Tag: credit repair

Till debt do us part: Navigating joint finances

Some people are great with money – but can still experience financial downfalls and sprial into debt and a bad credit rating due to the shortcomings of their partners.

Often people are unaware their partner is generating defaults on their credit rating until it is too late. They apply for credit in their own right and are unable to proceed due to debts and bad credit their partner has initiated while they are together.

Often we hear from clients “I’m not sure how this happened – how can I be responsible for something my partner did?” Unfortunately when couples go into joint debt, both credit files are at risk if repayments aren’t made.

So how do people protect themselves, their assets and their good credit rating, BEFORE they marry or move in together?

Recently savingsguide.com.au looked into this issue in their post ‘The Debt Affair: When your partner is hiding debt’.

They talk about establishing financial boundaries when people are new in a relationship. The article talks about the signs to watch out for when people suspect their partner is hiding debt.

Some of those include:

-Assume that the truth may be stretched when it comes to money
-Often money problems can be a result of another issue: stress, addiction, self-esteem.
-Discussing money is taboo
-Do their spending patterns show they spend more than they have?
-Ask for full disclosure

People should remember that relationships in their new stage are some of the most exciting times in our lives. But when it comes to taking the next step and moving in together, everyone should ask about their partner’s financial past.

Otherwise they may be forced to suffer with a bad credit rating due to mistakes made by partners – past or present.

Bad credit is such a phenomenal problem in this day and age, with lots of people living beyond their means and creditors eager to issue defaults.

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

People should sit down together before any ties are made and discussing what financial position the other is in. Ask whether they have any debt; talk about paying bills; get a general feel for how this person regards money and finances. If they appear too blasé about money, this should ring alarm bells. It may not mean the relationship needs to end, but it should mean you keep finances separate for a significant period of time. You could also suggest getting a copy of your credit files to see if there are any blemishes.

A credit file is compiled on any person who has ever been ‘credit active’. It lists personal details like name and address, but also any times the person has applied for credit, any defaults (overdue accounts), court judgements, writs and bankruptcies.
Prospective partners can request a copy of their credit file for free from the major credit reporting agencies – Veda Advantage, Dun & Bradstreet or Tasmanian Collection Services (if you are Tasmanian) and Experian. This will be provided within 10 working days.

Any black marks on a person’s credit file remains on their file for 5 years and can greatly hinder a person’s chances of receiving further credit.
A bad credit rating sticks. Most clients find they are black listed from credit for a five year period following a default on their record. Even having too many credit enquiries or a default from a simple unpaid phone bill can be enough to be refused a home loan with most lenders in the current economic climate.

My CRA Credit Repairs has some tips for people entering into a new ‘financial’ relationship:

•When you enter into any financial agreement with another person – don’t bury your head in the sand when it comes to the repayments. Regularly check your statements and bills so you can catch problems early.
•Be aware that as high as emotions can run, they can also get just as low. Your financial generosity now could become the very thing that is used against you if the relationship sours. Consider carefully how secure you would be in each transaction if things did take a turn for the worse.
•Consider keeping some things separate. Just because you have bought a home together doesn’t mean you can’t keep other bank accounts, credit card and previous homes in your name only.
•Get a copy of your credit file regularly. This will notify you of any problems before you apply for credit in the future.

Contact MyCRA Credit Repairs on 1300 667 218 for help with credit repair.
Image: photostock/ FreeDigitalPhotos.net

03/10/2011
Fears about data breaches are justified

Media Release
22 September 2011

Australians have every right to be concerned about data breaches and loss of personal details, as personal information has become a valuable commodity used to commit identity fraud and potentially ruin the victim’s financial future, a national credit repairer says.

Director of MyCRA Credit Repairs, Graham Doessel says a recent survey revealing concerns about data breaches shows we are all worried about where our personal information could be put at risk, and this is not without reason.

“More and more of my clients have been through the ringer attempting to have black marks removed from their credit file due to identity theft, simply because our education, our legislation and our technology is unable to keep up with fraudsters. People want to know their details are going to be safe when they shop, when they use the internet and with the companies that have their details in their computer systems,” Mr Doessel says.

This comes as a global survey reveals widespread concern over the security of personal information. A survey conducted online by Harris for US-based identity management specialist SailPoint, showed the majority of adults in the United States, Great Britain and Australia are worried about possible exposure of their personal information, and a large percentage of adults have lost confidence in how companies protect their personal information.

“The widespread impact of data breaches like Epsilon and Sony PlayStation, where millions of consumers were impacted around the world, is making customers more cautious about conducting business with certain financial institutions and retailers,” said Jackie Gilbert, vice president of marketing and co-founder at SailPoint.

Mr Doessel says personal information is like gold to identity thieves.

“Basically, 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,” he says.

He says 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,” he says.

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 credit repair following can be – even if the individual has been the victim of identity theft, there is no guarantee the defaults can be removed from their credit file. The onus is on them to prove their case and provide copious amounts of documentary evidence” he says.

Mr Doessel says the best defence an individual can take against identity theft is to get educated on how their personal information can be put at risk.

“Sites like the Government’s SCAMwatch website, and the Stay smart online website, can give people good practical tips for keeping their information secure,” he says.

But he also says in the case of data breaches, it comes down to a need to know basis.

“At best we can minimise the amount of people who hold our personal information. People should always question the need for it to be handed over. If it is not essential, don’t do it.”

“Unfortunately it seems everywhere we 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 our personal information undergoes these days when it is stored online,” he says.

He says it is important for people to keep up to date with what is on their credit file, to be alerted to any entries which point to a theft of identity.

Under current legislation a credit file report can be obtained for free every 12 months from the major credit reporting agencies Veda Advantage, Dun and Bradstreet , Tasmanian Collection Service and Experian and is sent to the owner of the credit file within 10 working days.

For those who are vulnerable to identity theft, they can pay extra with credit reporting agency, Veda Advantage to have their file on an ‘alert’ system, which tracks any changes to their credit file that may occur within a 12 month period.

Mr Doessel says people who suspect identity theft should report the matter immediately to Police, no matter how insignificant they think the fraud is.

“This crime is not very widely reported. But it is only through people reporting identity theft that any real statistics get collated on this issue. 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,” he says.

/ENDS

Please contact: Lisa Brewster – Media Relations Mob: 0450 554 007 media@mycra.com.au
Graham Doessel – Director Ph 07 3124 7133

www.mycra.com.au www.mycra.com.au/blog

246 Stafford Rd, STAFFORD Qld

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

Link: SailPoint Survey

Image: renjith krishnan/ FreeDigitalPhotos.net

29/09/2011
Being credit file savvy can save you money

Media Release
19 September 2011

Concerned Australians focusing on saving and reducing debt in the wake of the GFC, are overlooking how maintaining a clear credit file can be a simple way of making significant household savings, according to a national credit repairer.

