients, as 1st Street Home Loans founding director, Jeremy Fisher, outlined in an interview with Australian Broker earlier today.

    “First and foremost, we’ll get in touch with any clients that are due to settle and looking at making any necessary changes to their loans. And then we’ll go back and review any clients that are, I guess, a ‘watchlist’. So it’s pretty much just keeping our clients informed of the change.”

    Fisher said 1st Street sends out a bulletin to all their clients immediately following RBA cash rate announcements in order to keep them updated.

    “Then we just go back to our watchlist and touch base with everyone that’s kind of doing things as we speak – because that may or may not influence what they’re doing.”

    Mr Stevens told the Sydney Morning Herald he expected the Australian economy to continue to grow below trend in the near term as mining investment falls, and for inflation to remain consistent with the medium-term target as labour costs moderated.

    He added that the Australian dollar remained “at a high level” despite losing about 15 per cent of its value since early April, and welcomed a further depreciation of the exchange rate to help foster a rebalancing of growth in the economy.

    Several analysts said the RBA could ease rates again later this year as the country continues to grapple with a slowing economy amid an uneven transition away from mining-led growth.

    Taking advantage of interest rate cuts.

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

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

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

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

    If there are any inconsistencies or out and out errors on the credit file, the advantage to getting those removed is generally thousands and thousands of dollars in interest saved by being able to take advantage of those interest rate cuts with the mainstream lender of the buyer’s choice.

    To find out more about the benefits of using a credit rating repairer to dispute credit listings, contact a Credit Repair Advisor at MyCRA Credit Rating Repairs on 1300 667 218 or visit the main site for more information www.mycra.com.au.

    Image: renjith krishnan/ www.FreeDigitalPhotos.net

  • Credit rating self-checks essential for prospective home buyers

    prospective home buyersMedia Release

    Credit rating self-checks essential for prospective home buyers.

    19 February 2013

    A credit rating self-check should be top priority for prospective home buyers before finance application to ensure ‘surprise’ bad credit doesn’t mean they lose their dream home, according to a consumer advocate for accurate credit reporting.

    CEO of MyCRA Credit Rating Repair, Graham Doessel, says a credit file check will reveal any adverse listings which will lead to credit refusal.

    “Home buyers should ignore their credit file when applying for finance at their own peril. In many instances it can be more important to have a clear credit rating than a huge deposit,” Mr Doessel says.

    He says many people assume if they pay their bills on time they should have a clear credit history, but surprise bad credit and credit reporting errors can and do occur.

    “So many of my clients are unaware they have defaults until they apply for major credit such as a home loan, and are flatly refused because of defaults. The clients can lose the house and have their dreams shattered, all because of a credit file which contains defaults that may not even be lawful,” he says.

    A credit file exists for anyone who has ever been ‘credit active’ and is used by lenders to assess the risk and borrowing capacity of potential borrowers.

    Defaults are put there by creditors when accounts have remained unpaid for more than 60 days.

    Defaults remain on a person’s credit file for 5 years from the date of listing, and have the potential to severely impact a person’s ability to obtain credit.

    “Currently, any default can be enough for an automatic decline with most of the major banks. Many lenders are even rejecting loans for excess enquiries such as two in thirty days or six within the year.”

    “It also affects the type of loan people may be eligible for, the interest rate they are offered and price of establishing the loan. The lending options become more expensive and limited,” Mr Doessel says.

    He says many clients had what they thought were impeccable repayment histories, but found out the hard way that they were the victim of credit reporting errors.

    “At this time in Australia, creditors basically have the go ahead to list defaults and other negative listings on consumer credit files with very little by way of checking in terms of accuracy of that listing,” Mr Doessel says.

    The onus is on the consumer to ensure their credit file reads accurately.

    “That’s why it’s so important for everyone to know what is said about them on their credit file, and to know how to dispute any errors that come up,” he says.

    House hunters can request a copy of their credit report from one of the major credit reporting agencies such as Veda Advantage, Dun and Bradstreet or TASCOL (if in Tasmania). These agencies will provide people with a free copy of their report within 10 working days from receipt of the request.

    “If you request this report well before you are ready to buy a house, you can potentially save yourself the embarrassment and heartache of being knocked back for finance due to credit file defaults, and that’s also one less lender-generated credit enquiry on your credit file,” he says.

    Demand for ‘credit rating repairers’ has grown due to what Mr Doessel says is a credit system fraught with difficulties.

    He says many of his clients have attempted to dispute an unfair listing themselves and have come up against problems.

    “Most times the Creditor says defaults are never removed, but can be marked as paid if the account has been settled. Effectively they are bullied into paying the overdue account and are still copping the default on their credit file.”

    But Mr Doessel says if a listing contains errors or inconsistencies, it should be removed.

    “It takes someone who is aware of how to work within the legislation, demonstrate effectively where the Creditor has made errors and show cause as to why a listing is unlawful and should be removed. Unfortunately this is something many consumers have neither the time and or skills to do effectively,” he says.

    /ENDS.

