MyCRA Specialist Credit Repair Lawyers

Tag: credit rating

  • Know the credit file risks before co-financing with a sibling

    siblings co-financingMedia Release

    Know the credit file risks before co-financing with a sibling.

    1 February 2013

    Real estate agents have recently reported an increase in siblings co-financing on homes in order to break into the property market, but this has a consumer advocate for accurate credit reporting concerned that some siblings could be getting financially involved without understanding the full implications for their future.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says real risks can arise when anyone co-finances, for both their relationship and their credit rating.

    “I understand it is hard for young people to get a toe in the property market, but it is so important for them to understand, when you co-finance, you must trust your personal credit rating to your sibling for the life of the agreement,” Mr Doessel says.

    Real estate agents say brothers and sisters purchasing together now make up 10 per cent of traffic at open houses and inspections.

    The trend, which has grown in the last three months, allows buyers to afford mortgages that would otherwise be beyond their reach on a single-income.

    “It is how they’re affording to break into the property market,” agent Silvia Vitale of Laing + Simmons Potts Point told the Sunday Telegraph this week.[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 Gold Coast mortgage broker, Heather Nyssen, recently discouraged the trend, saying that siblings are usually quite young when they enter the financial partnership, and due to changes in circumstances can end up restricted by the obligation in later years.

    “In some cases they buy it so one or other can live in it, or they buy as an investment property, but they often end up in a bad position,” she told Australian Broker on Thursday.[ii]

    Mr Doessel agrees “Not only can the obligation restrict financial decisions in the future, but there is the potential for something to go wrong which sees both credit files defaulted if one sibling makes a mistake.”

    He says if repayments on any accounts linked to the property are not made on time, both parties could be held responsible and defaulted or a late payment notation listed on both credit files accordingly.

    “Rates, energy and of course finance repayments need to be paid on time every time to avoid a late payment notation on your credit file, and paid within 60 days to avoid a default listing,” he says.

    Defaults remain on a person’s credit file for five years, and late payment notations for two years.

    “If you have a default listing it can be difficult to get additional finance, a credit card, or even a mobile phone plan. If you have too many late payment notations against your name, it may also weigh negatively on your ability to obtain credit,” Mr Doessel says.

    He recommends those siblings wanting to co-finance on a property take these things into consideration:

    1. Know about your sibling’s credit history. If your sibling has financial skeletons in the closet, you should be wary about leaving your credit rating at risk. It would be a good idea to order a copy of your credit rating (your credit report) to make sure each of you is fully aware of the other’s financial history.

    For assistance to obtain your credit report at no cost, contact MyCRA http://www.mycra.com.au/credit-file-request/

    2. Ask what debts they currently have. This will give you an indication of how your brother or sister feel about money, and how much debt they consider normal to handle.

    3. Talk about paying bills. Do they always pay them on time? If not, why not? This will give you a good indication of how important they view credit repayments.

    4. Ask what their financial goals are for the future. Do they match yours? If you intend to hold on to the property whilst your sibling wants to sell in a few years to repurchase, are you prepared to pay them out? Will anyone be living in the property? How will you divide expenses on the property?

    5. Get all agreements in writing. Consider getting a solicitor involved to draft up a formal agreement. You may be family, but in 5 or 10 years your responsibilities and needs may have changed and you need to know what your legal rights and obligations are.

    6. Leave emotion out of it. As much as you may love your sibling – arguments can occur – particularly when money is involved. If the financial relationship is ‘strictly business’, it may be easier to separate the property from all other credit the individuals may possess. This is especially true if the property is purely an investment and neither sibling is living in the property.

    /ENDS.

    Please Contact:

    Graham Doessel 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 Repair is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files.

    Image: imagerymajestic/ www.FreeDigitalphotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Flood affected? Ask for help early to protect your credit rating

    flood victimsAs flood and cyclone victims across Queensland and New South Wales start to take stock of their homes and businesses, they may not know that their obligations to lenders still apply unless they take some necessary steps NOW to prevent being defaulted. We look at what flood victims should do to get back on their feet again and in the process, hopefully save their credit file.

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

    Today the Credit Ombudsman COSL has urged lenders to show compassion to flood victims when considering cases of financial hardship.

    Ombudsman Raj Venga says lenders and mortgage managers have previously responded sympathetically to borrowers who have experienced financial stress as a result of natural disasters and hopes they will continue to do so.

    “We expect they will again show the same compassion to affected borrowers in Queensland and northern New South Wales, and take into account COSL’s Position Statement on financial hardship.  We also urge borrowers who may be experiencing financial difficulties as a result of the flooding to contact their lenders or mortgage managers as soon as possible to discuss payment variation options available to them,” he said in Australian Broker today.

    How could I be affected by defaulting on my loan?

    Obviously, if you default on your loan for a certain period of time, you risk the bank taking the home. But even if you default once, but then begin to make up the repayments you are still putting your future at risk.

    If you fail to make repayments on our loan past one payment cycle, you will probably end up with a late payment notation on your credit file. If that extends out to more than 60 days, the bank will list a default on your credit file. Once you have a default against your name – it will stay there for 5 years. The intention of adding default credit listings to credit history is to warn future credit providers you would potentially have trouble keeping up with repayments. Likewise, as part of ‘responsible lending’ it would mean the credit provider would be acting irresponsibly to lend you money – so most don’t.

    A default on your credit file means you have very little access to mainstream credit for the five year term.

    What can I do if I am experiencing mortgage stress due to the storms and or floods?

    Ask for help early!

    The Australian Bankers’ Association (ABA) told Australian Broker banks are already offering a range of emergency relief packages to assist people affected by the severe weather in Queensland and New South Wales.

    Steven Münchenberg, chief executive of the ABA, says:

     “If someone’s home, income or business has been affected by the floods or storms, they should contact their bank as soon as they are able to. Banks are providing support to help their customers get back on their feet.”

    Banks offer a range of support options and the assistance provided will depend on their individual circumstances and needs, but may include:

    ■ deferring home loan repayments;

    ■ restructuring business loans without incurring fees;

    ■ giving credit card holders an emergency credit limit increase;

    ■ providing payment holidays on personal loans or credit cards;

    ■ refinancing loans at a discounted fixed rate;

    ■ waiving interest rate penalties if term deposits are drawn early; and

    ■ deferring repayments on equipment finance facilities.

     “If you are worried about the financial effect of the flooding and storms, talk to your bank about the support that is available. It is often not well understood that banks do offer their customers assistance during these difficult times and go beyond what might be legally required to offer immediate financial relief and support to affected customers and their communities. If you know someone affected, let them know that banks are offering emergency packages,” Mr Münchenberg says.

    “The best way to contact your bank is to speak to your relationship manager or call the bank’s dedicated emergency relief or financial hardship support number. These numbers can be found on the ABA website www.bankers.asn.au or at www.doingittough.info along with additional information to assist people that might be experiencing financial difficulty. You can also speak to a free, independent financial counsellor by calling 1800 007 007.”

    Tips for Applying for financial hardship

    – Work out what you can afford to pay prior to requesting a hardship variation. This would involve taking the bull by the horns and doing up a serious budget on what’s coming in and what your repayments are on all of your credit accounts. The best place to start looking for some help would be ASIC’s MoneySmart Website. If you feel like you’ll struggle across a number of credit areas in the short term – consider requesting a reduced payment for other credit accounts as well.

    – Put your request in writing and keep a copy as a record.

    – You may need to use the actual words “hardship variation” for your lender to officially recognise the request, and to avoid confusion as to what you’re asking for.

    – Check your loan agreement as to the terms you entered into around financial hardship. Those agreements post-1 July 2010 have a clause which requires the lender to respond to you within 21 days.

    – Creditors are legally required to consider a person’s request for variation on payment arrangements, but are not obliged to agree to any hardship variation proposal put forward. If a lender either refuses or fails to respond to your hardship request, you can lodge a complaint with their independent dispute resolution scheme, such as the Ombudsman they are a member of.