Director of MyCRA Credit Repairs, Graham Doessel says people eager to save are busy reducing debt and going without life’s luxuries, but in the process are overlooking a key way they can save themselves thousands.

“A clear credit file allows consumers to shop for the best credit at the lowest interest rate. For instance, on a $400,000 home loan, those with a bad credit rating are potentially slugged around $550 extra per month in interest when comparing a non-conforming loan with a loan at a current standard variable rate,” Mr Doessel says.

He says if people have a bad credit rating, it sticks for 5 to 7 years, and they are most times shut out of credit with the major banks for this period.

“Unfortunately those people with a bad credit rating will generally be refused credit by mainstream lenders and funnelled into higher interest rate loans and cards which only seem to perpetuate the debt cycle for the very people who would benefit from saving money,” Mr Doessel says.

Current information from the Australian Bureau of Statistics on household savings show for the first time since 2003, household savings have dramatically increased. The ABS revealed in March 2011 the saving ratio rose to 10.1% in seasonally adjusted terms in the September quarter 2010.

Mr Doessel says many of his credit repair clients are in a better financial position than they have been in years for loan qualification, but are held back from taking advantage of competitive interest rates and stable house prices by black marks on their credit rating.

“Many clients have everything in place for obtaining loans, until they apply for credit with a lender and are knocked back due to credit rating defaults they were previously unaware of – and often those defaults should not be there,” he says.

He says the best way people can prevent this scenario is to get familiar with their credit file and the ways their good name can be compromised. He provides 6 tips for being credit file savvy:

1. Make repayments on time. Any bills which are more than 60 days in arrears can be listed by the creditor as defaults on a person’s credit file. This includes home loans all the way through to phone and power bills.

2. Dispute bills correctly. Many people find themselves with a bad credit rating following bill disputs with creditors such as phone and power companies. Many people are unaware that regardless of whether the bill has been disputed by the customer, if it is more than 60 days late the creditor will generally still list the non-payment as a default on the customer’s credit rating – whether the customer believes the amount is accurate or not. To avoid a bad credit rating when disputing bills, people should pay the bill by the due date and attempt to recover the money from the credit provider afterwards.

3. Ensure the accuracy of your credit file. All credit active individuals are entitled to a free yearly credit file check from all the credit reporting agencies that may hold a file on them. People should take advantage of this, and ensure there are no errors on their credit file. Mistakes can and do occur on credit files. If there are inconsistencies, people do have the right to have them rectified.

4. Educate yourself on identity theft. Identity theft is the fastest growing crime in Australia, and it can potentially ruin a person’s good credit rating. Typically, the fraudster extracts personal details from the victim and goes about obtaining credit under their name. Often the victim is not aware of the fraud until they attempt to obtain credit and are refused. Fraudsters have taken out credit cards, racked up thousands of dollars of debt, and in some cases have taken out mortgages in their victims’ names.

The best way to prevent identity theft is to be aware of how it can occur. The Government’s SCAMwatch website www.scamwatch.gov.au is a great place to start getting educated on what to watch out for. For help with preventing online identity theft, the Government’s Stay Smart Online www.staysmartonline.gov.au website also offers ways to combat identity theft through internet use.

5. Beware excess credit enquiries. Every time a person other than the credit file holder makes an enquiry on the credit file, this entry is noted. Unfortunately the credit file doesn’t show the nature of the enquiry, or whether the credit was approved or declined. Generally excess credit enquiries on the credit file will also hinder people’s chances of obtaining the best loan.

People can avoid this by not shopping around for credit, or by ensuring that all banks/brokers they deal with do not run a credit check on them until absolutely necessary. Potential borrowers can obtain a copy of their own credit file without incurring a credit enquiry, and this may be a better option to maintain a clear credit rating.

6. Keep credit limits to the minimum needed. Reducing credit limits not only prevents overspending – it is also beneficial for a person’s credit rating. Credit limits are recorded on all credit that has been taken out by the credit file holder. This amount shows on a person’s credit file, not the amount they have actually used. People should reduce lofty credit limits closer to the actual debt amount.

Mr Doessel says all credit active individuals will benefit from educating themselves on credit reporting in Australia, and for those that discover inaccuracies on their credit file they will save themselves money by having them removed.

“People can greatly benefit from clearing their credit file of errors. Sometimes people have neither the time, nor knowledge of legislation that is required to deal with creditors, and in this instance a credit repairer can do the work for them,” he says.

/ENDS

Please contact:

Lisa Brewster – Media Relations Mob: 0450 554 007 media@mycra.com.au
Graham Doessel – Director 07 3124 7133

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

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

Link: Australian Bureau of Statistics Household Saving

Image: Arvind Balamaran/ FreeDigitalPhotos.net

29/09/2011
Facebook users should be wary of new Timeline feature

Security of people’s personal information on Facebook is again under the spotlight since the announcement of Facebook’s new ‘Timeline’ feature which tracks the digital history of its users, charting their online activity.

And in a shock revelation today Australian technologist, Nik Cubrilovic has revealed this tracking actually continues even after the user has logged out. Cubrilovic says tests he has conducted show that:

“when users log out of Facebook, rather than deleting its tracking cookies, the site merely modifies them, maintaining account information and other unique tokens that can be used to identify users,” his blog says.

An article in The Australian last week titled Every click you make, Facebook tracker will be watching you featured Australian Privacy Commissioner Timothy Pilgrim. He issued a warning to consumers on about the introduction of this new feature, and its privacy implications.

“I would strongly encourage people using social networking sites to make sure they know what information may be made publicly available on that site and to think carefully about the information they are sharing and who might have access to it,” Mr Pilgrim said.

With the new information that has come to light today, it would seem even more important for Facebook users to exercise caution around this new system.

The discovery is featured in The Sydney Morning Herald’s story Facebook tracks you even after logging out. The article quotes David Vaile, executive director of UNSW’s Cyberspace Law and Policy Centre. He says Facebook’s changes were a ”breathtaking and audacious grab for whole life data”. In an email interview he accused the social networking site of attempting to ”normalise gross and unsafe overexposure”.

”While initially opt-in, the default then seems to be expose everything, and Facebook have form in the past for lowering protection after people get used to a certain level of initial protection – bait and switch,” he said.

Cubrilovic says he has been sitting on this information for over a year, despite notifying Facebook of his discovery at the time. He says the recent introduction and media coverage of the Timeline feature has prompted him to reveal his findings.

Although there has been no ‘official’ response to media to date in response to the issue, a couple of engineers who work for Facebook have denied allegations they track cookies.

“I am a Facebook engineer that works on these systems and I wanted to say that the logged out cookies are used for safety and protection including: identifying spammers and phishers, detecting when somebody unauthorized is trying to access your account, helping you get back into your account if you get hacked, disabling registration for a under-age users who try to re-register with a different birthdate, powering account security features such as 2nd factor login approvals and notification, and identifying shared computers to discourage the use of “keep me logged in.”

