MyCRA Specialist Credit Repair Lawyers

Tag: credit reporting laws

  • New Year, New home? The credit info Australians need to know.

    new years resolution buy homeMany a New Year’s resolution has been declared to take the time to find a home this year, and apply for a loan. If this is you, there are some things you need to know about credit NOW which can help you out massively.

    We look at the three things you need to ask yourself right now, that you may not have considered, but which could stop you from getting your dream home.

    By Graham Doessel, Non-Legal Director of MyCRA Lawyers. www.mycralawyers.com.au.

    Good deposit? Check.

    Good income? Check

    Paid off most of your debts? Check

    Stable job? Check.

    Most people who answer ‘yes’ to all of the above questions would assume they’re ready to go for finance and would be any lender’s favourite customer.

    If this is you, and you are about to talk to your broker or bank branch about getting a mortgage, there are 3 important questions you need to ask yourself before you do…

    1. Have I… disputed a bill with my credit provider/moved/divorced or separated/forgotten a bill/or not received a bill I should have in the last 5 years?

    These are probably the most common reasons people end up with a bad credit rating which sees them refused a home loan. Answering yes to any of these questions may mean you are at risk of having impaired credit show up when a lender does a credit check on you.

    Your credit provider may have issued a default in your name. If you have moved or separated or due to credit provider error, you may or may not have been made aware of your credit listing. These “oversights” whether yours or theirs may not be easy to remove, and many times clients who request their removal are told by their credit provider they are never removed but can be marked as paid if you settle the account. Unfortunately a paid listing is just as detrimental to your home loan as an unpaid one.

    If you fall into the above categories, do yourself a favour and apply to see your credit report before you apply for a home loan (www.freecreditrating.com.au).

     2. Do I have a copy of my credit report?

    Even if you believe you are not at risk of bad credit, and you always pay bills on time, mistakes can and do happen. Don’t let the lender be the one to see them first, order your own credit report and make sure you have the all clear before you apply. If the lender does a credit check they will generate a “credit enquiry” on your file. If you have bad credit, the credit enquiry will only add to the crosses against your name. So it’s best to check your credit file yourself first, which you have the right to do for free annually without generating an enquiry against your name.

    You can order your credit report from Australia’s credit reporting agencies. A free credit report takes around 10 working days to be sent to you by mail. MyCRA Lawyers also offers a credit file analysis service, which includes a credit assessment and same-day copy of your credit file service.

     3. Have I paid my credit card or any loan late in the last 12 months?

    Hopefully you have checked your credit report and it has come back clear…BUT even still, there may be things you are doing right now which are harming your future credit file. If you have been late making repayments to finance providers on accounts such as credit cards or loans you have been monitored (since December 2012). While this information doesn’t show up on your credit file yet, it will from March due to new credit reporting laws which are set to be implemented then. It will stay on your credit file for 2 years.

    If you think you have paid a credit card late, or your personal loan or other finance, then you may be at risk of a late payment notation against your name. If you are a serial late payer, even by a week or so, you are probably at risk of this new type of ‘bad credit’.

    Too many may mean you are refused credit after March. If you think this is you, you may need to apply for that loan before March, and not wait, or potentially risk being refused credit, or being offered a higher interest rate.

    It’s unclear how lenders will look at these notations – how many late payment notations will be too many and mean you’re refused credit, so take heed, and make sure you stop paying your credit accounts late in the future to protect your credit file.

    If you’re not sure where you stand with your credit file, or if there is a ‘black mark’ which will stop you from getting your home loan, talk to us about it. We can assess whether we may be able to help you dispute your credit listing. If successful in proving the credit listing is incorrect or inaccurate, it is required to be removed from your credit file. So you can have the squeaky clean credit file you deserve, and your loan at the interest rates you deserve too. Phone MyCRA Lawyers on 1300 667 218 for more information.

    Image: Danilo Rizzuti/ www.FreeDigitalPhotos.net

     

  • Australian credit habits under the microscope – are you ready?

    Press Release

    credit habits under the microscopeAustralian credit habits under the microscope – are you ready?

    10 May 2013

    The credit habits of Australians will be scrutinised like never before when new credit reporting laws take effect in March next year, and a consumer advocate for accurate credit reporting warns, now is the time to make some big changes to protect your future.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says this is an important time to know about Australia’s credit laws, and to be careful with how you use and repay credit.

    “Australian consumers are currently under the microscope with their repayments, and if they are more than five days late paying a loan or a credit card that will go on their credit file for two years and show up as of next year,” Mr Doessel advises.

    “This information will be part of five new data sets to show up on your credit report – and Australians need to be credit savvy to make the changes work for them,” he says.

    This new information for lenders is part of wide-sweeping amendments to Australia’s Privacy Act, which includes a new Credit Reporting Code of Conduct.