    Please contact:

    Graham Doessel – CEO MyCRA Ph: 07 3124 7133

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

    246 Stafford Road, STAFFORD QLD. http://www.mycra.com.au

    MyCRA Credit Repair is Australia’s number one in credit rating repair. We permanently remove defaults from credit files.

    Image: graur codrin/ www.FreeDigitalPhotos.net

  • Stay safe on Australia’s biggest day of online commerce

    Media Release

    Stay safe on Australia’s biggest day of online commerce

    Buying presents online is bigger than ever this year, and it has been announced by online commerce experts that Sunday December 9 2012 is predicted to be the biggest day of online retail in Australia’s history.

    With this in mind a consumer advocate for accurate credit reporting is warning Australians to be vigilant with their personal information, as credit card fraud is not the only way unsuspecting consumers can be ripped off online.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says those consumers buying online should be careful giving out not only banking details but other pieces of personal information to unfamiliar online retailers, as this information may be used or stored for purposes of identity theft.

    “If you are caught out with bank fraud, your bank may be able to monitor your accounts and in many cases reimburse you for stolen funds, but identity fraud is not so simple.”

    “Identity theft is about building up a profile on the victim, and if fraudsters are able to do this they can request replacement copies of identification in your name and gain access to your credit rating, so it may be your personal details that the crooks are really after,” he says.

    Ebay, Paypal and Australia Post recently predicted Sunday December 9, 2012 will be Australia’s biggest online retail day, with 2.3 million Australians expected to visit Ebay alone on this day.[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] Whilst these retailers are familiar and trusted companies, some retailers are not always what they seem.

    The Australian Federal Police released a statement on Monday warning all consumers they need to keep close their personal information as they would if they were physically at the store.

    AFP National Manager High Tech Crime Operations Neil Gaughan:

    “Consumers need to ensure they protect their personal and financial information. Following basic security measures will prevent fraud and the disappointment and stress of financial loss when goods thought purchased are not received.” [ii]

    NSW Fair Trading, independent organisation Internet Fraud Watchdog and Western Union also launched the “Be Vigilant, Verify and Be Vocal” campaign against fraud in Sydney on Wednesday.

    Their campaign features Olympian Giaan Rooney, who was herself a victim of fraud earlier in the year when fraudsters racked up $17,500 on her credit card.

    “Fraud transcends the whole community. No-one is immune, it cuts across all Australians immaterial of age or status,” she says.[iii]

    These warnings seem fitting in light of security company McAfee’s recent survey on Australian online retail transactions.

    McAffee’s study featured a survey of 1005 Australians and found that one in three did not know how to recognise a secure web address. Over half also said they would provide their name and age, and 38% say they’d give their phone number to online retailers.[iv]

    But Mr Doessel says these basics of safe online commerce need to become common knowledge, as consumers can not only face a loss of money, but can potentially end up identity theft victims. He says this starts with two important points:

    “If the web address does not start with https:// your personal or financial details may not be safe – and the website may not be legitimate. Verify this before you proceed with entering your details,” Mr Doessel says.

    He also says people are giving away too much information to online retailers and there is a risk of that information going to identity thieves – whether that be due to a data breach or via a fraudulent retailer.

    “You have to think – does this store really need my date of birth? Only give information that is necessary for the transaction – and if your date of birth is one of them, I would be questioning why,” he says.

    Mr Doessel says identity theft can happen to anyone, and the victim may not always know the exact circumstances leading to debts in their name.

    “Sometimes the actual identity theft can have happened years ago, and it’s not until the victim applies for credit and is refused that they find out. The victim will have five to seven years of being blacklisted from credit unless they are able to prove they didn’t initiate the credit in the first place,” he says.

    He says if people worry they may have fallen victim to identity theft they should check their bank and credit card statements thoroughly and should also order a copy of their credit report – which would indicate if their credit file had been misused.

    “Contact Police immediately and also alert your Creditors and the Credit Reporting Agencies which hold your credit file if you are at all suspicious of identity theft before it leads to fraud,” he says.

    Victims can also use the services of a credit rating repairer to recover their good name following identity theft.

    Please contact:

    Graham Doessel – CEO Ph 3124 7133

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

    Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog

    246 Stafford Rd, STAFFORD Qld

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

     

    ——————————————————————————–

    [i] http://auspost.com.au/about-us/biggest-online-shopping-day.html

    [ii] http://www.afp.gov.au/media-centre/news/afp/2012/december/stay-safe-during-the-festive-season.aspx

    [iii] http://www.tradingroom.com.au/apps/view_breaking_news_article.ac?page=/data/news_research/published/2012/12/340/catf_121205_143800_0813.html

    [iv] http://www.smartcompany.com.au/internet/052956-virus-experts-warn-beware-of-the-12-online-scams-of-christmas.html?utm_source=SmartCompany&utm_campaign=6debdba9e3-Friday_16_November_201216_11_2012&utm_medium=email

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

  • Protecting Mr and Mrs Average from Identity Fraud

    Media Release

    Protecting Mr and Mrs Average from ID Fraud

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    He says if people worry they may be vulnerable to identity theft they should check their bank and credit card statements thoroughly and should also order a copy of their credit report – which would indicate if their credit file had been misused.