Also please know that also when you’re logged in (or out) we don’t use our cookies to track you on social plugins to target ads or sell your information to third parties. I’ve heard from so many that what we do is to share or sell your data, and that is just not true. We use your logged in cookies to personalize (show you what your friends liked), to help maintain and improve what we do, or for safety and protection,” the engineer writes to Emil Protalinski for ZD Net.

Identity theft can be devastating for the victim, and many times they face an uphill battle with their credit rating following it. If the crime is sophisticated – the virtual stealing of someone’s good name can go undetected for a significant time. Often it is not until the victim applies for credit somewhere and is refused that they realise their personal information has been stolen and identity fraud has been committed against them. People may have credit applications as a minimum and possibly defaults, mortgages and mobile phones attributed to them incorrectly.

Once any account remains unpaid past 60 days, the debt may be listed by the creditor as a default on a person’s credit file. Under current Australian legislation, defaults remain listed on the victim’s credit file for a 5 year period.

What is not widely known is how difficult recovery from identity theft can be. Unfortunately there is no guarantee defaults can be removed from a person’s credit file. The onus is on the identity theft victim to prove to creditors they didn’t initiate the debts in order to succeed with the credit repair. But for the victim who is virtually robbed of their financial freedom, it is a point worth fighting for.

Signs which may alert people to possible identity theft:

– Money missing from bank account/s
– Suspicious entries on credit card statements or bank statements.
– Statements for strange accounts.
– Missing mail such as bank statements or Centrelink statements.
– Credit refused somewhere.
– Mail about new credit applications.

For more information on identity theft, or for help with credit repair following identity theft, visit the MyCRA Credit Repairs website.

Image: jscreationzs/ FreeDigitalPhotos.net

26/09/2011
July’s Lending Finance statistics

The Australian Bureau of Statistics recently released statistics on lending finance for the month of July . These statistics show a slow but steady increase in lending committments, when compared with the relatively flat June statistics:

JULY KEY POINTS

JULY 2011 COMPARED WITH JUNE 2011:

HOUSING FINANCE FOR OWNER OCCUPATION
 The total value of owner occupied housing commitments excluding alterations and additions rose 1.5% in trend terms and the seasonally adjusted series rose 1.4%.

PERSONAL FINANCE
 The trend series for the value of total personal finance commitments rose 1.1%. Fixed lending commitments rose 1.1% and revolving credit commitments rose 1.1%.
 The seasonally adjusted series for the value of total personal finance commitments rose 0.5%. Revolving credit commitments rose 3.9%, while fixed lending commitments fell 2.3%.

COMMERCIAL FINANCE
 The trend series for the value of total commercial finance commitments rose 0.9%. Revolving credit commitments rose 2.2% and fixed lending commitments rose 0.3%.
 The seasonally adjusted series for the value of total commercial finance commitments rose 6.1% in July 2011, after a 6.1% fall in June 2011. Revolving credit commitments rose 13.4%, after a 7.8% fall in the previous month. Fixed lending commitments rose 2.7%.

LEASE FINANCE
 The trend series for the value of total lease finance commitments fell 1.3%, while the seasonally adjusted series rose 3.4%.

Australian Broker News says the rise in commercial lending was foreseen by Jonathan Street, executive director of commercial lender ‘Think Tank.’ He predicted “pent up” demand for commercial credit would “release” at some point this year.

While finance committments are on the rise, experts say credit debt is not. There has been a big trend towards direct debit cards – showing Australians are preferring to spend their own money rather than pay credit for things and some say points to people reigning in debt and focusing on saving. According to finance commentators Switzer, there has been a sharp fall in credit card debt. Statistics show purchases made on debit cards were up by 18.9 per cent on a year ago, while purchases made on credit cards rose by just 1.9 per cent.

What is evident, is the slow increase in lending figures. This demonstrates that banks are still wary about who they lend money to. It also shows that consumers are being wary about what they borrow money for. But housing finance still seems to be a priority for many Australians.

With banks still cautious, there still appears to be a great need for a clear credit rating in the current market. Prospective home owners should ensure their credit file puts them in the best position for obtaining a mortgage. They should do a credit check, and ensure their credit report comes back clear.

If people do find their credit report reveals some black marks, they should consider whether they are candidates for credit repair.

People should be aware that creditors make mistakes when putting listings on credit files all the time. Sometimes it can be a case of mistaken identity, the wrong person ends up with the bad credit rating, sometimes it can be a change in address which causes the adverse listing, or simple computer error. So it is worth doing a free check every 12 months, even if people think they should have no adverse listings on their credit file.

It is the credit file holder’s responsibility to obtain a credit report from the credit reporting agencies and ensure their credit file is as it should be. Contrary to popular belief, if the credit report shows inconsistencies, people do have the right to have them removed. If a listing has been put there in error, it is possible to have it removed – NOT JUST MARKED AS PAID. For those people who were previously unable to obtain a mortgage due to credit file defaults this may open a door they thought was closed for 5 years (the term of a
default).

For more information on how to check credit files, and for help with credit rating repair, visit MyCRA Credit Repairs website.

Image: Idea go/ FreeDigitalPhotos.net

15/09/2011
Global cybercrime study reveals cost at $114 billion a year

A worldwide study has calculated the cost of global cybercrime at $114 billion annually.

The Norton Cybercrime Report 2011 surveyed the experiences of 20,000 people in 24 countries including 802 in Australia.

The results reveal 69 per cent of online adults have been a victim of cybercrime in their lifetime. This means there are more than one million cybercrime victims every day. Norton has calculated this would make 431 million adult victims worldwide in the past year, at an estimated annual cost of $388 billion based on financial losses and lost time. This would mean that cybercrime supersedes the costs of the black market in marijuana, cocaine and heroin combined ($288 billion).

For the first time, Norton also reveals the extent of which mobile digital devices make up this number. It says 10 percent of adults online have experienced cybercrime on their mobile phone.

The study identifies men between 18 and 31 years old who access the Internet from their mobile phone as even more likely victims: in this group four in five (80 percent) have fallen prey to cybercrime in their lifetime.

Globally, the most common – and most preventable – type of cybercrime is computer viruses and malware with 54 percent of respondents saying they have experienced it in their lifetime. Viruses are followed by online scams (11 percent) and phishing messages (10 percent).

“There is a serious disconnect in how people view the threat of cybercrime,” said Adam Palmer, Norton Lead Cybersecurity Advisor. “Cybercrime is much more prevalent than people realize. Over the past 12 months, three times as many adults surveyed have suffered from online crime versus offline crime, yet less than a third of respondents think they are more likely to become a victim of cybercrime than physical world crime in the next year. And while 89 percent of respondents agree that more needs to be done to bring cybercriminals to justice, fighting cybercrime is a shared responsibility. It requires us all to be more alert and to invest in our online smarts and safety.”

