MyCRA Specialist Credit Repair Lawyers

Tag: credit repairer

  • Mobile Phone Bill shock – Have YOU been a victim?

    Botched phone plans and lack of data usage monitoring is leaving many Australians shell shocked over their mobile bills, with bills so large many can’t pay up or refuse to pay up, and more are copping defaults on their credit file. There is an increasing number of credit listing complaints from Telco consumers relating to internet data usage on mobile phones. We have seen it here, and the Telecommunications Ombudsman has also released similar findings in its annual report today. We look at the finding in this report, and the plight of telco customers with bad credit history.

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

    Consumers are confused when it comes to data allowance on their smartphones, and the providers are not helping.

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

    Almost 26 per cent of our credit repair clientele in the 12 months to July were Telco customers.

    Sometimes consumers reluctantly pay the bill, think the matter is settled, only to find they are defaulted anyway, and others just refuse to pay the bill until they get some resolution. Either way, they are faced with at least 5 years of bad credit from the episode unless they can make a successful complaint.

    This reflects findings from the Telecommunications Industry Ombudsman (TIO) report on its services for the last financial year, which was released today.

    The TIO’s findings show mobile phone users are increasingly unhappy with the service they receive, with a 9 per cent rise in complaints last financial year.

    Ombudsman Simon Cohen said two out of three complaints made to the TIO were about mobile phones, with the biggest percentage rise about disputed internet usage charges (150 per cent).

    “Complaints about unexpectedly high bills and unnecessary financial overcommitment point to the urgent need for strong spend management rules, including those that are included in the new Telecommunications Consumer Protection Code,” Mr Cohen said.

    A Telecommunications Protection Code has recently been pushed through with the guidance of the Australian Communications and Media Authority (ACMA) which will amongst other things require telcos to provide their customers with notifications when they have used 80% and 100% of their data usage in the plan.

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

    The TIO’s annual report also shows a rise in complaints about credit default listings. Complaints about consumers being credit default listed while their debt was in dispute increased 18 per cent from 3,700 to 4,370. There was also a 16 per cent increase in complaints about consumers being credit default listed without proper notification, up from 3,220 to 3,730.

    “I am very concerned about the increase in the number of complaints where credit default listings are disputed,” Mr Cohen said “Credit listings can have very significant impacts on people – affecting applications for credit, including for housing and personal loans. Any credit default listing should only occur after the correct procedures have been followed.”

    Preventing a credit file default on your mobile phone bill often comes down to awareness of legalities.

    Many people don’t know the rules well enough when dealing with these big companies, so it can be a little like David and Goliath and many times the big guy wins.

    Here’s some ideas on what you can do if you disagree with a mobile phone bill:

    How to Dispute That Shocking Mobile Bill

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

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

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

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

    5. If at any stage you have a credit file listing from a Telco which you believe shouldn’t be there, you can undertake professional credit repair services. The credit repairer works on the consumer’s behalf to champion for the removal of credit file listings which contain errors or inconsistencies or just out and out shouldn’t be there. The credit repairer may escalate the matter to the TIO on the client’s behalf if necessary, but it may not be the only option.

    A good credit repairer will conduct an audit-like investigation to uncover errors or non-compliance that may still see the default removed, even where an Ombudsman has sided with the Credit Provider.

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  • Are you ready to buy a home? Read this first

    Saving for a home? We tell you what you might need to know to put you in the best position to get the best loan out there for you. We show you what the lenders might be looking for, and how they calculate risk by looking at your credit history.

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

    In the 21st Century, being approved for a mortgage is a complicated affair. Not only are savings, income and debt level all taken into consideration, but also how your credit rating appears. It is all about risk calculation. The lender is gauging the likelihood you will default on your repayments. Banks have tightened their belts in the wake of the global financial crisis, so risk assessment plays a big part in home loan approval.

    8 things you need to know before you apply for a home loan

    The first three on the list are generally viewed together. The trifecta of savings, income and debts….

    1. Savings.

    Many people are saving 5-10% deposit prior to applying for a home loan. In many areas of Australia houses are so expensive this can take years to achieve. In fact, it was revealed in The Australian newspaper last month, it takes the average first home buyer in Australia a long five years to save up enough deposit for a home.

    In the same paper today in the story ‘Savings the key to first home – survey’ we see that most buyers are in fact saving up to 10% deposit before entering the market:

    RAMS head of brand and marketing Chris Thornton said first home buyers appeared to be saving more now for a deposit than in previous years.
    “A few years ago deposits were around five per cent for the average first homebuyer, and now it’s often more than 10 per cent that people are saving for,” he said.

    “People are really very serious about saving before they jump in.
    “In the past, people have really squeezed themselves to get over the line, but now, they’re just being a bit more cautious.”
    Living with parents and using high-interest savings accounts appeared to be key in the savings process, Mr Thornton said.

    If your income isn’t high or if you have more debts you may actually require a higher deposit of say 10% to ensure approval.

    2. Income amount.

    The amount of income required is generally determined by the amount of income earned relative to debts and expenses.

    So, the more you earn, and the fewer debts you have – the more you will be able to borrow. If you have a lower income, it may be worth paying off existing debts before applying for a home loan. Also, the more deposit you have saved, the lower the income requirements on the same loan.

    According to Homeloanfinder.com.au in its article ‘How Much Salary Should You Have for a Home Loan,’ lenders use two different formulas to determine how much people can borrow:

    1. Front end ratio. “The front end ratio method will determine how much of your income will be used on the repayments of the home loan. Most people will agree that when using this method you should not exceed 28% meaning only 28% of your income should be used paying off your home loan.”

    2. Back end ratio. “The back end ratio method will consider all debts when determining how much money you will have free to pay off the loan. When using the backend method, most people will agree that you will only want about 36% of your income going on debts and expenses,” the article says.

    3. Debts and credit limits

    The lender will generally assess your debt level to determine the amount you are able to borrow. So reducing debt can increase borrowing power.

    Part of this debt calculation also includes the credit limits which are present on any credit cards or line of credit loans you may hold. This credit limit will be used to determine the debt amount based on the amount of money you have access to, rather than the actual amount the loan or card currently has owing on it.  So if you have a credit limit of say $20,000 on your credit card, the debt amount on that card will be stated as $20,000 – even if the actual amount you owe on that card is only $5,000.

    So seek to reduce the credit limits on any cards or loans prior to applying for a mortgage.

    4. Stable employment.

    Generally lenders are requiring 6-12 months with the same employer. So think twice about changing jobs if you also want to buy a home in the future, even if the wages are significantly better in the new position.

    5. Credit checks.

    When you put in your application for a home loan, the lender will perform a routine credit file check on you to make sure there are no adverse listings present. An adverse listing can be a default, clear out, Judgment, Writ or bankruptcy which is placed on a person’s credit record by a creditor.

    The most common type of adverse listing is a default, which can be placed on a person’s credit file if they fail to make repayments on any form of credit past 60 days. This includes telecommunications and utilities bills.

    Defaults need not be for big amounts – late payments on bills for as little as $100 can be listed on people’s credit files. Defaults and Judgments remain there for 5 years, with clear outs, Writs and bankruptcies remaining for 7 years.

    Any adverse listing, even an unpaid phone bill will have a huge impact on a person’s home loan approval. Most of the major lenders will refuse to lend to someone who has an adverse listing. In fact, that person would probably have difficulty even getting a mobile phone plan.

    6. Excess credit enquiries.

    Whenever a person other than you makes an enquiry on your credit record – that enquiry is recorded against your 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 applications due to too many credit enquiries, such as two enquiries within thirty days or six within the year.

    If you decide to shop around for the best deal, beware of excess credit enquiries. You could find too many enquiries can mean you blow your chances of approval – even if you would have been approved for every deal. So while it is great to talk a variety of brokers or lenders prior to making an application, you must stress to them that they are only gathering information and are not wishing to make an application until you have decided on a lender.

    7. Obtain a credit report

    If you intend to purchase a home within the year you should request a copy of your credit file. This report is free for the credit file holder every 12 months – and tells you what the lender will see about you when you apply for credit.

    There are 4 credit reporting agencies in Australia, Veda Advantage, Dun & Bradstreet, Tasmanian Collection Services (if in Tasmania) and new entrant Experian. You can request a report from all of these agencies. The report will be mailed to you within 10 working days of your request.

    There is the potential for creditors to make mistakes when adding credit listings to credit files. So regardless of how diligent you think you may have been with your repayments, it is important to get hold of a copy prior to applying for a loan.

    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 a home loan. 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.

    8. Dispute any inconsistencies on your credit file.

    If you find inconsistencies on your credit file, or a credit listing which is wrong, unfair or you believe it simply should not be there, current legislation allows for you to have those inconsistencies rectified.

    If you have settled the account, it can be updated to ‘paid’ status, but this may not be enough to ensure finance approval.

    Credit listings are not removed by creditors unless you 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.

    Most people have neither the time nor skills to get up to date with the full barrage of credit reporting law if they want to fight a credit listing which has been placed on their credit file.  They are also unwilling or unable to attempt to negotiate with creditors on their own behalf.