    – Research how to apply for financial hardship. You can do this through ASIC’s MoneySmart Website, or through sites like Money Help, a website run by the Victorian State Government.

    Image: khuruzero/ www.FreeDigitalPhotos.net

     

  • Are relaxations to guaranteed loan requirements right or wrong?

    security guarantee loanBanks have begun to relax Guaranteed loan criteria in a bid to encourage more first home buyers into the market. The relaxations from some banks will now include those outside the immediate family.  The banks seem eager to increase business in what are cautious times for home buyers. But should we all jump in? We look at what you are really risking with your asset and your credit rating by guaranteeing a loan for a family member or friend and perhaps for borrowers, when using a guarantor that is not a family member.

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

    Loan Market Melbourne broker Alexander Heifetz has recently claimed several banks have made available to borrowers ‘Family and Security Guarantee Loans.’ The recently amended policies remove certain restrictions for Guarantors, meaning a Guarantor will no longer have to be a parent, sibling or spouse of the borrower for a Security Guarantee, which was formerly known as a Family Guarantee.

    Mr Heifetz explained in a recent press release:

    “This change in policy is going to help certain first home buyers with healthy incomes but limited savings enter the property market with help from guarantees who traditionally haven’t been allowed to put their support behind a low-deposit holder’s mortgage,” Mr Heifetz says

    “Most Guarantee loans are a single loan secured by both properties: the property purchased by the first home buyer and guarantors’ property. The benefit of this option is that there is no requirement to make a Lenders Mortgage Insurance (LMI) payment and that you don’t have to demonstrate that a deposit you have was genuinely saved,” he says.

    Although these types of products are becoming increasingly popular, Mr Heifetz suggested that borrowers and guarantors considered the implications before signing a Security or Family Guarantee

    An article published last week in Australian Broker features further comment from Heifetz about the possible impact of guaranteed loans. He told Australian Broker while he appreciates that it’s a difficult time for both lenders and first home buyers, brokers need to make sure they’re helping clients view guarantee loans as a last resort – because it’s brokers in the end who are likely to be blamed when things go wrong.

     “It comes back to brokers – banks have a bunch of lawyers who will stand up for them, but brokers are the middle men and they’re the ones who will be crucified.”

    He offers solutions such as borrowers purchasing a less expensive property, or for those considering going guarantor to look at the possibility of gifting additional money or taking out a small loan as an alternative.

    Figures from Insolvency and Trustee Service Australia (ITSA) show that 441 people (non-businesses) went into bankruptcy as a result of liabilities on loan guarantees in the last financial year, and 12 entered debt agreements for the same reason, according to the ITSA’s 2011-12 Annual Report.

    If 453 people became insolvent due to liabilities on loan guarantees last year, how many more were forced to sell both homes but remained solvent? How many were forced to take over repayments on the loan for their child or family member? How many still were encumbered with a negative credit listing and refused credit for 5 years due to their family defaulting on the loan? How many didn’t know the loan was in arrears until their credit rating was impacted?

    Whilst there may be ways a borrower and guarantor can more ‘safely’ access a guaranteed loan without necessarily risking the property of the guarantor for the entire term of the loan, caution should still be exercised.

    From a credit repairer’s point of view, I would rarely recommend borrowers choose a guaranteed loan if they have other options open to them. There are just too many variables. There is no control over repayments. Now, with late payment notations on credit files, not only must repayments on the loan be made within 60 days to avoid a default listing, it must be made on time or face a late payment notation. Too many of those, and these late payment notations could impact your ability to get credit for two years.

    So as Mr Heifetz says, guaranteed loans should be viewed as a last resort – and I believe should not be heralded as a chance to boost first home buyer numbers.

    It is true house prices are still too high for many first home buyers – but banks could also relax other lending criteria such as lowering deposit requirements or allowing more gifted deposits for first home buyers – so why don’t they? And if they don’t want to bear that risk, why should we?

    Adding to the debate is Malcom Bartley, director of finance brokerage B Debt Free who has questioned why a non-family guarantor would want to make themselves so “financially vulnerable”.

    “Anything that is not direct family must be related to a business transaction. That benefit must be identified before the guarantor can be put in a position of risk. No one will take the risk just because they’re a nice guy,” he told Australian Broker on Friday.

    He warned such situations could give birth to a third-tier industry where there would be opportunities for a business to provide equity to first home buyers to obtain a government grant while they stamp the difference.

    “There’s a huge misunderstanding of the debt administration in this country – and there are groups out there that’re saying ‘if you’re in trouble come to us, we’ll buy your property and we’ll let you buy it back’” Mr Bartley says.

    He boldly said lenders need to call non-family guarantors what they really are.

    “If you’re going to call a savage canine that rips people to shreds a ‘puppy’, that’s not a lie, but it doesn’t give the true description, does it?”

    Whether or not you agree with Mr Bartley’s argument, there is no denying that any borrower who seeks help from a guarantor who is not a trusted friend or family member needs to ask two questions: what does the guarantor stand to gain from this transaction? and what could I lose?

    The risks for both guarantors and borrowers needs to be understood and weighed heavily, with the full gamut of legal advice, before any party risks their asset and their credit rating.

    Image: Ambro/ www.FreeDigitalPhotos.net.

  • How to Avoid Sexually Transmitted Debt

    sexually transmitted debtBeing ‘in love’ is one of the best feelings in the world, but not one of the most practical states to be in. Sometimes personal financial values go out the window and people lose themselves in the process of adding to the ‘relationship’ and creation of ‘us’. But at some point the boring old finance stuff becomes vitally important. We look at what you need to do to prevent STD impacting your credit file.

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

    Many people run into trouble by not asking the tough financial questions about their prospective partners early in the relationship. Your financial generosity now could become the very thing that is used against you if the relationship sours. Before you enter into any financial transaction, consider carefully how secure you would be if things did take a turn for the worse.

    What’s your money personality?

    Are you a spender, a risk taker, a saver or a security seeker? There are many different types of money personalities – and you could be combination of both. If you and your partner are different money personalities, this may be the cause of arguments.

    When two different money ‘personalities’ combine, it may be all rosy to begin with, but at some point you are going to disagree about money. Fights can begin and the potential for both of you to be financially damaged is greatly increased.

    According to Relationships Australia, conflict over money is one of the top causes of arguments and relationship breakdowns in Australia.

    When there’s joint finances involved in the split, sometimes you can continue to fall under the financial shortcomings of a partner well after the relationship is over.

    When people take out any credit together, such as loans, utility accounts, homes and rental properties, they become very reliant on the partner to keep up their end of the credit repayments.

    Who is liable for debt?

    Sometimes one partner ends up with a bad credit score, simply because the other person on the account has not kept up with repayments. People can be unaware their partner (or ex-partner) is generating defaults on their credit rating until it is too late.

    The most common type of negative listing is a default, and is placed by the creditor when an account holder fails to make payments past 60 days.

    In many instances it’s not until people apply for credit in their own right that they find out they have a default against their name. The relationship may even have ended years ago and the partner is still paying for it.

    Bad credit history can last for 5-7 years, depending on the listing type.

    Many people come unstuck by not asking the tough financial questions about their prospective partners early in the relationship.

    How to Prevent Relationship Debt

    1. Consider taking a Money Personality test, such as the one at www.TheMoneyCouple.com

    2. Ask about your new partner’s financial past. People will do what they have always done. If they have financial skeletons in the closet it is possible they will continue this behaviour in the future.

    3. Ask what debts they currently have. This will give you an indication of how they feel about money, and how much debt they consider normal to handle. Does this match with yours?

    4. Talk about paying bills. Do they always pay them on time? If not, why not? This will give you a good indication of how this person regards money and credit repayments. Ring any alarm bells yet?

    5. Ask what their financial goals are for the future. Do they match yours? If your new partner wants to blow all of their money on an overseas trip, but you want to save for a home – how will this work long term?

