MyCRA Specialist Credit Repair Lawyers

Tag: credit repair

  • Phone bill complaints – the dangers for your credit rating

    Media Release

    15 August 2011

    Customers who are fed up with the process of disputing their phone or internet bills are warned they still need to follow the system to avoid finding themselves with a bad credit rating, according to a national credit file repairer.

    Director of MyCRA Credit Repairs, Graham Doessel says when disputing bills with Telco providers, people make two common mistakes which can cost them their good credit rating unnecessarily.

    “Phone companies make mistakes with billing all the time, and undoubtedly some of those mistakes are difficult to resolve. Where their customers go wrong, is assuming just because they have spoken to someone on the phone about the bill, they are no longer obliged to comply with its due date.”

    “Consumers also need to ensure when they are disputing a bill, they obtain any resolution in writing before assuming the matter is fixed,” Mr Doessel 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 is regardless of whether the customer believes there are errors in the details of the bill or with the payment amount.

    This comes as the Telecommunications Industry Ombudsman reveals unhappy customers experience repeated and time consuming contact with Telcos before referring their matter to the TIO.

    The TIO released findings from its research paper, Resilient Consumers, on Friday, a survey of more than 500 consumers who 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 unresolved bill disputes with Telcos, where people end up with defaults on their credit rating would make up about one-third of his clients.

    “Many clients get nowhere trying to dispute the bill with the phone company, and end up copping a default on the chin if they refuse to pay the bill.”

    “Some also believe the matter has been resolved. It is not until they apply for credit in a different circumstance that they realise the Telco has placed a default on their credit record,” he says.

    Defaults remain on a person’s credit file for 5 years. Under current legislation, defaults generally do not get removed from an individual’s credit file, but can be marked as paid if they have been paid.

    “Currently, defaults – even those that are marked as ‘paid’, will prevent you 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 says 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.

    MyCRA Credit Repairs outlines the process they recommend people should take when disputing a bill in Australia:

    1. Contact the bill provider as soon as you receive the bill and attempt to resolve the discrepancy.
    2. Make a note of the name of each person you speak to. Note any resolutions that were reached and request those be sent to you in writing.
    3. If the credit provider fails to honour the discrepancy, advise them you will be contacting the appropriate ombudsman.
    4. If the due date for the bill approaches and the issue has not been resolved, pay the bill by the due date. You can seek reimbursement at a later date, but this will prevent a default for that bill being listed on your credit file.
    5. Hang in there, play by the rules of the game and you should find your matter sorted out eventually. But at least once the matter is sorted out you aren’t left attempting to remove a default on your credit file as well.

    / ENDS

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

    Graham Doessel – Director Ph: 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.

    Links:

    http://www.tio.com.au/media_statements/RELEASES/2011/08_12_Resilient_Consumers_Report.html

    Image: Danilo Rizzuti / FreeDigitalPhotos.net

  • Tax file number fraud almost doubled since last year

    MEDIA RELEASE

    8 August 2011

    Tax payers should be on the lookout for a scam designed to extract tax file numbers for the purpose of identity fraud, which could leave their bank accounts empty and their credit files ineffective for up to five years, a national credit repairer warns.

    Director of MyCRA Credit Repairs, Graham Doessel says if people fall victim to this particular type of identity theft, they are at a high risk of having their credit file misused.

    “A person’s tax file number is like the key to their credit file. If fraudsters are able to obtain this number, they have a crucial piece of information for building a duplicate identity in the victim’s name,” Mr Doessel says.

    Mr Doessel says social networking sites like Facebook have made it easier for fraudsters to obtain the extra personal information a criminal could need for identity fraud.

    “People post a whole host of information about themselves on sites like Facebook, MySpace and Twitter, but people need to think – what would a criminal do with this information? If fraudsters already have a person’s tax file number, a simple check on Facebook for a date of birth can give them the tools they need to request replacement copies of personal documents, and use those documents to take out credit – even mortgage homes in the victim’s name,” he says.

    This comes as The Telegraph reported yesterday that the practice of stealing tax file numbers has almost doubled in the past year, from 12,669 to 31,200 from the previous year.

    The number of complaints made to the Commonwealth Ombudsman about the Australia Tax Office also increased almost 40 per cent, largely because of the stolen TFNs.

    It reported that techniques to steal someone’s TFN include bogus approaches by phone calls, emails, letters, websites and text messages. People who share the same name and birthday are also in the “at risk” category.

    The Government issued an alert on its Stay Smart Online  website following the 2010 financial year about bogus emails from the ATO specific to e-tax.

    “New fraudulent emails are circulating which pretend to be from the Australian Tax Office. Using social engineering tricks the criminals behind these emails try to trick you into providing personal information as a pretext to receiving a tax refund. This personal information can be used by the criminals to steal your identity,” the alert says.

    The Telegraph reported an ATO spokeswoman as saying stolen TFNs and identity theft was a big problem – the effects could last for years and were a nightmare to clean up.

    “When an identity is stolen it can take a long time to put everything right,” she said. “A person can face financial problems if someone commits fraud or other crimes using your identity.

    Other impacts may be experienced in getting a job, a bank loan or other credit, renting a house or a car, or applying for government services or benefits.”She said the ATO had established a “client identity support centre” to assist people whose identities were stolen.

    Mr Doessel says identity fraud can often go undetected until the victim applies for credit and is refused.

    “The fraudster could abuse someone’s good name all over town and it is not until the victim applies for credit and is refused, that they learn about the identity theft and subsequent fraud,” Mr Doessel says.

    Any kind of credit account (from mortgages and credit cards through to mobile phone accounts) which remains unpaid past 60 days can be listed as a default by creditors on the victim’s credit rating, and those defaults remain there for 5 years.

    Mr Doessel says 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, so it is really essential to keep a clean credit record,” he says.

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

    “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,” Mr Doessel says.

    Contact www.mycra.com.au for more details on credit repair following identity theft.

    /ENDS

    Please contact:
    Lisa Brewster – Media Relations   Mob: 0450554 007 media@mycra.com.au

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

    Links

    http://www.dailytelegraph.com.au/news/sydney-nsw/big-new-crime-is-to-steal-you/story-fn7y9brv-1226109959920

    http://www.ssoalertservice.net.au/view/8cba427852e2faa582ca0ed3391cfcd3

    Image: nuttakit/ FreeDigitalPhotos.net

     

  • Ordinary Australians are most at risk of identity theft

    A leading commentator on technology issues, Stilgherrian has warned readers of ABC’s opinion column ‘The Drum’ that the idea perpetuated by the media that identity theft is mostly a risk for governments and big business is masking the more significant occurences of identity theft to individuals in Australia and the world.

    “Indeed, the stories that get reported are chosen precisely because they can provide simple narratives and archetypical characters with clear motives, not because they’re significant battles in the perpetual cops-versus-crims war for control of the internet,” he says.

