MyCRA Specialist Credit Repair Lawyers

Tag: credit repair

  • Award winning broker turned advocate for credit reporting accuracy reveals the surprise bad credit stopping Aussies refinance.

    Media Release

    Award winning broker turned advocate for credit reporting accuracy reveals the surprise bad credit stopping Aussies refinance.

    Australians are looking to refinance at a rate of knots, but a consumer advocate says some home owners are discovering they have bad credit history when they attempt to refinance, despite believing their repayment record has been impeccable.

    Frugality sparked by the GFC and improved banking competition have pushed the number of refinanced properties to a 20-year high.

    Consumers have been urged to move their mortgage away from the ‘big four’ banks as a response to the raising of home loan rates, but a consumer advocate warns that many home owners may discover they have bad credit history, even if they think their repayment history has been impeccable.

    Former broker turned consumer advocate for credit reporting accuracy, Graham Doessel CEO of MyCRA Credit Rating Repairs, says it is essential that all existing home owners check their credit file is accurate before making an application for finance.

    “For many home owners it may have been years since they applied for major credit so it is important to know if their good name is compromised in any way before they make an application,” Mr Doessel explains.

    He says regardless of whether people have been diligent payers, creditors can and do make mistakes with credit reporting.

    “People can have many errors thrust upon them unknowingly – bill mix-ups, computer errors and human error can all contribute to these surprise black marks. Unfortunately any black mark on your credit rating will be an automatic decline with most lenders,” he warns.

    “Creditors don’t always comply with the law, and sometimes they make mistakes.”

    Approximately 63% of the clients who request credit rating repair through MyCRA Credit Rating Repairs have defaults, writs or Judgments which are listed in error on their credit file.

    “We have clients who are facing identity theft; some are caught in issues over separation from their spouse; some have been disputing the bill which went to default stage and many people are just victims of the fallout from inadequate billing procedures – wrong names, wrong addresses, human and computer errors,” Mr Doessel says.

    Under current credit reporting legislation, consumers are entitled to obtain a copy of their credit report from the credit reporting agencies once a year.

    People need to contact all the credit reporting agencies to request their report – as creditors have access to 3 agencies within mainland Australia and 4 in Tasmania. The report must be provided to them in writing within 10 days of the request.

    He says listings are not removed by creditors unless the file holder can provide adequate reason and lots of evidence as to why the listing should not be there.

    “Credit repair requires knowledge of the legislation, lots of evidence and perseverance. But for those people whose financial freedom is hindered because their credit file contains errors, it is a point worth fighting for,” he says.

    Despite credit file errors – there may be other reasons refinancing is not an option. Currently many home owners are facing falling property prices. Negative equity can halt any refinancing plans.

    Mr Doessel says home owners also need to also calculate the in and out fees that may be present on any new loan to ensure the switch is really saving them money.

    People who want more information on credit repair, or who wish to obtain a free copy of their credit file can contact MyCRA Credit Rating Repairs on 1300 667 218 or visit their website – www.mycra.com.au.

    /ENDS

    Please contact:

    Graham Doessel – CEO Ph 3124 7133

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

    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.

    http://www.news.com.au/money/property/property-price-falls-lock-homeowners-into-loans/story-e6frfmd0-1226305228916#ixzz1qHuXqibk
    http://www.mycra.com.au/media/television.php
    http://www.smh.com.au/articles/2004/02/09/1076175103983.html

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

     

  • 7 steps to fix bad credit history: A home buyer’s guide

    Media Release

    7 steps to fix bad credit history: A home buyer’s guide

    Buying a home can be nerve-wracking. There’s the deposit – have I saved enough? There’s your income – do I earn enough? There’s the home – have I paid the right price?

    When all of these factors combine to give you, on the face of it, a good chance of approval for finance then there’s the issue of choosing the right home loan, at the right rate, with the right factors for your future. So you go through all of these sometimes stressful aspects of property buying, and you make the official application for finance with your chosen lender. It all looks good…

    Until you are slapped in the face with an APPLICATION DECLINED. You should qualify for a home loan, but you don’t because your credit report shows up with a default.

    You have no idea what the default is for – you always pay your bills on time – but that little default from what looks like a utility company, is messing with your future. How can they refuse me a home loan based on this, you ask?

    Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs, says this is a scenario which frequently sees many Australians denied a home loan.

    “A default will impact your ability to obtain credit generally for the entire time it is listed on your credit file – which is 5 years. So – for 5 years you will have a hard time getting credit anywhere, from mortgages to car loans to credit cards and even mobile phone plans,” Mr Doessel says.

    He says people who find themselves the bearer of bad credit have two options. They can wait for 5 years, or they can investigate the validity of the listing.

    “Mistakes can and do happen. Mistakes in credit reporting are most times only picked up by the credit file holder, so if you think there is something amiss with your credit file it is up to you to put it right,” he says.

    7 Steps to Fixing Your Bad Credit History

    1. Determine what account the default is for.

    If you don’t have a copy of your credit report, you will need to order one. If you haven’t ordered a copy in the last 12 months, it will be free from the credit reporting agencies in Australia. They are Veda Advantage, Dun & Bradstreet, and Tasmanian Collection Service (if in Tasmania). You may have listings with one or all of these credit reporting agencies. They will take 10 working days to send you a copy of your report. For a fee you can have one sent to you urgently.

    On your credit file, will be the company the default is with, and an account number. This should correspond with an account you have with them. If it doesn’t, or if you don’t have any accounts with the company in question, there is a good chance there may be a mistake on your credit file.

    2. Gather all your information first, and try and determine how the default made its way to your credit file.

    3. Before you call the company in question, sort out what you know about the situation.

    Have they made a mistake? How have they made it?

    4. Write to the Creditor to ask for information on the account.

    You may need to find out more about how the default got there. Every company keeps a record of its customers and you can write to them and request your account records to date.

    5. Decide on how you’re going to tackle them.

    Now you want to try and negotiate for the Creditor to remove your default. Don’t go in guns blazing – bear in mind, there is nothing to say they have to remove the default. What you want to do is encourage them to do the right thing by you.

    6. It is going to be hard going.

    Most people find it really hard to correct their credit listing themselves –especially if it’s complicated. For one, the Creditor has to comply with a whole heap of legislation that crosses different codes, and if you don’t know legally where they may have made errors – it’s pretty hard to persuade them they have done the wrong thing. And also it’s taking the time to get to know it. Secondly, negotiating anything on your own behalf can be tricky – the old foot in the mouth routine can get you into trouble and see you stuck with the listing for the whole term. In reality, many people trying to fix their own credit rating get told they can have the listing marked as paid, but it is never removed. This is not enough to guarantee you the home loan. If you were able to show cause as to why the listing was put on your credit file unlawfully, there is a chance it will actually be removed.

    7. Consider getting a professional on board. For a pain-free approach – at any time, you can hire the services of a credit repair professional. Most of them will look after getting a free copy of your credit file for you, order your documents from the Creditor as well as directly negotiate with them to remove your bad credit, based on the relevant legislation applicable to your case. And most importantly, they will probably think of things you had never thought of to strengthen your case for the default removal. This is your best chance at getting the listing removed completely from your credit file, which will allow you to apply for finance with a mainstream lender again.

    Mr Doessel says credit repair is not suitably for everyone, and sometimes if people have ‘done the crime’, they may need to do the time. He says if you are a serial offender for late payments, or if you are currently struggling to keep your head above water, then new credit- especially major credit such as a mortgage- is NOT going to make it all better.

    “But if you have been unfairly treated, or there has been a mistake on your credit file, then you have a right to insist on that inconsistent listing to be removed or corrected,” he says.

    /ENDS

    Please contact:

    Graham Doessel – Founder and CEO MyCRA Credit Rating Repairs Ph 3124 7133

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

    Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog 246 Stafford Rd, STAFFORD Qld
    MyCRA Credit Rating Repairs is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

    Background

    Some reports suggest there may be 14% of Australians with adverse listings on their credit file. http://www.savingsguide.com.au/how-do-i-check-my-credit-file-for-a-bad-credit-rating/

    It is not known for sure how many of the over 16 million credit files in Australia could contain errors or inconsistencies. [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][i]

    Recently a Veda Advantage spokesperson commented on the possible number of errors on credit reports within Veda. He admitted errors within their system alone amounted to 1%.

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

    I estimate the real figure across the board for credit file errors not detected by agency systems could be much higher.