The disconnect between awareness and action is further illustrated by the fact that while 74 percent of respondents say they are always aware of cybercrime, many are not taking the necessary precautions. Forty-one percent of adults indicated they don’t have an up to date security software suite to protect their personal information online. In addition, less than half review credit card statements regularly for fraud (47 percent), and 61 percent don’t use complex passwords or change them regularly. Among those who access the Internet via their mobile phone, only 16 percent install the most up to date mobile security.

Cyber-generated identity theft

With online identity theft, often people aren’t aware it has occurred to them, until they apply for credit and are refused. At this stage it can be revealed that a long list of defaults have been put there by someone who has used the victim’s good name to obtain credit.

Credit file defaults are debilitating – leaving people unable to obtain home loans, personal loans, even mobile phone plans during the term of the listing which is generally 5 years.

Unfortunately, credit file damage due to identity theft can be very difficult to rectify. To clear their good name, the identity theft victim needs to prove to creditors they did not initiate the credit – which can be difficult. Not only are victims generally required to produce police reports, but large amounts of documentary evidence to substantiate to creditors the case of identity theft.

How to avoid identity theft

Public education can go a long way to lessening the instances of identity theft. The Government’s Stay Smart Online website recommends Australians follow these 8 top tips for increasing their resistance to identity fraud, and avoiding the loss to their bank balance
and potentially their good name. These would apply to all types of internet use, including mobile digital devices:

1. Install and renew your security software and set it to scan regularly.

2. Turn on automatic updates on all your software, including your operating system and other applications.

3. Think carefully before you click on links or attachments, particularly in emails and on social networking sites.

4. Regularly adjust your privacy settings on social networking sites.

5. Report or talk to someone about anything online that makes you feel uncomfortable or threatened – download the government’s Cybersafety Help Button.

6. Stop and think before you post any photos or financial or personal information about yourself, your friends or family.

7. Use strong passwords and change them at least twice a year.

8. Talk within your family about good online safety.

Where to go for help following identity theft

Sometimes unravelling the tangled ‘web’ of online identity fraud for the purposes of negotiating with creditors to restore someone’s good name is a minefield that many individuals have neither the time nor the skill set for.

Credit repairers are more commonly involved in assisting people in cases of identity fraud due to a better knowledge of legislation and ability to work within it when negotiating with creditors over the victim’s financial future.

If you need help with credit repair following identity theft, contact MyCRA Credit Repairs or call tollfree 1300 667 218.

Image: twobee/ FreeDigitalPhotos.net

12/09/2011
New recommendations to protect Telco customers welcomed

Media Release
12 September

Changes recommended by The Australian Communications and Media Authority in its final report into the telecommunications industry should finally see Telcos held accountable for poor customer service and complaints handling, according to a national credit repairer.

Director of MyCRA Credit Repairs, Graham Doessel says if the ACMA’S changes are implemented swiftly across the industry, customers should reap the rewards.

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

He says about one third of his credit repair clients have had issues with their Telco provider which has left them out of pocket or facing black marks on their credit rating.

“Our clients have suffered greatly for the inadequate policies and procedures of many of the Telco providers in this country. We send out far too many complaints every day to the Telecommunications Industry Ombudsman (TIO) requesting investigations into errors that have found their way onto customer’s credit files,” he says.

The ACMA is formally inviting the industry to incorporate the following changes to its Telecommunications Consumer Protection (TCP) Code by February 2012:

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

“We have closely consulted on these outcomes with consumers and industry and the overwhelming response has been that improvements are both urgent and necessary,” ACMA Chairman, Chris Chapman says.

The ACMA says if the Telecommunications industry fails to develop a code that addresses these concerns, the ACMA will mandate the changes through direct regulation.

The Telecommunications Industry Ombudsman recently revealed its findings on the extent of discontent within the industry in a report released last month from a survey of more than 500 Telco customers who had lodged complaints between July and August 2010.

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

“Consumers who come to the TIO report spending substantial time and effort solving their complaints,” said Ombudsman Simon Cohen. “They report being transferred from department to department, not being transferred to supervisors and, perhaps most frustratingly, getting no solution or a broken promise for their efforts. They are – by any measure – resilient consumers.”

Mr Doessel says when disputing bills with the Telco industry, many people are unfairly penalised with a bad credit rating when the matter could have been dealt with better by the Telco in the first place.

“It is astounding the number of Telco credit file listings which contain errors, or have been put there unjustly or unfairly. Under current legislation, people do have the right to have credit file discrepancies resolved. But unfortunately it can be difficult for customers if they are not aware of the appropriate legislation and don’t have time to negotiate with creditors,” he says.

Under current legislation, an account which is more than 60 days in arrears can be listed by the creditor as being unpaid on the customer’s credit file. This ‘default’ is generally listed on a person’s credit file regardless of whether they believe there are errors in the details of the bill or with the payment amount.

“Defaults remain on a person’s credit file for 5 years. Currently, defaults – even those that are marked as ‘paid’, will prevent people from obtaining a home loan with most lenders. In fact, even having a few too many credit enquiries can be enough for an automatic decline” he says.

Mr Doessel is hoping the ACMA’s recommendations are taken on board swiftly to ensure a more transparent industry.

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

/ENDS

Please contact:
Lisa Brewster – Media Relations Mob: 0450 554 007 media@mycra.com.au
Graham Doessel – (07) 3124 7133 www.mycra.com.au/ www.mycra.com.au/blog

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

Links:
http://www.acma.gov.au/WEB/STANDARD/pc=PC_410157
http://www.tio.com.au/media_statements/RELEASES/2011/08_12_Resilient_Consumers_Report.html

Image: Stuart Miles / FreeDigitalPhotos.net

12/09/2011
Survey reveals Perth most at risk of identity theft

A survey on identity theft risks released by internet security software company AVG today reveals the Australian cities most at risk of online identity fraud and data loss.

The survey of online and mobile consumer behaviour was conducted over 2 weeks in August, and involved 1250 consumers across 5 states of Australia who own an Internet-connected device and have Internet-access at home.

Results showed Perth respondents were most at risk for stolen identities, digital fraud and data loss, followed by Brisbane, then Sydney and Melbourne in equal third and Adelaide ranking fifth as the most security savvy city.

Here are AVG’s findings :

Overall Results

Across the board, the survey showed many Australians are putting themselves at risk of identity theft, viruses and malware with poor PC security habits and a lack of comprehensive protection. Of those surveyed in the five cities:

•         22 per cent have been the victim of a phishing scam

•         25 per cent have shared online passwords with at least one other person

•         12 per cent do not run an anti-virus scan at least monthly

•         73 per cent do not use an identity monitoring service or other form of identity protection service.

Recently we blogged about mobile security and the need for people to secure their smartphone to prevent identity theft. Interestingly, AVG’s survey revealed how little users considered the value of security on their mobile devices.

While most of those questioned (77 per cent) use three or more passwords online, less than one in five (18 per cent) had changed the password on their mobile device in the past year.