    “Contact Police immediately and also alert your Creditors and the Credit Reporting Agencies which hold your credit file if you are at all suspicious of identity theft before it leads to fraud,” he says.

    Victims can also use the services of a credit rating repairer to recover their good name following identity theft.

    /ENDS.

    Please contact:

    Graham Doessel – Director Ph 07 3124 7133

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

    Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog

    246 Stafford Rd, STAFFORD Qld

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

     

    ——————————————————————————–

    [i] http://www.attorneygeneral.gov.au/Media–

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

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

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

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

  • 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]

  • Parent equity loans skating on thin ice with credit rating

    Media Release

    Parent equity loans skating on thin ice with credit rating

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

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

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

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

    “These loans have many benefits including allowing children to avoid expensive Lenders Mortgage Insurance that is paid by borrowers – often young people – with low equity,” he said.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    But Mr Doessel says whilst there are advantages for the child, if repayments are not made, the disadvantages stretch to both parties.

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

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

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

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

    •How much is being borrowed?

    •How responsible is the borrower?

    •How stable is their employment?

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

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

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

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

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

    3. Set a specific amount that will be guaranteed

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

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

    /ENDS

    Please contact:

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

    Graham Doessel – Director Ph 3124 7133

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

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

    ——————————————————————————–

    [i] http://www.brokernews.com.au/article/parents-to-step-in-as-fhb-boosts-end-129917.aspx

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

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

  • 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]

  • Default rates soar amongst over 65’s

    A study on generational trends in credit activity over the past ten years put out by credit reporting agency Veda Advantage reveals that the rate of default amongst the older generation (65 years and above) has increased a staggering 200% over the past ten years. We look at why this could be occurring and the possible ramifications of bad credit history for this age group.

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

    Veda’s study results, released on June 1 in a report titled: New data from Veda shows surprising differences in credit activity between generations reveals this age group have become more reliant on credit which has led to the increased level of defaults as some struggle to meet financial obligations.

    This topic was explored further by the Herald Sun in its article Bad debt increases among over-65s. It reports Veda general manager of consumer risk Angus Luffman saying 6 per cent of over-65s had more debt this year than last year. He said most debts related to living costs such as utility and telecommunications accounts.

    Here is an excerpt from that story:

    Financial counsellors said yesterday people could find it difficult to reduce their spending when they reached retirement and the supply of easy credit was a major problem.

    “After retirement, some people find that their incomes have decreased but their credit card limits can be quite high,” Financial Counselling Australia chief executive Fiona Guthrie said.

    “The adjustment can be hard (and) many older Australian are simply poor.

    “They may be using credit to simply make ends meet.

    “It is also frustrating to hear that industry still tries to sheet the blame home to consumers for what in fact has been the irresponsible marketing.”

    It is a worrying trend that older Australians are having to rely on credit to simply make ends meet. The reasons for the increase in the rate of defaults could be simply these age groups not having the necessary funds to meet their repayments, or as speculated by Angus Luffman, it could also be due to a lack of education around credit.

    In Veda’s report, Mr Luffman said that education is needed within all age groups on the risks of being enticed into credit as a result of factors like low introductory interest rates.

    “The fact is that consumers of all ages still fail to realise that missed monthly mobile phone, utilities, and credit card or loan repayments can all affect their credit rating.   It is vitally important that consumers consider and understand the difficulties they could face when they take on credit commitments that they can’t meet,” said Luffman.

    We assume that the over 65’s have it all worked out financially. This report debunks that and shows that bad credit history can occur at any age group, and can be as much a result of a lack of education about credit obligations as it can be about not having the necessary funds to meet those obligations.

    I always maintain that there is a lack of education about consumer rights and responsibilities around accessing and repaying credit and likewise in addressing credit listing complaints. Credit reporting law is hugely legislated and Privacy Principles cross a number of different codes of conduct for different industries. The difficulty for ordinary consumers in understanding these laws is reflected in a) the number of consumer defaults and b) the volume of consumers seeking credit rating repair services to fix their bad credit.

    More education would go a long way in preventing the rate of default in the first place. It would also allow consumers to understand their rights within credit reporting law. Many are unsure what to do if they find themselves with a credit listing which they believe should not be there, and when they try to address the issue with the Creditor, they can be left no better off.

    Perhaps older Australians are the most uneducated generation on their rights and responsibilities around credit. This generation is traditionally the ‘saving’ generation – most would have used very little credit in their younger years and the trend towards credit in society today has possibly pushed them into a realm they may be ill-equipped for. A meagre pension propped up by small levels of Superannuation for this generation can also be a contributing factor.

    Direct debit problems, bill disputes, divorce or separation issues, even identity theft can all lead to an unncecessary bad credit rating and can be a problem for any generation. And what about those grey nomads tripping around Australia – what if people have failed to tie up all loose ends and have left a bill unpaid or unsettled? In reality, an overdue account will lead to bad credit. They could be listed with a Default and have 5 years of bad credit. If the Creditor can’t get hold of them – they will have a Clearout listing against their name – that’s 7 years of bad credit.

    So what can people do if they find this happens to them?