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

    It revealed 34% of the credit files surveyed contained errors. [1][iii]

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

    Transferring those figures from the Choice study to the number of credit files in Australia today, could balloon the figures to almost 5 million errors, inconsistencies or flaws.

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    [i][i] http://www.mycreditfile.com.au/about/

    [i][ii] http://www.mycra.com.au/media/television.php

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

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

  • VISA says ‘pens down’ to prevent credit card fraud

    Plastic fantastic transactions will no longer be signed off on as a proof of identity, but will require a PIN number to authorise. In the news today, VISA has announced it will phase out signature payments by April 1, 2013. We look at this decision, and address credit card fraud, and the ways in which your credit rating can be compromised because of it.

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

    It was reported by the Sydney Morning Herald today ‘Signing off: credit card giant ditches pens for PINS’, the movement to PIN and card-chip only transactions has been prompted by the need for increased security on credit cards.

    The move is expected to reduce signature-based credit card fraud which has been on the rise over the last two years – from 38 out of 100,000 transactions in 2010 to 52 out of 100,000 transactions in 2011.

    Visa spokeswoman Judy Shaw said the change was part of a comprehensive security plan to phase out the use of signatures in favour of PIN and card chips, which are already widely used by customers in stores and ATMs.

    “At the moment we’re working with financial institutions and other card schemes to discuss a uniform approach to chip and PIN use across the industry,” she told the Sydney Morning Herald.

    “It will include a communication program so that cardholders are aware of their PINs and know how to use them,” she said.

    But rival American Express will still allow customers to confirm purchases with signatures although cards are issued with chips.

    Garry Duursma, Vice President at eftpos services company Tyro, told SMH abandoning signatures will reduce the incidence of card-based fraud, but warned it could potentially open a new risk if the restaurant’s eftpos system isn’t properly integrated with the restaurant’s bank account system.

    This demonstrates that credit cards are not always the safest way to pay.

    In instances of credit card fraud, it is not always as simple as reimbursing the victim for unauthorised transactions.

    Whenever a criminal is able to access a person’s credit card details, or any of their personal information – there is a chance the victim can have not only unauthorised transactions issued in their name, but possibly new credit taken out as well.

    Credit card fraud can take on a myriad of forms – but it can be quite sophisticated, and in those instances criminals may gain access to additional forms of credit – new cards, loans even mortgages.

    If the victim is unaware of the fraud right away and their credit file ends up with defaults – they can be blacklisted from obtaining credit for 5 years. That one instance of credit card fraud can end up financially crippling the victim. They can’t borrow for anything – they can’t even take out a mobile phone plan.

    Here is one way someone may be a victim of identity theft through their credit card:

    In October last year, New York Police made major arrests of 111 people involved in five separate identity theft rings involving counterparts in China, Europe and the Middle East.

    The victims had credit cards skimmed at many New York shops, restaurants and even banks dating back to 2010.

    Then details on the credit cards where on-sold and duplicate cards were made that were then used to purchase and re-sell high-end goods such as electrical items.

    The Herald Sun reported at the time that authorities had calculated more than $US13 million ($13.4 million) was spent by the fraudsters on iPads, iPhones, computers, watches and fancy handbags from Gucci and Louis Vuitton.

    The ACCC’s SCAMWatch says a credit card scam can come in many forms. For example, scammers may use spyware or some other scam to obtain their victim’s credit card details. A scammer might steal or trick someone into telling them their security code (the three or four digit code on the card) and then make purchases over the internet or the telephone. If they know their PIN, they could also get cash advances from an ATM using a ‘cloned’ credit card (where the victim’s details have been copied onto the magnetic strip of another card).

    Of course, there is also a danger of someone using a credit card if it has been physically lost or stolen.

    Many types of fraud can also directly threaten the victim’s credit rating – such as account takeovers by fraudsters, and instances where criminals take out new credit in the victim’s name. It doesn’t even have to be for a large sum in some cases to be a massive blow to the victim’s ability to obtain credit. I have seen people get refused a home loan due to a default for as little as $100.

    Here are the ACCC’s signs to be aware of in relation to credit card fraud:

    Warning signs

    There are transactions listed in your credit card statement that you don’t understand.
    You have given your credit card details to someone you now suspect may not be trustworthy (perhaps over the internet).
    You have lost your card.
    You have kept your security information (eg your PIN or the access code on your card) written down somewhere near your card and you find that it is missing

    Some preventative steps against credit card fraud

    – Always check the ATM or EFTPOS terminal before using it. Look out for any suspicious boxes that could be skimming devices. If in doubt – don’t use it.
    – Always cover your PIN when making transactions.
    – Never let anyone walk out of sight with your credit card.
    – Consider paying cash on nights out and leave the cards where they are safe.
    – Always check your card statements and report any unauthorised transactions – however small – to the bank immediately. Sometimes ‘test’ withdrawals are made by criminals to see if the unauthorised transaction goes undetected, before more significant amounts are stolen.
    – Regularly keep up to date with what is on your credit file – which would reveal if defaults have been issued without your knowledge. People can check their credit file by obtaining a written report for free every 12 months, from each of Australia’s credit reporting agencies. But if they are suspicious of or vulnerable to fraud they can also for a fee obtain a credit report more often.
    – If there are any discrepancies of credit or adverse listings that should not be there they should act immediately to notify Police. This crime is not very widely reported. But it is only through people reporting it that any real statistics get collated. Likewise, if people want to try and repair their credit rating, the first thing I tell them is to make sure they have a Police report.

    For more information on restoring a credit rating following credit card fraud or any form of identity theft, contact MyCRA Credit Repairs on 1300 667 218 www.mycra.com.au.

    Image: adamr/ www.FreeDigitalPhotos.net

  • First home owners trapped in their current home loan and locked out of refinancing

    Despite massive interest rate cuts, and the positive jump in the number of first home buyers entering the market, those that are looking to refinance are getting rejected at a rate of knots due to reduced equity in their homes, according to JP Morgan. Banks are being choosy about who they lend to, and those that are trying to refinance their first home are doing it tough. They say this will dampen our housing market for some time. We look at this issue, and other issues around credit history which may impact on a successful refinance.

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

    The ‘JP Morgan Mortgage Industry Report Vol 16′ focuses on recent mortgage approvals data. It paints a rather gloomy view of our housing market in Australia.

    The executive summary of the report details that although lower mortgage rates have meant borrowers have been able to reduce debt, the cuts are not spurring on mortgage approvals.

    “Interestingly, not only are the volume of approvals weak, but the average value of approvals is declining. While this may simplistically be dismissed as a broader indication of stalled house prices, we conclude that a degree of tightness for refinancings is evident – particularly for First Time Buyers,” it is reported…

    “Growth in the average value of each form of owner occupied approval is now in negative territory. This is the first time this has occurred since data became available in the early 1990’s! One key reason we offer is a significant reduction in the LVR at which refinancings are taking place.”

    Housing credit growth is at its lowest level since the mid-1970s, and JP Morgan is expecting low rates of credit growth to continue or to at worst decline rather than do a “quick rebound off the back of lower interest rates.”

    They say first home owners are facing the bulk of the rejections. They are increasingly finding themselves trapped in their current home loan as banks refuse their applications for new ones.

    “Specifically they haven’t absorbed enough loan devaluation ratio in terms of the house prices being flat and they haven’t had sufficient time to actually make a dent in the mortgage through repayments,” Scott Manning, Banking Analyst with JP Morgan told ABC’s The Business last week.

    This report is in keeping with RP Data information released in July that showed more home owners were slipping into negative equity. The Sydney Morning Herald reported in it’s story ‘More homes slipping into negative equity as prices fall’ that in the three months to December last year,  6.4 per cent of homes were valued at less than their purchase price, a rise of 1.5 percentage points.

    “Within the 6.4 per cent, 27 per cent of people who owned a home for one to two years had properties worth less than their purchase price.

    By contrast, only about 1 per cent of owners holding their property for between nine and 10 years were in the same situation, according to property analysts RP Data.

    So with many consumers experiencing reduced equity which is leading to more rejections by lenders, the other factor that comes in to play is rejection for refinancing because of bad credit history.

    Surprise bad credit that prevents refinancing

    Many times people don’t know they have bad credit history until they apply for finance.

    Bad credit history can ruin plans to refinance even if people think they have been up to date with all of their repayments – due to errors or inconsistencies on the credit file.

    Phone companies, utility companies and stores can all default consumers for late payments. The consumer may or may not be aware this has occurred (although they should be) and it may or may not be a legitimate listing (but it should be). Yet once that default, or other credit listing is placed on the consumer’s credit file, they are locked out of credit for the term of the listing – between 5 and 7 years – even if they have plenty of equity in their home.