“Consumers are getting better at recognising and addressing online threats, but it’s vital to ensure all your bases are covered. Taking some security measures and overlooking others — such as backing up your PC and not your smartphone — is like locking your door and leaving the windows open. Comprehensive online protection means covering all Internet-enabled devices – smartphone, tablet and PC,” said Lloyd Borrett, Security Evangelist at AVG (AU/NZ).

In terms of credit repair –the statistics are interesting. MyCRA certainly has seen a few clients from Perth who have claimed to be victims of identity fraud.

Often it is not understood how easy it is for criminals to steal peoples’ personal information or bank details online, and then use that information to take out credit in the victim’s name. It is also not realised how widespread the problem is becoming.

A recent survey of online fraud reveals one in 10 people have lost money to online fraud in the past year. That figure has doubled in four years.

There can be great difficulty for people in recovering their clear credit file following identity theft. Particularly with some of the more sophisticated forms of identity theft, often the victim is not aware their credit file has been used right away. Often people don’t know they are victims until they apply for credit and are flatly refused. Some have even had properties mortgaged in their name.

Credit rating defaults remain on credit files in Australia for 5 years. The consequence of people having a black mark on their credit rating is generally an inability to obtain credit. Most of the major banks refuse credit to people who have defaults, or even too many credit enquiries.

By law in Australia, if a listing contains inconsistencies the credit file holder has the right to negotiate their amendment or removal.

But to clear their good name, the identity theft victim needs to prove to creditors they did not initiate the credit – which can be difficult. Not only are victims generally required to produce police reports, but large amounts of documentary evidence to substantiate to creditors the case of identity theft.

In terms of preventing this crime, there is a host of information for internet users, but many people don’t learn about identity theft until they or someone they know becomes a victim.

The Government has two websites with a host of information about safe computer use for internet users. Its Stay Smart Online website gives people information on how they can secure their computer, as well as safety tips for the whole family.

The SCAMwatch website www.scamwatch.gov.au specifically warns internet users about scams in the community. Visitors can log on to an alert system for any new scams which are found to threaten the safety of people and their personal information.

The Stay Smart Online website recommends Australians follow these 8 top tips for increasing their resistance to identity fraud, and avoiding the loss to their bank balance and potentially their good name:

1. Install and renew your security software and set it to scan regularly.
2. Turn on automatic updates on all your software, including your operating system and other applications.
3. Think carefully before you click on links or attachments, particularly in emails and on social networking sites.
4. Regularly adjust your privacy settings on social networking sites.
5. Report or talk to someone about anything online that makes you feel uncomfortable or threatened – download the government’s Cybersafety Help Button.
6. Stop and think before you post any photos or financial or personal information about yourself, your friends or family.
7. Use strong passwords and change them at least twice a year.
8. Talk within your family about good online safety.

For more information on credit rating repair following identity theft, people can visit the MyCRA Credit Repairs website www.mycra.com.au.

Image: jscreationzs / FreeDigitalPhotos.net

Image: Stuart Miles / FreeDigitalPhotos.net

08/09/2011

New statistics paint positive picture of housing market

The Federal Government’s announcement of the best economic growth in four years and the prediction that interest rates remain steady for the rest of the year, may be the catalyst for a return to slow but positive growth in the housing market. The Government announced today a 1.2 per cent increase in GDP in the 3 months to June 30.

The trend is definitely upwards following the latest housing statistics from the Australian Bureau of Statistics. Whilst a minimal increase, and less than expected by economists, the result should still be heartening for the many brokers, investors and home owners alike who have been waiting with bated breath for something positive from the property market.

Statistics released from the ABS on July’s housing figures show a one per cent rise in home loans for the month which is an improvement on the flat market of the last few months.

Total housing finance by value rose 1.6 per cent in July, seasonally adjusted, to $20.576 billion. The value of home loans for owner-occupied homes rose 1.4 per cent to $14.4 billion after seasonal adjustments. The value of loans for investment homes rose 1.9 per cent to $6.2 billion.

The number of commitments to buy new homes fell 0.9 per cent after seasonal adjustments, while commitments to buy established homes rose 1.3 per cent.

The number of loan commitments for building homes fell 0.8 per cent.

JULY KEY FIGURES

	Trend estimates		Seasonally adjusted estimates
	Jul 2011	Jun 2011 to Jul 2011	Jul 2011	Jun 2011 to Jul 2011

Value of dwelling commitments(a)(b)	$m	% change	$m	% change
Total dwellings	20 449	1.2	20 576	1.6
Owner occupied housing	14 280	1.5	14 370	1.4
Investment housing – fixed loans(c)	6 169	0.5	6 206	1.9
Number of dwelling commitments(a)(b)	no.	% change	no.	% change
Owner occupied housing	49 548	1.7	49 813	1.0
Construction of dwellings	4 796	1.3	4 757	-0.8
Purchase of new dwellings	2 098	2.3	2 084	-0.9
Purchase of established dwellings	42 654	1.7	42 972	1.3

(a) Includes refinancing (see Glossary).
(b) Excludes alterations and additions.
(c) Excludes revolving credit.

Value of dwelling commitments,
Total dwellings
Graph: Value of dwelling commitments, Total dwellings

No. of dwelling commitments,
Owner occupied housing
Graph: No. of dwelling commitments, Owner occupied housing

Coupled with the small rise in home loans, were statistics released yesterday from the ABS showing household spending has also risen 1 per cent in the

With this small boost in confidence, will be the need for prospective home owners to ensure they have not been tarnished by the gloomy periods of recent months in respect to their credit file. It would suggest this could be a good time for people to do a credit check, and ensure their credit report comes back clear.

Whilst the outlook may be positive, it probably hasn’t transferred to banks yet – so they may still require borrowers to have a clear credit file to obtain a mortgage in the current market.

People should be aware that any repayments which were left late past 60 days may have been listed on their credit file as defaults. This includes any bills which were in dispute.

People should also be aware that creditors make mistakes when putting listings on credit files all the time. Sometimes it can be a case of mistaken identity, the wrong person ends up with the bad credit rating, sometimes it can be a change in address which causes the adverse listing, or simple computer error. So it is worth doing a free check every 12 months, even if people think they should have no adverse listings on their credit file.

It is the credit file holder’s responsibility to obtain a credit report from the credit reporting agencies and ensure their credit file is as it should be. Contrary to popular belief, if the credit report shows inconsistencies, people do have the right to have them removed. If a listing has been put there in error, it is possible to have it removed – NOT JUST MARKED AS PAID. For those people who were previously unable to obtain a mortgage due to credit file defaults this may open a door they thought was closed for 5 years (the term of a default).

For more information on how to check credit files, and for help with credit rating repair, visit MyCRA Credit Repairs website.