    Stilgherrian says the real truth of identity theft is that the typical victim is an ordinary person who has fallen prey to the vast criminal network which exists on the internet.

    First, these crimes are committed on a vast scale. Criminal processes are orchestrated globally, automated, and supported by thousands of unwitting, disposable minions. If only a tiny percentage of people fall for scams, we’re still talking millions of dollars.

    Second, the bad guys are good at this. Really good. Blaming the victims is inappropriate. “They had it coming to them”?Really?

    Third, it all connects up. Fifty bucks went missing from your credit card precisely because the number had been stolen from a poorly-secured online store. The legitimate website popped up the message from the fake anti-virus product because it, too, was poorly secured and had been hacked automatically by software that probed a hundred thousand websites one night.

    Or, in the case of identity theft, when someone takes out $50,000 of loans in your name? That happens through the gradual accumulation of personal data. Your name and email address from a list stolen from a hacked website, cross-matched with your street address from another, your date of birth from a third, and so on.

    These databases can contain millions of people’s details. They’re traded in shady online markets where people buy the pieces missing from the databases they already have, merge them, refine them, mark ’em up and sell ’em on until eventually there’s enough to turn it all into a credit application. It’s then laundered though “money mules”, people recruited in the belief they’re making money at home with just a computer.

    Stilgherrian’s commentary highlights the fact that identity theft can occur to anyone. We also want people to know these important points:

    * Often, people don’t know identity theft has occurred to them, until they apply for credit and are refused.

    * Often, a person’s credit file can end up with a long list of defaults 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.

    * 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:

    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.

    For more information contact MyCRA Credit Repairs or call tollfree 1300 667 218.

    Image: Danilo Rizzuti / FreeDigitalPhotos.net

  • Going guarantor: how to keep your credit rating safe

    It is natural for family and close friends to want to help each other when they need it. For guarantors – they are often near to retirement, with perhaps only a small mortgage on their home. They have no other debts and a good credit rating.
    This gives them the ability to help out often their children or other family members who seem to be struggling to get ahead – possibly unable to buy a home, purchase a car or enter into the business they have been hoping to secure.

    It seems so easy just to sign off on that loan for their family, and see them get ahead in life right? Well this is not always the case.

    In the past there have been clients who have gone guarantor for someone, only to find at some point they have not made repayments on the loan, leaving the guarantor responsible for the debt. Sometimes the guarantor is unaware the repayments are not being made. It is when they are refused credit themselves that they realise payments are late and their credit file has been tarnished.

    – What is a guarantee?

    When people seek approval for a loan, a lender can sometimes require a potential borrower to provide a guarantee if they feel there may be some doubt as to whether the loan will be repaid. This sometimes occurs when the potential borrower has no credit history, or a bad credit rating, or perhaps an inadequate savings record.

    Often it is a family member, and generally a parent who is asked to guarantee the loan. The guarantor agrees to be responsible for repayments on the loan should the borrower fail to make them and this is including all interest, charges and fees that are due to the lender.

    – What can go wrong?

    Well a lot actually. Number one being the borrower fails to keep up with their repayments.

    Repayments which are more than 60 days late are listed as defaults on people’s credit files. The default would be listed on both the borrower’s and the guarantor’s credit file. Once somebody has a bad credit rating, it can be very difficult to obtain further credit. Most of the major banks will reject loan applications when people have defaults on their credit file. It can be difficult to even obtain a mobile phone plan.

    Worst case scenario if repayments are not made, is the bank begins to use the property the guarantor used as collateral, to recover lost debts. There is a danger the guarantor can lose their home. Those people who were so close to financial freedom are now facing debt, and a shaky retirement.

    According to the Consumer Credit Legal Centre NSW, there are many negative aspects to making the decision to go guarantor:

    REMEMBER: You do not get anything out of giving a guarantee!
    You do not get:

    •Any rights to any of the goods or property the borrower is purchasing with the loan;

    •A positive credit record;

    •It will not make it easier for you to get a loan for yourself;

    •It will not necessarily make it easier for the borrower to get a loan in the future.

    They suggest alternative ways to help out your children or family financially without having to guarantee a loan.

    “If your child asks you to guarantee a car loan for example, consider some alternatives. Perhaps you could give them an interest free loan of a few thousand dollars as a deposit, or offer to match their savings if they wait a few months, or just talk them into a cheaper car. If the loan is for a family business, talk to your accountant. Is there another way of obtaining the required funds? If a guarantee is absolutely necessary, is there some way of minimising the amount of the guarantee and/or the risk that it will be called upon?” the Centre says.

    – How to make an informed decision

    In the case of buying property, going guarantor can make a huge difference to the family member’s financial future by allowing them to break into the housing market.

    The most important question to ask is: Could we make the repayments on this loan should our family member be unable to?

    The second step for potential guarantors to make could be to seek third party and or legal advice prior to any agreement being made. This is to be able to make that calculated risk – and yes it is a risk, with the help of someone who doesn’t have a vested interest in the outcome (like the borrower or lender).

    The Sydney Morning Herald’s Personal Loans Smart Guide provides some other points to consider when making this decision:

    •How much is being borrowed?

    •How responsible is the borrower?

    •How stable is their employment?

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

    •Can I afford to repay the total sum of the loan?

    Guarantors can insist borrowers have adequate insurance to cover anything that may go wrong during the term of the loan, such as life insurance and income protection insurance.

    It is also important to be clear about the amount that will be guaranteed, and that there is an ending to the time period of the guarantee.

    They should also ask that a copy of all bank statements be provided to them during the course of the guarantee.

    It is true there are many cases of guarantors helping out family members successfully, with the whole event posing no danger to their own homes or to their credit rating. But in this instance, it is a case of, when in doubt – don’t.

    – Does the borrower have a bad credit rating?

    As an alternative to using a guarantor, the borrower could look at repairing their bad credit rating. The problem is, many people who attempt to have defaults removed are told by creditors they can have them marked as ‘paid’ but that listings never get removed.

    But if the borrower has a bad credit rating due to listings which have errors, are unjust or simply should not be there, they do have right to have those inconsistencies removed. It may be worthwhile for people with a damaged credit file to seek the help of a credit repairer who can assess whether they are suitable for credit repair. The borrower could have their credit file defaults completely removed, and negotiate with creditors on their behalf. The success rate is generally higher, and it could mean the borrower is able to apply for a loan on their own terms, without the need for a guarantor.

    For more information on credit repair, contact MyCRA Credit Repairs – www.mycra.com.au or phone toll-free 1300 667 218 to speak to a consultant.

    Image: Ambro / FreeDigitalPhotos.net

    Image: vichie81 / FreeDigitalPhotos.net

  • Consumer debt reduction: Watch out for new bank fees

    Our last blog post was about debt struggles and solutions –and how people can protect their credit file. Featured in this post were recent findings from Dun & Bradstreet’s bi-annual debt survey, showing one in three Australians will struggle to repay their debts in the September quarter.