    6. Verify their answers about existing and past debt. Ask them if you can see a copy of their credit file (and versa of course). A copy of your credit report is free every year from one or more of the credit reporting agencies in Australia. It will be sent within 10 working days. You can order your credit report here http://www.mycra.com.au/credit-file-request/.

    If you are unsure of your new partner’s financial compatibility, it could mean finances need to be fairly separate for a significant period of time.

    But the most important aspect to the meeting of financial minds is to keep an open dialogue about money. Talking freely and honestly, preferably keeping the emotion out of your discussions may help to avoid surprise bad credit from your partner.

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

  • “Bank of Mum and Dad” financing for kids can put your credit rating at risk.

    Bank of Mum and DadMedia Release

    “Bank of Mum and Dad” financing for kids can put your credit rating at risk.

    14 January 2013

    A recent survey shows high property prices have sparked one in three Australians to seek financial assistance from their parents for their first home, but an advocate for credit reporting accuracy warns that if assistance extends to a parent equity loan, parents need to know there are significant risks to their credit rating.

    ING Direct’s recent global survey, as reported in Australian Broker reveals that the average age of a first home buyer in Australia is now 26 years old, with one in three tapping the “Bank of Mum & Dad” to put their housing finances on a firmer footing.[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]

    The research found that the younger the age group, the more likely they are to have received financial help. Over half of 18-24 year old homeowners received money either towards their purchase or to help with home loan repayments, compared to 38% of 35-44 year olds and only 22% of those aged over 55.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says in some cases putting up a deposit is not enough, and the parent is required to go guarantor or put up equity to secure the loan for their child.

    But the danger for parents is that their credit rating is then linked with the credit rating of their child through a loan like this, despite parents having little control over the outcome of repayments.

    “If for some reason repayments are not met, the parent becomes liable for this debt, and may be defaulted along with the child. Unfortunately they may not be aware the loan is or was in default until such time as they attempt to take out credit for themselves and are refused,” Mr Doessel says.

    He says a negative entry on a person’s credit report will mean it is difficult to get credit. He says defaults impact the ability to obtain credit for 5 years, and even too many late payment notations may make things difficult for 2 years.

    “In cases of significant arrears, the bank begins to use the property the guarantor put forward as collateral to recover lost debts. The guarantor is in danger of losing their home,” he says.

    He suggests parents considering going guarantor on their child’s loan should sit down and ask some tough questions before committing.

    “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 in doubt, don’t risk your good name to guarantee the loan,” Mr Doessel says.

    With ING reporting that three-quarters of Australians still agree it’s better to buy than rent, Mr Doessel says parent equity and guaranteed loans may continue to rise.

    He recommends parents take some things into consideration before signing off on the loan:

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

    2. Insist there is safety net for 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:

    Graham Doessel – CEO Ph 3124 7133

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

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

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

    ——————————————————————————–

    [i] http://www.brokernews.com.au/article/aussies-fear-next-generation-wont-be-able-to-afford-to-buy-homes-147718.aspx

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

  • A New Year’s Resolution: Make 2013 Your Best Money Year Yet

    New Year's Resolution 2013What is your New Year’s Resolution? Is it to clear your debts and get better with your finances? If so, here are some practical, positive steps you can take to get your finances off to a great start in 2013 and improve how you deal with money forever. Reduce your chances of bad credit history.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au, https://www.facebook.com/FixMyBadCredit.com.au

    1. Get your head around it.

    It’s important to get your head around your new money plan, and that might require some inspiration. Grab a copy of a book by a well-recommended finance author and adopt some new methods to make money and credit work for you, not against you.

    Here are 5 great finance books to get you started, but of course there are many, many more:

    1. Rich Dad, Poor Dad by Robert Kiyosaki. He also published a book on debt in 2012, Rich Dad’s Guide to Becoming Rich Without Cutting Up Your Credit Cards: Turn “Bad Debt” into “Good Debt”

    2. The Richest Man in Babylon by George S. Clason

    3. Think & Grow Rich by Napoleon Hill

    4. Making Money by Paul Clitheroe

    5. Affluenza: When Too Much is Never Enough By Clive Hamilton and Richard Denniss

    2. Dot your i’s and cross your t’s.

    Don’t let your finances get away from you. Spend some time looking at your paperwork and make sure everything is in order. We mean everything. This is no mean feat. In fact, this is pretty hard. Do you have outstanding Super? Have you done your tax? Make a resolution to not bury your head in the sand about bills. Pay them straight away if you can or diarise their repayment. Read all of your bank and credit card statements when they come in.

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

    Don’t let disorganisation lead you into debt and threaten your credit rating.

    3. Understand your debt.

    Get a good handle on how much you owe. This will be much easier if you have followed step 2 well.

    Take a deep breath and tally up all of your debts. Then pick yourself off the floor and make a plan to get on top of your repayments before your credit rating suffers.

    4. Work out a repayment plan for your debts.

    Most people with significant debt generally have it stacked up on a credit card – or cards. Unfortunately most are at high interest rates which make it often impossible to get on top of. Many experts recommend switching all debt to one card with a lower interest rate, or even swapping to a personal loan.

    The best advice we can give on any loan, including credit cards is to repay above the minimum amount set by the bank – which will allow you to actually make progress on clearing the debt because you will be saving interest.

    In Finance expert David Koch’s blog post Grow Your Savings he says by far the best way to invest a small amount is to pay off debt:

    “If the $100 or $1000 is paid off the mortgage it is providing a return of 6 per cent tax-free because that’s how much you’re saving in interest.

    There aren’t many investments today giving a tax free return that high.

    Even better, use the money to pay down an outstanding credit card balance and enjoy a tax-free benefit of 10-20 per cent depending on the card,” Kochie says.

    If you don’t have the luxury of having extra money left over after pay day, and if in fact you are really going to struggle to make repayments on some of your debts, then the best thing you can do is contact your Creditor immediately. Don’t wait until you are behind in your repayments, as you run the risk of having a late payment noted against your name on your credit file, and if in arrears past 60 days, you will be listed with a default on your credit file.

    If you use the words ‘Financial Hardship Variation’ your Creditor will consult with you to work out a new arrangement under these Financial Hardship provisions. They are not obligated to assist you in reducing or delaying your repayments, but they are required to make an official response to your request, and if you present them with a good case as to why and how you intend to repay your debt, as little as it may be right now, you might have a good chance.

    5. Clear your credit file of errors.

    Many people find they do all the hard work of making a significant dent in their debts and start saving towards a home or car loan, only to find their past comes back to haunt them.

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

    Whatever the situation, credit file defaults need to be treated very seriously. They are most times an instant negative for any bank who is thinking of lending you money.

    And the thing is…they hang around for 5 years. What are your financial goals 5 years from now????

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

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

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

    Many people get the run around from creditors when they try to do this – or they get bogged down in all the legalities.

    Unfortunately the potential is there to ruin your chances of getting the default removed if it is not handled the right way. We suggest you get a credit repairer on the case, they know the legislation and can work within it to force creditors to honour their obligations under Australian law and negotiate the removal of any errors from your credit report.

    Good luck in making this year the year you make money – and credit – work for you.

    Visit MyCRA’s main site www.mycra.com.au for more information or phone tollfree 1300 667 218.

    Image: renjith krishnan/ www.FreeDigitalPhotos.net

  • Have Your Say on Bill Shock

    Ever been overseas and returned home to find your mobile phone bill is as expensive as your plane ticket? You’re not alone. You may get a chance to have your say on what the telcos should do to stop bill shock and curb the excessively high data roaming charges which can see you in debt and threaten your credit rating in a new public consultation seeking to lift the telco industry.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair www.fixmybadcredit.com.au, https://www.facebook.com/FixMyBadCredit.com.au.

    The Government is welcoming public consultation on new standards to help Australians avoid bill shock while using their mobile phone overseas.