    This can be a valid reason why people can apply to refinance and be declined, despite being able to demonstrate consistent repayments on their current home loan.

    If banks continue to err on the side of caution with their lending criteria – then a clean credit file will remain essential to meeting any risk assessment a bank can put up.

    So how many credit files contain errors? The volume of credit file errors on Australian credit files is uncertain.

    A spokesperson from credit reporting agency, Veda Advantage estimated 1% of the 250,000 credit reports they give out as a credit reporting agency to Australians every year contain a material error on the credit file.

    But the Australian Consumer Association (now Choice) survey from 2004 revealed that 34% of the credit files surveyed in their small scale study contained errors or inconsistencies.

    And the real numbers? They may be somewhere in between.

    Approximately 63% of the incoming clients with MyCRA Credit Rating Repairs have defaults, writs or Judgments which are listed in error on their credit file.

    We have clients who are facing identity theft; some are caught in issues over separation from their spouse; some have been disputing the bill which went to default stage and many people are just victims of the fallout from inadequate billing procedures – wrong names, wrong addresses, human and computer errors.

    Listings such as defaults, writs, Judgments and clearouts are not removed by creditors unless the credit file holder can provide adequate reason and lots of evidence as to why the listing should not be there.

    Credit repair requires knowledge of the legislation, lots of evidence and perseverance. But if the consumer’s financial freedom is hindered because their credit file contains errors, it is a point worth fighting for.

    If you need help with credit repair call us on 1300 667 218 or visit our main site: www.mycra.com.au.

    Image: YaiSirichai/ www.FreeDigitalPhotos.net

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

  • They’re ba-ack again! Fraudsters change tactics on Microsoft virus scam

    If you own a computer – or a telephone for that matter – you may be vulnerable to computer-related scam attempts. The old Microsoft virus scam may have been shut down, but a new one has popped up in its place. We look at the current computer cold call scam warning, what you should do if you are called by these scammers, and what the ramifications of falling for this scam could be for your financial identity and credit file.

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

    Remember the scam going around where fraudsters were claiming to be from Microsoft and were cold calling in Australia to offer “technical support” to remotely assist in clearing viruses off home computers?

    First detected in 2010, the ‘Microsoft Phone Scam’ was clever, and caught out thousands. Callers knew the victim’s name and address. These fake security engineers were claiming to see problems with the victim’s computer and asking whether the victim had noticed their computer becoming slower recently.

    They went on to offer to take over the machine and fix the problems. The scammers were using legitimate remote access software, such as LogMeIn, TeamView and Ammyy.

    Scammers then requested money for this ‘service.’ On top of that, it put the victim’s personal and banking details at risk. It also gave the scammers remote access to their computer, which can potentially lead to infected computers and pilfering of personal information via keyloggers.

    Gizmodo’s recent article ‘Global Operation Sees Infamous ‘Microsoft’ Scammers Finally Taken Down [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”][Updated]’ explained the extent of the success of the scam prior to its takedown:

    Three years on from the first report into the ACMA about the Microsoft scammers, over 10,000 complaints have been recorded. The ACMA says that the worst point came two years ago, when every second complaint to the agency was about the Microsoft scammers. This was in 2011 — a year when scam activity had doubled on the previous period. 52 per cent of the 83,000 scam complaints the ACMA received in 2011 presented as phone scams. All in all, in that 12 months, Australians lost a total of $85.6 million to various scammers.

    Gizmodo reported international efforts from Australia, Canada and the United States brought down U.S. based scammers only a couple of weeks ago. The scammers became the first individuals to be caught in connection with the scam. They’ve had their assets frozen and they are presumably now awaiting a hearing over fraud charges.

    Not to be dismayed, scammers have obviously thought the gig was too lucrative to dismantle yet – and they have changed tactics – hitting those original victims with yet another scam. As if they hadn’t suffered enough!

    On Friday Stay Smart Online issued a warning that computer-related scams were doing the rounds again. It may be important for those who may have been targeted last time.

    “Following international efforts by agencies to close down the infamous ‘Microsoft imposter scam’, reported earlier this month, examples of scammers responding with new approaches have been noted.

    This includes scammers making follow up calls to previous targets of the original scam, offering apologies and refunds in response to the closing down of (fake) support they provided previously.

    Scammers may also claim to be from a foreign government, foreign law enforcement agency or bank, and offer to recover the money you initially lost, in return for a fee,” SSO notes in its warning.

    Your personal information in the wrong hands can lead to identity theft which threatens the health of your credit rating. Fraudsters can duplicate your identity and take out credit in your name – leaving you with debts you didn’t initiate and bad credit from outstanding accounts in your name.

    Think recovery would be easy? Think again!

    Clearing bad credit history is always difficult for individuals to undertake. Most enquiries will result in Creditors telling you that bad credit is there to stay for the term of the listing (usually 5 years). The only thing you can do to change that is to prove there is an inconsistency by demonstrating that the listing was put there unlawfully. An identity theft victim’s task is then to prove that they did not initiate the credit in the first place, but proof is not always easy to obtain – especially when you have no idea of exactly how the fraud occurred. Many people don’t know they are victims until they go to obtain credit and are refused because their credit file is riddled with defaults.

    So what should you do if you get a phone call from one of these guys? SSO gives this advice:

    Suspect: Don’t accept anything at face value. Don’t make a payment over the phone or online without first checking the details.

    Think: Recognise the signs. If you’re being pressured to act, disclose personal details or send money to a stranger, it’s almost certainly a scam. (Microsoft never makes unsolicited phone calls about its products.)

    Report: Act to report the scam. Tell SCAMwatch and help stop scammers in their tracks.

    Ignore: Never respond. Hang up or delete the SMS or email after reporting.

    If you have had your credit file destroyed by identity theft, and need help recovering your good name – contact a professional Credit Repair Advisor on 1300 667 218 or visit the MyCRA Credit Rating Repairs website www.mycra.com.au. Professional credit repair can offer you the best chance of being able to clear bad history from identity theft for good.[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • It’s not credit for Christmas, says DnB

    Christmas credit may not be ‘on the cards’ for shoppers this year. Due to concern about financial security in Australia, it is predicted shoppers will continue to tighten their purse strings over the Christmas period, with less predicted to spend money on non-essential items and credit usage predicted to drop, according to credit reporting agency Dun & Bradstreet.

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

    Findings from Dun & Bradstreet’s latest Consumer Credit Expectations Survey, which measures expectations for savings, credit usage, spending and debt performance during the December quarter 2012, show half of Australia’s households are less likely to spend on non-essentials in the coming months.

    The survey showed:

    • One in three (29%) are more inclined to save than they were 12 months ago.
    • 56 per cent of Australians are concerned about their personal financial situation.
    • 37 per cent of households less likely to use a credit card to pay for non-essential items over Christmas compared to the same period last year, while just 16 per cent plan to apply for a new credit product or limit increase.

    Dun & Bradstreet notes that the Reserve Bank’s decision to lower interest rates due to slower economic growth comes as households reduce debt and increase savings as a buffer against economic instability, including the risk of rising unemployment. The bank is now predicting more moderate and sustainable credit growth off the back of this trend in consumer behaviour.

    Dun & Bradstreet General Manager, Danielle Woods, says the conservative consumer outlook could have a significant negative impact on businesses reliant on the Christmas rush.

    “An increasing number of Australians are concerned about their financial security and this is weighing heavily on their plans for the Christmas period,” Ms Woods said.

    “Prioritising saving over non-essential spending is a positive for the balance sheets of Australian households and the Reserve Bank is certainly encouraging this behaviour, in light of uncertain employment conditions. However, it could have detrimental flow on effects for businesses that are looking to Christmas to drive an uplift in sales.”

    However DnB also says, while consumers are planning to avoid non-essential spending and non-essential credit usage during the Christmas period, a significant proportion will need to rely on existing lines of credit to cover the cost of living.

    Forty per cent of 35-49 year olds will use credit to cover expenses they couldn’t otherwise afford, up from 35 per cent during the December quarter 2011. In addition, 60 per cent of this demographic are expressing concern over their financial situation and one in three (35%) would last no longer than one month on their current savings without full-time employment.

    This survey reveals a similar sentiment from Australian Bureau of Statistics figures released in September this year, showing one in seven Australian households is spending more than it earns, as the working poor struggle with monster mortgages and surging power bills.

    “Nearly 8 per cent of the nation’s richest households were living on credit, the Australian Bureau of Statistics reported yesterday.