    The Sydney Morning Herald recently published an article featuring this survey, titled ‘Australians still hooked on credit’. It reported that many people are still heavily reliant on credit to purchase something they could otherwise not afford, despite the assessment of their household’s financial outlook now being at a 20-year low. But the article reports some sections of the population are reducing their credit use. It reports Mastercard as saying:

    “The austere mood caused the annual growth in credit card numbers in Australia to slow to 1.76 per cent in the 12 months to May. Purchases made on debit cards jumped 17.3 per cent during that time as consumers sought more control over their finances.”

    If the downward trend to reduce credit continues, people will become more reliant on debit cards and Eftpos to make their purchases.

    But as the Herald Sun reports in its article ‘Banks are busy working on ways to replace income lost from fees‘, people may be penalised for this change. It reports a new Eftpos tax will result in an extra 10c interchange fee and 1c EPAL scheme fee increase on Eftpos transactions starting October 1, 2011. Here is an excerpt from this story:

    The company that runs Eftpos, EPAL, has given banks until
    next month to opt in to its new, higher interchange fee structure.

    “Banks are about to start charging for something they previously provided for free,” said Jost Stollmann, chief executive of a rival player in the debit-card payment industry, Tyro Payments.

    “In fact they supplied this service for less than free: they paid 5c each time someone used Eftpos.”

    “Now EPAL has reversed that subsidy and created a new 5c fee to acquirers, which will flow through to retailers and merchants.”

    The Australian Newsagents’ Federation say the new Eftpos fee
    regime will impose fees of up to 21c for each Eftpos transaction, up 110 per cent on existing fees.

    “No retailer can negotiate the interchange fee with his bank. The new EPAL regime is all about raising bank fees,” the federation says in a new advertising campaign.

    The story explains how banks have cut out exit fees on home loans, and many of the other fees that consumers have traditionally complained about, but have cleverly sought alternative ways of replacing the lost fees. It reports one way of recovering lost revenue from exit fees is to increase ongoing fees on home loans. The story reports fees in this area have increased on average around $75 a year since 2009. Also some banks have announced increased upfront fees on some of their variable home loans recently. The highest upfront fee increase was $600 on one Commonwealth Bank product.

    So consumers will have to bear the cost of reduced fees in some areas, with increased fees in others. If people want to refinance to a cheaper interest rate to save money, they won’t pay exit fees to leave that home loan – but they could pay higher upfront fees on many of the new loans they may want to switch to. Hmmm….

    Is the process of saving money and reducing debt just getting more difficult to navigate?

    How do we know the best ways to save money?

    For those who, despite all of the obstacles to success are determined to reduce debt – the best place to start is to get interested and updated on ways to save money. We encourage people to get educated about debt, and ways to avoid a bad credit rating, which can ruin people’s ability to obtain good credit for 5-7 years.

    The fact is credit is an essential part of being money smart in today’s society. Unfortunately we need credit. People can’t go back to wacking the money under the mattress. They simply cannot function without savings records and credit history in order to obtain major credit like mortgages and personal loans. So to succeed, it’s a matter of being educated about smart ways to use credit.

    There are a number of great places to start getting educated. We love the advice given on Australian blog Savingsguide. Also extremely informative is ASIC’s Money smart website. Of course, we can’t go past a trusted favourite like MSN Money.

    If people find despite their education on money principles, they still can’t get ahead due to the disadvantage of having credit rating defaults, writs or Judgments – it may be possible to start with a clean slate by having them removed. Not all credit files can be repaired, but those which contain adverse listings with errors, which are unjust or just shouldn’t be there are good candidates. Credit repairers completely remove defaults, writs or Judgments from people’s credit files, allowing people the financial freedom to choose the best interest rates, and financial products which are right for
    them. For example, people who are living with a bad credit rating who invest in credit repair can potentially save thousands on interest by the ability to select a cheaper interest rate. Contact us at MyCRA Credit Repairs for more information.

    Image: Salvatore Vuono / FreeDigitalPhotos.net

    Image: Ambro / FreeDigitalPhotos.net

  • Is your child’s internet use putting your credit rating at risk?

    Media Release

    18 July 2011

    Parents who allow children and young adults to have free reign of the computer, and who don’t apply meaningful cyber-security measures at home are putting themselves at risk of identity theft, and threatening the family’s good credit rating, a national credit rating repairer warns.

    Director of MyCRA Credit Repairs, Graham Doessel says experience is showing us it is not enough for people to simply download anti-virus software and assume they are protected against identity theft.

    “Every day there’s more and more reported cases of identity theft via the cyber-world, with criminals gaining access to personal information online, in order to commit identity fraud in the victim’s name.”

    “While the internet is an essential tool for children to be competent with, parents have to be realistic about what kind of protection they are affording their family when they allow the control of the family computer to rest solely with their child,” he says.

    Mr Doessel says the dangers of children downloading viruses, participating in scams, releasing credit card details and disclosing personal information and passwords to criminals can all be minimised by parents taking an active role in their child’s internet use, and constantly updating their own cyber-awareness.

    “Gone are the days of people joking about how their children’s knowledge of the internet has surpassed their own – the scary fact  is it’s happened. The threat of criminals taking advantage of a parent’s lack of expertise is real, and people should do all they can to stay ahead of what is becoming the fastest growing crime in the country,” he says.

    A U.S. study released earlier this year, showed that of the 20 million minors who actively used the social networking site ‘Facebook’ in the past year, 7.5 million—or more than one-third—were younger than 13 and not supposed to be able to use the site.

    “Among young users, more than 5 million were 10 and under, and their accounts were largely unsupervised by their parents,” the report revealed.

    It also revealed that one million children were harassed, threatened, or subjected to other forms of cyber-bullying on  Facebook in the past year.

    “Clearly, using Facebook presents children and their friends and families with safety, security, and privacy risks,” the report said.

    Mr Doessel says fraudsters are often extremely good at extracting personal information from adults, so doing the same with children would be a walk in the park.

    “The amount of personal information that many young people have freely available for viewing on Facebook is frightening. We may say it is harmless, but what’s to say fraudsters can’t sit on that information and wait until their victims come of age to commit fraud in their name?”

    “Other parents alarmingly give over their credit card details to their children to use when downloading music or games, or use the same passwords for ITunes that they may use for their bank accounts. This information in the wrong hands can see someone taking out credit in the victim’s name, and completely destroying their financial future” he says.

    Mr Doessel says a major downfall to being an identity theft victim is not only the initial loss of monies, but if the fraud sees accounts in the victim’s name going undetected and unpaid past 60 days, a person’s credit file can be ruined for 5-7 years due to defaults.

    “It need not be major fraud to be a massive blow to the identity theft victim. Unpaid accounts for as little as $100 can have the same negative impact on someone’s ability to obtain credit as a missed mortgage payment. So any misuse of someone’s credit file can be extremely significant,” he says.