08/09/2011

Fraudsters target overseas-based property owners

Identity theft appears to be the new black in criminal circles. Perhaps there has never been a better time to commit identity theft. Opportunity is high, awareness is still fairly low, and prevention of this crime unfortunately seems to be reactionary-based as fraudsters think up bigger and better ways of gaining access to people’s good names.

Recently the West Australian Government announced details of a property scam which has presented itself in Western Australia.

Police are investigating a scam in which properties are sold by fraudsters without the knowledge of the overseas-based owners. Last year, Wembley Downs retiree Roger Mildenhall had his Karrinyup investment property sold without knowing anything about it. But more recently, it is alleged that Nigerian-based scammers sold a Ballajura property without the owners’ knowledge.

“A couple returning from overseas have advised authorities that their property has been sold without their knowledge or consent and a joint investigation has been launched.

The previous owners were living and working overseas at the time and didn’t discover the property had been sold until they recently returned to Perth to inspect the property.

The real estate agent involved has told investigators that he received a phone call from a man claiming to be the owner in February this year inquiring about the property. Shortly after, the agent received an urgent request to sell the property as funds were needed for a business investment, later revealed to be a supposed petro-chemical project,” Landgate announced in a statement earlier this month.

The West Australian Newspaper last week reported the WA Government has upgraded its security measures for overseas-based property owners.

“WA property owners living abroad who are concerned about identity theft can now lodge a caveat over their property to reduce the risk of being targeted by scammers, under a raft of anti-fraud measures introduced by Landgate.

Lands Minister Brendon Grylls said yesterday Landgate would expand its TitleWatch service so homeowners can receive email alerts notifying them of any activity on the title deeds of their nominated property. Overseas-based property owners can pay $160 to lodge a new caveat on their property to prevent registration of a change of ownership, mortgage or lease.

They could remove the caveat only by attending Landgate’s Midland office in person and completing a 100-point identity check, Mr Grylls said…
Under the range of increased security measures, all transfers of land executed overseas will now require a 100-point identity check, signatures to be witnessed by an Australian Consular officer and the sales will need to be independently checked by at least two senior Landgate officers.

“It is important that we continue to move to ensure that a person’s No. 1 asset is protected,” Mr Grylls said.

Property owners and Real Estate agents in every state need to be aware that overseas-based property scams are occurring, and to arm themselves with preventative measures to protect against identity fraud.

The other property scam to watch out for is the fake rental property scam. The ACCC’s SCAMwatch website warns individuals about responding to property advertisements, as there have been reported incidents of scams in the community.

“SCAMwatch is warning prospective tenants to be wary when responding to rental properties advertised on the net where the ‘owner’ makes various excuses as to why you can’t inspect the property but insists on an upfront payment for rent or deposit.

Scammers will often use various shared accommodation sites to post these fake listings. They will go to great lengths to ensure that the offer looks genuine by including photos and real addresses of properties. However, photos and details of properties can be easily obtained on the internet.

Once hooked, the scammer will request money, often via money transfer, or personal details upfront to ‘secure’ the rental property. SCAMwatch warns consumers not to send money or provide personal details to people you don’t know and trust.”

Long term affect for victims

Fraudsters now see personal information as a valuable commodity. Many are able to use that information to take out credit in the victim’s name. Often the victim is not alerted to the misuse of their credit file for some time, often not until they attempt to obtain credit themselves. By then, victims may have credit applications as a minimum and possibly defaults, mortgages and mobile phones attributed to them incorrectly.

Once any account remains unpaid past 60 days, the debt may be listed by the creditor as a default on a person’s credit file. Under current Australian legislation, defaults remain listed on the victim’s credit file for a 5 year period.

If a victim has defaults on their credit file following identity theft – the defaults still remain there for 5 years. The onus is then on the identity theft victim to prove to creditors they didn’t initiate the debts in their name. If they are unable to prove this, they are virtually blacklisted from obtaining further credit themselves for 5 years.

It is important for everyone to think twice about who they allow to have access to their personal information, and to verify all transactions are legitimate before handing over their details or any money. SCAMwatch has these suggestions:

How to protect yourself

* Insist on inspecting the property- a drive-by is not enough. With these types of scams, the property may genuinely exist, but it is owned by someone else.
* If it is overseas, ask someone you can trust to make inquiries. If there is a real estate agent or similar in the area they may be able to assist.
* Do not rely on any information provided to you from anyone recommended by the person advertising the property.
* An internet search on the name of the person offering the property and their email address may provide useful information.
* Where possible, avoid paying via money transfer. It is rare to recover money sent this way.
* There are many share accommodation websites, consider choosing the ones with clear warnings about scams or which offer added protection.
If you are satisfied that the offer is legitimate and decide to accept it, keep copies of all correspondence, banking details and the listing itself.

For more information on identity theft prevention, or help with credit repair following identity theft, contact MyCRA Credit Repairs.

Image: vichie81 / FreeDigitalPhotos.net

05/09/2011
7 ways to improve your credit rating in Australia

There are countless pieces of advice available to people out there, aimed at offering to ‘improve your credit rating’ or ‘fix your credit score’, and they are read by many people hoping to get the best chance of approval for home loans, personal loans or other forms of credit.

What many Australians don’t realise when they read these articles is that many of them are written in countries like the U.S. and U.K., whose credit reporting systems are very different from Australia’s. So the information, whilst good, often doesn’t apply for people in this country.

In fact, many times if Australians follow that information they may actually be hindering their chances of obtaining credit in the current market, not helping it.
So here is some information for people concerned about their credit rating, to have as a reference for what applies in this country.

What exactly is my credit file?

A credit file is made for every person who is credit active in Australia. Veda Advantage, Dun & Bradstreet, Tasmanian Collection Service (if Tasmanian) and new entrant Experian may all hold information on credit active individuals.

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

It is from this file that creditors make a decision whether or not to lend people money. This information is then available to banks and building societies; finance companies like GE and Avco; mobile phone companies and retail stores like Myer, Harvey Norman and Wow Sight & Sound. These companies are all known as credit providers or creditors.

What many people aren’t aware of is that any creditor may place an adverse listing on a person’s credit file if the account has remained unpaid past 60 days. This includes phone companies, utility companies, and gyms as well as banks, finance companies and stores – and the outstanding amount can be for as little as $100.

A negative credit reporting system

Currently Australian credit reporting system is a ‘negative’ system. This will change as Australia moves towards positive credit reporting, but until then – the rules of the game are very different from many other countries. Only negative data is recorded on a person’s credit file. From this point of view – there is nothing people can do to counter-balance any negative data which is displayed on their credit file. It is either present – or not.

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

YES AND NO! There is no ‘score’ as such in Australia. So a person’s credit file is what it is with all adverse listings displayed for creditors to consider, and no amount of ‘positive’ credit information can currently change that. Under Australia’s credit reporting laws these adverse listings have a set time frame they must be listed for. This is 5-7 years depending on the type of listing. Unfortunately most adverse listings guarantee automatic decline on credit approval in the current market. Adverse listings are not removed ahead of time, but a creditor will mark the listing as paid if the account has been settled.