    Often a credit repairer is the best person to give you the best chance of having inconsistencies completely removed from your credit file, because similarly to trying to fight your own case in Court, if you don’t get it right, often you don’t get another chance to clear your name, and can be stuck with the bad credit for the term of the listing (5 to 7 years depending on what it is).

    A clear credit record can allow you the option to choose the best loan to suit you, with the best interest rate so it is vital it reads as best as possible to allow as many options as possible – and ultimately save you money.

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

    N.B. This post is intended as information only, and should not replace seeking professional financial advice for your situation.

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  • Will the spring boom be mowed down by bad credit?

    Spring has almost sprung – which is evident by the sunny weather spanning much of Australia today. We look at what this might mean for the housing market, and why this is the best time for people to get cracking on making sure their credit file comes up smelling like roses.

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

    Traditionally spring is the season where people dig out the clip-boards and the comfortable buying shoes and go get pre-approval for some serious house-hunting.

    Spring is a great time to buy due to more property on the market – transfers; people planning for moving prior to the new school year; people with pools selling when it’s warmer; and homes generally look prettier in the spring – can contribute to this rise in good stock. And for the same reasons, more buyers can be available at this time, which potentially means more borrowers.

    But RP Data’s Executive General Manager, Craig McKenzie told Australian Broker Online today that the 2012 spring selling season would be largely determined by levels of buyer confidence in the market place. He warned a lack of confidence would hamper activity.

    “Until such time as there is a sustained recovery in the consumer mindset it seems unlikely there will be a vast improvement in sales activity,” he said.

    The Housing Industry Association’s chief economist Harley Dale also echoed this belief.

    “The consistently weak consumer confidence is weighing very heavily on new housing investment, far more so than is the case for retail expenditure,” he said.

    “Combine that low confidence with very tight credit conditions and excessive taxation, and you have the unpalatable recipe for the recessionary conditions facing new housing.”

    I would argue nothing exudes buying confidence like pre-approval for a home loan. But this thinking can sometimes see people come unstuck if they’re not careful. If people don’t know what is said about them on their credit report before they apply for finance – they will find out after. If the news is bad – if they have a bad credit listing there – this would mean they are refused credit, and would also have created a credit enquiry on their credit report. “Tight credit conditions” mean any blemish on the credit report – including too many credit enquiries – can see a person refused credit.

    Most people think if they had any kind of black mark on their credit report they would know about it. But unfortunately “surprise” bad credit is pretty common. Bills and notices get sent to the wrong address; mistakes happen; listings are put there unfairly; or in some cases the wrong person cops the bad credit of someone else entirely. But if people apply for finance and their credit report comes back with nasties – the banks probably won’t be very understanding – they consider these blemishes require them to undertake too much ‘risk’ on the loan.

    In most cases the best way to alleviate bad credit history bringing undone all the hard work and savings that have gone into getting a person ready to buy is by using the free yearly credit report to check that everything on their credit file is as it should be before applying for finance.

    The very people who should be ordering a copy of their free credit report are the people who think their credit file should be returned clear. It only takes 10 days to receive it in the mail, but its piece of mind and ‘confidence’ to know that everything is as it should be.

    No amount of “fast talking” or explaining will take back that credit refusal if it occurs. The only thing that will fix a bad credit listing is to address the credit listing at its source – with the Creditor and if it shouldn’t be there – request its removal.

    But why should people use a credit repairer?

    For people who have ever tried to call up and fix their phone troubles, they can be on hold for hours; they can be passed from one person to another; and in the end, still hang up dissatisfied. Clients say it is a similar situation when trying to dispute a credit listing.

    Most times they are told (eventually) that listings can only be marked paid and cannot be removed. But this is not true. If a listing has been placed unlawfully on a person’s credit file, then it should be removed.

    What it takes to negotiate the removal of a credit listing

    • Ability to review pages and pages of documentation
    • Ability to be patient and go through the proper channels to request documents and information
    • Ability to build a strong case as to why a listing has been placed unlawfully based on client information crossed with relevant legislation
    • Ability to negotiate directly with the people that matter within the company in question
    • Knowledge of how to escalate a complaint when necessary, for the best outcome of the client

    Working within the law, a professional credit repair firm gives people the best chance of completely removing bad credit which should not be there. This way, they can apply for finance with a clean slate – achieving the interest rate of their choice, and saving themselves thousands.

    If someone is dreaming of white picket fences, the best way for them to confidently take charge of their “approvability” is to take charge of their credit file and what is says about them. With a clear credit file, they will be able to confidently apply for pre-approval, without stress, negotiating that best price on the house of their dreams.

    To order a free copy of your credit file, or for more information about professional credit repair contact MyCRA Credit Rating Repairs on 1300 667 218 or visit our main site www.mycra.com.au.

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  • Why Bankruptcy and Debt Agreements should be a last resort for debt struggle

    Struggling with debt can be the worst feeling, and the weight is so heavy it can even leave people feeling lost and depressed. There are so many reasons why someone may be going under with debts, but before you go Bankrupt, or enter into a Debt Agreement, make sure you have exhausted all your options.

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

    Last week, a post on credit card debt from Savingsguide.com.au caught my interest. It covered what to do if you are in debt…deep. It explores the option of Debt Agreements.

    Debt and its ramifications is a subject close to my heart, as both a former bankrupt, former broker and now credit file repairer.

    So how did I end up bankrupt? Essentially I took the wrong advice. I declared bankruptcy when I thought it was the only option. But let me tell you, there are a host of other options out there, all of which may be a better choice long term.

    It all started when I had my promotions company. It was doing pretty well. I had some high-end contracts even securing a McDonald’s contract. But finance was not my strong point (well not then anyway!) I needed to get someone in to help me with the accounts. I brought in a mate who I thought could do that side of things for me. But over four months he ended up stealing $135,000 which I had borrowed for the business and left me broke, with no way to make loan repayments.

    I sought legal advice straight away, and was told my only option was to declare bankruptcy. This didn’t sit well with me, but up to my eyeballs in debt, I reluctantly proceeded with it.

    I was then chatting with another lawyer, who said it didn’t have to be my only option. I rushed to attempt to have the bankruptcy halted or reversed, but it was no use. After to-ing and fro-ing with the authorities, it turned out I was stuck in the bankruptcy until the end of the term (three years).

    I couldn’t believe there could be such conflicting advice out there especially at a time of significant financial stress.

    So what did I learn about this experience, along with the knowledge gained as a broker and a credit repairer that can help you in a situation of debt?

    What It Means To Have a Bankruptcy Notation

    Both Bankruptcy and Debt Agreements – Part IX and Part 9 are an act of bankruptcy and fall under the Bankruptcy Act 1966. Because of this, both types of agreements will be noted on your credit file for 7 years which impacts your ability to obtain credit during this period. But what’s more, you will be given a Bankruptcy number, which remains part of your credit history for life.

    This Bankruptcy or related notation, will be a permanent record on your NPII (National Personal Insolvency Index).

    Having this in your past can also be disadvantageous to you in other situations. You could be asked whether you have ever had a Bankruptcy or Debt Agreement notation on your credit file at job interviews, in business situations, when being party to different organisations, when you apply for credit, even when trying to get a mobile phone on a plan –  and answering incorrectly constitutes fraud.

    So what are some solutions for people in deep doo doo other than entering Bankruptcy or Debt Agreements?

    Talk to your creditors

    I can’t stress how important it is to not bury your head in the sand in these situations. Talk to your Creditor about what they can do to help you.

    If Creditors have not commenced legal action yet, you may be entitled to relief under hardship provisions. It is essential to investigate this option.

    Most creditors don’t want you to go bankrupt. Most are willing to help you work out some kind of payment plan. If you tell them about your ‘financial hardship’ circumstances, and use those words, asking for a variation in your payments they will often accommodate you.

    In fact, with new laws having just been passed in Parliament this week, from March 2013 this process will be much easier and generally it is encouraged as a deterrent to any kind of credit file blemish or prior to someone having a court Judgment or a last resort-Bankruptcy filed against them. See more info on the Consumer Credit Legislation Amendment (Enhancements) Bill 2012 and what the benefits might be for you.

    Money Help, a website run by the Victorian State Government offers some help on how to apply for financial hardship variation with creditors in the correct way.

    “If you wish to ask for hardship consideration, it is always better to put your request in writing as this means you can keep a copy of the request as a record. It is more difficult to prove the details of a request made by phone. If you entered into your loan agreement after July 1 2010, or if your debt relates to a credit card, then your credit provider must respond to you within 21 days of your application.”

    Money Help advises people to work out what they can afford to pay prior to requesting a financial hardship variation. They explain the benefits in applying for hardship can range from more affordable payments, to putting a stop on action towards defaulting your credit file.

    My extra tip is for you to make it clear to the creditor what you are requesting. It would be a good idea to specifically request a ‘financial hardship’ variation to your repayments – in writing, so there is no confusion.

    If the Creditor refuses to consider your variation request, you may be able to contact the Ombudsman Service for the Creditor’s industry to escalate your request.

    What about if the creditor has already issued a default?