    For parents who want to educate themselves about the risks of cyber-crime, the Government has put together the CyberSmart website, encouraging parents and kids to be aware of the dangers the internet may pose for children.

    The Government recommends the close monitoring of all children’s internet use. Some of the other recommendations it makes include:

    – Be aware of and involved in children’s internet use. Bookmark a list of ‘favourites’ for them. Encourage children to share new websites and explore together. Assist them whenever they need to disclose personal information.

    – Talk to children about personal information and why it is special.

    – Consider creating a family ‘fun’ email account separate from all other accounts for the child’s use. This way it can be deleted if misused.

    – Consider using filters, labels and safe zones to manage children’s

    – Install and update anti-virus and other e-security software to restrict unauthorised access to data on the home computer and protect that data from corruption. Turn firewall on, set computer to automatic scan and update regularly.

    If people suspect identity theft has affected their credit file, they can contact MyCRA Credit Repairs www.mycra.com.au for help with obtaining a copy of their credit report, and removing any discrepancies from their credit file.

    /ENDS

    Please contact:

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

    Graham Doessel  – Director

    Ph: 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.

    Links:

    http://www.consumerreports.org/cro/magazinearchive/2011/june/electronics-computers/state-of-the-net/facebook-concerns/index.htm

    http://www.cybersmart.gov.au/

    http://www.cybersmart.gov.au/Parents/Cybersafety%20issues/Protecting%20personal%20information/Identity%20theft.aspx

    Image: Picture Youth / FreeDigitalPhotos.net

  • Australia’s new credit reporting laws: what they mean for home buyers

    MEDIA RELEASE:

    14 July 2011

    Proposed changes to Australia’s credit reporting laws will give those home buyers who would otherwise not have been approved due to minor credit defaults more chances for finance, according to a national credit rating repairer.

    Director of MyCRA Credit Repairs, Graham Doessel says the ‘comprehensive credit reporting’ changes currently under review by the Senate Finance and Public Administration should help lenders gain a clearer picture of a home buyer’s suitability for finance, and should help to alleviate unfair ‘knock-backs.’

    “The problem with the information currently recorded on people’s credit reports, is that only negative data is displayed. There is no data showing any positive repayment history, the type of debt, or the outstanding amount. So utilities bills are treated the same as mortgage defaults. Currently we have hundreds of clients who are unable to secure a home loan due to being in default on phone bills – some for as little as $100,” Mr Doessel says.

    He says the future of credit reporting will allow lenders to make a decision for home loan suitability based on more extensive history of the borrower. The proposed ‘comprehensive reporting’ scheme would include:

    -the type of each current credit account opened (for example, mortgage, personal loan, credit card);

    -the date on which each current credit account was opened;

    -the limit of each current credit account (for example, initial advance, amount of credit approved, approved limit); and

    -the date on which each credit account was closed.

    This follows new legislation released by the Government early this year requiring lenders to prove the suitability of borrowers to make repayments before allowing access to further credit.

    Mr Doessel says on the other hand there will be some buyers who are disadvantaged by the changes, particularly those who have a tendency to over-inflate their suitability.

    “It will require home buyers to be truthful about the current credit they have taken out, and the limits on each account. The new system may reveal some people are considered to be over-extending themselves and are rejected where they normally would have been approved. But in my line of work, many buyers are absolutely suitable to service a home loan, but have small-time defaults which hold them back.”

    “The other group that will be disadvantaged are those who are late with their payments for major credit. Under the new laws, late payments to a regulated NCCP credit provider such as a bank can be recorded as such, regardless of whether the late payment gets to default stage. Utility providers are not regulated in the same way, so normal rules for defaults will apply,” Mr Doessel says.

    He says the new laws will mean it is more important than ever for people to request regular updates on their credit report.

    “With all the new data available, there will be more opportunity for errors to occur. People should obtain a free copy of their credit report every 12 months from one or more of the credit reporting agencies in Australia, to ensure their file does not contain any inconsistencies,” he says.

    Mr Doessel says if people find information listed on their credit file which they believe is in error, is unjust or just shouldn’t be there, they do have the right to have that information rectified. He does say however, that it that can be a difficult process for the individual.

    “Navigating credit reporting legislation and negotiating with creditors is not easy. Unfortunately in most cases, if people attempt to remove the default themselves they can do more harm than good by not understanding the process fully, almost like trying to defend themselves in court. They might do OK, but they only get one shot at it and if they don’t get it 100% right, they will be unsuccessful. There is no appeal in most cases,” he says.

    Contact www.mycra.com.au for more help with obtaining a credit report and credit repair.

    /ENDS.

    Please contact:

    Lisa Brewster – Media Relations

    0450 554 007  media@mycra.com.au

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

    Link:

    http://www.alrc.gov.au/publications/55.%20More 20Comprehensive%20Credit%20Reporting/models-more comprehensive-credit-reporting

    Image: Danilo Rizzuiti/ FreeDigitalPhotos.net

  • Australia part of ‘Quintet’ of nations meeting to discuss cyber-crime

    Identity theft is proving to be the new wave of crime, and the worst part of it is – it hits twice, once when the initial fraud takes place, and secondly when the victim’s credit rating – their good name, is tarnished, leaving them unable to take out credit for up to 5 years.

    Cyber-crime is now such a serious global threat – to individuals, businesses and governments that nations will continue to join together in its fight.

    Discussions on cyber-crime are being held in Sydney later this week with Attorneys-General from Australia, the U.S. and their counterparts in the U.K., Canada and New Zealand attending.

    The ‘Quintet’ as it is termed, will meet 14-15 July, and will focus on joint and cooperative actions that can be taken to address the growth of international cyber threats. This is the first time the U.S. Attorney General has been to Australia in several decades.

    Australian Attorney-General, Robert McLelland says fighting cyber-crime is a global task.

    “It is a complex policy and law enforcement challenge because of its transnational nature and use of rapidly evolving technology.

    “The global nature of cyber crime is such that no nation alone can effectively combat the problem, making international cooperation and engagement essential components of an effective response.”

    “That’s why renewed international vigilance is such a priority for all five countries,” he says.

    This meeting also follows the recent introduction into Australian parliament of the Cyber-crime Legislation Amendment Bill 2011. Swift changes to Australia’s laws were made late last month, in order to bring them in to line with the other 40 countries which have joined the European Convention on Cybercrime.

    Increased episodes of cyber-attacks and cyber espionage have sparked these changes, and have prompted many countries to increase their vigilance in what has now been termed a ‘war’ against cyber-crime.

    “In the last six months alone, Australia’s Computer Emergency Response Team has alerted Australian business to more than a quarter of a million pieces of stolen information such as passwords and account details, allowing them to rectify and protect against potential attacks,” Mr McLelland said when announcing the new legislation in June.