    As part of new guidelines for Telcos, set out through the new Telecommunications Consumer Protection (TCP) Code, the Australian Communications and Media Authority (ACMA) will begin consultation on developing an industry standard to help Australians best receive timely information about international roaming costs when they travel.

    Minister for Broadband, Communications, and the Digital Economy, Senator Stephen Conroy, said in a media release late last week that Australian consumers are being price gouged by telecommunications companies every time they want to make a mobile call, send a text or go online, when overseas.

    “The industry standard will be an important transparency measure. People will receive clear information about pricing, allowing them to better manage their spending and avoid bill shock.

    “We also expect that the extra scrutiny provided by the standard will encourage telecommunications companies to reduce their obscenely high prices and give consumers a better deal when they travel.”

    “I encourage everyone to have their say during this public consultation, which ends on 25 January,” Mr Conroy said.

    Here’s what the current draft standard proposes:

    A traveller receives two SMS messages when they switch on their phone when arriving overseas. The first would be sent within 10 minutes, warning the customer that extra charges will apply and allowing them to switch off international mobile roaming services.

    The second would arrive within 1 hour and must detail the cost for a standard call, an SMS, and 1Mb of data.

    The standard also requires mobile phone companies to develop cost effective monitoring tools for consumers to use when they travel overseas.

    The new standard is expected to be in operation by the middle of next year.

    In the past, we have found many times the telco customer has had difficulty disputing their phone charges before they are issued with a credit default. These credit listings can be hard to fight. Often the customer will say what they had first understood the plan to be for, or what they wanted the phone to do, was not what eventuated. This can come down to a he-said she-said situation, and the telcos – with all the power on their side can often come out on top.

    As credit repairers we see many telco customers for various reasons – in fact almost 26% of our credit repair clients have telco credit listings they need removed. Many complain of confusion over bills, date allowance and plans and also difficulties with resolving disputes – which see customers with bad credit even though they had been attempting to sort out the bill discrepancy.

    The multitude of official complaints in the area of ‘bill shock’ resulted in a major inquiry by the ACMA and the report – Reconnecting the Customer. This examined the root causes of the industry’s poor customer service and complaints-handling performance. The telco industry was asked to regulate or be regulated – and so the TCP Code was developed by the Communications Alliance (CA), and a final draft was registered in late July.

    That TCP Code came into effect on 1 September 2012. If the code proves to be effective, there will be significant positive changes for telco customers. This public consultation and is one such proposed change coming to fruition.

    So get in and have your say,

    ACMA public consultation: http://www.acma.gov.au/WEB/STANDARD/pc=PC_600133

  • Aussies “On the Move” need clear strategy to tie up financial loose ends.

    Media Release

    Aussies “On the Move” need clear strategy to tie up financial loose ends.

    Australian residents are as mobile as ever, according to a recent Australian Bureau of Statistics report, but an advocate for accurate credit reporting warns every time Australians move, they run the risk of damaging their credit rating by not tying up loose ends on their accounts.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says it is vitally important that consumers have a strategy for making a clean break at each residence to maintain the integrity of their credit rating.

    “Time and again we have the situation where clients apply for a home loan and are refused because they have ‘surprise bad credit’, which when we track it back for them is due to the fallout of accounts sent to their previous address,” Mr Doessel explains.

    The recent ABS report ‘Still on the Move’ examines internal migration across Australia between 2006 and 2011 censuses. The report revealed that 41.7% of Australian residents had moved in the five years prior to the August 9 2011 Census night.[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]

    Mr Doessel says the rate of Aussies on the move is reflected in the volume of moving-related credit issues, and these are not always the fault of the consumer.

    “For example, we had a client who needed their credit rating repaired because their Energy Provider could not work out that cancellation of their old account and installation at the new address meant that they had actually moved. Their final account was sent to their old address because they had not specifically provided a forwarding address,” he says.

    Mr Doessel provides 5 tips for keeping your credit rating in check when moving house:

    1. Let all your Creditors know you will be moving and give them a forwarding address.

    You are obliged to update your Creditors with your forwarding address when you move. When you make that call to your Credit Provider, be sure to make a note of the day, time and person you spoke to about the request.

    “Often we have people say they have told their telco or their energy company they are moving, and provided a forwarding address, but mail has still gone amiss and the client has ended up paying for it. If you have specific details of your call – the Creditor may be able to bring up the recording and verify your request,” Mr Doessel says.

    2. If ending an account with a Provider, request a final account.

    If you need to cancel your account, such as an Energy or home phone account when you move, make sure you request a final account for services. There may be incidental charges, or pay out fees as well as days accrued in the new bill period. Pay that notice as soon as possible.

    3. Don’t assume your account is finalised until you get it in writing.

    Once you have paid your final account, request a statement be sent in writing verifying the account is at an end. If you don’t receive that notice, chase it up.

    4. Cancel any direct debits.

    Places such as gyms and childcare centres operate payments via a separate direct debit company. If you have any direct debits set up, you should notify the company of the cancellation and of your forwarding address.

    Mr Doessel explains, “Don’t assume correspondence with your gym is enough to cancel that account. You will have signed a separate contract with the direct debit company, and you are just as obligated to them if you have missed payments, for whatever reason.”

    5. Redirect mail.

    Despite providing a forwarding address, and despite your attempts to finalise your accounts, there can be instances where a Credit Provider continues to send mail to your old address.

    “Creditors can and do make mistakes, and one common mistake is simple computer or human error with billing systems. To prevent their oversight from costing you your good name through bad credit, consider redirecting mail through Australia Post to your new address,” he says.

    Mr Doessel says Australians who have moved and have now been lumbered with surprise bad credit need not put up with it for 5 or even 7 years.

    “If your Creditor has an incorrect address for you and they have placed a default or Clear-out on your credit file then you should dispute your credit listing and insist your credit file reads accurately,” he says.

    /ENDS.

    Please contact:

    Graham Doessel – 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 Repair is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

     
    ——————————————————————————–

    [i] http://www.abs.gov.au/websitedbs/censushome.nsf/home/CO-68[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • The 7 deadly mistakes with credit that could harm your home loan application

    Media Release

    The 7 deadly mistakes with credit that could harm your home loan application

    Australians are making mistakes every day with credit, and some may be costly enough to mean they are blacklisted from getting a home loan or other credit for the next five years, a consumer advocate for accurate credit reporting warns.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says there is not nearly enough education around credit in Australia, and many people only get educated about their credit rating when they apply for a home loan.

    “Often it’s not until people apply for a home loan that they even know what a credit rating is, let alone understand that the responsibility for checking the accuracy of their credit rating rests with them,” Mr Doessel says.

    He provides seven deadly credit mistakes that many Australians unknowingly make:

    1. Making repayments late

    Previously it would take 60 days before a repayment fell into arrears and would be listed on your credit file. But under new credit reporting law – from December 2012 any payment to a licenced Creditor which is made late can be recorded on your credit file for two years and could impact your ability to get a home loan. [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]

    “Making repayments on time, every time will significantly reduce your chances of being refused a home loan down the track,” he says.

    2. Repaying only the minimum amount

    Snowballing interest charges can see people come unstuck until they reach the point where they are unable to pay and begin to get into arrears.

    With credit cards, and other finance agreements, pay much more than the minimum amount to avoid high interest charges.

    If you have debt which carries over on your card month to month you should look at a card that has a lower interest rate.

    3. Buying too much credit

    Ignore what the card company or bank sets for your limit – what can you comfortably afford to repay?

    Also, if you intend to apply for finance in the future, a lower credit limit looks better to a prospective lender – so if you don’t need it – consider reducing it.

    You should also leave some room in your finances over and above your credit debts.

    “Many people fall into default when they are ill or there are other emergency situations, because they have no room in their finances to pay for incidentals – and life does happen,” Mr Doessel says.

    4. Choosing the wrong kind of credit

    Make sure your credit suits you. Make it work for you, not the other way around. What kind of payer are you? What do you need the credit for? There’s no point getting a line of credit if you are the big-spender type – you are certain to get into trouble.