    If despite sorting out varied terms in your repayments with your creditor (which you are currently making), you find you have a default on your credit file, you may have grounds to request its removal.

    Basically, if a default has been issued which you believe is unjust, unfair, in error or shouldn’t be there, you have the right under Australian credit reporting legislation to have the inconsistency rectified.

    The problem with seeking redress as an individual is two-fold. Firstly, without extensive knowledge of credit reporting legislation it can be difficult to enforce ruling that creditors are bound with without knowledge of what the rules are.

    Secondly, people negotiating on their own behalf can run into problems in many cases. People have often attempted to remove the default themselves, and have been told defaults DONT EVER get removed. The best they can do is mark the listing as paid (if it’s been paid).

    Alternatively, a professional credit rating repairer works with creditors to negotiate on your behalf and work for the best outcome based on the creditor’s compliancy with the current legislation. They will also look at any other extenuating circumstances to determine if there is an avenue that can be investigated which results in having the listing removed.

    Contact us for more information at www.mycra.com.au or tollfree on 1300 667 218 for consultation with a professional credit rating repairer.

    Sacrifice and struggle is better than bankruptcy

    Some people prefer to just write off the debt, declare bankruptcy and not go through the struggle of making repayments on the debt, but let me tell you, looking for a reduction in payments or settling the debt at a lower amount is an option preferred by many Creditors, and should be preferred by you.

    Firstly, you may be able to avoid a Default or Judgment on your credit file, meaning when you’re back on your feet you might be able to borrow again and secondly, more doors are open for you in terms of job and business opportunitites without having that notation on your NPII.

    If legal proceedings have commenced it may not be lost

    Even if a Judgment has been filed against you, you still may be able to work something out with the Creditor in terms of repayments. You may be able to file an application for an Instalment Order, which gives you time to repay the debt and or ask for a reduced settlement.

    Please Note – This information is provided to help you in your research into debt management and should not constitute legal advice or replace getting professional financial advice from a financial counsellor. The Australian Competition and Consumer Commission Website directs people to where to go if they need help with debt, and we encourage you to seek help from them and do more research before making any financial decisions http://www.accc.gov.au/content/index.phtml/itemId/815382

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  • New Credit laws passed Parliament yesterday which may protect those who need it most

    It’s not the long awaited comprehensive credit reporting, but it is the Consumer Credit Legislation Amendment (Enhancements) Bill 2012 passed by Parliament yesterday and waiting for Royal Assent. The reforms will among other things, alter laws around financial hardship, and put the first national cap on payday loans – which should assist those people who are struggling with credit and access to credit. We look at what this Bill will and won’t do for people on the fringe, or people who are under hardship, and what the implications will be in terms of their credit file and maintaining a good credit rating.

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

    For someone who is struggling with debt, keeping your head just above water and avoiding defaults is the best thing you can do for yourself. This is why the ‘streamlining’ of laws around financial hardship is so important. For someone who is suffering temporary hardship to be able to discuss alternative arrangements with their lender other than being hit with a default on their credit file is so vitally important because if they are unable to secure a hardship variation, the consequences can be dire – which starts with defaults, and can end with more debt and defaults.

    The consequences of having a negative credit listing, whether that be a default, a Judgment, a writ or a Clearout is generally a ‘lock-down’ of mainstream credit services for the term of the listing which is between 5 and 7 years. Once that lower-interest option is no longer available to you, it’s time to seek aid in other areas, especially in times of emergency. So that is where the payday lenders come in, or non-conforming lenders in the mortgage marketplace. These lenders have a bigger ‘risk’ because you may have a bad credit record, so they charge more in interest to offset that risk.

    The Government has decided to crack down on payday lenders and cap their interest rates. Minister for Financial Services Bill Shorten said in a statement to the media yesterday, that these reforms will stop loan sharks from exploiting vulnerable Australians:

    “These laws will place reasonable limits on what lenders can charge. The cap on costs appropriately balances consumer protection while still allowing lenders a return that is commercial.”

    “The Gillard Government has moved to reduce the financial harm caused by lenders who ruthlessly impose excessive fees and charges simply because vulnerable consumers cannot obtain alternative access to credit. These reforms continue the Gillard Government’s ongoing commitment to deliver a fair go for all Australians,” explained Mr Shorten.

    The Enhancements Bill introduces a cap for small amount credit contracts where the amount borrowed is $2000 or less, and the term is 1 year or less. For these loans the maximum any lender can charge is an establishment fee of 20 per cent of the amount of credit upfront and 4 per cent for each month of the loan. This provides for maximum charges of $72 on a loan of $300 over 1 month.

    The legislation will also introduce a number of other reforms according to Mr Shorten:

    • Applying a cap to other credit contracts based on the 48% cap currently in force in some Australian States. The Commonwealth cap addresses the range of avoidance techniques lenders currently have devised to avoid that cap.
    • Responsible lending obligations to address high risk conduct by small amount lenders.
    • For seniors who use reverse mortgages, greater certainty as to future outcomes when they enter into such contracts that the amount they are required to pay cannot exceed the value of the equity in their home (through a no negative equity guarantee).
    • Simplifying the procedures for borrowers to apply for a variation to their repayments on the grounds of financial hardship, as it is in the best interests of both parties to try and resolve these situations as quickly and simply as possible.

    Some objected to the Bill, saying the Government had effectively gone soft on the payday lenders.

    In The Australian, Greens Senator Sarah Hanson-Young said the final version was so weak it could have been written by the loan sharks.

    As a credit repairer, I am of the view that any restriction on interest rate for pay day loans is a welcome move. But I see the bigger picture. Some people who are forced into these situations are there because the system has failed them. Not all defaults deserve to be there, but they all have the same outcome for prospective borrowers. They are banned from obtaining mainstream credit.

    Where people are getting let down is in copping the mistake in the first place, and also in the correction of the credit reporting mistake. Whilst the powers that be say that there is a legitimate avenue for correcting credit reporting mistakes for the individual, any consumer who has had the pleasure of dealing with a big company for even small issues will attest to the difficulty in getting a straight answer, getting someone who knows what they’re talking about first time, and ultimately correcting the mistake. This is a common complaint of many of our credit repair clients. Most people are told if it’s paid up they can mark it as such but that’s about it. It’s a bit like David and Goliath, and in the end many just go away believing they are in the wrong.

    So in an emergency situation, people who are stuck with bad credit must turn to payday loans. Including those people that aren’t able to obtain a hardship variation for their circumstances, and have a default or other negative listing placed on their credit file.

    So I do applaud the new laws, but it’s not over yet.

    I am still waiting to see how the new credit laws within the Privacy Amendment Bill will impact on the ease of correction of mistakes in credit reporting as well as how overdue payments are going to impact their ability to get mainstream credit before I hang my hat up and say that the Government has done all it can to help vulnerable consumers and give a ‘fair go for all Australians’.

    If you are struggling with obtaining credit after being defaulted, and you believe the listing may be incorrect or unjust in any way, consider credit repair as an option to get an expert on your side who can help permanently remove unlawfully placed Defaults, Writs, Judgments and Clear-outs from your credit file. Call a Credit Repair Advisor today on 1300 667 218 to discuss whether you might be a suitable candidate for credit repair.

    Image: Daniel St.Pierr/ www.FreeDigitalPhotos.net

  • Fixing credit mistakes with a credit repairer – 15 common concerns

    Credit rating repair is a relatively new field and has been fuelled by just how difficult it can be in this economy to obtain credit. The loops and hoops people have to jump through – on top of the massive deposit they need to save, means people can’t afford for bad credit to stand in their way – particularly when they suspect it shouldn’t be there in the first place. If you are one of those brokers or prospective borrowers who are unsure whether credit rating repair is a legitimate option for you or your clients – we might be able to alleviate some concerns.

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

    15 COMMON CONCERNS WE HEAR EVERY DAY AS CREDIT REPAIRERS…

    1. Does the debt need to be paid?

    As we are an evidence based firm, it doesn’t matter if the debt was paid or unpaid. The service is in looking for whether the listing was legitimate or not rather than necessarily appeasing a creditor’s request for payment initially.

    2. Won’t just paying the listing allow me (or my client) to obtain finance without needing credit repair?

    Most clients believe that paying the default or judgment will “make it all right again” only to find out that a PAID default is almost as bad as an UNPAID default to many lenders. Only a CLEAN credit rating will ensure your options are not unnecessarily limited.

    3. When can a listing be removed from my credit file?

    If a listing has been placed correctly, it cannot be legitimately removed. However, in as many as 91.7% of cases the listings HAVE NOT been placed correctly and in accordance with legislation and are successfully removed.

    4. If the creditor says “no” is their decision final?

    Most definitely NOT! In fact in most cases, the Creditor will say No, No, and No again…this is why most times it is difficult for an individual to dispute their own credit listing themselves. The difference in using a credit rating repairer is based on our thorough knowledge of credit reporting legislation and industry legislation, we go about proving that the Creditor has NOT complied with the legislation and the default has been placed unlawfully and requires immediate removal.