    Of the top 20 per cent of households earning the most money, 3 per cent could not afford to pay a gas, electricity or phone bill on time during 2009-10.

    Of the poorest 20 per cent of households, one in five could not pay their bills on time and one in four spent more than they earned”, it was revealed in news.com.au ‘Aussie strugglers living beyond means’.

    So it seems the trend is continuing that most people are batting down the hatches and reducing their spending in order to pay down debts – but there are sections of the community who are still struggling due to rising costs of living and over-commitment. This seems apparent regardless of income. So for those people, credit for Christmas may be a reality.

    Causes for over-commitment can be a simple inability to manage money – wanting more than they can afford. Or in some cases, over-commitment can be a gradual thing – sometimes caused by expensive credit as a result of bad credit history. There have been reports that possibly as many as 3,000,000 Australians are impacted by bad credit history.

    If someone lands with a bad credit rating, it can completely change their financial situation. The black marks placed there by creditors show up on the credit file for 5 years. Bad credit can limit choices and can perpetuate the debt cycle by leading people to choose loans with higher interest rates and more fees, so the struggle to make repayments can be even harder.

    If the person with bad credit history wants to try and start again with credit, it may be possible to wipe the slate clean  and remove bad credit history, particularly if it should not be there, or was incorrect in the first place.  If the credit file contains inconsistencies, that person may be a good candidate for credit repair.

    A credit repairer can work with creditors on behalf of the client to identify inconsistencies and negotiate to clear the credit file of those defaults, clear-outs, writs and Judgments which contain errors, are unjust or just should not be there. A clear credit rating would give them the financial freedom to use credit whenever they need to at competitive rates.

    For advice about credit repair contact a  Credit Repair Advisor on 1300 667 218 or visit MyCRA Credit Rating Repairs website www.mycra.com.au.

     

  • Mandatory data breach notification finally on the table in Australia

    Should organisations be required by law to make data breach notifications when they occur? The Australian government has finally put this topic to the Australian public following the release of their discussion paper. This is long overdue so that customers who have their personal information unsecured in some way through a company data breach are notified and are able to take swift steps to secure their own records and personal information from identity crime. We look at why these laws are so important and how a data breach can impact a person’s credit file.

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

    Yesterday the Australian Government released a statement to the media seeking views on the introduction of mandatory data breach notification laws, which aims to bolster privacy protections for Australians’ personal information in digital databases.

    Attorney-General Nicola Roxon said that it was timely for a public discussion on how legislation might deal with data breaches, such as when private records are obtained by hackers.

    “Australians who transact online rightfully expect their personal information will be protected,” Ms Roxon said.

    “More personal information about Australians than ever before is held online, and several high profile data breaches have shown that this information can be susceptible to hackers.

    Those high profile data breaches include the Sony data breach in 2011, First State Super scandal in the same year; this year the Zappos data breach and the Telstra data breach to name but a few instances where the personal information of Australians was exposed to hackers. What these incidents did is highlight the gaping hole in Australia’s privacy legislation which needed to be filled to protect consumers.

    Whilst organisations are encouraged to disclose data breaches to the Commonwealth Privacy Commissioner, it has not been mandatory to do so. There has been much criticism over companies “holding out” on their customers following a data breach, and waiting days or up to a week or so to notify customers that their personal information may be at risk.

    During this time, it has been argued that hackers have had free access to this personal information without the customer doing anything to minimise their own risk, such as cancelling accounts, changing passwords and flagging their credit accounts and credit file.

    The Australian Privacy Commissioner, Mr Timothy Pilgrim has had little recourse within legislation to deal with lack of notification following a data breach.

    In his statement to the media, Mr Pilgrim said in 2011–12, the Office of the Australian Information Commissioner (OAIC) received 46 data breach notifications, an 18% decrease from the number of DBNs received in 2010–11.

    ‘This decrease in notifications is difficult to explain but I have seen reports that suggest we are only being notified of a small percentage of data breaches that are occurring. It is very concerning that many of incidents may be going unreported and customers are unaware that their personal information may be compromised,’ Mr Pilgrim said.

    He has officially supported the release of the discussion paper.

    ‘…Privacy breach notification is an important issue that needs community debate, and I’m sure there will be a wide range of views expressed on whether this notification should be mandatory.’ Mr Pilgrim said.

    ‘Currently there is no legal requirement in Australia for organisations to notify individuals when a privacy breach occurs. However, I believe that where personal information has been compromised, notification can be essential in helping individuals to regain control of that information. For example, an individual can take steps to regain control of their identity and personal information by changing passwords or account numbers if they know that a data breach has occurred,’ Mr Pilgrim said.

    We agree this is an area which is overdue for going under the legislative spotlight. We can’t take lightly the possibility that any company that keeps data on its customers could be exposed to data breaches. Identity theft is becoming more prevalent, and personal information is lucrative for fraudsters.

    Unfortunately it seems everywhere people turn some company has been hacked – and it seems every entity with a computer is vulnerable. It is still extremely scary the level of risk peoples’ personal information undergoes these days when it is stored online.

    Personal information in the wrong hands can lead not only to identity fraud, but the misuse of the victim’s credit file, which can have significant long term consequences.

    A lot of identity fraud is committed by piecing together enough personal information from different sources in order for criminals to take out credit in the victim’s name. Often victims don’t know about it right away – and that’s where their credit file can be compromised.

    Once the victim’s credit rating is damaged due to defaults from this ‘stolen’ credit, they are facing some difficult times repairing their credit rating in order to get their life back on track.

    These victims often can’t even get a mobile phone in their name. It need not be large-scale fraud to be a massive blow to their financial future – defaults for as little as $100 will stop someone from getting a home loan.

    Once an unpaid account goes to default stage, the account may be listed by the creditor as a default on a person’s credit file. Under current legislation, defaults remain on the credit file for a 5 year period.

    What is not widely known is how difficult removing credit listings which shouldn’t be there can be – even if the individual has been the victim of identity theft. There is no guarantee that the identity theft victim will have the defaults removed from their credit file. The onus is on them to prove their case and provide copious amounts of documentary evidence.

    This is where often victims who need to recover their credit rating can benefit from third party assistance, such as a credit repair company, to assist with proving the victim did not intitate the credit, help with a case for removal and negotiate on the victim’s behalf.

    But the best method is prevention – and this can be difficult for victims to have any control over. They leave their personal information with a company, and must trust that their systems are working and that their information is safe.

    The only ways people can ensure their details are safe or dealt with safely are to:

    a) Demand that the companies they deal with are protective over their customers’ personal information. They should demand companies have strong IT systems.

    b) Adopt a need-to-know basis for disclosing their personal information. They should always question the need for their details to be handed over. If it is not essential, they shouldn’t do it; and

    b) Demand our country adopt mandatory data breach notification laws so we can, as Mr Pilgrim describes, have our organisations “embed a culture that values and respects privacy.”

    Image: phanlop88/ www.FreeDigitalPhotos.net

  • Skype users in Australia warned of identity theft threat

    The Stay Smart Online (SSO) Advisory service has issued a warning to Skype users this week about messages circulating the internet voice and video service which contain malware. Known as  ‘Dorkbots’, the malicious software can overtake your computer if you click the link in the message, infecting your computer and opening you up to identity theft. We show you what to look out for, and how you can be at risk of identity theft and other nasties which can impact your life and your credit rating.

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

    SSO Advisory is warning users to be careful about clicking on a link coming from a Skype instant message.

    Skype issued a warning on October 9 via the security section of their website about the ‘Dorkbot’ malware that is currently spreading via Skype.

    Users may receive a message asking ‘lol is this your new profile pic?, along with a link. You are warned not to click this link. This message may come from friends in your Skype contacts lists.

    If the link is clicked, the malware infects your computer. It may also cause your computer to become part of what is known as a ‘botnet’. A botnet is a group of compromised (infected by malware) computers that are used by criminals to carry out attacks on other computer systems.

    Dorkbot variants may also attempt to steal user name and password details for other services you use. Botnets are controlled remotely and can be instructed to perform further malicious acts via the internet.

    Whilst back on October 9 Skype had said a “small number” of Skype users have been targeted, this number may have escalated to greater levels, for SSO to launch an advisory. Security company Trend-Micro’s blog post ‘Skype worm spreading fast’ revealed on October 8 the company had blocked 2500 infected files in the 24 hours since discovery.