    When you choose a credit card – consider what you need it for. If you are going to use it a lot – perhaps the rewards points could be a deciding factor. But if you are only going to use it sporadically – maybe the annual fees should be more important.

    The same goes for any big ticket item you purchase using credit – like houses and cars. What does it need to do for you? What can you actually afford? How long will you need it for? Can you live comfortably with this debt?

    If you need to go down to one income at some point – will you be comfortable then?

    5. Making multiple credit applications

    When choosing credit that’s right for you, by all means do research but only apply for credit or give your personal details when you’re sure you want to proceed.

    “Many people don’t know that all credit enquiries are recorded on your credit file, and too many will be a detriment to your approvability – so only officially apply when you’re sure,” Mr Doessel says.

    6. Not checking credit statements

    You should check all bills and statements when they come in, and query anything you’re not sure about. Maybe you were charged twice for an item, or charged too much. It is a good way to be alerted early to identity theft as well. You should also check your bank account statements in the same way. Any discrepancy should be disputed immediately.

    7. Not checking your credit report

    Most people don’t know that every year they are able to request a copy of their credit report for free from Australia’s credit reporting agencies.

    If you find a credit infringement on your credit report and you don’t believe it should be there, or if you didn’t know about it, then it’s important to insist the discrepancy is rectified, as it will mean you are locked out of mainstream credit for between 5 and 7 years – depending on the listing type.

    Often people are told by Creditors and the agencies that the bad credit is there to stay for the term – it can’t be removed. But this may not be true.

    For professional advice on how to tackle Creditors and the credit reporting agencies about a listing which should not be there, you can contact a reputable credit repairer.

    “A credit repairer will conduct an audit-like investigation into the circumstances surrounding the listing, and assess the Creditor’s compliance with credit reporting and industry law, and negotiate for the removal of bad credit which is proven to be listed unlawfully by the Creditor,” Mr Doessel says.

    /ENDS.

    Please contact: Graham Doessel – 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://www.comlaw.gov.au/Details/C2012B00077

    Ambro/ www.FreeDigitalPhotos.net

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

  • Buying a home? 5 things you need to know about Australia’s new credit reporting laws before you apply for finance.

    Media Release

    Buying a home? 5 things you need to know about Australia’s new credit reporting laws before you apply for finance.

    Some major changes have occurred to Australia’s Privacy Laws, and home buyers need to know about them before they apply for finance. A consumer advocate for accurate credit reporting warns potential home buyers they need to get up to speed with some of the main changes to credit reporting which could see more people refused a home loan in the coming months and years ahead.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says some simple mistakes made with repayments now, could see people blacklisted from credit even before the Privacy Amendments (Enhancing Privacy Protection) Bill 2012’s March 2014 deadline for implementation.

    “Potential home buyers need to know that from this point on, they need to make every credit repayment on time to avoid having late payment information show up on their credit history and potentially ruin their chances of getting the home they want,” Mr Doessel says.

    Mr Doessel explains more about this change, and other factors in Australian credit reporting which impact your credit rating:

    1. Repayment History Information

    From December 2012, whether or not a credit account was paid on time will be part of your credit history and will be used when a lender is assessing your suitability for a home loan.

    The notation will remain as part of your credit history for 2 years.

    The Government intends for these reforms to decrease levels of over-indebtedness in the market.[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 is worried it could push more borrowers into higher interest rate loans due to being refused credit with mainstream lenders.

    “Many people pay bills late, for a variety of reasons – this doesn’t necessarily mean they intend for the account to go into default. But these late payers could find they end up refused credit, or charged thousands more in interest due to these notations,” he explains.

    2. Types of credit

    The new laws will now allow information on the type of credit accounts you have, and when they were opened and closed to be shown on your credit history. This will give lenders more ability to determine the relevance of each listed credit account for your specific situation.

    3. Credit limit of each account.

    The credit limit on each credit account will be used to assess the potential volume of credit the potential borrower could have access to.

    But there will be no way of telling what level of debt you actually have only what you could potentially redraw to.

    “It may be worth reducing unnecessary credit limits on your accounts before you make your application,” Mr Doessel says.

    4. Beware excess credit enquiries.

    Whenever a person other than you makes an enquiry on your credit history – that enquiry is recorded on your credit file.

    Mr Doessel says some lenders will decline a finance application due to too many credit enquiries, such as two enquiries within thirty days or six within the year.

    “By all means ask questions, and do your research on the best home loan for you, but when it comes to giving over your details, and making applications, leave that until you have decided which lender suits you best, to avoid being disadvantaged,” he says.

    5. It will still be up to you to ensure your credit file is accurate.

    With all of the new information available to lenders about your credit history, it is more important than ever for that information to be accurate.

    You can apply for your credit report for free every year by making a request to Australia’s credit reporting agencies – Veda Advantage, Dun & Bradstreet and Tasmanian Collection Services (if in Tasmania).

    “It is up to you to ensure your credit file reads accurately,” Mr Doessel says, “and the saving grace for this legislation is the improvements set to be implemented in 2014 around access and correction of your credit file.”

    From March 2014, Creditors will be forced to justify disputed credit listings. Notably, your Creditor will have to substantiate the information they report on your credit file if you dispute it.

    “This change is crucial, considering the power the Creditor has to impact your ability to obtain credit for years to come. Up till now, there has been little obligation within the legislation for the Creditor to justify credit listings, nor remove incorrect data,” Mr Doessel says.

    If the dispute escalates, you can complain directly to the Creditor’s Ombudsman, and in some instances may have a right to remedy under the direction of the Privacy Commissioner.

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

    /ENDS.

    Graham Doessel – 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. 4053
    MyCRA Credit Rating Repair is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

    ——————————————————————————–

    [i] http://www.attorneygeneral.gov.au/Media-releases/Pages/2012/Fourth%20Quarter/29November-2012-FamiliestobenefitasprivacyreformspasstheParliament.aspx

    Image: vichie81/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Miss a bill payment by one day and risk your credit rating: New Privacy Laws passed today.

    Media Release

    Miss a bill payment by one day and risk your credit rating: New Privacy Laws passed today.

    29 November 2012

    [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”][UPDATE: Listen to the with Privacy Commissioner, Mr Timothy Pilgrim and Graham Doessel on News Talk 4Bc ]

    The credit history of Australian consumers is about to go under the microscope following the passing in Parliament today of amendments to Australia’s Privacy laws, and a consumer advocate for accurate credit reporting says many consumers will not be prepared for the changes around credit reporting which are about to take place.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says most Australians won’t know that from December 2012, they need to make bill payments to licenced Creditors on time, every time to avoid having a late payment recorded against their name. He is calling for greater consumer education to avoid unfair and surprise bad credit.

    “Many people pay bills late, for a variety of reasons – this doesn’t necessarily mean they intend for the account to go into default. People who pay bills late often, by accident or otherwise need to be told that this habit could have a detrimental effect on their ability to obtain credit in the future.”

    Mr Doessel goes on to say “I believe the Government should do its best to ensure that every credit active individual knows about these important changes to credit reporting law prior to the reporting of repayment history on Australian credit files.”

    Amendments to Australia’s Privacy Act in the form of the Privacy Amendment (Enhancing Privacy Protection) Bill 2012 – which includes major changes to Australia’s credit reporting laws were passed in Parliament today and come into effect from March 2014.

    Privacy Commissioner Timothy Pilgrim has also warned consumers that they need to prepare for the changes around credit reporting.

    “If a person misses making a payment from as early as December 2012, it will be able to be recorded on their credit record and may affect their ability to access credit in the future. People will not only need to be vigilant about paying their bills on time, they should also make sure that the information held by these organisations is correct. In most cases they can do this for free’,” Mr Pilgrim said in a statement to the media.[i]

    Mr Doessel reiterates the importance for every consumer to ensure their credit report reads accurately in the coming months.