    5. Is a default with a small debt amount easier to remove?

    Unfortunately this is not always the case. The dollar value of the debt makes very little difference – there can be just as much work in removing a small debt as a large one – as in most cases it is about doing the work to show unlawful placement of a credit listing. This is why MyCRA does not charge per debt amount. Because as you may already know – defaults for as little as $100 can stop someone from getting a home loan.

    We use a tried and tested system that has seen the successful removal of defaults from $100 to one at $750,000.00.

    6. Can you provide a time frame on removal?

    We’d love to say that all creditors follow the rules and comply with our requests within the legislated timeframes but hey, we’re here because in so many cases they DON’T comply.

    In most cases the delays are directly attributable to further non-compliance by a creditor – we can never know how long they’ll take to respond. The best anyone can do is give average timeframes.

    7. What are the average time frames?

    We have removed listings anywhere from 12 hours and 23 minutes (business hours) right through to almost a year.
    On average, we let clients know they should aim for 45 – 60 days. But of course this is no guarantee, as every case is different, and we don’t know how long it will take until we actually get the word that we’ve got the creditor to agree to remove that listing.

    8. How do I measure the costs involved?

    We like to think we offer excellent value with our rock solid commitment to ride the creditor (as much as we legally can) until ALL possible avenues are fully investigated to the maximum extent commercially open to us. Like a dog with a bone, we don’t give up. If you were to engage a Lawyer at say $350 per hour, it’d cost more than $5200 per default and still have no guarantee of success, so yes, we’re great value.

    Some people feel if there listing is only a small $$ value listing, that it should be easy and cheap to have it removed. The process for removal often includes Legislative Compliance Officers reviewing hundreds of pages of documents for each separate default listing and then comparing them to more than 2000 pages of legislation looking for that one (sometimes very small) point that would deem the listing unlawful and require its immediate removal. Our fees are fixed so there is no risk of them “blowing out” no matter how many hours we work on the case.

    To look at costs in another way, you can compare them with the amount you would pay in interest on a non-conforming loan.

    If you were to enter a non-conforming loan of $350,000 on a 30-year term at 9%, versus a standard loan at 7%, you would be up for an additional $487.62 per month. Over the first three years of the loan, that adds up to a staggering $17,554.34 just in interest alone – without taking into account set up fees etc. You can verify this and measure it against our costs here on the  MyCRA Credit Repair Calculator

    What can be removed???

    9. Can you remove commercial listings?

    Yes – we’ve had great success in removing commercial listings. Though a point to remember is that as there’s much less legislation protecting businesses, so in some cases it can take a bit longer.

    10. Can City Council Judgments be removed from my credit file?

    City council judgments can and do get regularly removed and in almost all cases, the process is sped up by our dedicated Judgment and Court Action Legislative Compliance Officers and full-time in house Legal Counsel.

    11. Can you remove credit card listings from my credit file?

    Credit Card listings are just like any other listing and can be removed as easily as any other.

    12. If I have paid the listing, does that mean it can’t be removed because I have effectively claimed fault?

    In a large number of the clients we help, many didn’t know they had an actual default until they were refused further credit. They may have had a rough spot or a disagreement with their creditor over the bill but it was all sorted out, the bill was paid and the client moved on. There still may be grounds for removal in many situations, and paid listings are removed just as regularly as any other listing type.

    13. If there is an unpaid amount, wouldn’t the creditor refuse to remove my listing?

    The creditor may not WANT to remove an unpaid listing, but if the creditor has not complied with the legislation relating to that default type, they have no choice – it MUST be removed.

    14. Can a discharged bankruptcy be removed from my credit file?

    Any acts of Bankruptcy, which include Part IX and Part XIIII Debt Agreements, are controlled by ITSA (Insolvency Trustee Service Australia) and the Acts of Bankruptcy are permanently recorded on the NPII (National Personal Insolvency Index). We do not remove bankruptcies.

    15. Do Default and Judgment removals follow the same process?

    We have developed very specialised proprietary systems for Court Judgment, Court Writ, Default, Clear-out and Overdue Account Listings. While many of the processes are similar in that legislation needs to be complied with, the Judgment Process stands out as being VERY different.

    We hope we have helped answers most of your common concerns. If you have any questions not covered here, please call one of our friendly and very helpful Credit Repair Advisors on 1300 667 218 for a no obligation chat. You can also find out more by visiting our main website www.mycra.com.au.

    Image1: Ambro/ www.FreeDigitalPhotos.net Image 2: graur razvan ionut/ www.FreeDigitalPhotos.net

  • Women and Credit: What You Need to Know

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    Bad credit history plays no favourites, it can basically happen to anyone. Both sexes can be severely disadvantaged when it puts a halt on plans to borrow money. In this post we explore some issues around credit, women in particular may need to be aware of and show how important financial knowledge and independence is to ensuring a good credit history for both women and men.

    By Graham Doessel, Founder and CEO of MyCRA Lawyers and www.fixmybadcredit.com.au.

    The title of this post came as inspiration from a blog post concerning women and debt.  The post was titled Build A Clean Credit History and it centred around the issue of women and credit and how women can sometimes let their partners have control of the finances to their own detriment. The blogger “Women In The Black” is a forum for women to discuss personal finance, saving, investing and ‎building wealth. ‎

    Women In The Black implores women to get involved in their own finances rather than leaving it to their partner, in order to build up a good credit history of their own.

    “I’ve heard stories of women in their 50’s, who are either divorced or widowed, and have had to begin managing their finances now, which they previously didn’t have to do. Be assured at some stage in your life, you’ll be the sole manager of your finances,” the post says.

    “No matter what age you are, you need to take an assertive fiscal approach to money. Focus on earning more money as well as managing your debts which will lead to a long clean credit history.”

    Both men and women need to be educated and ultimately responsible for their own finances, and particularly their own credit history.

    Here are some of the issues women may come across when it comes to their credit rating but this can apply to men as well…

    Not knowing about your finances

    Do you know how much your insurance is per year? Do you know when your registration is due, or how the phone bill is paid? Leaving all the repayments up to your partner and never verifying them is a recipe for disaster most of the time when it comes to your credit rating. Women should strive to make joint financial decisions with their partner, regardless of their income level and both women and men should know what is said about them on their credit file by applying for their annual credit file check once per year.

    Financial incompatibility

    Sometimes we can get mixed up with someone who ticks all the boxes on an emotional level, but who has very different ideas about money, or perhaps a debt-ridden past.

    It’s important to ask some tough questions about new partners – including whether they have any current debts, if they always pay their bills on time and generally how they feel about money. You could even go so far as to order a copy of your credit file – to prove to each other that you are both default-free!

    If their answers prove less than ideal – you might want to keep your finances separate especially if you have assets of your own.

    A tangled web of credit history

    At MyCRA we often see people who have been left with bad credit history due to the partner’s financial mistakes.

    You see, when you branch out and make a life with someone, inevitably the lines of whose credit is whose can become blurred. You can have a phone account in one name, electricity in the other, a mortgage in one or both. Often it doesn’t matter whose name is on it, as long as someone is paying it – it’s more a joint effort to get the household where it needs to go and you both figure it’s ‘yours’.

    But where this goes wrong time and again is at the point where couples are trying to divorce or separate.

    Then those blurred lines of credit history can be extremely confusing, and often the divorcees’ credit histories can be mixed up long after they have physically separated. When you separate and there’s joint debt, you can lose control of your finances.

    Often we see people at the mercy of their exes’ big ‘post-relationship spendathon’ –  whether that be redrawing on the mortgage, or just taking out credit they don’t pay back – and sometimes both credit histories take the fall.

    Years later, when the woman finally gets back on her feet, she might want to get a house in her own name, or a car or even a credit card, and is refused due to bad credit that she hasn’t had any part of.

    One thing we maintain with everyone who is going through a divorce or a separation is to try to look forward into the future to what you need to do right now to prevent a bad credit score down the track.

    If you have just left your partner or spouse, here are 10 steps to financial separation you should take as early as possible in the break-up to keep your clear credit file. If these steps can be accomplished together, you can both get on with your lives as individuals without a bad credit score:

    10 Steps for financial separation

    1. Cancel joint bank accounts. Don’t hold on to joint accounts and assets ‘just in case’ you reconcile. Even the most amicable of separations can potentially turn sour down the track. The sooner you make the break, the better off your future will be – even if you do decide to get back together in the future.

    As far as creditors are concerned if the debt is in both names, then you are both responsible for it regardless of who accrued it. You could use the money from these accounts to go towards paying off any debts you may have together.

    2. Pay off and cancel joint credit cards. If the debt on the card/s can’t be paid off, inform the creditor that you have separated and ask them to put a stop on the account so there may be no more transactions. They could possibly make arrangements to transfer the repayments to two separate accounts.

    3. Resolve the mortgage debt. Sell the home and divide the proceedings, or sell your share of the home to your ex-spouse or vice-versa. Before this takes place, notify the bank you have separated. Make sure no further amount can be redrawn on the loan and that you receive separate statements whilst you are separated and both still own the property.

    4. Transfer names on other accounts. Phones, electricity accounts, rental properties, rates, car loans and store credit should all be transferred to one name as appropriate.