    Identity theft is the fastest growing crime in the country, according to the Australian Crime Commission. In addition, an identity theft survey released by the Government last week showed that 1 in 6 people have been a victim, or know somebody who has been a victim of identity theft or misuse in the past six months. The majority of identity theft or misuse
    occurred over the Internet (58 per cent), or through the loss of a credit or debit card (30 per cent).  Stolen identify information was primarily used to purchase goods or services (55 per cent) or to obtain finance, credit or a loan (26 per cent).

    Those are frightening statistics for ordinary individuals who are trying to navigate the cyber-world. To know governments are running up hill trying to catch these crooks and prevent cyber-attacks in their own offices – leaves little hope for those who may not be so computer savvy in trying to protect themselves against identity theft.

    The problem with identity theft is, often it goes undetected until people go to apply for credit and are flatly refused due to blemishes on their credit file they did not initiate. Unfortunately when a creditor places a default on a person’s credit file, it remains there for 5 years, greatly hindering someone’s chances of obtaining further credit. Some are even unable to take out a mobile phone plan.

    Keeping identity theft at bay online

    Education and action are the winning combinations in preventing cyber-crime at home and its corresponding evils – identity theft, identity fraud and credit file destruction.

    Here are some quick tips to help people protect themselves and their credit rating:

    1. Keep virus software up to date. Install automatic updates and perform
    regular virus scans.

    2. Keep privacy settings secure on all social networking sites.

    3. Change passwords regularly and use a variety of passwords for different purposes.

    4. Check all credit card and bank statements each time they come in.

    5. Do not give over personal information or credit card details online unless the site is secure, and company details can be verified.

    6. Be aware of who gets our personal information and for what purposes. What can these people do with the information they are gathering? For instance, is it really necessary for the site we are registering on to have our date of birth?

    7. Visit the government’s stay smart online website, and sign up for alerts.

    8. Check our credit file for free every 12 months. By requesting a copy of our
    credit file from one or more of the major credit reporting agencies,Veda Advantage, Dun & Bradstreet and Tasmanian Collection Service (TASCOL) we can be aware of any discrepancies which may need to be investigated. Often it is only through a credit check which comes back with defaults on our credit file do we realise we have been victims of identity theft.

    9. Report any incident of identity theft, no matter how small, or even if we have been reimbursed for the damage – to the Police. The more of us who report identity theft, the more effective will be our Government and Police response to it in the future.

    For people who are already identity theft victims, it can be difficult to navigate the current credit reporting system to have the offending defaults removed from their credit file.

    MyCRA Credit Repairs can completely remove defaults from credit files that have errors, are unjust or just shouldn’t be there.

    Visit MyCRA for more help with credit rating repair following identity theft.

    Image: jscreationz / FreeDigitalPhotos.net

  • Privacy Commissioner releases findings on Telstra mailout error

    Whenever the public are in danger of having their credit file tarnished due to data breaches which can result in identity theft, it is important to warn them.

    Recent news from the OAIC (Office of the Australian Information Commissioner on a botched Telstra mailout has come forth.

    The OAIC today released the findings of its investigation into the Telstra
    mailing error     which resulted in around 60,000 Telstra customers’ personal information being sent to other customers.

    Australian Privacy Commissioner, Timothy Pilgrim opened an investigation after Telstra notified him of the incident in October 2010.

    Mr Pilgrim found that while Telstra did breach the Privacy Act in terms of disclosing personal information of its customers to a third party, it was not due to any failings of the security of its system, but simple human error.

    The investigation revealed that Telstra had a range of security measures in place to protect customer personal information involved in mail campaigns. These measures include privacy obligations in agreements with mailing houses, privacy impact assessments at the outset of mail out initiatives, and procedures to ensure staff handle personal information appropriately during mail campaigns.

    “In this instance, taking into account the range of measures Telstra has in place for mail campaigns, I consider that the one-off human error that occurred does not mean that Telstra failed to comply with its obligation to take reasonable steps to protect the personal information of its customers. Therefore, I consider that Telstra has not breached this particular aspect of the Privacy Act,” the Privacy Commissioner said.

    The Commissioner also noted Telstra’s fast notification of the data breach.

    Mr Pilgrim did say, however, that if an individual complaint came to them following this matter, the complaint would be considered on its own merits.

    “Incidents such as this one highlight how important it is for all organisations to take steps to protect their customers’ privacy. If such an incident does occur, it is best practice to notify the OAIC as soon as possible and take action immediately to prevent further breaches,” he said.

    This incident brings to light a section of Australian privacy law that needs to improve. Luckily, in this incident, Telstra did the right thing and notified its customers and the Privacy Commissioner of the data breach immediately.

    But when the Sony PlayStation data breach occurred in May, Sony did not notify its customers of the data breach immediately, they took about a week. In that time its customers were vulnerable to identity theft, and there was nothing our Government could do as recourse. Our data breach notification laws currently do not require companies to notify its customers immediately following a data breach.

    The Australian Law Reform Commission has made a recommendation for amendments of this law to occur, and the Government is currently considering it.

    The dangers of data breaches

    If the wrong person gets hold of someone’s personal details, they can potentially build a profile of identity documentation that can give them the opportunity to commit fraud.

    Fraudsters who have access to small pieces of specific information on someone can then build on that profile, eventually requesting ‘replacement’ copies of drivers licences and can then access bank accounts, get credit cards, apply for loans, phone accounts, and in some cases, buy property in someone else’s name. There are some identity theft cases where fraudsters have even mortgaged or sold the family home of their identity theft victims.

    Once someone’s identity has been stolen, their credit file is generally tarnished. This credit file blemish will unfortunately haunt the victim for 5 years while the listing/s remain on their credit file. Credit file blemishes generally deny someone access to most credit for the term of the default.

    It is important for everyone to know they can order a free copy of their credit file report every year from one or more of the credit reporting agencies in Australia, Veda Advantage, Dun and Bradstreet and Tasmanian Collection Services.

    Contact MyCRA Credit Repairs for help with repairing credit files following identity theft.

    Image: Luigi Diamanti/ FreeDigitalPhotos.net

  • Caught affluenza? How it can affect your credit rating health

    Affluenza is a disease of the 21st Century that can make us sick, and it can make our credit file sick with it –pulling us into a crazy cycle of spending and debt. Many of us are struggling to stay happy under a pile of ‘things’ and a pile of debt.

    The Wikipedia explanation of affluenza refers to it as “a painful, contagious, socially transmitted condition of overload, debt, anxiety and waste resulting from the dogged pursuit of more.”

    It is the disease of consumerism and it is being fuelled by big corporations urging us to buy more, persuading us with clever advertising aimed at selling to our emotions. It drives us to work crazy hours leaving no time for ourselves and our families. It drives up the mental health problems, the suicide rates, the divorce rates, the drug addictions, fraud, the stress related health problems – all these things seem to be a curse of living in the 21st Century in the Western world.