However, if a person’s credit rating contains listings which should not be there, or there are errors, the credit file holder does have the right to have this information rectified.

5 ways to improve your chances of obtaining credit under Australia’s credit reporting system:

1. Reduce credit limits.

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

2. Reduce credit enquiries.

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

3. Check credit file.

Anyone has the right to request a copy of their credit file, to see what is being said about them. This report is free for the credit file holder every 12 months. The request should be made to all the applicable credit reporting agencies, and a report will be made to the credit file holder within 10 working days.
There is the potential for creditors to make mistakes when entering listings on credit files. So anyone who is credit active should check theirs, regardless of how diligent they think they may have been with their repayments.

A small scale study conducted by the Australian Consumer Association (now Choice Magazine) in 2004, revealed a staggering 30% of credit files were likely to contain errors.

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

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

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

4. Pay any outstanding amounts.

If a credit file check reveals outstanding amounts on a person’s credit file, paying them can be of benefit to a person’s credit rating. Whilst the creditor cannot remove the listing, they can mark the listing as paid, which in some cases could improve people’s chances of obtaining credit.

5. Remove errors.

Unfortunately listings are not removed by creditors unless the credit file holder can provide adequate reason and lots of evidence as to why the listing should not be there. Credit repair also requires knowledge of the legislation and perseverance. But for those people whose financial freedom is hindered because their credit file contains errors, it is a point worth fighting for.

If people have neither the time, knowledge or patience for credit repair they can seek out a reputable credit repairer who will be able to work on their behalf to negotiate with creditors to have the defaults removed if there are errors.

A clear credit record can allow potential borrowers the option to choose the best loan to suit them, with the best interest rate.

6. Make repayments on time.

Repay any bills received by the due date. Repay over the minimum amount required on credit cards. If people are having trouble paying on time, they should contact the creditor as they may be able to work out a payment plan rather than listing the non-payment as a default. If people are disputing bills with creditors, they should still pay the bill by the due date. Better to be reimbursed the outstanding amount than have the creditor put a default on their credit file in the process.

7. Show stability.

Having a stable address, stable income and stable employment can all improve someone’s chances of obtaining credit. Right before someone applies for a home loan is not the time to change jobs – regardless of how good the wages are.

Interestingly, many errors in credit reporting occur when people change addresses, so keeping a stable address can also decrease the likelihood of bills going to the wrong address and defaults being placed on a person’s credit file unnecessarily.
People can visit the MyCRA Credit Repairs website for more help with their credit rating, and help to repair a bad credit rating.

Image: vichie81 / FreeDigitalPhotos.net

01/09/2011
Is your smartphone use increasing your risk of identity theft?

A recent survey found that over half of all mobile phone users own a smartphone. The survey conducted by TNS Mobile Life found 52% of mobile users own a smartphone device, which is an increase of 24 per cent from 2010.

But unfortunately fraudsters are also aware of this. People should be wary about the possible risks to the security of their personal information when they are using their smartphone.

The fact that people are using these devices to log in to social networking, use email, download applications and access bank accounts means they also need to be careful they are not opening the door to identity theft. This could leave them hugely out of pocket, and potentially ruin their credit rating.

Security firm Earthwave Managed Services guest blogged on CSO this week, and warned readers about emerging identity theft risks with smartphones.

“The smartphones of today don’t just make calls and take pictures. They serve as handheld PC’s and can potentially provide a thief with enough information about your online presence so that further theft of finances and identity can occur,” the firm says.

Earthwave says the same types of malicious malware and viruses that are present on home computers are being directed to smart phones, but there is a gap in adequate security in this area. Here’s how they say people’s personal information can be compromised:

“The malware could be injected using a PDF document, an image on a website, an e-mail or even embedded in webpage code. While the PC and notebook fall victim to the same attacks, the smartphone is even more vulnerable due to sluggish software development and user naivety…

“The hype surrounding the app-race gives attackers another means of entry – App Stores. Cyber criminals can code apps which include malware with the aim of gaining anonymous and complete access to the data residing on the phone,” the firm says.

Earthwave says people should adhere to the same security practices as those applied to their notebook to prevent smartphone identity theft. They suggest four security measures to take:

1. Install firmware updates that resolve security issues.
2. Always use strong passwords and stay vigilant with your email and web browsing.
3. Always be extremely careful what information you provide on social networking sites
4. Configure websites containing personal or financial information to be encrypted for the entire session, if the site provides this functionality.

Identity theft can be devastating for the victim, and many times they face an uphill battle with their credit rating following it. If the crime is sophisticated – as could be the case with malware-generated identity theft, the virtual stealing of someone’s good name can go undetected for a significant time.

Often it is not until the victim applies for credit somewhere and is refused that they realise their personal information has been stolen and identity fraud has been committed against them. People may have credit applications as a minimum and possibly defaults, mortgages and mobile phones attributed to them incorrectly.

Once any account remains unpaid past 60 days, the debt may be listed by the creditor as a default on a person’s credit file. Under current Australian legislation, defaults remain listed on the victim’s credit file for a 5 year period.

What is not widely known is how difficult recovery from identity theft can be. Unfortunately there is no guarantee defaults can be removed from a person’s credit file. The onus is on the identity theft victim to prove to creditors they didn’t initiate the debts. But for the victim who is virtually robbed of their financial freedom, it is a point worth fighting for.

For more information on identity theft, or for help with credit repair following identity theft, visit the MyCRA Credit Repairs website.

Image: Salvator Vuono / FreeDigitalPhotos.net

01/09/2011
Found a better home loan? Check your credit file before applying to refinance

Media Release

25 August 2011

Home owners refinancing in the wake of the government’s scrapping of home loan exit fees should consider the health of their credit file before they make a new application, according to a national credit repairer.

Director of MyCRA Credit Repairs, Graham Doessel says existing home owners should exercise their right to a free credit report from the major credit reporting agencies prior to making any enquiries on a new home loan.

“People who already have a mortgage probably haven’t considered how important a clear credit rating is – even second time around. Regardless of whether people have been diligent payers, creditors can and do sometimes make mistakes with people’s credit files and some people end up with black marks against their name that shouldn’t be there,” Mr Doessel says.

A bad credit rating can result when a bill or repayment goes unpaid past 60 days. After this time, a creditor has the right to list that non-payment as a default on the person’s credit file.

“In the current finance market, any black mark generally results in an automatic decline with the major lenders. Even too many credit enquiries can blow someone’s chances of finance approval, so it really is important for people to know what is said about them on their credit report before they go in to refinance,” Mr Doessel says.

This comes as The Telegraph reported earlier this month existing home owners are staying put and refinancing in high levels.

It reported mortgage broker Australian Finance Group’s figures of about 39 per cent of their July mortgages were from people refinancing. AFG attributed this trend to the major banks competing very aggressively on fees and price since exit fees were banned.