    5. Pay any unpaid accounts. No matter who has accrued these debts, the creditors will still see you as responsible. Ensure all accounts are paid on time while they are in both names.

    6. Keep a record of all undertakings. Keep good paperwork and notes related to the separation, including cancellation or changes to any accounts for future reference.

    7. Employ a good family solicitor. Legal advice is important as it relates to children, family businesses, and property. Also if anything runs off course with the division of debt, they can give good advice on the next course of action.

    8. Notify credit reporting agencies. Let Equifax (formerly Veda Advantage), Dun & Bradstreet, or Tasmanian Collection Services know of your separation and any steps you have taken to separate accounts to-date.

    9. Check your credit file. Request a copy of your credit report and check each entry.  A free copy of your credit file is available every 12 months from one or more of the credit reporting agencies in Australia. This is essential particularly if the settlement is drawn out over a number of years.

    10. Seek help from a professional credit repairer for any defaults, writs or judgments. Once outstanding accounts accrued by your spouse are paid, there is the issue of the bad credit score which needs to be cleared so you may have the opportunity to borrow again in the future. However, dealing directly with creditors could be problematic, they will tell you that defaults are never removed but can be marked as paid. However, at the moment even ‘paid’ black marks against your name can be enough for credit refusal, particularly if you are trying to buy a new property on one income.

    A professional credit repairer can check the creditor’s process of listing defaults for legislative and or compliance errors, any such errors could deem the credit file default listing unlawful, advising the creditor to remove the default.

    Image 1: twobee/ www.FreeDigitalPhotos.net

    Image 2: graur codrin/ www.FreeDigitalPhotos.net

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  • Identity theft risks high for pre-retirees

    Media Release

    Identity theft risks high for pre-retirees

    27 July 2012

    Baby boomers scrambling to secure their future before retirement are prime targets for fraudsters who are dangling a whole host of carrots to lure their savings and a national credit repairer warns they are also candidates for credit fraud.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says victims of the latest very elaborate investment scams could also be at risk of identity theft and having their good name used to take out credit.

    He says pre-retirees who fall victim to scams lose their nest egg, and could also have their identity hijacked and potentially credit taken out in their name, which can rob them of the ability to obtain credit in the years when they will need it most.

    “Many people in this age group also generally have a good clean credit rating, and if fraudsters are prepared to go to elaborate lengths to get them to part with their cash, what’s to say they haven’t set up fake identities and taken out credit in their name as well?,” he says.

    Investors were earlier this month hit with the news of an elaborate scam involving overseas investments.

    The Australian Crime Commission and Australian Institute of Criminology reported that more than 2600 Australians have lost in excess of $113 million to these investment frauds, but it is believed there is a high level of under-reporting and the extent is far greater.

    They warn that the scam is incredibly sophisticated and has fooled even experienced investors with elaborate back up data, including fake websites and publications and fraudsters even issuing online press releases in the hope of extracting major dollars from their victims.

    Australians have been targets for this fraud because of high levels of superannuation and retirement savings. The Australian economy is also known to have been less affected by the global financial crisis than other nations.

    Mr Doessel says if criminals gain access to information like names, dates of birth and addresses they can build a profile with enough information to request duplicate identity documents – enabling them to take out loans, credit cards, even mortgage properties in their victim’s name.

    “Fraudsters are never so kind as to pay the credit back -meaning the identity theft victim is hit twice – financially ruined and with no ability to borrow for 5 to 7 years,” he says.

    The Australian Bureau of Statistics data shows 514,500 Australians were victims of scams in 2011, with 44,700 people citing actual identity theft in the same year.

    Credit reporting agency Veda Advantage also recently reported in its Australian Debt Study that one in five Australians have had their identities stolen or had their personal or financial data illegally accessed.

    Matthew Strassberg, a Veda senior advisor said: “Whilst credit card fraud is a common form of identity crime, many people do not realise that with only a small amount of personal data, an identify thief could take out a second mortgage on a house, or open up a new line of personal credit and purchase items in their name or under a false identity.”

    Mr Doessel says pinpointing identity and credit fraud early can be difficult.

    “Fraudsters often change contact details, and many victims don’t know they have been scammed until they apply for credit and are refused,” he explains.

    He says sometimes there can be some early warning signs of identity theft, and people should watch out for these occurrences:

    1. Strange unaccountable withdrawals on credit or personal bank accounts. It may not need to be a big amount to indicate fraud. Many criminals do ‘test’ amounts to begin with before extracting more significant amounts.

    2. Phone calls or emails from what often appear to be legitimate companies, asking for money or personal details. If you have given bank details or personal information in this way either online or on the phone there is a high chance it was a scam. Verify with the company in question.

    3. Can’t log in to social networking or bank accounts.

    4. Bills or letters of demand sent to you for accounts you don’t know about.

    5. Missing mail – particularly credit card statements which could indicate someone has overtaken your accounts. In this case no news is not good news.

    6. Credit refusal due to a bad credit rating.

    If people feel they may be vulnerable to identity theft, they should alert their creditors, and also alert credit reporting agencies, who may be able to ‘flag’ their accounts to prevent fraudsters accessing credit in their name.

    Mr Doessel says if a credit check reveals any “surprise bad credit” through possible identity theft victims should act immediately to notify Police.

    “This crime is not very widely reported. But it is only through people reporting it that any real statistics get collated. Likewise, if people want to try and repair their credit rating following identity theft, the first thing I tell them is to make sure they have a Police report,” he says.

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

    /ENDS.

    Please contact:

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

    Graham Doessel – Director Ph 3124 7133

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

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

     

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    Image: photostock/ www.FreeDigitalPhotos.net

     

  • Consumers face war over credit blacklist errors – whether the bill was big or small.

    Media Release

    Consumers face war over credit blacklist errors – whether the bill was big or small.

    24 July 2012

    Australians are seeking help in droves to fight devastating credit listings which are seeing them blacklisted from credit for up to 7 years and losing dreams of homes, cars and business opportunities often for overdue bills as low as $100.

    A leading national credit repairer says the complexity of disputing credit rating defaults has led many people to seek help from the professional credit repair industry.

    MyCRA Credit Rating Repairs CEO, Graham Doessel says complaints can be just as difficult to dispute whether the bill is for $100 or $10,000 and are very seldom as simple as calling up the Creditor and telling them they got it wrong.

    “There are a host of laws which must be adhered to by Creditors when adding credit listings to consumer credit files, and likewise when disputing potential errors and mistakes – the same laws apply to be able to show cause why a Creditor should remove a default.”

    “Most consumers trying to resolve their own credit issues don’t have the knowledge of legislation or processes to effectively argue their case. They are often brick-walled by their Creditor and forced to put up with the default – banned from affordable mainstream credit for the term of the listing,” he explains.

    He says with tight lending criteria following the Global Financial Crisis, any black mark is generally going to prevent people from obtaining credit in the current market.

    “Some can’t even get a mobile phone on a plan and most that need credit are forced to pay much higher interest rates with non-conforming lenders – potentially costing them tens of thousands more in interest,” he says.

    Mr Doessel is echoing criticism from the Australian and New Zealand Ombudsman Association which yesterday, said too many people are being put on debtor blacklists for owing small energy and phone debts.

    “Often they didn’t even know that they had been credit-listed until they had applied for a mortgage or a credit card or a business loan and then they found they had been credit-listed for small amounts, were denied that credit and lost deposits, were not able to start up their business and so experienced quite severe consequences,” the Association’s Chairwoman Clare Petre told the ABC yesterday.

    Ombudsmen are calling for the threshold for credit listings to be raised to $300.

    Ms Petre also expressed her concern that people are paying private agencies to solve their problem, when public authorities such as the Ombudsman’s office can help.

    “For people who are already often financially vulnerable they’re huge costs, but they’re desperate and they’re prepared to pay that money when they could come to us for free,” she added.

    But Mr Doessel says the services of Professional Credit Repair firms are of assistance to many of the Ombudsmen and most times enhance the likelihood of a successful outcome for the client. He says they have a duty of care to exhaust all avenues of complaint, some of which may not have been within the realm of the Ombudsman to investigate.

    “It’s actually a requirement of the Code of Conduct of the Credit Repair Industry Association of Australasia (CRIAA) that the credit repairer has conducted an exhaustive investigation into the conduct of the Creditor and can provide that investigation to the Ombudsman if the Ombudsman is ever actually required to help at all,” Mr Doessel says.

    He goes on to say “Many of the Ombudsmen Bodies have seen a massive increase in the number of consumer complaints recently and some (Ombudsmen Bodies) have extensive waiting lists that many consumers cannot afford to be on.”

    /ENDS.

    Ref: http://www.abc.net.au/news/2012-07-23/ombudsman-concern-small-debt-credit-ratings/4148476

    Please contact:

    Graham Doessel – Founder and CEO MyCRA Ph 3124 7133

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

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

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

    Image: nuttakit/ www.FreeDigitalPhotos.net

  • Credit Repair Guide – Consumer Advocate Graham Doessel Answers Your Questions About Fixing Bad Credit

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    Credit Repair is still a relatively unknown profession outside of the finance industry.