    Recently Fran Sidoti from SavingsGuide.com.au posted an interesting article about this topic titled Affluenza, And What It Might Mean For You. She says it starts by wanting a big house, and then all of those things that go in it, and with it – but that when we have everything, we are still not happy. She suggests we take a step back and employ old-fashioned values like “building a strong family, especially with an awareness of role models like grandparents who wouldn’t recognise affluenza if it bit them. A respect for hard work and the money it earns is crucial, as is emphasis on philanthropy and charity.”

    Australians Clive Hamilton and Richard Denniss’ book, Affluenza: When Too Much is Never Enough, poses the question, “If the economy has been doing so well, why are we not becoming happier?”

    Here is an excerpt from that book:

    “Our houses are bigger than ever, but our families are smaller. Our kids go to the best schools we can afford, but we hardly see them. We’ve got more money to spend, yet we’re further in debt than ever before. What is going on?

    The Western world is in the grip of a consumption binge that is unique in human history. We aspire to the lifestyles of the rich and famous at the cost of family, friends and personal fulfilment. Rates of stress, depression and obesity are up as we wrestle with the emptiness and endless disappointments of the consumer life.

    Affluenza pulls no punches, claiming our whole society is addicted to overconsumption. It tracks how much Australians overwork, the growing mountains of stuff we throw out, the drugs we take to ‘self-medicate’ and the real meaning of ‘choice’. Fortunately there is a cure. More and more Australians are deciding to ignore the advertisers, reduce their consumer spending and recapture their time for the things that really matter.”

    How many of us know someone who has gotten really sick – so sick that they lose everything – the house, the car, the job. If they are lucky enough to survive it, they always seem to have this new-found view of money. They often make that life changing decision to cut back on all those material things. They say they appreciate that the real joy in this world comes from spending time with family and friends and also dedicating some time to themselves.

    A new perspective on credit

    We should think of our credit file as a mirror on our finances. It can reflect our assets, our good history, but it can also reveal our financial shortcomings. It can be a reflection of our inability to stick with something, our disregard for repayments and it shows the financial potholes we fall into that are sometimes impossible to climb out of.

    How healthy are we looking?

    It is perfectly okay to use credit, as long as we make it work for us. We should use it to enhance our lives so that we can spend time with the ones we love, or to really improve our quality of life.

    Maybe we throw that long sought after holiday on the credit card and take the family away? Or take out repayments on an educational course that will change our working lives forever? Or perhaps we do buy a home, but after years of good saving. One that fits all the requirements of what we need, rather than what we want. A home we don’t have to work 24/7 to pay off because it is priced within our means.

    What we shouldn’t do, is spend money we don’t have, on things we don’t need, and ultimately find ourselves with what we don’t want – debt, unhappiness and a bad credit history.

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

    A clean slate

    If we want to try and start again with credit, it may be possible to wipe the slate clean, particularly if our bad credit rating should not be there.  Firstly, we can obtain a  free copy of our credit report from one or more of the credit reporting agencies, Veda Advantage, Dun & Bradstreet and Tasmanian Collection Services (TASCOL). If after checking our credit file we find inconsistencies, we may be a good candidate for credit repair.

    A credit repairer can work with creditors on our behalf to completely clear our credit file of all defaults, clear-outs, writs and Judgments which contain errors, are unjust or just should not be there. This means we no longer have a bad credit rating, but a completely clear credit file, giving us the financial freedom to use credit whenever we need to.

    The rest is up to us.

    Visit MyCRA’s website www.mycra.com.au for more information on credit repair.

    Image: Salvatore Vuono/ FreeDigitalPhotos.net

    Image: photostock/FreeDigitalPhotos.net

  • Government brings in new laws in war against cyber-crime and identity theft

    The Australian Government yesterday made some swift changes to its laws in a bid to accelerate its effectiveness in fighting the worldwide cyber-crime phenomenon.

    The Attorney-General, Robert McLelland introduced the The Cybercrime Legislation Amendment Bill 2011 into the House of Representatives, which lays down the laws which will include Australia in what is the only binding international treaty on cybercrime.

    Two criminal Acts (the Mutual Assistance in Criminal Matters Act 1987 and the Criminal Code Act 1995) and two telecommunications Acts (the Telecommunications (Interception and Access) Act 1979 and the Telecommunications Act 1997) will be amended, to allow Australia to comply with the treaty.

    Australia will be joining the Council of Europe Convention on Cybercrime, of which more than 40 nations have already signed or become a party to the Convention, including the USA, UK, Canada, Japan and South Africa.

    The Convention allows countries to co-operate in investigations to deal with international crimes committed on computer networks, such as online fraud or child pornography offences.

    The Bill will also give Australian police greater powers to force internet service providers to retain data of customers who are suspected to have committed a cybercrime while the matter is being investigated.

    “The increasing cyber threat means that no nation alone can effectively overcome this problem and international cooperation is essential,” Mr McLelland says.

    The speed of the changes follows a wave of recent cyber-attacks on networks around the globe.

    “In the last six months alone, Australia’s Computer Emergency Response Team has alerted Australian business to more than a quarter of a million pieces of stolen information such as passwords and account details, allowing them to rectify and protect against potential attacks,” Mr McLelland says.

    Other noteworthy cyber-attacks which have occurred just over the last few months include attacks on Sony, Dell Computers, the CIA, and the Australian Government.

    What affect will these changes have on the frequency of identity theft in this country, and consequently the instances our credit rating is destroyed due to cyber-crime?

    Some of the internet-generated identity theft is not initiated on Australian shores. The worldwide web provides easy international access, meaning elaborate schemes intended to commit fraud can be generated from any country and impact ordinary Australians.

    Now that Australia is part of the international treaty, our police will have greater powers to access information which may assist in prosecutions or in detection of
    cyber-crime that has come from other countries which are part of the Convention.

    Nationally, the changes made to our Telecommunications laws should benefit in prosecution for identity theft, by allowing the Police to have access to phone and text messages that they previously were not required to be kept by Telcos.

    The new laws also change a bit of the fine print in terms of what are computer offences, which could potentially ensure criminals who previously may not have been prosecuted due to loopholes in the legislation could now be brought to answer.

    Unfortunately, when it comes to our credit rating, prevention is better than cure. When fraudsters use our good name to obtain credit, the bills which come with that credit that go undetected for greater than 60 days generate defaults on our credit file.

    Hopefully this legislation helps to act as a deterrent for cyber-criminals to initiate fraud. But after fraud has occurred, a great deal of work will still need to be done by us on our credit file to clear our good name, regardless of prosecution.

    What can we do to protect ourselves from identity theft right now?

    The Government has a website ‘Stay Smart Online’, which goes through the things individuals can do to ensure they do not become part of these growing statistics.

    The most important messages we should take in are:

    * Keep our virus software up to date, and run regular scans.  We should set it to automatic updates!
    * Keep our personal information as private as possible.
    * Think before we click on links and attachments.
    * Talk about online safety, and educate ourselves and our family about the risks of
    identity fraud.