    If you are tech savvy, Trend-Micro explains further:

    “These Dorkbot variants will also steal user name and password credentials for a vast array of websites including Facebook, Twitter, Google, PayPal, NetFlix and many others. They can interfere in DNS resolution, insert iFrames into web pages, perform three different kinds of DDoS attack, act as a Proxy server and download and install further malware at the botmaster’s initiation. These are only some of the functionality of this pernicious worm.

    Some infections will subsequently install a ransomware variant locking the user out of their machine, informing them that their files have been encrypted and that they will be subsequently deleted unless the unfortunate victim surrenders a $200 fine within 48 hours.”

    Skype says, as a general word of caution, here are the steps to follow to avoid being scammed:

    1. Keep your Skype up-to date to ensure latest security features.

    2. Keep your PC or device security up to date with the latest anti-virus software

    3. It’s never adviseable to click on suspicious or unusual files and links, even if it’s coming from people you know.

    4. Check heartbeat or community for the latest news if unsure.

    As always, we regularly encourage our users to only download the latest version of Skype from skype.com. This is done to not only to ensure our users are able to take advantage of new features and functionality, but also to make sure you are getting a genuine version of Skype, as we remain committed to providing the best quality and security to our users.

    Back in July we featured a post explaining Malware which you might want to read if you want to know the ins and outs of Malware, titled ‘How Malware can infect your life and put you and your credit file at risk of fraud.’

    Here is an excerpt from that post:

    What can fraudsters do if they can get their hands on your personal information?

    They can steal passwords to your bank or credit accounts and they can also create a patchwork quilt of information that can allow them to eventually have enough on you to request duplicate identity documents, and apply for credit in your name.

    Running up credit all over town, perhaps buying and selling goods in your name, or in some cases mortgaging properties – the victim can have a stack of credit defaults against their name by the end of their ordeal – and sometimes no proof it wasn’t them that didn’t initiate the credit in the first place.

    Recovery can be slow, and in some cases victims have had no way to prove they weren’t responsible for the debt – with fraudsters leaving no trail and the actual identity crime happening long before the fraud took place.

    So to prevent devastating identity crime, which leaves you in debt and can leave you without any way of obtaining new credit for years to come, make it your business to educate yourself on internet and or computer risks. And think before you click….it could save your financial future.

    For help in recovering your good name following identity theft that has infected your credit file and your life, contact a Credit Repair Advisor on 1300 667 218 or visit the MyCRA Credit Rating Repairs website www.mycra.com.au.

    Image: Salvatore Vuono/ www.FreeDigitalPhotos.net

  • Signs the housing market on the ‘up and up’: August Housing Finance Statistics

    Good news for the housing market this week. It seems the recent interest rate cuts have prompted buyers to return to the market, with home loan approvals recording the highest rate this year, with an increase of 1.8 per cent in August.

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

    Housing Finance Data through from the Australian Bureau of Statistics yesterday shows the number of home loans approved rose to 45,821. That was from an upwardly revised 45,021 in July. Economists had expected housing finance commitments to rise 1.5 per cent in August.

    AUGUST KEY POINTS

    VALUE OF DWELLING COMMITMENTS

    August 2012 compared with July 2012:

     The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.2%. Owner occupied housing commitments rose 0.6%, while investment housing commitments fell 0.5%.

     In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 0.6%.

     

    NUMBER OF DWELLING COMMITMENTS

    August 2012 compared with July 2012:

     In trend terms, the number of commitments for owner occupied housing finance rose 0.4%.

     In trend terms, the number of commitments for the purchase of new dwellings rose 2.5%, the number of commitments for the construction of dwellings rose 0.9% and the number of commitments for the purchase of established dwellings rose 0.2%.

     In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 18.6% in August 2012 from 19.2% in July 2012.

    Here is an excerpt from The Australian’s story titled ‘Home loan approvals up 1.8pc in August amid rate cuts’:

    St George economist Janu Chan said the result supported other recent housing sector data, suggesting that people were beginning to return to the market, particularly owner-occupiers.

    “There is a definite upward trend in owner-occupier housing,” she said. “That’s certainly encouraging for the housing market, and is also in line with the stabilisation in house prices that we’ve seen in many states.

    “There are however, some signs of weakness – investor housing is quite soft, suggesting that investors are still quite cautious about getting back into the market, despite the stabilising house prices.”

    The value of investment-housing loans in August fell 0.8 per cent from July, the ABS said today.

    Over the past five months, the Reserve Bank of Australia has shaved a full percentage point from the key interest rate. As a result, standard variable mortgage rates have on average come down by 55 basis points to 6.85 per cent.

    But JPMorgan economist Tom Kennedy said that the market was yet to see a surge in new housing financing commitments fuelled by the rate cuts in May and June.

    He said the two factors that are not encouraging people to get new home loans was uncertainty over the European economy and its debt crisis and that the commercial banks have not been passing on the RBA rate cuts in full.

    Mr Kennedy said today’s figures are unlikely to affect the RBA’s interest rate outlook and he forecasts one more interest rate cut by the RBA before the end of the year.

    “I think at this stage the RBA is focusing their attention on the labour market,” he said.

    In the meantime, it will still be essential for borrowers to present with a clean credit file to ensure finance approval, particularly if lending criteria continues to be conservative. For those who are living with credit file errors and inconsistencies, there is a solution – to dispute that incorrect listing that haunts their ability to obtain credit.

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

    At that stage, regardless of the accuracy of the information on their credit file, they are generally refused credit or forced to take on non-conforming loans at sky-high interest rates to secure the home.

    But if a credit listing is unfair, contains errors or shouldn’t be there, then the consumer has the right to request a correction or removal.

    When disputing any adverse listing, it is up to the credit file holder to provide reason as to why the creditor has not complied with legislation – as credit listings are not removed unless they have been unlawfully placed on the credit file.

    Unfortunately many people find this process difficult at best – the mountains of legislation applicable in many cases can be daunting and many don’t have the skills or time to get to know it, and likewise, negotiating with creditors is not always easy for the individual to undertake.

    The other option is to request help contesting a disputable listing with a credit repairer. Our job as credit repairers is to check the creditor’s process of listing defaults for legislative and or compliance errors, any such errors could deem the credit file default listing unlawful, at which time we advise the creditor to remove the default.

    To find out more about how credit repair works, contact a Credit Repair Adviosr at MyCRA Credit Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

     

    Image: Idea go/ www.FreeDigitalPhotos.net

  • Protection essential to combat identity theft in Australia

    Why is protecting yourself against identity theft so important? Because in this day and age, identity theft is no longer an avenue simply for criminals to “skip town” under your name, but has also become a lucrative business for those criminals who are interested in fraud. A seemingly perfect, often anonymous crime with very long arms, identity theft can not only see you losing your money, but also see you lumbered with bad credit history. And often you don’t even know it has occurred until you try to take out credit in your own right and are refused.

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

    The President of the Law Society in South Australia, Ralph Bonig has written an article for Adelaide Now titled ‘In today’s hi-tech world, identity protection is the best option.’  In it, he reflects on recent events involving identity theft, including the new penalties for identity theft, and recent surveys on the scope of the problem here in Australia. He warns that with more electronic transactions comes more opportunities for illegal use of personal data.

    “With the increase in international terrorism, law enforcement agencies have focused their efforts on identifying and combating identity fraud as an adjunct to anti-terrorism measures.

    However, the exchange of personal information through technology has meant that identity theft is no longer just the province of organised criminals and/or terrorists but also now occurs on a smaller, random scale.

    In June this year, the federal Attorney-General’s Department released a report based on a randomised survey on identity theft.

    Of the survey respondents who had been the subject of identity theft, 57 per cent reported that it had occurred via the internet, 35 per cent as a result of a stolen credit card and 18 per cent by mail theft,” he writes.

    He goes on to help readers with a number of ways they may be able to protect themselves, including avoiding public computers; ensuring they have strong passwords which are routinely changed; only providing the minimum amount of personal information that is required during transactions; keeping their mailbox locked; and destroying personal documents.

    What is most interesting is his take on why we should be stepping up protection against identity theft:

    “South Australia, the Criminal Law Consolidation Act contains a number of sections which deal specifically with identity theft.

    It is illegal to assume a false identity for the purposes of committing a criminal offence.

    It is also illegal to use someone else’s personal information in order to commit a criminal offence.

    Creating false identification material and/or trading in it is also illegal.

    There are separate offences relating to the improper use of computers and information obtained via a computer and corresponding federal laws in the Crimes Act.

    What the law does not address and what is extremely difficult to redress is the effect on your credit card rating and the unmeasurable cost of replacing stolen material or re-establishing your bona fides.