    It is often not until a person is refused a loan due to adverse listings on their credit file that they begin to look for avenues to fix what is being said about them on their credit report – especially if they believe they have an incorrect credit report.

    Research on the subject can produce some contradictory advice, so we thought we would clarify the basics of credit restoration or credit repair as an industry in Australia, and explain the instances in which it will be the best solution for those people who are refused mainstream credit due to defaults, Writs or Judgments on their credit file.

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

    As Credit Repair Lawyers, we find clients are often unaware of just what is involved with repairing their credit rating. Most times they don’t even know what’s on their credit rating until they apply for a loan and are refused – let alone know what to do to fix it. And even those savvy clients who have done a bit of homework and attempted to correct a wrong credit listing by themselves can get brick-walled by their Creditor, told that the listing can only be marked as paid but will not be removed. So often their broker will suggest professional a credit repair law firm to them, or they may have found us on an internet search.

    Here are some of the main questions we get asked by our new credit repair clients – we hope they help you too if you want to know more about what credit repair is all about.

    What is professional credit repair?

    Professional credit repair involves a credit repair law firm working on your behalf to remove inconsistencies or errors which are found on your credit file, in order to give you the best chance of obtaining credit with the lender of your choice.

    How have professional credit repairers come about?

    The Credit Repair Industry in Australia has grown significantly over a short period of a couple of years. There are many reasons for this.

    • One is due to the tightening of bank lending criteria following the Global Financial Crisis (GFC) and then the Banking Royal Commission.
    • The decline in sub-prime lenders has meant that many non-conforming loans that were previously available to many people have since folded.

    Put simply, credit repair has grown from the need for potentially millions of credit file holders with black marks on their credit report to find some way to buy a home, a car, get a credit card and even a mobile phone plan.

    Because of tight lending criteria, the need for greater accuracy in credit reporting has arisen.

    When deciding whether to lend someone money, banks are looking at any reason people may default on a potential loan – which includes any suspect credit history.

    The mistakes creditors make every day in reporting negative listings may have previously gone unnoticed, but since the GFC, the royal commission and now Covid, they can be the very reason many people are refused credit.

    So with many instances of credit reporting ‘inconsistencies’, coupled with very little consumer knowledge on credit reporting law and a great need for a third-party negotiator when dealing with creditors, the credit repair industry has been driven forward.

    What are credit rating errors?

    Credit rating errors are quite common, and the onus of ensuring the accuracy of your credit file rests with you.

    But how do you know if a listing has been placed accurately on your credit file, or if it should be there in the first place?

    A credit repair lawyer with their knowledge of credit reporting legislation will find and address those instances where a credit listing may have been placed unlawfully on your credit file.

    Credit rating errors could be anything from

    • the listing placed on the wrong credit file; to
    • the basis of the credit listing being unfounded; to
    • incorrect notices being provided to the client; right through to
    • system errors and incorrect spelling, to name a few examples.

    Is credit repair legal?

    Yes. Credit repair lawyers work to ensure accurate and legal credit reporting.

    Creditors are bound by a large volume of legislation and codes of conduct to do with placing information on consumer credit files.

    These laws are in place to protect consumers from unfair and damaging credit reporting.

    What a credit repair lawyer does is investigate the procedures taken by the creditor when placing the listing on the credit file, and if necessary, alert creditors and other relevant authorities to the instances where they believe the listing was placed on the credit file unlawfully and for this reason request the listing’s removal from the client’s credit file.

    “If the listing has been placed unlawfully on the credit file, then it should not be there and should be removed.”

    What’s the process to fix my bad credit?

    Credit repair law is not an exact science, because every case is different but there are some common threads which run through credit reporting law which we follow.

    1. Firstly, we order a copy of your credit files on your behalf from one or more of Australia’s credit reporting bodies which tells us exactly who and what we are dealing with in relation to your bad credit.
    2. Then we investigate any avenues for disputing your credit listing or listings with your creditor.
      1. This involves requesting documentation from your creditor about your account, and
      2. cross referencing the procedures taken prior to and during the listing of the default, writ or Judgment with our knowledge of credit reporting legislation.
      3. This can be a lengthy process of review, and likewise, the creditor can at times take a while to provide the information they should.
    3. After we have all of the information, and reviewed it all against the legislation, we have the basis for a case for default, writ or Judgment removal.
    4. Then we formally communicate with your creditor to request the removal of what we would then deem to be a listing placed on your credit file unlawfully.

    This process can be a bit ‘back –and- forth’, as there are procedures that we, and they have to follow in accordance with industry and the law as well as negotiations which take place behind the scenes with creditors.

    The complaint may also need to be escalated to a higher authority such as an industry Ombudsman if there is no satisfaction with the creditor.

    If the creditor agrees to remove the listing, you will need to contact the credit reporting body to confirm it has been removed.

    The reason for this is that you do not create a credit ‘enquiry’ on your credit file by requesting information about your own credit report.

    If you want the best chance of obtaining credit, then you want to reduce the number of credit enquiries as much as possible.

    How long will it take to fix my bad credit?

    The length of time it will take to remove bad credit from your credit file is very much an unknown factor.

    It could depend on the particular facts relating to your application, including the evidence required to support each party’s claims; on the amount of cooperation we receive from your creditor/s including how quickly they respond to our requests; on the number of issues raised in your application; the volume and relevance of information and supporting documents provided by you and the complexity of the legislation relating to your particular defaults.

    We have had a previous success rate of up to 91.6% of removal on every case we take on, and this is on average taking 45 – 60 days (but as little as a couple of weeks) to achieve once we have deemed you suitable for credit repair.

    If my credit file shows an outstanding amount, should I pay it off?

    It depends on the nature of your credit listing dispute. We have in the past negotiated for the removal of many credit listings which still hold an outstanding amount. Your credit repair lawyer can give you further advice based on your individual case. This is why at MyCRA, the costs involved are not based on the amount owing but are on a per-listing basis. For more information on MyCRA Lawyers costs, visit our main website.

    If you have more questions about credit repair, contact our team on 1300 667 218 or visit the main website www.mycralawyers.com.au.

    Images: Stuart Miles/ www.FreeDigitalPhotos.net

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  • Access Denied… How late payments may ruin your home loan application

    You’re a busy young couple, both employed in good paying jobs, you’ve never defaulted on your loans, and you’re in the middle of saving hard for a home loan. Once you’ve got the deposit, you should be a bank’s dream customer right?
    But if you miss paying a few bills, you may not be so lucky. A warning to all future first home buyers about the new laws around late payments that could see you denied that home loan despite all of your good financial deeds.

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

    Comprehensive credit reporting is about to be brought in to Australia. The Government has introduced new legislation into Parliament to amend Australia’s current Privacy Laws under the Privacy Act 1988, which includes the area of credit reporting.

    In total there are 236 pages of amendments to the Privacy Act 1988 within the Privacy Amendment (Enhancing Privacy Protection) Bill 2012, which had its second reading in Parliament in late May.

    These new credit laws are heralded as ‘revolutionising’ credit reporting in Australia, and in theory there are some great changes about to take place which should see more emphasis put on the much-neglected realm of credit reporting accuracy.
    But not all changes will see more people given access to credit.

    The most important change to be aware of is the addition of repayment history information to credit files. In layman’s terms, this means if you pay your bills even a bit late – the company can make a note of it on your credit file.

    Late payment notations will be added to credit files by licenced creditors even if a bill is one day late. The notation will remain on your credit file for 2 years.

    This extra information will be further used to assess credit risk by lenders. The Government says these reforms will lead to decreased levels of over-indebtedness but will also allow people who have a credit file listing the chance to ‘make up’ their negative listing with consistent positive repayment data.

    In discussing New Zealand’s move to comprehensive credit reporting – which occurred in April this year, credit reporting agency and supporter of comprehensive credit reporting, Veda Advantage said it would be the pattern of late payments rather than one or two late payments that will stop someone from obtaining credit.

    “A few hiccups should not hurt anyone’s ability to borrow money for a house, car or holiday in the future,” Veda Advantage New Zealand’s John Roberts told Business Day.

    But lending criteria is quite subjective, too subjective to guarantee those ‘hiccups’ will not penalise potential borrowers. Initially lenders will probably err on the side of caution, particularly if the economy isn’t great and adopt a policy of exclusion rather than inclusion to the credit market.

    Many people will take a big gulp when they think about all the bills they have paid late – often more through accident than not having the money – which could now see their loan declined. Who says how many is too many late bill payments? Would three a year be too many, or two in six months?

    And who says when this information will start being collected? I think if you want credit in the future (most of us) you should be on your guard now, be vigilant with making payments ON TIME every time to ensure these late payment notations don’t stop you from getting credit in the future.

    Accuracy Concerns

    The big area of concern around late payment notations from consumer advocates – including myself has to do with accuracy. At the moment credit rating mistakes are pretty common. The other issue is how difficult it is for people to dispute a credit listing themselves, let alone a late payment notation.