    If we protect our identity from cyber-criminals, we protect our good name and our financial future.

    We should also make regular checks to our credit file. We are entitled to a free copy of our credit file every year. We should request this file every year to ensure our good name is not tarnished in any way.

    For advice on identity theft and how it can impact our credit file, Contact MyCRA Credit Repairs. We can completely remove defaults from credit files.

     

    Image: Tom Curtis/ FreeDigitalPhotos.net

    Image: jscreationzs/ FreeDigitalPhotos.net

    Image: Ambro / FreeDigitalPhotos

  • Identity Theft News: The Latest Warnings and Recommendations

    In this post, we take a snapshot look at the current issues around identity theft crime. If you are new to our blog, the reason we are so passionate about identity theft, is because in Australia and indeed many other countries in the world, it has the potential to destroy our credit rating.

    In Australia, if we are the victims of identity fraud, unpaid debts we have not initiated can mount up in our name and if they remain unpaid more than 60 days they can result in ‘defaults’ being listed on our credit file. Often it is not until we attempt to obtain credit and are knocked back do we realise we have been victims.

    Here’s a look at recent news on this issue:

    The Future for Worldwide Identity Theft Prevention?

    Following the AusCERT Conference late last month held on Queensland’s Gold Coast, there came about a number of recommendations for improving security of our personal information.

    Recently we featured comedian Bennett Arron, who spoke at AusCERT about his experience with identity theft and how it can affect our financial future, and indeed our credit file. This was a great example of the issues individuals currently face when they are victims of identity theft.

    Another noteworthy recommendation to come out of the AusCERT Conference, was featured in a story in online IT publication The Register, and was put forward by Eugene Kapersky, founder of Kapersky Lab.

    Kapersky Lab operates a worldwide IT security company. He advised the conference the world needs an internet ‘Interpol’ – “a global,borderless cybercrime unit that would exist with the support [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”][and] cooperation of international law enforcement agencies.”

    He also advised in the future we could be holders of internet passports as online ID. The security software millionaire said an international online identification system could help in the fight against identity theft and the illicit theft of passport documents online.

    Read more about this story ‘Kaspersky wants Interpol for the web’ published in The Register.

    Identity crime is certainly a global problem. Scams coming out of many countries personally affect ordinary Australians every day via the internet.

    It will be interesting to see what recommendations the Government puts forward after the publication of its first ever White Paper on cyber-security in Australia, and whether it will include a plan to lay down some sort of foundation for international cyber-crime law.

    High Profile Company Directors not Immune to IdentityTheft

    Last week it was reported that the Australian Institute of Company Directors had a computer stolen from its offices which contained the personal data of many thousands of its high profile directors and clients.

    Consequently all were warned to be on the lookout for signs of identity fraud.

    Fortunately, according to the AICD, the data on the computer didn’t contain any credit card numbers, bank details or passwords.

    They did warn those involved to be on the lookout for suspicious phone calls or other communications as they did believe the theft was an attempt at identity fraud on its members via the stolen database.

    Read more about this story ‘AICD’s membership data stolen’ published in IT Wire.

    Sometimes, as with the case above, identity thieves don’t necessarily need access to bank account numbers to gain access to our good name. All fraudsters need is perhaps an email address or telephone number and a bit of basic information about us to attempt to then elicit further information from us (known as phishing scams). They can also use the basic information they have to attempt to set up fake accounts, or to request ‘replacement’ copies of ID in our name.

    To keep up to date with the latest scams, visit the government’s SCAM watch website.

    Police warn of new fraud targeting Australian SuperAccounts

    NSW Police have advised of a current scam targeting Super Accounts, where fraudsters are stealing enough information from unsuspecting victims to transfer their Super into self-managed funds which can then be easily accessed by the criminals.

    Fraud Squad Commander Detective Superintendent Col Dyson says “Superannuation fraud…works well because no-one checks their super…victims rarely notice account changes, making it easy for criminals to change mailing addresses.”

    Unfortunately, unlike bank fraud, there is no obligation for superannuation funds to reimburse victims.

    Read more on this story ‘Crooks siphon super funds,’ on CRN Australia’s website.

    This is just another example of how difficult it can be for laws, individuals and institutions to keep up with what the Australian Crime Commission calls the fastest growing crime in Australia.

    This new fraud may not directly impact our credit file, but when there is no reimbursement for the fraud, it can financially cripple us.

    If we are victims of identity theft, we should always report it to the Police no matter how small the fraud. It is only through reporting this crime that real statistics start to be measured.

    We should also check our credit file, and have any black marks that should not be there dealt with by a professional credit repairer. Contact MyCRA Credit Repairs for more information. We completely remove defaults from
    credit files.

    Image: Salvatore Vuono/FreeDigitalPhotos.net

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  • What We Can Do to Prevent Identity Theft

    So far this year we have posted about many issues that have arisen concerning the security of our personal information in this age of technology, and the possible dangers identity theft poses for our credit file.

    It is no secret that it is essential to take steps to keep our personal information safe. Why? Because regardless of whether our card/s will be reimbursed should we become victims of fraud, there is still the very real ramification of having our credit file tarnished by any identity fraud – and the inability to obtain credit for up to 5 years can be a huge financial loss.

    Events which have transpired recently have made us all feel quite nervous about who has the potential to use our personal details for purposes of stealing our identity.

    Issues such as the Sony PlayStation data breach, the attacks on Google’s U.S. Gmail account holders and the announcement of almost daily attempts at cyber-attack on Australia’s Foregin Affairs Department (just to name a few) have made us realise that identity fraud is indeed a reality for people in this country.

    A positive to come from these issues is that our Government has decided to step in to give advice via a white paper as to how businesses, government and individuals can make some changes to the internet in the interests of the security of its users.

    What do we do in the meantime? What steps can we take NOW to reduce our chances of becoming victims?

    Recently we read some really great articles from ‘Savings Guide.com.au’ on some practical ways we can all stay safe.

    In their article – “Shopping Online, How to Do it Safely” by Francesca Sidoti, she provides some great tips. We like this one:

    “Choose Your Location. Instinct is a funny thing. You have no hard reasons for why something feels off, it just does. And in this scenario, you should let it be your guide. Just as you wouldn’t hand over money to someone who looks dodgy, you should[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”][n’t] enter your details in a site that doesn’t feel right. If something seems amiss, do some research. Google the site, or call the contact number. Be wary as well of clicking on ads. Though they’re usually hosted by legitimate companies, it’s worthwhile keeping a critical eye on everything you are entering personal information into.”

    Francesca also published an article “How to Avoid Credit Card Fraud and Identity Theft,” which provides help with how to use your credit card safely. The two tips below are excellent to remember:

    “Don’t’ give your credit card details out over the phone or email. Unless you’ve initiated the conversation. No legit company would ask for those details over the phone/email.

    Don’t sign blank credit card receipts How often do you actually check the receipt you sign? If your answer is ‘not often’, you need to rethink your approach. Blank sections of a receipt can be used to add extra charges, which you will pay for because your signature will be down the bottom.”