    “There will be so much more information open to lenders now, and consumers should routinely check their credit file, to ensure there are no inconsistencies, and to generally be aware of what is being said about them on their credit report that could see them refused credit in the future,” he says.

    Every credit file holder is able to obtain a copy of their credit report for free every year from one or more of Australia’s credit reporting agencies – Veda Advantage, Dun and Bradstreet and Tasmanian Collection Services (if in Tasmania).

    A report will be mailed to them within 10 working days. Or for a fee to the credit reporting agencies, they can request an urgent copy.

    “It is the consumer’s responsibility to maintain the accuracy of their own credit file, and it will be more important than ever now. People should be encouraged to request a free credit report every year – regardless of whether or not they intend to apply for credit in the near future,” Mr Doessel says.

    If consumers find inaccurate information or inconsistent data on their credit report they do have the right to have that information rectified.

    Mr Doessel says whilst new laws covering credit corrections within the Privacy Amendments (Enhancing Privacy Protection) Bill 2012 are intended to make the process of disputing unfair or inconsistent entries easier, lack of knowledge of credit reporting legislation could still disadvantage the consumer.

    “As it currently stands, disputing an unfair credit listing is a bit like a battle between David and Goliath, with the consumer rarely holding enough knowledge of what constitutes an unlawful credit listing to be able to remove it from their credit file on their own. It will be interesting to see if this will change after the March 2014 deadline,” he says.

    /ENDS.

    Graham Doessel – 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. 4053
    MyCRA Credit Repairs is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files.

     

    ——————————————————————————–

    [i] http://www.oaic.gov.au/news/media_releases/media_release_121129_privacy_changes.html[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Stay safe this Christmas: Scam victims should be worried about 5 year blacklisting on their credit rating

    Media Release

    Stay safe this Christmas: Scam victims should be worried about 5 year blacklisting on their credit rating

    As more Christmas scams come to the fore, a consumer advocate for accurate credit reporting is warning consumers that scammers are not just after the money in their bank accounts, but are after much more – their financial identity.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says consumers need to be wary of the opportunities fraudsters may take to misuse their personal information.

    “Scams and other fraud attempts are becoming much more sophisticated as profits get more lucrative. Many fraudsters are into building a profile of their victim – extracting layers of information which allows them to access credit in the victim’s name – including loans and even properties.”

    “The difficulty for recovery when someone has tapped in to your credit rating is that generally you have unpaid debts in your name, which are placed in default – which basically means for 5 years your own ability to obtain credit is ruined,” Mr Doessel says.

    This warning comes as the Australian Banker’s Association (ABA) last week announced reports of a telephone scam where fraudsters were impersonating them and offering instructions on how to obtain a ‘refund’ for overcharged bank fees.[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]

    The ABA said criminals asked customers to proceed to a post office to receive the so-called ‘refund’ – ranging from $5 000 – $7 000.

    Victims are then asked to wire money via Western Union for costs associated with the ‘refund’.

    But in addition, scammers also tacked on a request for personal details, which signifies an attempt to misuse those details in the future, possibly for identity theft purposes.

    Fraudsters asked these questions:

    – With whom do you bank?
    – For how long?
    – What is your credit card number?
    – What is your driver’s licence number?

    Mr Doessel says fraudsters are attempting to gather extra information from their victims over and above what they might already have in front of them.

    “If they have your full name plus who you bank with, and your driver’s licence number – they have the basic building blocks for an identity theft attempt. They can call the bank and have some kind of identity information on which to proceed with accessing bank accounts AND accessing further credit in your name,” he says.

    The bank refund phone scam has been added to a long list of scam attempts running over the past few months, and many more could emerge as Christmas approaches.

    Mr Doessel says sometimes people don’t know they have been a victim until after they apply for credit and are refused.

    “By that time, it is such a struggle to recover your good name. For an identity theft victim to have a chance at removing bad credit history, you must prove you didn’t initiate the credit in the first place. This can be difficult if the scam happened months or years before,” he says.

    What to do if you suspect you have fallen for a scam

    1. Contact the Police immediately. Don’t be embarrassed or dismiss it because you don’t think the amount was significant enough. It is only through identity theft being reported that data gets collected and appropriate preventative measures eventually get put in place.

    2. Contact your Bank. They should be able to flag your accounts so that no credit can be obtained in your name.

    3. Contact the credit reporting agencies that hold your credit file. In Australia, this is Veda Advantage, Dun and Bradstreet and TASCOL (if in Tasmania). You should inform them that you may be at risk of identity theft and they may have a plan of action for protecting your credit file.

    4. At this time, you should also order a copy of your credit report. If there are any inconsistencies on your credit report – change of address, strange credit enquiries and instances of credit you don’t believe you’ve access, then you may already be a victim – and should do all that’s possible to follow up on each account so as not to accrue defaults on your credit file that should not be there.

    5. If you find you have defaults that shouldn’t be there, take steps to remove them. Although it seemed so easy for the fraudster to use your good name in the first place, you are now faced with proving the case of identity theft with copious amounts of documentary evidence in order to get the credit listings removed from your credit file.

    If you have neither the time nor the knowledge of Australia’s credit reporting system and credit legislation that you may need to fight your case yourself, you can seek the help of a professional credit repairer.

    Visit www.mycra.com.au for more information on identity theft and bad credit or call MyCRA on 1300 667 218.

    /ENDS.

    Please contact:

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

    Graham Doessel – CEO Ph 3124 7133

    Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog 246 Stafford Rd, STAFFORD Qld

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

     

    ——————————————————————————–

    [i] http://www.bankers.asn.au/Media/Media-Releases/Media-Release-2012/Phone-Scam-Alert[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Christmas shoppers a target for fraudsters: the 12 scams of Christmas

    This Christmas, you may unknowingly put your credit rating at risk. We look at how ‘safe’ Australians really are online, and discover the ways you might wind up an identity theft victim and with a whole lot of bad credit history for Christmas.

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

    We are connected to the world via the web at a rate like never seen before. And because of this, more people than ever will be shopping online for Christmas presents this year.

    Here’s why:

    A. It’s easy…think parking, think crowds and think traipsing through shop after shop which for many people looks like too much effort.

    B. It saves time…the Christmas period is shocking for stretching time to the limit -work’s busy, your social life’s busy and the last thing many have time to do is any of A!

    C. It’s convenient…you can shop when you feel like it, at a time that works for you.

    D. It’s more relaxed…you can do it in your pyjamas, and you can do it with a glass of scotch.

    E. In some cases it may be cheaper…you can find cheap deals on goods, and you can also shop at different stores to get one-off items.

    BUT a word of warning people….

    If you’re not careful, it can be the most costly way to shop.

    Some alarming statistics about Australian online shoppers have just come to light from security company McAfee. Their new Holiday Shopping Study has found that out of 1,005 Australian adults, one in 10 believe there is no risk in connecting to free Wi-Fi, and nearly one in three don’t know how to identify a secure shopping site.

    If this is true – shoppers – get to know very quickly – or put down that ipad and get back to the shops otherwise you can not only risk losing money by paying through illegitimate websites but you could also download a virus or at worst be at risk of ruining your credit rating.

    There are scammers out everywhere willing to take your money – and they love Christmas time. You’re feeling generous and you’re a bit distracted. From a fraudster’s point of view, that’s perfect!

    McAfee’s study was featured in online business publication Smart Company’s article late last week titled ‘Virus experts warn: beware of the 12 online scams of Christmas’:

    “What makes the finding worse is that a third of Australians have either personally fallen victim to an online scam, or know someone who has.

    This is an extremely important finding, McAfee points out, as Australia has the highest rate of smartphone and tablet ownership out of all the countries surveyed including the United States and Canada.

    An impressive 69% of Aussies use a smartphone, tablet, or both – so it makes all the more sense they need to stay safe online.