    NSW-based Consumer Credit Legal Centre Principal, Katherine Lane told the Sydney Morning Herald last year she was concerned over the fairness of listing a payment that is only slightly overdue or late for a good reason. She says credit reporting continues to operate as an “honour system” relying too heavily on the word of the creditor.

    ”My overriding concern is fairness,” Lane says of the exposure draft, which is now the subject of submissions to the Senate Finance and Public Administration Committee.

    ”Fairness is clearly a problem under the current law and they haven’t fixed the problem.”

    With the new legislation will be laws which will allow you to dispute your credit file listing easier if you believe it has been placed in error. But the thing is it will still be up to you to know the law to be able to apply it to your own case, and this is where credit repairers will continue to be needed – to close the gap and help enforce the legislation that Creditors are bound to comply with.

    To ensure you remain a good candidate for a home loan in the future, pay your bills on time, and prior to loan application order a free copy of your credit file to make sure you’re not going to be disadvantaged by someone else’s mistake. If there’s something you don’t agree with – contact a professional credit repairer to see if you would be a candidate for credit repair to remove credit rating errors.

    Image: basketman / www.FreeDigitalPhotos.net

  • CRIAA Code of Conduct seeks to stamp out dishonest credit repair practice

    Media Release

    CRIAA Code of Conduct seeks to stamp out dishonest credit repair practice.

    17 July 2012

    The credit rating repair industry now has an official Code of Conduct, with the newly formed Credit Repair Industry Association of Australasia (CRIAA) publishing its ASIC-inspired code yesterday.

    Spokesperson for the CRIAA, interim board member Graham Doessel says the Code takes into account comment from ASIC within its framework and aims to promote credibility and transparency within the credit repair industry.

    “The credit repair industry has gone largely unregulated up till now, and this has led to dodgy practices from some credit repairers, and to broad criticism of the industry from outsiders.”

    “This Code of Conduct will give a strong framework for what is acceptable practice for credit repair, in so doing raising the service level for consumers who choose a CRIAA member credit repairer,” Mr Doessel says.

    The CRIAA Code of Conduct is a comprehensive 15-point document which outlines the rudimentary requirements for membership to the CRIAA, including education standards, and specific requirements for behaviour, including the ramifications for non-compliance which may include sanctions and fines for its members.

    “The Code insists on transparency of advertising and fees as basic requirements of CRIAA Members, and specifically insists on conduct which does not mislead the consumer at any stage – we see this as paramount to bringing the industry forward with credibility,” Mr Doessel says.

    The Code of Conduct also outlines internal and external dispute resolution parameters for the credit repair industry.

    “It is important for an emerging industry to have some avenue for consumers to make complaint and resolve disputes, from both within the industry and to external dispute resolution services,” he explains.

    Mr Doessel says the CRIAA and its Code of Conduct will assist in bringing validity to the industry of credit repair as part of the credit reporting landscape.

    “Credit repairers have been highly sought out by more and more consumers because they have had difficulty in correcting credit rating inconsistencies themselves. So credit repairers continue to play a crucial role in maintaining accuracy in credit reporting, he says.

    The CRIAA interim board currently includes 6 credit repair industry members, and two finance industry members, including President of the Finance Brokers’ Association of Australia, Peter White.

    The CRIAA has had interest from a variety of stakeholders both inside and outside the industry and intends to allow different categories of membership to accommodate this diversity.

    “The CRIAA will be the genuine representative body of the credit repair industry and all its stakeholders, so we’re not going to be exclusive – it will incorporate brokers, credit reporting agencies, Ombudsmen and any other stakeholders which impact the industry within its membership categories,” Mr Doessel says.

    CRIAA INTERIM BOARD

    Colleen Halls – Chairperson

    Peter White

    Graham Doessel

    Alicia Candido

    Ilias Bafas

    Gavin Symes

    Andrew Bell

    Darren Brits
    For a full copy of the CRIAA Code of Conduct, visit the CRIAA website: http://www.criaa.org.au/code/

    /ENDS.

    Please Contact:

    Spokesperson – Graham Doessel – CRIAA Interim Board

    The Credit Repair Industry Association of Australasia Pty Ltd (CRIAA)
    C/- 246 Stafford Road, Stafford, QLD 4053
    alerts@CRIAA.org.au | www.criaa.org.au

     

  • How an overseas trip can see you with bad credit

    Going overseas? We tell you why this makes you vulnerable to being lumbered with bad credit, and tell you 5 things you should know to protect your credit rating when going overseas.

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

    You’re on that plane – drink in one hand, a copy of Lonely Planet in the other. It’s the trip of a lifetime, you’ve scrimped and saved for ages to get to this point – so excited to be heading off on your round-the-world-trip – with an extended stopover in the U.K. for some work. So long suckers!!!!

    You’ll miss your family and friends, but it’s your right of passage to do what millions of young Australians do every day, jump on a plane and see the other side of the world.

    But you are planning on coming back some time, right?

    And watcha gonna do when you get back?

    Get sensible again? Maybe save for a house?

    Or save for another trip?

    But thousands of young people find that one little thing can stop them taking out a mortgage, buying a car, or buying another plane ticket after they have been o/s – BAD CREDIT! And this is often why…

    You come back home a little paler, a little chubbier, a bit wiser, but a hell of a lot poorer. You apply for a credit card – but you nearly fall off your chair – the application is declined. For some reason – you have a Telstra default on your credit rating.

    “This has got to be a mistake!” You say, “I’m good for it – I always make my payments on time.”

    But there it is – bad credit – and there’s nothing you can do about it.

    After contacting Telstra, you find out it was the mobile phone account you had before you went overseas. There was this one last bill that you didn’t know about. And that bill was sent to your old address – again, and again, and then they put a default on your credit file when you didn’t pay it after 60 days.

    You thought you had fixed everything up, but it seems you hadn’t.

    Now the bill has tripled in size, and when you complain about the mistake on your credit file, Telstra tell you all they can do is mark it as paid if you pay it. It will be on your credit file for 5 years.

    This is the scenario of many of our clients who contact us to help dispute their credit report. Time and time again we see people who have gone overseas or even just gone to the next suburb and think they have settled accounts prior to leaving, only to find those ‘final accounts’ haunting them in a big way for years to come.

    Other people have gone overseas, taken their mobile with them, only to find they are hundreds of dollars in debt with no way to pay due to their phone bill.

    Well, before you take off – here are 5 things you should know to protect your credit rating before going overseas:

    1. Completely finalise your accounts

    Contact every creditor to let them know you are going overseas, and provide them with new contact details for you if you are moving out of your home. If you are going for an extended period of time – rather than just paying your last bill, make sure you have finalised your account and requested a closing balance. Once you have paid the final amount, get it in writing to ensure it is the final bill for that account.

    2. Cancel direct debits

    If you have a direct debit set up, this can sometimes be with a separate company to the actual Creditor – particularly with things like gym memberships, so make sure you cancel any direct debits coming out of your account – finalise any outstanding amounts – and get the notification of the cancellation in writing.

    3. Beware phone charges while overseas

    Many phone companies charge you extra for calls you make and receive while you are o/s. Call your telco provider and make sure you know all the facts before you take your phone on a holiday with you. It might be better to get an overseas phone or SIM for your trip instead.

    4. Beware splurging on credit cards

    It can be hard to keep a tally on what you’re spending while you’re overseas. But do check your balance regularly to make sure you’re not blowing out your budget and sending yourself into debt when you get back. And while you’re there, you might want to check for this….

    5. Beware identity theft

    Just because you’re in holiday mode, doesn’t mean your privacy should be as well. Your personal information is a goldmine for fraudsters, and while you’re in transit, you can be vulnerable to identity theft. If identity theft leads to fraud, you can even have credit taken out in your name, and land in all sorts of trouble with your credit file with incorrect defaults and late payments against your name.

    Keep belongings and personal information (especially Facebook logins) secure, and check all ATM’s and credit card machines for skimmers. Check your credit card online when you can regularly and watch you are logging in through a secure site. When you get home, grab a free copy of your credit file straight away. If there are any suspicious entries you may have been a victim of identity theft.

    Checking your credit file

    If you have come home from an overseas trip, and want to check what your credit file says about you, you should know you are entitled to a free copy of your credit report once a year from Australia’s credit reporting agencies.

    It might be a good idea to order this copy of your credit report prior to applying for any new credit and it will be sent within 10 working days. It will tell you whether you have any bad credit, or whether there are any mistakes on your credit report.

    If you think a default on your credit file is wrong, or you want to dispute your credit report, contact a professional credit repairer to discuss your suitability for credit repair. If the listing is incorrect, contains errors or just shouldn’t be there, a credit repairer can help prepare your case and give you the best chance of having the default or other mistake on your credit file completely removed so you can apply for credit with a clean slate.

    Image: kangshutters/ www.FreeDigitalPhotos.net

  • Mistake On Your Credit Report? Here’s How To Correct Them

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    Mistake on your credit report? It can be remedied! If your credit file has incorrect information, or the default listing is wrong, we look at what you can do to fix your bad credit in Australia.