    We have compiled a quick list of some other ways we can prevent what has become the fastest growing crime in Australia:

    1. Keep virus software up to date on our computers. Install automatic updates and perform regular virus scans.
    2. Keep our privacy settings secure on all social networking sites.
    3. Keep our passwords and PIN numbers secure. Don’t carry PIN numbers with our credit/debit cards, change passwords regularly and use a variety of passwords for different purposes.
    4. Check all our credit card and bank statements each time they come in.
    5. Cross-shred all personally identifiable information which we no longer need, rather than throwing it straight in the bin.
    6. Buy a safe for our personal information at home.
    7. Do not give any personal information or credit card details to anyone via phone or email unless we are sure the site is secure, and or we can verify the company details.
    8. Be aware of who gets our personal information and for what purposes. What can these people do with the information they are gathering? For instance, is it really necessary for the site we are registering on to have our date of birth?
    9. Keep up to date with the latest scams by subscribing to the government’s ‘SCAM watch’ website.
    10. Check our credit file for free every 12 months. By requesting a copy of our credit file from one or more of the major credit reporting agencies,Veda Advantage, Dun & Bradstreet and Tasmanian Collection Service (TASCOL) we can be aware of any discrepancies which may need to be investigated. Often it is only through a credit check which comes back with defaults on our credit file do we realise we have been victims of identity theft.
    11. Report any incident of identity theft, no matter how small, or even if we have been reimbursed for the damage – to the Police. The more of us who report identity theft, the more effective will be our Government and Police response to it in the future.

    For those of us who are already identity theft victims, it can be difficult to navigate the current credit reporting system to have the offending defaults removed from our credit file.

    MyCRA Credit Repairs can completely remove defaults from credit files that have errors, are unjust or just shouldn’t be there. Contact www.mycra.com.au for more help.

    <p><ahref=”http://www.freedigitalphotos.net/images/view_photog.php?photogid=584″>Image: Chris Sharp / FreeDigitalPhotos.net</a></p>

     

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  • Don’t let a bad credit rating force you into unsuitable finance

    The Age recently reported on a Tribunal hearing involving a well-known finance company.

    The Victorian Civil and Administrative Tribunal found that a motor trader who primarily targets people with bad credit history had a leasing process which was seriously flawed and in urgent need of change.

    The customer in the case lived on a low income, had been through a bankruptcy and suffered from chronic depression. The Tribunal found the company used inaccurate financial analysis, unfair tactics and unreasonable pressure to get the client to sign a contract.

    After the hearing the company was ordered to set aside a car lease and compensate its customer.

    Read more: http://www.theage.com.au/money/borrowing/credit-scoring-hammered-20110607-1fpp2.html#ixzz1OvztZSXi

    The above example may not be a true reflection of all transactions with the motor trader in question. But it does highlight the need for people who find themselves in a situation where they cannot use the major lenders to do adequate research before deciding on alternative finance.

    People with a bad credit rating have their options severely limited when it comes to obtaining finance. Most of the major lenders refuse to lend to someone with a bad credit history – often with good reason.

    A person’s credit history shows their ability to repay a debt. Under Australia’s new responsible lending laws, it would not be ethical to offer further credit to someone who already demonstrates problems with repayments.

    The thing is many people with a bad credit rating still need to buy cars, live in houses and use phones.

    What are the options for someone in this situation?

    Well, it depends on what a person’s credit file reads like. In the situation above where the consumer has a bankruptcy on their file – the options are unfortunately limited.

    But a little more research, perhaps leasing a cheaper car and having a trusted adviser help in negotiations with finance companies, or even going away and thinking about it before signing may have helped the customer in this situation.

    In many other cases, people can take the above option, or they can discover whether they may be suitable for credit repair.

    Credit repair is an option for any person who has a default, writ or Judgment on their credit file which they believe is inaccurate, is unjust or just should not be there.

    A successful credit repair allows the consumer to have the black mark/s completely removed from their credit rating.

    This lending options that they would have had prior to the blemishes on their credit file. So, they can borrow at a lower interest rate with the lender of their choice (provided they meet all other criteria of course).

    This can potentially save them thousands of dollars in interest alone.

    Credit repair is not encouraged as an option for a consumer who truly has a problem repaying debt. This person should look at minimising as much credit from their lives as possible, and possibly entering into some financial counselling, so that when they are able to borrow again, they don’t repeat the cycle.

    However, there are a large number of people with a bad credit rating who are not struggling with repayments. They are simply carrying the bad credit rating unfairly.

    Many people are victims of simple and sometimes complicated errors with billing procedures from creditors, are victims of identity theft, have had joint lending situations go wrong (such as divorce, guarantors etc) or have had the default listed incorrectly.

    Despite all of these very fair complaints many consumers have been unable to settle the account themselves with the creditor and unable to remove the offending default, writ or Judgment from their credit file.

    They are then left to navigate the world of ‘bad credit history’ finance, which can sometimes leave them with more problems than when they started, due to the often high interest rates involved.

    So if people know anyone, or are in the situation themselves where they do have a bad credit rating which shouldn’t be there – it could be good advice to get them to seek out a reputable credit repairer to review their credit file and help them back to financial freedom.

    Contact www.mycra.com.au for more information on credit repair.

    <p><a href=”Image” _mce_href=”http://www.freedigitalphotos.net/images/view_photog.php?photogid=879″>Image”>http://www.freedigitalphotos.net/images/view_photog.php?photogid=879″>Image: luigi diamanti / FreeDigitalPhotos.net</a></p>

  • Yes, You Can Get A Free Copy Of Your Credit File In Australia

    There has been a lot of chatter recently about Identity Theft, Online Scams and  such and one of the best ways to be on the look out for these issues is to grab hold of your free credit report every 12 months..

    There are 3 main credit reporting agencies in Australia  and the largest is Veda Advantage.Payment past due  (formerly known as Baycorp Advantage and before that CRAA)

    The three credit reporting agencies are:

    Each one of these can provide you with a FREE copy of your credit file within 10 working days upon request.

    MyCRA Credit Repair suggests you put a reminder into your diary on your birthday every year to jump online and grab a copy of your credit file.

    Then check to confirm you recognise each and every entry on on your credit report.  If you do find anything that you don’t immediately recognise, like an application for credit that you don’t recall or a defalt for a debt you know nothing about:

    1. Contact the creditor immediately
    2. find out what it was for
      • If you still have no idea, Contact the Federal Police Immediately !
    3. If you have defaults that are incorrect, unfair or just shouldn’t be there,
      • Dispute them with your creditor and ask that they be removed immediately..

    If you have trouble or in a hurry, you may choose to engage a professional Credit Repair Firm like MyCRA Credit Rating Repair

    For more information on getting a free copy of your credit file, please go to http://www.mycra.com.au/credit-file-request/