    Consumers should address credit listing complaints straight away. What they shouldn’t do is wait 5 or 7 years if the listing should not be there. The best chance of getting that bad credit history removed is for people to contact a credit rating repairer and put their circumstances to them, so it can be established whether they are a suitable candidate. There are some cases of bad credit which cannot be removed. But if there are inconsistencies, there is a good chance that a credit repairer can help them with their case for removal of the credit listing.

    And for older generations who want or need to use credit, there is no time to waste on bad credit history that shouldn’t be there.

    Image: www.FreeDigitalPhotos.net

     

  • Financial worries could loom over economy: Consumer Advocate for credit reporting accuracy

    On the whole it seems Australians are feeling insecure about their finances. Is this the catalyst for or as a result of the slow housing and finance market? Is the doom and gloom all in our minds or are Australians in real trouble which could lead to a debt crisis and the accumulation of bad credit history by some sectors of the population?

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

    Yesterday Business Day reported on a worldwide survey showing Australian consumer confidence was significantly reduced despite the strength in the Australian economy in comparison to other countries.

    The article, titled We’re Saving For a Gloomy Day addresses Australia’s growing pessimism as featured in a survey brought out by Boston Consulting Group. The survey suggests the savings habits of Australians born in the midst of the global financial crisis are here to stay.

    “In its 11th annual consumer sentiment survey conducted last month with 15,000 consumers in 16 countries, BCG asked respondents a series of questions around financial and job security, spending plans and savings habits. The results showed Australian shoppers were among the most worried and financially insecure in the developed world, and planned further cuts in discretionary spending,” the article says.

    This sentiment is not surprising, considering the key finding from the survey shows that not only are Australians cautions, but that the rates of consumers who feel they are in financial trouble has soared:

    “47 per cent of Australian consumers felt they were in financial trouble or not financially secure, up from 36 per cent in 2011. This heightened sense of panic compares with 48 per cent in the US (where the unemployment rate is double Australia’s), 43 per cent across the European Union, 41 per cent in Spain (unemployment close to 25 per cent) and 45 per cent in recessionary UK,” the article says.

    Here are the results from the survey country by country courtesy of Business Day:

    So what is causing this fear? Perhaps the drop in house prices (on average 4.5% over the past 12 months according to the Australian Bureau of Statistics) could be having a significant impact. Perhaps a reduction in the level of household equity has meant many are reluctant to increase spending as there is no longer a buffer in their biggest asset – the family home.

    This was the viewpoint of the leader of BCG’s consumer practice in Australian and New Zealand, James Goth.

    Mr Goth said a downturn in the housing market was affecting spending plans in Australia and feeding the pessimistic outlook.

    ”Another reason why I think we are so bearish in our discretionary spending outlook, regardless of how well the economy is doing and how good unemployment rates are, is the breaking of the house-price cycle – people can no longer fund these very high expenditure rates based on ever-increasing house prices, he told Business Day.”

    So what could be the long term prospects for the housing market and lending finance numbers?

    This week’s March housing finance statistics reported by the Australian Bureau of Statistics show a 0.3% rise in home loans to owner occupiers, but the proportion of first home buyers fell to 16.4 per cent. In all, the total value of dwelling finance commitments fell 0.5 per cent in March compared with February in seasonally adjusted terms.

    ABS HOUSING FINANCE March Key Points:
    VALUE OF DWELLING COMMITMENTS

    March 2012 compared with February 2012:

     The trend estimate for the total value of dwelling finance commitments excluding alterations and additions fell 0.2%. Owner occupied housing commitments fell 0.5%, while investment housing commitments rose 0.4%.
     In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions fell 0.5%.
    NUMBER OF DWELLING COMMITMENTS

    March 2012 compared with February 2012:

     In trend terms, the number of commitments for owner occupied housing finance fell 0.4%.
     In trend terms, the number of commitments for the purchase of new dwellings fell 1.3% and the number of commitments for the purchase of established dwellings fell 0.6%, while the number of commitments for the construction of dwellings rose 1.1%.
     In seasonally adjusted terms, the number of commitments for owner occupied housing finance rose 0.3%.
     In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 16.4% in March 2012 from 17.2% in February 2012.

    The minutes of the Reserve Bank of Australia May board meeting were released on Tuesday and noted that weakness in non-mining sectors was persistent and was predicted to continue.

    The Sydney Morning Herald reported in its article Slowing Growth, rate rises tipped RBA’s hand that among other economic factors, slowing credit growth and demand for housing finance were involved in its decision to cut interest rates this month.

    “Demand for housing finance had eased in the past few months and recent data suggested that dwelling prices had continued to decline, although there were tentative signs that the pace of decline had been more gradual in recent months,” the RBA minutes said as reported in SMH.

    “Credit growth for households had been marginally lower over the past year than over the previous year, and business credit was rising only at a very modest rate,” the minutes said.

    Do the facts show Australians are really experiencing financial difficulty?

    The sentiment was echoed by Dun and Bradstreet’s Credit Expectations Survey released on April 30, 2012. It pinpointed in its survey of June quarter savings, credit usage, spending and debt performance expectations that many who can meet credit commitments are choosing not to, but that there is a significant portion of people struggling with their current debt levels.