    Bad credit is not pretty. Many times people don’t find out about a default or a mistake on their credit file until they are sitting in front of the lender – mortified, frustrated and heartbroken at the loss of a mortgage, business loan or car loan. This ‘bad credit’ listing will remain on your credit file for the next five years, and for the next five years you will be restricted on your access to credit and forced out of the mainstream market. Heck, even a mobile phone plan is looking unlikely. All because a credit provider decided you had been late paying an account.

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

    But what if the creditor has gotten it wrong? What if the wrong information is on your credit file or a mistake has been made on your credit file?

    Firstly, you are not alone. Thousands, maybe millions of Australians are facing this issue of credit rating errors caused by a mistake right now. Some of those people have tried to dispute an unfair credit listing, and many of those people have been unsuccessful. They have been told that credit listings are never removed, that they will remain on your credit file until the ‘drop off’ date. If they have been paid, they can be marked as such, but there will still be some notation on your credit file.

    Don’t buy into it!

    If a credit listing has been placed unlawfully on your credit file, if there is any mistake in any aspect of the credit listing, or the listing just should not be there, then you may have the right to have those inconsistencies removed.

    Some basic things to look for with default listing rules:

    1. More than 60 days must have elapsed since the account was officially in arrears.

    2. You must have received written notification of the default before it was listed.

    If either of these has not occurred, then you should contact the creditor in writing to request the default’s removal – as the creditor has not followed basic rules whilst listing the default on your credit file and it has been ‘unlawfully’ placed on your credit file.

    3. Has the default been listed for more than five years?

    The listing should have ‘dropped off’ your credit file, and you should request the creditor remove the default from your credit file.

    When it’s a little more complicated, or you want to ensure you have the best chance of the incorrect or mistaken listing being completely removed from your credit file, often it is best to seek professional help.

    Dangers In Disputing Your Credit Listings Yourself…

    Often you only get one shot in disputing a credit listing. If you alert creditors in the wrong way that you have issues with a credit listing, there is a danger they may make changes to records to correct the mistake, or delete certain records from their files in order to solidify evidence that the listing was applied correctly.

    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, and this lack of evidence can also let people down in their case for removing an incorrect listing.

    Professional Credit Repair Law Firms

    A credit repair lawyer is uniquely qualified in disputing defaults and other credit listings which should not be there. They will investigate the disputed credit listing, request further information as required and draft a considered complaint to your creditor. They are well versed in the approx. 8,000 pages of legislation which relates to credit reporting, and they can cross-reference this legislation as it applies to your particular case.

    You may have a listing removed due to the creditor not complying with some of the more well-known credit reporting legislation, or a credit repair law firm could find more specific evidence which can aid the case for removal of the credit listing which you may never have found yourself. It is in the investigation and presentation of the case for removal and finally in the negotiation with the creditor that people can see the true value of a credit repair lawyer.

    Credit repair lawyers also know what avenue to take if the creditor refuses to remove the listing, and will if necessary escalate your complaint to courts.

    Who Chooses Credit Repair?

    People choose to use a credit repair lawyer when they don’t have the time, patience, negotiating ability, temper, or knowledge of legislation to dispute their credit listing mistake with the creditor themselves. People who want the best chance of getting a default removed will use a professional experienced credit repair law firm, just as most people would use a lawyer if they were defending themselves in court. It’s a bit like David and Goliath in many cases – so credit repair lawyers like MyCRA Lawyers provide the benefit of their experience to tackle the big guys on your behalf.

    Volume of Credit Rating Errors Or Mistakes

    A Veda Advantage (now Equifax) spokesperson, was recently interviewed by Channel 7 Australia’s Today Tonight, about the possible number of errors which are contained on Australian credit reports.

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

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

    A similar study was conducted in 2015 and in January 2016, where it was revealed that 12 years on, approximately 30% of credit ratings still contain mistakes.

    We think the current real figure is probably somewhere in between that. But in any case, there are far too many people with inconsistent credit reports and far too many people left in the dark about how to correctly dispute them.

    So it’s important to raise awareness, and show people how to give themselves the best chance at clearing bad credit.

    Image: digitalart/ www.FreeDigitalPhotos.net

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  • The TIO just got more muscle to penalise Telcos in small business disputes

    The Telecommunications Industry Ombudsman (TIO) reports in some areas they’ve almost tripled their workload  and it has just been given new powers to handle complaints with a higher total value, which should pave the way for the Ombudsman to deal with more small business issues as they relate to the telecommunications industry. We look at what this will mean for small business, and look at general figures for Telco complaints, and how this may affect consumer credit files and credit file listing complaints.

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

    From 1 July 2012, the TIO will have the power to give legally binding directions to service providers of up to $50,000 in value, and to make recommendations up to $100,000. This is an increase from direction powers of $30,000 and recommendation powers of $85,000. There will also be a change to the way it classifies a small business.

    “The adjustment to our monetary limits means that consumers who previously had disputes too large for us to deal with will now have access to our fast, free and independent service,” Ombudsman Simon Cohen said in a statement to the media last week.

    The TIO says the changes will be of particular benefit to small business consumers. At the same time as the constitutional change on monetary limits commence, the TIO will adopt a more flexible approach to defining a small businesses, making TIO services accessible and relevant to these consumers.

    New Small Business Definitions for TIO

    The TIO can assist small businesses with an annual turnover of less than $3 million and up to 20 employees (or up to 100 staff in the case of seasonal operations or manufacturing businesses).

    Even where these conditions might not be met, the TIO will consider other aspects such as the issues in dispute, the nature of the business (for example, whether it is not for profit or it operates from home), and whether the business is independently owned and funded by a small number of individuals who make most of the important business decisions.

    In the past, the TIO would also take into account the amount in dispute and the business’s yearly expenditure on telecommunications. These criteria have now been removed.

    Prior to these new powers, the TIO announced its intention is to expand its role beyond dispute resolution to helping improve telecommunications services. The TIO says it aims to achieve this by contributing to better customer service and complaint handling and working with industry to identify broader issues affecting consumers.

    Consumer Complaint Numbers Through The Roof

    In the magazine TIO Talks, it reported on its most recent survey of TIO services. It counted 52,231 new complaints received between January and March 2012. Almost two-thirds were about mobile phone services – with two significant trends in new mobile phone complaints coming from consumer issues about over-commitment resulting from inadequate spend controls, and complaints about excess internet usage charges. It revealed the staggering figures that numbers for internet data usage complainnts  have jumped 180 per cent in 12 months. The TIO Reports:

    New complaints about overcommitment caused by inadequate spend controls increased to 4,282 in the January-March 2012 quarter, compared to 2,181 in the same quarter in 2011. In the same periods, new complaints about disputed internet charges increased from 981 to 2,823 (180 per cent).

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

    Credit File Listing Complaints from Telco Industry

    Every day as credit repairers, we forward complaints to the TIO about consumer complaints and bill disputes which have seen them not only having billing issues, but having those issues impact their ability to obtain credit through being defaulted.

    We would agree that internet data usage complaints are rampant. Data usage on mobile phones seems to be one of the biggest sources of confusion for consumers. Some clients have trouble understanding their accounts (and often claim the plan they were put on was not appropriate for what they intended to use their mobile and/or internet for), and when they are hit with massive bills, they struggle to make the repayments; others claim they have great difficulty getting billing issues and disputes sorted out at the time they appear, and end up having defaults put on their credit file because they refuse to pay a bill they disagree with; and then some are simply the victim of internal errors within the telco industry – wrong accounts, wrong names, wrong plans, wrong addresses – and all of these things contribute to negative credit file listings that they often don’t know anything about until they apply for credit and are refused.

    Understanding Bill Disputes with Telcos

    MyCRA’s Legislative Compliance Officer specialising in Telco credit listing complaints has given people a few quick tips to take heed of when disputing Telco bills:

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

    2. Get all responses in writing. The matter may seem at an end, but sometimes people believe they have sorted it out only to find out later they have been defaulted anyway.

    3. If the matter can’t be resolved internally, take your case to the TIO.

    4. If at any stage people have a credit file listing from a Telco which they believe shouldn’t be there, they should contact a credit repairer, and give them all the information so far. They can then work on the person’s behalf. Credit file listings can be difficult for the individual to remove. If people request Creditors remove bad credit history, most people are told listings cannot be removed, but can be marked as ‘paid’ if the account was settled. This may not be enough to obtain credit with most lenders in the future, and these listings will be on a person’s credit file for between 5 and 7 years. With their knowledge of credit reporting law, a credit repairer will negotiate with the creditor as well as escalate the matter to the TIO on the client’s behalf if necessary. This gives people the best chance of actually being able to remove bad credit history which shouldn’t be there.

    A New Consumer Protection Code

    A revised Telecommunications Protection Code is currently being considered by the Australian Communications and Media Authority (ACMA) which, if adopted, will require telcos to provide their customers with notifications when they have used 80% and 100% of their data usage in the plan. After 24 months telcos will be required to extend notifications to voice and SMS usage. These changes come after pressure from ACMA for Telcos to offer better protection for consumers, or face external regulation.

    Image: suphakit73/ www.FreeDigitalPhotos.net