    Once again, the best course of action is protection.”

    This difficulty in resurrecting the life you had before, your good name is what we want to warn people about.

    Firstly, you may not know you have been caught out until you attempt to take out credit and are refused. Secondly, when you do find out, you may find recovery extremely hard.

    As with any other unfair or disputable credit listing, the onus is on the credit file holder to prove that the listing has been placed unlawfully, and therefore should be removed. If you are an identity theft victim, you are now faced with proving that it was not you that initiated the credit in the first place, in order to prove to the Credit Providers that the listing is incorrect. This takes lots of negotiating and documentary evidence.

    The difficulty with this can be when

    a) you do not know exactly how the identity theft occurred and/or
    b) it occurred long before you were made aware of it and you have lost crucial documents or
    c) because of either one of these issues you don’t have a Police report

    If you have just found out you are a victim (however small), we recommend you also contact the Police immediately. Some fraudsters do test amounts prior to a large scale transaction.

    Don’t be embarrassed – it is only through identity theft being reported that data gets collected and appropriate preventative measures eventually get put in place. And besides, most Credit Providers will require at minimum a Police report.

    Many identity theft victims seek the help of a third party, such as a credit rating repairer to help with putting a case to the Credit Provider for removing the credit listing/s. A credit repairer can help you to clear your credit file and restore the financial freedom you rightly deserve. The reason a credit repairer is usually so successful in removing your credit file defaults, is their knowledge of legislation and ability to negotiate a successful case on your behalf.

    For more information, contact a Credit Repair Advisor at MyCRA Credit Rating Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

  • Bill Shock: telco bills ruining credit ratings

    Botched phone plans and lack of data usage monitoring is leaving many Australians shell shocked over their mobile bills, with bills so large many can’t pay up or refuse to pay up, leading to an increased rate of defaults. We look at what is happening with Telco consumers, the new laws that have come in to combat bill shock, and some practical things that you can do to prevent it happening to you, and threatening your good credit rating.

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

    A large number of current credit listing complaints we receive from telco consumers relate to data usage on mobile phones. Consumers are confused when it comes to data allowance on their smartphones, and the providers up till now, have not been helping.

    Often clients claim they have gone over their allowance really quickly, or the plan they were put on was not appropriate for what they intended to use their mobile internet for. Often they can have great difficulty in cancelling the accounts or coming to a resolution with telcos over these billing issues.

    Our current statistics show almost 26% of our credit repair clientele in the 12 months to July were telco customers.

    Consumers have either reluctantly paid the bill, thought the matter was settled, only to find they were defaulted anyway, or they have just refused to pay the bill until they got some resolution – but have copped a bad credit rating through the account being more than 60 days in arrears.

    Either way, they were dished out at least 5 years of bad credit from the episode unless they have been able to make a successful complaint.

    Complaints numbers

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

    The TIO reports new complaints about over-commitment caused by inadequate spend controls have over doubled in 12 months (4,282 in the January-March 2012 quarter, compared to 2,181 in the same quarter in 2011). In the same periods, new complaints about disputed internet charges increased 180 per cent (From 981 to 2,823).

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

    The powers that be have heard the many complaints. Some changes have been swiftly made to improve transparency and service for telco customers. A revised Telecommunications Consumer Protection Code has been made in conjunction with the Australian Communications and Media Authority (ACMA) which will amongst other things require telcos to provide their customers with notifications when they have used 80% and 100% of their data usage in the plan.

    These changes come after pressure from ACMA for Telcos to offer better protection for consumers, or face external regulation.

    For more information on the TCP Code, see our September post ‘Telco bill shock should in theory now be a thing of the past.’

    In the meantime, many consumers are still facing bill shock. We look at what you can do to prevent it.

    Preventing Bill Shock

    Savingguide.com.au published a great article late last week detailing some practical things that you can do to avoid bill shock. Here is an excerpt from ‘How to Avoid Bill Shock’:

    Read Your Contract

    I’ve said it before and somehow I feel I shall say it again: read the contract. From start to end. Before signing up to anything. Now, let’s just say you have already signed up and you didn’t read it before, you are not off the hook. Read it now. I’m serious, go do it… like, right now!

    Now that you’ve read your contract, you’ll know exactly how much data you get for your regular fee and how much you’re going to pay if you exceed that limit. Without this knowledge, you’re really just playing a guessing game and you’re probably going to lose.

    Don’t be Silly

    Seems obvious, doesn’t it? Yet here we are. If you are on a limited data allowance, don’t fritter it away on silly things! When I first got my smart phone I was so enamoured by the fact that I could get the internet on my handset that I would lie in bed, checking the week ahead’s weather on my mobile rather than simple make the walk to the study and use my PC, on which the internet is virtually limitless! Fortunately, I did not have to learn the hard way but many people will. Don’t be one of them.

    Start Downloading

    I know, I know, I just told you not to download stuff but this is the exception. Downloading the right apps is going to make all the difference, in fact these two apps are the best way to keep your data use under control.

    Data Usage Monitor

    A data usage monitor like 3G Watchdog (Android) is a brilliant addition to your phone. Simply enter the date your billing cycle commences and your data allowance, and a little symbol appears on your phone’s desktop, changing colour to warn you when you’re reaching your limit.

    Programme Closing

    A programme-closing app is your next best friend. Apps like Advanced Task Killer enable you to close any programmes that might be running without your knowledge with the push of a button. And without programmes secretly running, chewing into your data allowance, you’re much less likely to suffer that dreaded disease, bill shock.

    This is great advice. But what about if you already have a phone bill that has left your head spinning?

    How to Dispute That Shocking Mobile Bill

    1. Attempt to resolve the dispute with the Telco first. If a bill has just popped up you don’t agree with, let your Provider know, and DOCUMENT ALL CORRESPONDENCE WITH THEM (and document who you speak with if you are calling).

    2. You may need to make a formal complaint in writing. If there is no resolution over the telephone, set out what specific resolution you require, and all the details of your complaint. The telco has 30 days to answer any written complaint you make.

    2. Get all responses in writing. The matter may seem at an end, but sometimes people believe they have sorted it out only to find out later they have been defaulted anyway. If you have come to a resolution with the telco verbally, get it in writing and make sure it clearly states what will happen from here.

    3. If the matter can’t be resolved to your satisfaction internally, take your case to the Telecommunications Industry Ombudsman. The TIO will make a decision on the matter, and their decision will be final. Make sure you provide as much evidence as you can for the Ombudsman to make an informed decision – you may only get one shot at it.

    4. If at any stage you have a credit file listing from a Telco which you believe shouldn’t be there, you can undertake professional credit repair services. The credit repairer works on the consumer’s behalf to remove credit file listings which contain errors or inconsistencies or just out and out shouldn’t be there. It gives the consumer the best chance of presenting the best case for removal of a disputed listing, and actually having an unfair listing removed completely off your credit file. The credit repairer can also escalate the matter to the TIO on the client’s behalf if necessary.

    If you would like help disputing your telco default or other credit listing, contact a Credit Repair Advisor on 1300 667 218 or visit our main website for more information MyCRA Credit Rating Repairs www.mycra.com.au.

    Image: Ambro/ www.FreeDigitalPhotos.net

     

  • Consumer groups push for changes to new credit laws

    In a final attempt to plead for correction of what many are calling some glaring mistakes for consumers within Australia’s new credit laws, a coalition of consumer groups is urging the Federal Government to make some changes before they pass the Privacy Amendments (Enhancing Privacy Protection) Bill 2012. We look at what this group is proposing, and how the new laws, if they are passed as is, could affect you and your credit history.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs

    A coalition of consumer groups is hoping the Federal Government will make some changes to their new credit reporting laws prior to the Bill’s passing by both houses. One aspect they are opposed to is the minimum debt amount for credit listings – which currently stands at $100 .Various recommendations to increase the minimum amount were submitted to The Senate Legal and Constitutional Affairs Legislation Committee recently. Consumer groups believe the minimum should be increased to $500.

    The consumer groups are: Financial Counselling Australia, Australian Privacy Foundation, Consumer Credit Legal Centre NSW, Consumer Action Law Centre

    Here is an excerpt from the group’s media release, which featured on Financial Counselling Australia’s website Small debts lead to big problems:

    Spokesperson Kat Lane of Consumer Credit Legal Centre, said ‘under the current proposal someone’s ability to access a home loan could be ruined by one overdue electricity or phone bill.’