    It showed over a third of Australian families will struggle to manage existing debt levels. It also found nearly half (46%) of all low-income households expect difficulty managing their debt. This represents a rise of eight percentage points since the fourth quarter of 2011, 11 points above the national average.

    According to Dun & Bradstreet CEO, Gareth Jones, the survey results indicate a worrying cycle of debt accumulation and dependency among struggling consumers.

    “Unfortunately, we are seeing the least-solvent consumers accumulating unmanageable levels of debt, while those best able to meet credit commitments are avoiding spending altogether,” Mr Jones said.

    “Nearly one-in-three low-income households expect rising household debt levels, but with limited ability to pay this down. When consumers are increasingly forced to accumulate debt they are unable to manage, just to keep the family finances afloat, this has the potential to quickly become a vicious cycle,” Mr Jones said.

    Should this cycle continue, and a portion of people continue to accumulate unmanageable debt levels, the result will be a possible increase in the number of credit file defaults – with the only saving being – well – savings.

    The level of savings reported in the country is heartening – we have learnt from other countries post GFC, and the smart savings of many, whilst it may hurt the retail sector – would buffer many families from a credit debt crisis like we have seen in countries like the United States. But as often happens, for those with a high proportion of debt who don’t have the luxury of saving – they may be thrown into the debt cycle– robbing Peter to pay Paul just to stay afloat.

    For those who accumulate a bad credit history, the prospect of recovery would be slow. For between 5 and 7 years they will be refused mainstream credit and be on the outer – any credit they are approved for would generally be at a higher interest rate, meaning they are going to struggle even further to pay back their debts. The consequence of possible defaults on new loans could mean they are trapped in this cycle for a very long time.

    In this sense, for those who are living with credit file defaults which they believe shouldn’t be there, it would save them thousands by addressing the problem and having those credit rating errors addressed and potentially removed. As a safeguard for the future should lending criteria tighten even further, any inconsistencies on a person’s credit report should be addressed now – before it is urgent. People can contact a credit rating repairer to help with building a case to have those credit listings placed in error on their credit file removed – as their right and responsibility.

    Image: renjith krishnan/ FreeDigitalPhotos.net

  • How To Save On Your Home Loan and Prevent Mortgage Stress

    A drop in house prices across many parts of the country could see some families owing more than their homes are worth.  Luckily interest rate cuts may offset this change and give people the chance to make some headway on their home loan despite the reduced equity. So what are some real and significant things families can do to actively reduce their home loan and prevent mortgage stress or at worst – bad credit from late payments?

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

    The Australian Bureau of Statistics reported earlier this month that house prices around Australia have fallen by an average of 4.5 per cent over the past 12 months.

    For people who have recently purchased their first home, this could amount to some negative equity – which is quite a frightening prospect for many. For those about to purchase their first home – it could put them off buying all together. But this may not need to be the case. Certainly many buyers in this market should be fairly cautious with where they buy – but it just may be a case of ensuring they look at their purchase as a long term investment – structuring their loan accordingly if possible and allowing for places where they can make extra payments to their loan.

    The Sydney Morning Herald recently ran an article titled Extra payments a winner showing how the recent interest rate cut can actually make a significant difference for home owners if they continue to make mortgage repayments at the previous level.

    “The 50-basis-point cut represents a $96 a month reduction in mortgage payments for home buyers with an average-size loan of $300,000 (assuming the full cut is passed on).

    But for people who can afford to maintain their payments at their current higher level it presents a great opportunity to make inroads into their outstanding principal and build a buffer for tougher times.

    Given the uncertainty in markets, and the economy, it is a good strategy to build greater equity in the home,” the article says.

    They recommend visiting ASIC’s Money Smart website to calculate the potential interest saved on extra payments to their home loan: www.moneysmart.gov.au/tools-and-resources/check-asic-lists .

    The article included this significant advice for borrowers:

    A home borrower’s handbook to keep you out of trouble

    ❏ Know what you can afford. Don’t rely on the lender to tell you what you can borrow. Make your own assessment by writing a household budget with all outgoings and see if there is enough to cover the mortgage repayment. According to Veda Advantage and Fujitsu Consulting mortgage stress reports, the groups that most often get into trouble with repayments are low-income families and young families.

    ❏ Don’t just look at the rate. According to QBE LMI’s 2012 Australian mortgage market study, when people are looking for a loan they place most emphasis on the interest rate and the fees. Options such as redraw, offset and the ability to split the loan between fixed and variable rates are given a low priority.

    ❏ Stress-test your loan. Lenders will check to see if you can continue to make payments if rates go up 2 percentage points. What if rates go up 3 percentage points or more?

    ❏ Watch your credit-card spending. Surveys of people experiencing hardship with home-loan repayments show that large credit-card debts can be the trigger for arrears or defaults.

    ❏ Make extra repayments. According to ING Direct’s Financial Wellbeing Index, 40 per cent of mortgage holders are making extra repayments on their home loans. These payments serve two purposes: they create a buffer that can be called upon if circumstances require; and they speed up the repayment of the loan.