    Yet we seem more willing than ever to disregard online safety. Over half of Australians say they’ll provide their name and age, and 38% say they’d give their phone number.
    But 25% don’t even pay attention to permissions when downloading apps,” the article says.

    Online fraud can be a basic scam to lure funds, but it is also becoming more and more sophisticated, and cyber-criminals are not only looking to steal credit card details, but are targeting your personal information.

    Identity theft is getting much more sophisticated as profits get more lucrative. Many fraudsters are into building a profile of their victim – obtaining layers of information which allows them to access large amounts of credit in the victim’s name.

    Some victims have had credit cards and loans taken out, even properties mortgaged in their names.

    The difficulty for recovery when someone has tapped in to your credit rating is that generally you have defaults listed in your name, which basically means for 5 years your ability to obtain credit is ruined.

    McAfee warns consumers in its blog ‘The top 12 scams of Christmas to watch out for’ – 2012. Take a look at make sure you don’t get caught out.

    1) Social media scams—Many of us use social media sites to connect with family, friends, and co-workers over the holidays, and the cybercriminals know that this is a good place to catch you off guard because we’re all “friends,” right? Here are some ways that criminals will use these channels to obtain shopper’s gift money, identity or other personal information:

    • Scammers use channels, like Facebook and Twitter, just like email and websites to scam consumers during the holidays. Be careful when liking Fan Pages, clicking on fake alerts from friends’ accounts that have been hacked, taking advantage of raffle’s, ads and deals that you get from “friends,” or installing suspicious “holiday deal” apps that give your private data away.

    • Twitter ads and special discounts for popular gifts are especially popular, and utilize blind, shortened links, many of which could easily be malicious. Criminals are getting savvier with authentic-looking social ads and deals that take consumers to legitimate looking websites. In order to take advantage of the deals or contests, they ask them for personal information that can obtain a shopper’s credit card number, email address, phone number or home address.

    2) Malicious Mobile Apps—As smartphone users we are app crazy, downloading over 25 billion apps[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”][1] for Android devices alone! But as the popularity of applications have grown, so have the chances that you could download a malicious application designed to steal your information or even send out premium-rate text messages without your knowledge. Consider this: A recent study found that 33%[2] of apps ask for more information than they need, such as access to your contacts or location.

    •TIP: So, if you unwrap a new smartphone this holiday season, make sure that you only download applications from official app stores and check other users’ reviews, as well as the app’s permission policies, before downloading. Software, such as McAfee Mobile Security, can also help protect you against dangerous apps.

    3) Travel Scams—Many of us travel to visit family and friends over the holidays and begin our journey online looking for deals on airfare, hotels, and rental cars. But before you book, keep in mind that the scammers are looking to hook you with too-good-to-be-true deals. Phony travel webpages with beautiful pictures and rock-bottom prices are used to get you to hand over your financial details.

    • Even when you’re already on the road you need to be careful. For example, the FBI recently warned travelers of a hotel Wi-Fi scam in which a malicious pop-up ad prompts computer users to install a popular software product before connecting to their hotel Wi-Fi.[3] If you agree to the installation, it downloads malware onto your machine.

    • TIP: Remember to perform a security software update before traveling, to guard you against the latest scams.

    4) Holiday Spam/Phishing— If you’re like most people, you’re probably familiar with spam emails containing questionable offers. But get ready, because soon many of these spam emails will take on holiday themes. Cheap Rolex watches and pharmaceuticals may be advertised as the “perfect gift” for that special someone. McAfee also expects to see an increase is holiday-themed phishing emails that try to trick you into revealing financial or personal details by posing as an offer from a legitimate business.
    TIP: Remember never to respond to a spam email, or click on an included link.

    5) The new iPad, iPhone 5, and other hot holiday gift scams—The kind of excitement and buzz surrounding Apple’s new iPad and iPhone 5 is just what cybercrooks dream of when they plot their scams. They will mention must-have holiday gifts in dangerous links, phony contests and phishing emails as a way to grab computer users’ attention. Once they’ve caught your eye, they can try to get you to reveal personal information or click on a dangerous link that could download malware onto your machine.

    TIP: Be suspicious of any deal mentioning hot holiday gift items—especially at extremely low prices—and try to verify the offer with the retailer involved.

    6) Skype Message Scare—People around the world will use Skype to connect with loved ones this holiday season, but they should be aware of a new Skype message scam that attempts to infect their machine, and even hold their files for ransom.

    The threat appears as a Skype instant message with the scam line “Lol is this your new profile pic?”. If you click on the included link, a Trojan downloads onto your hard drive, blasts the dangerous link to all of your contacts, and can even try to extort money from some PC users to regain access to their files.
    TIP: Never click on a suspicious link, even if it appears to come on from someone you know.

    7) Bogus gift cards—Gift cards are probably the perfect choice for a lot of people on your holiday list, and given their popularity, cybercriminals can’t help but want to get in on the action by offering bogus gift cards online.

    TIP: Be wary of buying gift cards from third parties; it’s best to buy from the official retailer. Just imagine how embarrassing it would be to find out that the gift card you gave your mother-in-law was fraudulent!

    8) Holiday SMiShing — “SMiSishing” is phishing via text message. Just like with email phishing, the scammer tries to lure you into revealing information or performing an action you normally wouldn’t do by pretending to be a legitimate organization. Since many of us like to keep a close eye on our bank accounts during the holidays, be wary of SMiShing messages that appear to come from your bank, asking you to verify information or visit a phony webpage.

    TIP: Remember that real banks won’t ask you to divulge personal information via text message. If you have any questions about your accounts, you should contact your bank directly.

    9) Phony E-tailers–No matter what gift you’re looking for, chances are you can find it quickly and easily online, but you still want to be careful in selecting which site to shop. Phony e-commerce sites, that appear real, try to lure you into typing in your credit card number and other personal details, often by promoting great deals. But, after obtaining your money and information, you never receive the merchandise, and your personal information is put at risk.

    • This is exactly what happened to customers of harbourelectronics.com, a copycat site of electronics repair store harborelectronics.net. It turns out that harbourelectronics.com was one of a host of the bogus e-commerce sites coming from the same IP address.

    • TIP: That’s why it’s important to shop at trusted and well-known e-commerce sites. If you’re shopping on a site for the first time, check other users’ reviews and verify that the phone number listed on the site is legitimate.

    10) Fake charities—This is one of the biggest scams of every holiday season. As we open up our hearts and wallets, the bad guys hope to get in on the giving by sending spam emails advertising fake charities. They may try to fool you into thinking that they are a real charity, such as the Red Cross, with a stolen logo and copycat text, or the charity may be entirely invented. For example, one man ran a bogus charity for the “U.S. Navy Veterans Association” and gathered $2 million from donors over five years![4]

    • TIP: If you want to give, it’s always safer to visit the charity’s legitimate website, and do a little research about the charity before you donate.

    11) Dangerous e-cards—E-Cards a popular way to send a quick “thank you” or holiday greeting, and there are plenty of free and paid e-card sites out there. And while most e-cards are safe, some are malicious and may contain spyware or viruses that download onto your computer once you click on the link to view the greeting.

    • Others ask you to click on an attachment to view the card, and then download a Trojan onto your machine. That’s why you should look for clues that the e-card is legitimate.

    • TIP: Make sure that the card comes from a well-known e-card site by checking the domain name of the included link. Also check to see that the sender is someone you actually know, and that there are no misspellings or other clues that the card is a fake.

    12) Phony classifieds—Online classified sites may be a great place to look for holiday gifts and part-time jobs, but beware of phony offers that asked for too much personal information or ask you to wire funds via Western Union, since these are most likely scams. If you’re going to purchase an item or apply for a job, try to do it in person in a public place.

    TIP: When purchasing an item, pay in cash and never agree to pay for an item before receiving it.