    ‘It’s easy to fall 60 days behind on an energy bill—it could be something as simple as the bill being sent to the wrong address or the account holder being away from home for an extended period. I don’t think many people would think this should affect someone’s ability to get a home loan,’ said Ms Lane.

    ‘If the amount for which someone could have a default listed on their credit report was increased to $500, people would be far less likely to be overly penalised for one overdue bill or for making one simple mistake.’

    Ms Lane said many small debts listed on credit reports were utility or phone debts and didn’t necessarily reflect a person’s suitability for credit. She also said that smaller debts, such as phone or utility debts, are often disputed by consumers.

    ‘We’d hate to see someone’s credit history affected because of an outstanding bill which they don’t even owe. Billing mistakes do happen and, as the Government’s plan currently stands, these small mistakes could have big consequences.’

    The group is also concerned about the additional information which will be available to lenders once the new laws are introduced, and particularly repayment information. They recommend the Government do more to educate consumers on their rights and obligations under the new laws:

    ‘If comprehensive credit reporting is introduced, Government and industry needs to make efforts to explain the new regime to consumers, especially that repayment information such as whether you repay your loans on time each month will be now listed on credit reports, and consumers’ rights to make complaints if there are disputes,’ Ms Lane says.

    We agree with the group’s proposals in the interests of consumer rights. The Government must do more to educate consumers on their rights if they are going to insist that more information about them be made available to lenders. In my experience, many consumers collectively:

    1. Do not know they can apply for a free credit check every year.

    2. Do not know that their credit file could contain errors and that they are responsible for ensuring their credit file accurate.

    3. Are not finding out they have credit listings in many cases until they apply for major credit and are refused.

    4. Are suffering mistakes with their credit listings which they have very little knowledge of how to rectify – this can go from a disputed bill, right through to blatant mistakes such as wrong names and wrong addresses.

    5. Do not know that if they pay a bill late in the very near future, that this could impact their ability to obtain.

    6. Have had very little explanation from the Government on precisely how correcting credit file mistakes will be made easier with the new credit laws

    We wait in hope that many of the current issues will be rectified following the introduction of these new credit laws. In the meantime, we will continue to try to educate consumers on how to navigate Australia’s credit reporting laws, and continue to insist on credit reporting accuracy by contesting disputable credit listings on behalf of our clients though our business of credit repair.

    For more information on credit repair, contact a Credit Repair Advisor on 1300 667 218 or visit our main website www.mycra.com.au.

    Image: renjith krishnan/ www.FreeDigitalPhotos.net

     

  • New laws to penalise identity thieves

    The Attorney-General Nicola Roxon announced yesterday new laws in Australia will mean white collar criminals and serious and organised crime groups will face tougher penalties. We look at what those penalties will mean, and how they can prevent identity theft and subsequent credit fraud leading to bad credit history.

    This week is National Identity Fraud Awareness Week October 8-14.

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

    Legislation introduced into Parliament yesterday – The Crime Bill, will aim to deter white collar criminals and organised crime groups. The Bill will increase financial penalties for all Commonwealth crimes, and create a new offence of using a false identity when travelling on aeroplanes. It will make it a crime to use a false identity to book a flight over the internet or to take a commercial flight. It will also be a crime to use a false identity when identifying oneself for a flight.

    Another significant change as part of The Crime Bill will be an increase to penalty units. “Penalty units” in the Commonwealth Crimes Act will increase from $110 to $170. These have not increased since 1997.

    “Identity theft is one of the fastest growing crimes in Australia. This Bill will make it a criminal offence to use a false identity when travelling within Australia by air or booking domestic flights online or using a mobile phone,” the Attorney-General Nicola Roxon said in a statement to the media.

    “Organised criminals invent or steal identities in order to evade detection and commit serious crimes such as money laundering, drug offences, fraud and terrorism.

    The bill expands laws against identity theft by making it a crime to use a carriage service like the internet or a mobile phone to obtain identity information with the intention of committing another offence.

    So for instance, if fraudsters use the internet to obtain your personal information and it was shown the intention was to commit fraud, then the new laws should in theory kick in -placing a crime in not only the attempted fraud, but the actual misuse of your identity information.  Personal information is such a valuable commodity in criminal circles. Criminals can use your personal information to impersonate you, commit crimes, and also to take out credit in your name, leaving you with a pile of debt and bad credit history as the calling card. So this is a significant improvement.

    Ms Roxon said an example of the effect of the increase in penalty units was the maximum fine for obtaining a financial advantage by deception would jump from $66,000 to $102,000 for an individual.

    “This is a significant increase and should send a strong message that crime does not pay,” she told The Australian yesterday (Flying under false name to be a crime).

    Some more examples of how changes could deter criminals:

    •  A person who dishonestly uses the financial information of another person without their consent will face up to $51,000 in fines, up from $33,000. Companies who commit this crime could be liable for more than a quarter of a million dollars in fines, up from $165,000;

    •  A person who knowingly makes a false or misleading statement in documents they lodge with ASIC will face up to $34,000 in fines, up from $22,000. A company will be liable for up to $170,000 in fines, up from $110,000.

    This may go some way to deterring identity thieves within Australia. But there is still a significant amount of fraud related crime which originates from outside Australia. Widespread internet use means identity crime can have very long arms. And this is the real problem with this type of crime. It can be difficult to find let alone prosecute and penalise criminals for identity crime and other financial crimes when it doesn’t originate on our shores. But it was probably a necessary to step for the government to take to fight this global problem of identity crime nationally.

    To find out more about identity crime, and how it could impact your credit rating, you can read our last post Is your good name at risk? What you may not know about identity theft and your credit file. If you are looking to remove bad credit history after identity theft, contact a Credit Repair Advisor on 1300 667 218 or visit our main site www.mycra.com.au.

     

  • Identity theft bust in Aussie news…and how to minimise your risk of ID theft

    A significant identity crime  saga has unfolded right here in Australia. We look at how $37.5 million was extracted from victims of credit card fraud. And we give you an idea of the important steps you can take to protect yourself and your credit file from fraud, identity theft and subsequent bad credit.

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

    Federal Police have arrested and charged a Sydney couple for their role in what Police are calling the “most significant identity crime syndicate disruption” in Australia’s history.

    A 40-year-old Ryde man and a 48-year-old Ryde woman were arrested and charged on Thursday. This brings the total arrests since October 2011 to eight from what Police are describing as a highly sophisticated identity crime syndicate.

    “Police have now seized more than 15,000 false credit cards, with an estimated potential fraud value of $37.5 million. This includes 12,000 false credit cards seized in November 2011, which was the largest singular seizure of fake credit cards in Australian history. Major manufacturing equipment has also been seized throughout the investigation.

    The arrests come as a result of an Identity Security Strike Team (ISST) investigation which began in April 2011. The investigation focused on the activities of a Sydney based crime syndicate involved in the manufacture and supply of fraudulent identity documents and credit cards.

    The ISST is comprised of members from the Australian Federal Police (AFP), New South Wales Police Force, New South Wales Roads and Maritime Services and the Department of Immigration and Citizenship (DIAC),” AFP announced in a joint media release on Thursday.

    Police will allege that the couple was manufacturing fraudulent documents from their home to falsely obtain credit cards. They will appear in a Hornsby Court on October 25.

    These victims may now be facing defaults and other negative credit listings on their credit file. Thankfully, arrests have been made, names have been recovered and those people who did fall victim, may have a chance at recovering their good name.

    For those victims in similar but separate incidents, they may not be so lucky to have had their perpetrators arrested. Restoring their clean credit file in this situation can be a nightmare to say the least. First they have the debt owing, then to clear the credit listings from their credit file so they can borrow money again – they need to prove they didn’t initiate the credit in the first place.

    This can be tricky if they don’t know when or how the identity theft occurred, and don’t have a perpetrator. Some can be faced with 5 to 7 years of bad credit through no fault of their own.

    So prevention is really better than the cure. If you want to know how you might prevent this happening to you, check out the identity theft prevention tips put out by www.Savingsguide.com.au over the weekend. You never know, just one thing you do differently could see you preventing having your life turned upside down from bad credit due to identity theft.

    Prevent Identity Theft: 10 Steps

    Identity theft is an increasing risk in today’s hyper-technological world, and can have significant effects on our finances. While there are means to redress the problem, like all things, it’s better to prevent identity theft from occurring than to fix it after the fact. Here are ten ways to protect yourself, inspired by Reader’s Digest.

    #1: Cover Your Card
    It’s not being paranoid to cover your card when using it. In the days of mobile phones, it’s fairly easy to take a snap of card and use the digits later. It doesn’t take much to keep part of it covered.