    ❏ Invest in your mortgage. A lump-sum payment that reduces the loan principal is, in effect, an investment with a return equivalent to the mortgage interest rate, free of tax.

    ❏ Deal with problems early. The Legal Aid Mortgage Stress Handbook recommends that borrowers seek advice early from their financial institution or a financial counsellor. Many people leave it too late.

    Unfortunately, for those home owners who have entered into a higher interest rate with a non-conforming loan, the interest rate cuts will be negligible for them. They can be up for tens of thousands of dollars more during the first three years of the loan. Our calculations show on a home loan of $400,000 they could be charged an extra $22,867.15 more in home loan repayments over the first three years of the loan. This is based on average loan of $400,000 over 30 years on non-conforming loan interest rate of 9.5% versus the standard variable rate of 7%.

    To calculate potential savings people can visit the MyCRA Calculator.

    For people considering a non-conforming loan due to bad credit that should not be there, it would be extremely beneficial for them to instead look at disputing the credit listing and having their credit rating repaired. If they were successful in having listings removed from their credit report which either should not be there or were put there in error, they could restore their good credit rating in this instance and apply for a standard home loan – potentially saving themselves thousands.

    But instead it is often the case that people get a negative credit listing after a dispute with a creditor or worse – surprise bad credit – and are under the impression they have to put up with the hand they are dealt with. Some contact their creditor, and are told that they can have the listing marked as paid if the account was paid, but the listing is never removed from their credit file. The ‘paid’ listing is unfortunately still going to be a detriment to their ability to qualify for a home loan and they are stuck with the tag of ‘bad credit’ for between 5 and 7 years depending on what’s on their credit file.

    However, if the listing was put there unlawfully or unjustly, then the credit file holder does have the right to have those inconsistencies addressed and potentially removed from their credit file. It takes lots of knowledge of the relevant legislation and some good negotiation ability to be able to formulate a successful case to remove a listing. Which is where credit rating repairers come in – to act on the credit file holder’s behalf and enforce that legislation creditors are bound to comply with, helping to demand accuracy in credit reporting and negotiate for the removal of those listings which shouldn’t be there.

    In this market – it can make all the difference for a potential borrower – and be a fight entirely necessary to make to ensure people get the home loan they deserve.

    For help and advice on credit rating repair, contact MyCRA Credit Rating Repairs on 1300 667 218 or visit our main website www.mycra.com.au.

    Image: chainat/FreeDigitalPhotos.net

  • Liar liar…why honesty is the best policy when obtaining and repairing credit

    We look at the dangers of being less than honest when it comes to finance and how you can lose your good credit rating because of lying on your finance application. We also see how lying can cross over into credit repair – and how a lie will invariably be caught out and ruin your chances of restoring your good name.

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

    Lying to your lender

    One of the most drastic causes for a bank rejecting a loan application is through fraud or through not disclosing all information. So why do so many people still lie on their finance application?

    Perhaps we want to appear to earn more than we actually do, or perhaps we don’t want the lender to know all of our debts?

    But according to RateCity.com.au in its article Why risk it? Don’t fib on your mortgage application, people who lie on their finance application are putting themselves at risk.

    “Typically the amount you are approved for on a home loan is based on the information in your application, so lying about this means you have a higher chance of over-committing yourself and not being able to afford the repayments with the possibility of losing your home. Lying can also impact your credit history which will affect any future applications and loan approvals.

    Being dishonest can make you look bad because if you are lying about one thing they may wonder what else you are lying about. If you are caught out your lender could deny your application and you could lose your chance of buying the home of your dreams, so why risk it?” the article says.

    The article quotes a Veda Advantage study showing 1.6 million Australians have lied about their financial information when applying for a loan, including mortgages.

    “one in 10 Australians admitted to not being truthful in order to obtain a loan. A massive 823,000 borrowers said their total expenses were less than what they actually were and 342,000 said they earned more than they really did,” the article says.

    The introduction of new obligations on brokers and lenders through the National Consumer Credit Protection Act (NCCP) means financial institutions will have access to more of personal financial records so that they are better able to accurately assess the credit risk of each application.

    It is likely that people caught giving false information on their applications will have more chance of being caught, and their future tarnished.

    If you are caught lying, your application is normally completely dismissed. Also, your omission could be viewed as purposeful deception or fraud.

    So honesty really is the best policy.

    If you’re not sure whether you will be approved for finance, rather than lying on your application, it might be a good idea to talk honestly to a broker about your situation prior to making a finance application and prior to creating a ‘credit enquiry’ listing on your credit file. The more good honest information they have, the likelier they may be able to assess your chances of getting over the line prior to the application – they could even run something past a lender for you if there’s something in particular you are unsure about.

    Lying to your credit rating repairer

    Likewise, some people are so desperate for credit they even lie to their credit repairer if they need bad credit history removed. It can be a case of people telling their credit repairer what they think they want to hear rather than the truth. But this is no help to you or to us.

    When addressing credit listing complaints, the truth generally catches up with consumers as well as creditors.

    Credit rating repair is about enforcing legislation to negotiate the removal of credit listings that have been placed unlawfully on your credit file.