    If you do get caught out falling for a scam this Christmas, or clicking on a dodgy link – it is best to take steps to secure your computer (change passwords, run virus scans) your bank accounts, and also your credit file. Alert your Creditors to a possible identity theft issue and also contact the credit reporting agencies which hold information about your credit file. It is a good idea to check your credit file – and you can do this for free once per year. A credit report will be mailed to you within 10 working days.

    If you find anything on your credit file that doesn’t look right, or points to possible identity theft, let Police know immediately. If you need help recovering your good name so that you can take out credit in the next five years, you may need to call a professional credit repairer to help. Contact us on 1300 667 218 for more information on credit repair following identity theft or when any credit listing should not be on your credit file.

    Image: photostock/ www.FreeDigitalPhotos.net

    Image 2: Salvatore Vuono/ www.FreeDigitalPhotos.net

    Image 3: Stuart Miles/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • The risks you’re taking with credit this Christmas that could see you left without a home

    Media Release

    The risks you’re taking with credit this Christmas that could see you left without a home

    A consumer advocate for accurate credit reporting warns Australians who use credit over the Christmas period they should be cautious about the ways their credit rating can be put at risk, which could see them refused finance in the New Year.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says after the highs of Christmas, the New Year can see people weighed down by credit stress, and the reason is not always due to overspending.

    “Many people throw things on credit at Christmas and think nothing of it, but we should be on guard for the ways this can potentially lead to credit stress and bad credit history in the following months.”

    “If you’re lumbered with a bad credit rating, you’re generally locked out of mainstream credit for a significant time – between 5 and 7 years. You can be refused a home loan, and most other credit for that matter – even mobile phone plans.” Mr Doessel says.

    He says people have an increased risk of damaging their credit rating during Christmas and covers 5 major ways this can occur:

    1. Identity theft.

    Identity theft and fraud has grown in severity and volume to now be 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]

    Scammers are out in full force at Christmas, people can be lax with their personal information and credit cards are used more frequently and at a variety of locations.

    Security company, McAfee’s recently released their warning ’12 scams of Christmas’ hoping to warn consumers about where cybercriminals may be looking to take advantage of consumers over the festive months. Scams warnings are given for fake vacations, fake gifts and e-cards, malicious mobile apps and a multitude of online dangers including bogus websites and phishing scams.[ii]

    “If fraudsters are able to get hold of your personal details they have the key to your good credit rating. They can run up credit all over town in your name. Often it’s not until you apply for credit in your own right and are refused that you realise your credit file has been misused – but by then it’s too late. Your life is basically set to be turned upside down,” Mr Doessel says.

    2. Overlooking bill payments.

    With the busy lead up to Christmas, some people can find they overlook repayment of basic accounts. Then if they go on vacation, it can easily escalate the overdue account into default status.

    “Overdue bills for as little as $100 can be just as damaging to your credit file as missing a mortgage repayment. Any credit account which is more than 60 days overdue can be listed by the Creditor and will show on your credit rating. Basically any negative listing will hinder your chances of getting credit in the future,” Mr Doessel says.

    3. Moving and transfers.

    “A change of address is a very common reason bills and warning notices go unnoticed and unpaid – and you can have a bad credit rating attached to you that you have no idea about until you apply for a home loan,” he says.

    As Christmas and New Year is a very common time for transfers and other work changes to occur that could see people moving interstate, people should tie up all loose ends at their current address, ensuring all changes of address and accounts are settled and confirmed in writing to avoid being blacklisted for credit.

    4. Over committing and spiralling into debt.

    Some people feel the pressure to give so much they do so at the expense of their own budget and ultimately end up with a debt they cannot pay back.

    The consequence of this can be getting into more debt to pay the original debt. People then end up with loan commitments they can’t meet or other bills get neglected because they just can’t afford to pay it all. Creditors start to close in and their credit file is damaged.

    5. Overlooking errors and omissions from Creditors.

    Creditors may also be affected by Christmas. The volume of transactions may increase while staff decrease, putting pressure on some Creditors’ systems.

    For this reason it is crucial for people to keep watch on their own finances.

    “Despite being a busy period for all families, it is important to check your bank statements and bills at this time. Creditors can and do make mistakes with billing. Also keep abreast of which bills are due and when. If you notice you haven’t received a bill and you believe it’s due, you should chase it up. No news is in this case not good news, and could mean you have an overdue account noted on your file,” he says.

    Christmas is also a good time for people to check their credit file. They can request a free copy of their credit file from one or more of the credit reporting agencies and a credit report will be sent within 10 working days.

    “If there are errors on your credit report, or it contains negative listings – defaults, writs or Judgments which are unfair or shouldn’t be there, then it is important to know you have the right to have them rectified or removed,” Mr Doessel says.

    Contact MyCRA Credit Rating Repairs for more information on credit rating repair on 1300 667 218.

    /ENDS.

    Please contact:

    Graham Doessel – Director 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 leading credit rating repairer. We permanently remove defaults from credit files.

    Image: sixninepixels/ www.FreeDigitalPhotos.net

     

     

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    [i] http://www.crimecommission.gov.au/publications/crime-profile-series-fact-sheet/identity-crime

    (2) https://blogs.mcafee.com/consumer/12-scams-of-christmas-2012[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • More buyers apply for home loans, but dreams could be shattered by credit rating blunders.

    Media Release

    More buyers apply for home loans, but dreams could be shattered by credit rating blunders.

    A consumer advocate for accuracy in credit reporting says the finance sector should focus on educating prospective home buyers about their credit file in the wake of signs more Australians are capitalising on interest rate cuts and applying for home loans.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel, says many buyers will be caught out with a bad credit rating at the time of finance application, because they simply don’t know the importance of checking their credit file for inconsistencies beforehand.

    “We find 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,” Mr Doessel says.

    The warning comes as new housing figures from the Australian Bureau of Statistics released on Monday point to a continued rise in the number of home loans.

    September’s key figures reveal owner occupied housing commitments rose 0.9% to 46,395, up from an upwardly revised 45,983 in August.[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]

    With a possible new influx of buyers to the finance market, Mr Doessel says it is vital that people know about credit reporting and how it can impact their ability to get a home loan.

    He says many 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 and are refused, that they find out they have bad credit.

    “This surprise bad credit is happening to many people, from all walks of life – businessmen, families – we have even had a millionaire require our services to remove an error on his credit file so he could purchase a home for his wife,” he says.

    Bad credit is shown on the credit file for between 5 and 7 years, and most often impacts the credit file holder’s ability to get mainstream credit.

    “Most are forced into three scenarios – 1) ride out the 5 or so years until the listing falls off their credit rating; 2) get a home loan at a much higher interest rate with a non-conforming lender; or 3) dispute the credit listing which they believe shouldn’t be there,” Mr Doessel says.

    But he says at the time of finance application the process of investigation and complaint can be stressful and can sometimes mean the prospective borrower misses out on the home loan while the credit rating discrepancy is addressed.

    “Disputing and removing an unfair credit listing can be a difficult and time consuming process, made more stressful if the credit file holder has pressures from finance deadlines,” he says.

    People can check their credit file has the “all clear” before they apply for finance, by contacting Australia’s credit reporting agencies Veda Advantage, Dun and Bradstreet and TASCOL (if in Tasmania) and requesting a copy of their credit report – which is free once a year. This report is mailed within 10 working days, or for a fee to the credit reporting agency, it can be sent urgently.

    “If there are any inconsistencies or out and out errors on the credit file, generally thousands and thousands of dollars in interest is saved by having them removed, as the credit file holder can then take advantage of those interest rate cuts by applying for a home loan with a mainstream lender at competitive rates,” Mr Doessel says.

    For more information on removing or disputing credit rating errors, contact MyCRA Credit Rating Repairs on 1300 667 218.

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO Ph 3124 7133

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

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

    246 Stafford Rd, STAFFORD Qld

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

    ——————————————————————————–

    [i] http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5609.0Main%20Features1Sep%202012?opendocument&tabname=Summary&prodno=5609.0&issue=Sep%202012&num=&view=

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