    #2: Check Your Statements
    Often, an identity thief will take an initial, tiny amount out of your account to see if you’re checking it, then go in for the swoop a couple of days or weeks later. Check it once a week, and report anything you don’t recognise.

    #3: Get Bills Online
    There are protections against people seeing your bills online. Not so for people being able to nick them out of the letterbox.

    #4: Destroy Financial Items
    Recycling bins could be a treasure trove, so make sure your paper is well-shredded or, even better, good fodder for your next bonfire. Make sure your cards are seriously well cut up, and don’t chuck out half-filled loan applications without blacking out the details first.

    #5: Strange ATMs
    If the ATM looks different, or has an extra attachment on it, walk away and report it to the bank responsible.

    #6: Debit Cards
    Credit cards have fraud insurance, debit cards don’t. Be wary about where you are using the debit card, and stick to places you trust.

    #7: Consider A Photo
    Noticed that people at checkouts don’t even look at your signature? Scary isn’t it. Consider getting a credit card with your photo on it, it’s hard to miss and far harder to pass off as an identity thief.

    #8: Lock Your Mailbox
    New credit cards, debit cards and bills all come into your mailbox. It’s a simple thing to get a lock on it, and at least make it a sight harder for someone to steal the card and activate it.

    #9: Keep Smart Online
    Look for the SSL or TSSL padlocks whenever you’re entering any details, and don’t save financial data online. Quicker it may be, but far more exposed to identity theft. [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”][Ensure any financial transactions are made using a secure browser https rather than http.]

    #10: Passwords And Pins
    They’re almost impossible to remember, the plethora of pins and passwords we now need, but if you’re serious about protecting yourself from identity fraud, have several and change them often. Don’t keep your pin anywhere in your wallet, no matter how well-disguised. You can run into trouble with insurance should you have your pin close to your card and are a victim of identity theft.

    If you have run into trouble restoring your good credit rating following identity theft, then you may be a candidate for credit repair. Credit repair is about uncovering and providing evidence for instances where the Creditor has unlawfully placed a default or other adverse listing on your credit file and negotiating on your behalf for the removal of that incorrect credit listing by the Creditor. We can put our vast knowledge of industry and credit reporting law behind your case and help negotiate the removal of bad credit which shouldn’t be there. Contact a Credit Repair Advisor on 1300 667 218 to discuss your suitability.

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

  • For those about to default on their home loan

    A recent survey on Australian Mortgage Stress has revealed a fifth of first home owners risk defaulting on their mortgage in the next few months – are you one of them? We look at who might be vulnerable to mortgage stress, why you want to avoid defaulting on your home loan, and what you can do to prevent things reaching that stage.

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

    An ‘Australian Mortgage Stress Analysis’ survey released last week shows almost 20% of the 26,000 Australian households surveyed were under mortgage stress.

    The results from Digital Finance Analytics (DFA) showed 16% of those homeowners surveyed currently fall into the ‘severe mortgage stress’ category.

    Those in Tasmania are leading the crisis with 17.2 per cent falling behind in repayments, being driven to refinance or pressured by banks to sell. This was closely followed by Northern Territory (17 per cent), New South Wales and South Australia (both 16. 4 per cent), Victoria and Queensland (both 16 per cent), ACT (15.2 per cent), and Western Australia (14.4).

    Digital Finance Analytics says rising household costs and budget blow outs can land first-home buyers in hot water.

    The survey showed the number of suburban homes in the severe mortgage stress category will rise by 4000 from 43,600 by June 30 next year.

    How could I be affected by defaulting on my home loan?

    Obviously, if you default on your mortgage 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 60 days, the bank will make a notation on your credit file – a ‘default’ credit listing. 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. If you really need to borrow money – you may be able to get a non-conforming loan – but that’s going to be at a much much higher interest rate. You may also find it difficult to access all secondary forms of credit – such as mobile phone plans, credit cards and store credit. This is how people end up going for alternative loans and paying massive amounts of interest. If you fall into this cycle (and sometimes there can be no choice) you can often end up getting into more and more debt without the funds to climb out of it.

    This credit lockdown is the very reason why people with legitimate credit rating errors seek help through a credit repairer, and fight so hard to have those credit listings which shouldn’t be there removed from their credit file. Our society works on credit, so it is often very difficult to live with defaults or other adverse listings on your credit file.

    So to avoid this ‘debt cycle’ through living with defaults on your credit file, what you want to do is avoid defaulting on your home loan (or indeed any other forms of credit) at all costs.

    What can I do if I am experiencing mortgage stress?

    Yesterday Sydney Morning Herald’s Money section featured some great advice for people in the situation of mortgage stress in their story Tell them to cut you a break. The article gives you some great practical tips on what to do to reduce the size of your mortgage payments, which should hopefully help to reduce the strain on your household and allow you to get back on track without resorting to missed payments.

    The article was all about speaking up, and asking the banks for what you need. Recently there have been some big moves to increase competition in the mortgage market place, through for instance banning exit fees. This may mean your bank is more willing to reduce your interest rate:

    If your loan is with a big bank and you’re paying the advertised interest rate, you’re being ripped off. It used to be that customers who knew to ask could secure 70 basis points off that rate, but in recent competitive times, that discount has leapt to as much as 100 basis points.

    You won’t be able to get any reduction from one of the new breed of online lenders; it’s their cut-price rates that are forcing discounting elsewhere. But banks, and even some building societies and credit unions, will have wiggle room. The beauty of this information is that you could use it to make an instant saving with your lender, sparing you from having to remortgage.

    Be warned, though: getting the full 1 per cent might require a genuine threat to leave. And even then, you may have to play the ”I’m a long-term, loyal customer” card, the SMH article says.

    If this doesn’t work – the article advises threatening to leave (but beware exit fees if your loan was taken out prior to Jul 1, 2011).

    A report by the Australian Securities and Investments Commission found that more than 50 per cent of people who complained about an early-termination fee saw it reduced or waived. However, the survey of 20 lenders found fees were still levied in 75,000 cases between July 1, 2010, and February 15 last year.

    So it’s the knowledge of the deals banks are doing that will save you.

    If you are in severe financial strife which won’t be helped with a slightly reduced interest rate – then it’s time to tell put up your hand and tell your bank.

    ”No way – keep it quiet for as long as possible,” I hear you say, and I understand that rationale. But you also have to realise that your lender doesn’t want you to default. They’ll lose all that lovely interest you’ve signed up to pay, and if the situation becomes so drastic that they sell your house from under you, the price they’ll fetch will be paltry.

    The lenders will help you – with revised repayment schedules, spreading them over a fresh 25 or 30 years, and even with interest-rate discounts – because it’s in their interests to do so. What’s more, they made a commitment to the government during the GFC to go easy on borrowers in distress. And today, they’re under more political and public scrutiny than ever,” the same article said.

    How do I apply for a revised repayment schedule with my bank to avoid a default?

    Firstly, you need to make it clear to your bank that you fear if you aren’t able to restructure your home loan repayments that you will fall into arrears. If you have a situation of temporary difficulty, such as unemployment, illness, injury or other reasonable issue which would mean making repayments will be difficult, this is essential to do. You will be requesting a financial hardship variation to your repayments. This may mean your repayments are reduced accordingly and the lender may take action to stop a potential default on your credit file.

    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. Could burying your head in the sand be the main reason why you find yourself in this situation in the first place? If so, it would be a great idea to seek professional help in managing your budget for your entire future. 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 “financial 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.

    A rethink about money

    If you have been accepted for a hardship variation – and you don’t end up with a default on your credit file, consider that you have dodged a bullet. But are you sure you won’t get into any kind of credit stress in the future? This whole episode will be worth it if you are able to learn from what’s happened. My advice on avoiding future defaults? Overhaul your finances and put in place some real changes in how you think about credit – taking a fresh look at ‘things’ ‘wants’ and ‘needs’– and making credit work for you next time instead of the other way around.  Unfortunately this doesn’t guarantee that mistakes won’t happen with your credit file, but it will guarantee that a negative credit listing won’t make its way to your credit file through any fault of your own.

    For help with disputing credit listings which you consider unfair – including where instances of financial hardship have not been recognised – contact a Credit Repair Advisor on 1300 667 218 or visit the main site www.mycra.com.au for more details on your possible suitability for credit repair.

    Image: digitalart/ www.FreeDigitalPhotos.net

    Survey statistics courtesy of Herald Sun Article: First time buyers at risk of home loss