“If you have a home loan at the moment, it’s the best time in 20 years to be looking for a better deal,” AFG spokesman Mark Hewitt said.

Mr Doessel says many of his clients have been in the middle of refinancing, whether to reduce their repayments or to get a better deal – when the bank has performed a credit check and found defaults against their name.

“Sometimes people don’t know their good name is compromised until they apply for finance and are refused. Many times if they had checked their credit file they may have had the chance to rectify any errors or save themselves the embarrassment prior to applying for the loan,” he says.

Mr Doessel says approximately 63% of the clients who contact his company for credit repair would be people who 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 a 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,” he says.

Under current credit reporting legislation, consumers have the right to a free 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.

Consumers also have the right to have any inconsistencies on their credit file rectified. Defaults can be marked as paid if the account has been settled.

But Mr Doessel 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.

/ENDS
Please contact:
Lisa Brewster – Media Relations Mob: 0450 554 007 media@mycra.com.au

Graham Doessel – Director (07) 3124 7133 http://www.mycra.com.au

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

Link: http://www.dailytelegraph.com.au/money/better-mortgage-deals-beckon-as-banks-create-more-deals/story-e6frezc0-1226108846876

Image: renjith krishnan / FreeDigitalPhotos.net

29/08/2011
Australian PlayStation users given free identity theft protection for a year

Finally Sony has recognised the possible threat that was made to the personal information of its 1.5 million Australian PlayStation users. After one of the world’s biggest data breaches occurred on the PlayStation Network in April, Sony has come to the party with an offer of free identity protection for the year.

The Sydney Morning Herald reports about this in its story ‘Sony offers free ID theft protection to Aussies.’

The package includes “CyberAgent Internet Surveillance”, whereby CS Identity’s technology scours the internet for unauthorised use of your identity. The firm conducts 24/7 monitoring of criminal web pages, chat rooms, bulletin boards and file sharing sites to identify trading or selling of customers’ personal information.

Identity restoration is also included, which involves the firm helping customers restore their identity after becoming the victim of identity theft.
The data stolen during the breach includes names, gender, addresses, email addresses, birthdays and login passwords for Sony’s PlayStation Network and its Qriocity music streaming service.

All up 1,560,791 Australian accounts were affected – 280,000 of which had credit card details. This is a fraction of the 77 million total accounts exposed worldwide.

Security experts have warned that even without credit card details, hackers could use the other stolen details to construct highly targeted and believable attacks designed to steal more personal information and/or infect computers.

The SMH says the Australian Privacy Commissioner, Timothy Pilgrim, has been investigating the breach, and they say it is still ongoing. In May we blogged about Australia’s Privacy Laws, as they relate to data breaches.

The Government is set to introduce tougher Privacy Laws following this data breach. One of which will be mandatory notification laws, helping to protect Australians from identity theft following any future data breaches, and another which will allow victims of identity theft following a data breach to be able to obtain some kind of compensation for any loss they may receive.

The Sydney Morning Herald recently reported one in 10 Australians who use the internet have lost money to online identity fraud over the past year, according to VeriSign Authentification Services. We recently blogged that these fraud figures have doubled since 2007. The cost of this is estimated to be $1.286 billion during the past year.

But the real cost of identity theft comes when a person’s credit file is impaired. When identity theft affects people’s credit files there is no reimbursement for losing the money they could borrow. But victims often lose their dream home, can’t borrow for their business and can’t get the new car they wanted.

Often victims don’t know about the fraud until they apply for credit and are refused because they have a bad credit rating.

Image: Arvin Balaraman / FreeDigitalPhotos.net

25/08/2011
Government warning about Facebook scams

It was only going to be a matter of time before identity thieves would target their victims through scams on social networking site Facebook.

South Australian Minister for Consumer Affairs, Gail Gago has issued a warning statement for people about new methods of scams which she says are very advanced.

“Social media has played a role in enabling scammers to disguise themselves as legitimate companies or individuals to persuade victims to hand over money or personal details…With more consumers purchasing goods online, there now is a greater risk that a consumer could become a victim of identity theft. Scammers use this as an opportunity to offer non-existent goods ranging from puppy dogs to motor vehicles to con unsuspecting customers,” she says.

The Federal Government’s Stay Smart Online explains how scams are perpetrated on Facebook. They say when data is shared between people who know each other, there is a higher level of trust and fraudsters are taking advantage of this. They try and get victims to click on links or give over information. Ultimately the purpose is to generate revenue for the fraudsters; they may use a number of techniques including using malicious software to take control over your computer, and/or steal people’s information.

Not widely known, is just how far fraudsters may be able to go with the information they receive from their unsuspecting victims. Bank account or credit card details, when received in conjunction with the other information displayed on social networking sites like Facebook can end up being a recipe for disaster for people’s credit ratings.

Fraudsters may be able to use those details to take out credit in the victim’s name. Identity fraud can often go undetected, until the victim applies for credit and is refused due to defaults they had no idea about.

Credit rating defaults stick for 5 years, and for anyone who has lived with a black mark on their credit file, they are virtually banned from most credit for 5 years. This includes major credit through to mobile phone plans.

Just because someone claims to be a victim of identity theft, it doesn’t automatically guarantee they will have their good name restored. Lengthy negotiation with creditors often ensues, with the victim requiring copious amounts of evidence and usually police reports to prove the case of identity theft.

So it is important to heed the almost daily warnings of scams we hear about, in order to stay one step ahead of what can be a very damaging crime.

The Premier’s office cites these top five scams reported in South Australia for the last financial year:

• Computer (PC) virus checks: An individual phones, claiming they are a certified computer engineer and convinces the consumer their computer has a virus. The consumer allows the scammer access to their hard-drive leaving personal details exposed.

• “Nigerian” and similar scams: Consumers are promised huge rewards if they help someone to transfer money out of their country by paying fees or releasing their bank account details.

• Overseas lotteries: Consumers receive a letter from an overseas lottery or sweepstakes company claiming the consumer has won money or prizes, and then asks the consumer to pay a fee to release the winnings, or to provide personal details.

• False billing (blowing): Targets small businesses who receive a bogus bill for a listing or advertisement of their business in a publication they never appeared in.

• Employment scams: Consumers are offered employment in non-existent markets. Scammers claim CVs will be considered upon payment of a fee to process the application, with the consumer usually not receiving a response and being left out of pocket.

Consumers are urged to report any suspected scam to the ACCC via the SCAMwatch website www.scamwatch.gov.au or call the information line on 1300 302 502.

We recommend all internet users subscribe to the government’s Stay Smart Online alerts for advice on new scams and viruses which may affect their computer and threaten their good name.

If people have already been a victim of a scam, and they want help with credit repair, contact MyCRA Credit Repairs. We permanently remove defaults from credit files.

Image: Master isolated / FreeDigitalPhotos.net

18/08/2011