    In order for the credit rating repairer to exhaust all avenues for removing an unfair listing, we need the truth, the whole truth and nothing but the truth.

    Creditors generally have extensive records on correspondence with you, as well as the circumstances around the placement of the negative listing on your credit file. If we work on your behalf to apply the letter of the law in the wrong circumstances your request for correction or dispute is most often rejected and you lose your right to have your credit file listing removed – regardless of whether it should have been there or not.

    The best course of action is to be upfront about your circumstances and the credit rating repairer can decide whether based on the truth, you would qualify for credit rating repair. If you do qualify, the credit rating repairer knows everything about your case and they can prepare a better quality complaint in less time.

    Image: africa/ FreeDigitalPhotos.net

  • How to fix a bad credit rating – in Australia

    How do you fix a bad credit rating? Well it depends on where you live. In Australia it can be difficult, but not impossible. Australians are best to follow advice from our own shores. Here’s some information on credit reporting in Australia and 5 ways you can improve your chances of obtaining credit.

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

    Google ‘fix bad credit rating’ and the list of articles on improving your credit score can be a mile long with countless advice on bad credit solutions and suggestions to fix what the banks see as bad credit history. People are looking for a way to overturn or ‘counteract’ a bad credit listing and get the best chance of approval for home loans, personal loans or any forms of credit.

    What many don’t realise is that many articles from the U.S. and U.K. are not relevant on Australian shores. These countries have ‘positive’ credit reporting systems – very different from Australia’s. So the information, whilst good, often doesn’t apply for people in this country.

    In fact, many times if Australians follow that information they may actually be hindering their chances of obtaining credit in the current market, not helping it.

    So here is some information for people concerned about their credit rating, to have as a reference for what applies in this country for our unique credit reporting system.

    What exactly is my credit file?

    A credit file is made for every person who is credit active in Australia. The credit reporting agencies currently providing credit reports are Veda Advantage, Dun & Bradstreet, and Tasmanian Collection Service (if Tasmanian). There is also a new entrant Experian, but they are currently only collecting data.

    A person’s credit file contains their personal information. It also records any credit applications, all loans which are current and also records any adverse listings such as Defaults, Writs, Judgments, Clear-outs or Bankruptcies* which are issued under that person’s name.

    It is from this file that creditors make a decision whether or not to lend people money. This information is then available to banks and building societies; finance companies, utility providers, mobile phone companies and retail stores. These companies are all known as credit providers or creditors.

    Any creditor may place an adverse listing on a person’s credit file if an account has been in arrears for more than 60 days. This includes phone companies, utility companies, and gyms as well as banks, finance companies and retail stores – and the outstanding amount can be for as little as $100. These listings are current for between 5 and 7 years depending on the listing, and ‘drop off’ the credit file after this time.

    A negative credit reporting system

    Currently Australian credit reporting operates under a ‘negative’ system. This will change as Australia moves towards comprehensive credit reporting, but until then – the rules of the game are very different from many other countries.

    Only negative data is recorded on a person’s credit file. From this point of view – there is nothing people can do to counter-balance any negative data which is displayed on their credit file. It is either present – or not.

    So is there anything I can do to change my bad credit rating?

    The best thing you can do for your current and future credit rating is to make all of your repayments on time.

    You can’t remove negative listings from your credit file unless you dispute the listing. You also can’t counteract the effect of those listings with ‘positive’ credit information yet either.

    But there are a few other things you can do to improve how you appear to lenders potentially improving your chances of obtaining credit in Australia. Here are 5:

    1. Reduce credit limits.
    Lofty credit limits do not improve a person’s credit ‘risk’ assessment. If the loan applicant has a credit limit of say $20,000 on their credit card, the debt amount on that card will be calculated on $20,000 – even if the actual amount the applicant has owing on that card is only $5,000. So a potential borrower should seek to reduce any credit limits on cards or loans they currently hold.

    2. Reduce credit enquiries.
    Do not shop around for credit. Whenever a person other than the credit file holder makes an enquiry on their credit record – that enquiry is recorded on the person’s credit file. Currently there is no way of seeing on someone’s credit report if the loan was approved or not, only that the application was made. Some lenders are refusing home loan applications due to too many credit enquiries, such as two enquiries within thirty days or six within the year.

    3. Check credit file regularly.
    Anyone has the right to request a copy of their credit file, to see what is being said about them. This report is free for the credit file holder every 12 months. The request should be made to all the applicable credit reporting agencies, and a report will be made to the credit file holder within 10 working days.

    There is the potential for creditors to make mistakes when entering listings on credit files. So anyone who is credit active should check theirs, regardless of how diligent they think they may have been with their repayments.

    Many times people are unaware they have adverse listings on their file until they apply for credit and are refused. Unfortunately at that time it can be stressful, and they can lose the home or business they are trying to buy, or be forced to choose a different loan with a higher interest rate to accommodate their bad credit history.

    4. Pay any outstanding amounts.
    Currently even defaults which have been marked as paid may see you refused credit – but it can’t hurt to pay an overdue account if it should have been paid. Whilst the creditor cannot remove the listing, they can mark the listing as paid. Some lenders may overlook a default listing if other parts of the application present as low risk.

    5. Remove errors from your credit file.
    Adverse listings can sometimes occur due to identity theft; some people are caught in issues over separation from their spouse; some have been disputing the bill which went to default stage and many people are just victims of the fallout from inadequate billing procedures – wrong names, wrong addresses errors with creditor computer systems, and sometimes human error.

    You have the right to have any inconsistencies on your credit file rectified. People should bear in mind that 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.

    Credit reporting is governed by strict legislation of which most consumers have limited knowledge of, and often very little time to get to know.

    Many seek out the help of a reputable credit repairer who will be able to work on their behalf to assess their suitability for credit repair and then formulate a case based on legislation for removal – negotiating with creditors to have the default or other listing removed.

    People can visit the MyCRA Credit Repairs website for more help with their credit rating, and help to repair a bad credit rating.

    *Bankruptcies cannot be removed from credit files.

    Image: Stuart Miles / FreeDigitalPhotos.net

  • MyCRA Partners Privacy Awareness Week 2012

    MyCRA Credit Rating Repairs is proud to be a Privacy Awareness Week (PAW) Partner for 2012 which runs 29 April to 5 May.  The team at MyCRA hope we can help educate more people on Privacy Issues this week and in doing so reduce the numbers of identity theft cases in Australia. Privacy of your personal information is crucial to prevent identity theft and subsequent credit fraud. This week, through information provided by the Office of the Australian Information Commissioner (OAIC) and also through our own information, we want to help clarify how Privacy (or lack of it) can affect your credit file and promote safety of your valuable personal information.

    This post features a newsletter titled “Privacy It’s All About You” provided by the OAIC which will clarify the origins of PAW and the importance of Privacy in your business, your life and for maintaining your good credit history. Please find full newsletter below:

    Privacy: it’s all about you

    Privacy Awareness Week (29 April – 5 May) is an annual event during which the Asia Pacific Privacy Authorities join forces to remind everyone to take steps to protect their own privacy and safeguard personal information about others that they might hold.

    “Privacy is recognised in many countries, including Australia, as a human right,” says Privacy Commissioner Timothy Pilgrim. “Serious consequences can arise when someone’s privacy is breached and we all have responsibilities to look after the personal information we handle.”

    Organisations and government agencies covered by the Privacy Act must meet responsibilities when collecting, using and disclosing personal information. This includes giving sufficient notice about why personal information is being collected and how it will be used and disclosed.

    Businesses covered by the Privacy Act are subject to ten National Privacy Principles or NPPs while most Australian, ACT and Norfolk Island government agencies must comply with eleven Information Privacy Principles or IPPs.

    Quick privacy tips for business and government agencies:

    • Don’t collect personal information that is unnecessary for your business
    • If you do need to collect people’s personal information, tell them why you are doing this, what the information will be used    for and how long it will be kept
    • Make it clear who will have access to that personal information, including any third parties
    • Take steps to destroy or de-identify personal information that is no longer required, subject to other record keeping    requirements.

    What about you?

    When it comes to protecting your own information, Mr Pilgrim is urging all Australians to be increasingly more vigilant about protecting their information.

    “You really need to pay attention to what information you are sharing and how it may be used, particularly online and when using smartphones, where personal information is routinely collected and stored by any number of entities.”

    Mr Pilgrim says people tend not to think about what information they are giving away or what will happen to it, especially as they make quick transactions online.

    Know what’s going on

    When your online search history is aggregated with other information you may have shared online, a detailed picture emerges that could compromise your privacy.

    Most search engines today track and store details about your browsing habits to help guide you to the information you are seeking. But Mr Pilgrim says that many of us remain unaware of how this happens or where our information may end up.

    “Find out how your information is being used by checking the privacy policy of the search engines you use.  If you want more control, look for options that allow you to prevent aggregation and keep information you post across various accounts separate.”

    Different search engines operate in different ways.  So if you are unhappy with the way your information is being used by one provider, consider using another.

    “I’d encourage people to always use the provider that offers them most control about how their personal information is used,” Mr Pilgrim added.

    Similar issues apply to apps: when you download them, you usually agree to your personal information being collected in some way.

    “Next time you decide to download an app, take a moment to look at the terms and conditions that set out what you are signing up for, what type of information the app developer is collecting and how it will be used.”

    While these kinds of details can be buried in the fine print, Mr Pilgrim says it’s worth making the effort to know and understand what you are agreeing to so your information is not used in unexpected ways.

    “Just as in the real world, if you want to safeguard your privacy, you need to pay attention to what information you are handing over and ask companies what they are doing with it.”

    Find out more at www.privacyawarenessweek.org/oaic

    Stay tuned for more information on Privacy, your personal information and your credit file.

    If you think you may be a victim of identity theft, firstly contact Police who will assist you.

    If identity theft has affected your credit file (credit fraud) and you need help with removing negative listings such as defaults and clearouts which should not be there, it might be helpful to contact a credit rating repairer to go through your options for credit rating repair.

    Graham Doessel, Founder and CEO of My CRA Credit Rating Repairs and www.fixmybadcredit.com.au.

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