    Mr Doessel outlines some things that every credit-active should know about our new laws:

    What you need to know and do to be credit savvy

    1. Pay on time, every time. Make repayments on accounts (such as credit cards and loans) on time to avoid having late payment notations recorded on your credit file. There is a five day grace period. It doesn’t have to be a big amount to impact you. Too many late payment notations may mean you’re refused credit, or offered a higher interest rate.

    If you let your account go more than 60 days in arrears you will also be default listed. This listing will show on your credit file for five years, and applies to amounts over $150.

    2. If you can’t pay, actively seek help. There will be new laws to help prevent you from being defaulted if you are under financial hardship. You need to make arrangements early with your lender, and this will be recorded on your credit file. If you make your repayments on time, you may be able to offset the variation. So there is a new incentive to get in and work it out with your lender prior to letting your accounts go into arrears and copping a default listing.

    3. Take precautions when applying for credit. The volume of credit you apply for and the type of credit you apply for can hinder any future credit application you may make. Whilst it is a great idea to research credit before applying – you should only make a credit application you have full intention of pursuing. In addition, high interest’ or ‘bad credit’ loan applications may shave points off your rating.

    4. Seek cautions credit limits. If you’re not using it, don’t have it is the general rule. If you take out a credit card or other line of credit, it’s probably not wise to opt for a lofty limit, but ask for an amount closer to what you intend to use. Any credit ‘rating’ may be reduced by credit limits which are too high.

    5. Prevent identity theft. Understand how lucrative your personal information can be in the wrong hands, and take steps to keep abreast of how it can be at risk from identity theft, which can lead to the stealing of credit by fraudsters accessing your credit file. Victims can end up with defaults on their credit file and blacklisted from credit for 5 years.

    New laws will allow you to place a ban period on your credit information if you believe you may be at risk of identity theft, which can prevent fraudsters from accessing credit in your name – so if you feel you may be at risk – acting quickly may prevent your credit file from being impacted.

    6. Check your credit file regularly. With the new information, it will be more important than ever to check your credit file. Many people don’t know you can do this for free annually through the Australia’s credit reporting agencies and a copy is sent within 10 working days. There will be five new data sets of information available to Credit Providers who request a copy of your credit report. These will be:

    1. repayment history information;

    2. the date on which a credit account was opened;

    3. the date on which a credit account was closed;

    4. the type of credit account opened;

    5. and the current limit of each open credit account.

    It is up to you to ensure your credit file reads accurately.

    7. Correct credit information which you believe is inaccurate, inconsistent or unfair. To offset the new information, new laws are currently being devised to make it fairer for those disadvantaged individuals to access and correct their credit report.

    But beware, there will still be a requirement to work within and have knowledge of credit reporting law when disputing an inaccurate or unfair credit listing, and it is important to note, that Credit Providers and Ombudsman cannot advocate on your behalf. You can start by contacting your Credit Provider yourself to alter incorrect information, or you can seek help from a credit repairer or lawyer. You should take steps to rectify mistakes before the information has any bearing on a credit application you may make in the future.

    After March 2014, if your Credit Provider disagrees with your request to correct your credit information, you can have your dispute noted on your credit file and this would be worthwhile requesting if you believe your listing shouldn’t be there.

    /ENDS.

    Please contact:

    Graham Doessel – CEO Ph 3124 7133

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

    Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog

    MyCRA Credit Repair 246 Stafford Rd, STAFFORD Qld

    MyCRA is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files. CEO of MyCRA Graham Doessel is a frequent consumer spokesperson for credit reporting issues and is a founding member of the Credit Repair Industry Association of Australasia.

    Image: ddpavumba/ www.FreeDigitalPhotos.net

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

    Media Release

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

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

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

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

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

    1. Repayment History Information

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

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

    The Government intends for these reforms to decrease levels of over-indebtedness in the market.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    But Mr Doessel is worried it could push more borrowers into higher interest rate loans due to being refused credit with mainstream lenders.

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

    2. Types of credit

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

    3. Credit limit of each account.

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

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

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

    4. Beware excess credit enquiries.

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

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

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

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

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

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

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

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

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

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

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

    /ENDS.

    Graham Doessel – PH 3124 7133

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

    Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog

    246 Stafford Rd, STAFFORD Qld. 4053
    MyCRA Credit Rating Repair is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

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

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

  • New credit reporting laws could see millions of people refused home loans

    The Federal Government is preparing to roll out its new credit reporting laws.

    Its comprehensive credit reporting system will allow lenders more access to a potential borrower’s credit information – but the move to positive credit reporting could disadvantage millions through allowing late payments to be noted on Australian credit files.

    This new aspect to credit reporting virtually ensures there is no room for error with consumers or creditors when it comes to loan repayments or people may face a bad credit rating.

    The Government proposes to bring in  ‘repayment performance history’ to credit files – which among other things will allow for credit providers bound by the National Consumer Credit Protection Act to make late payment entries on a person’s credit file if payments are late even as little as one day.

    In these harsh economic times, the ‘noting’ of late payments on a person’s credit file will most definitely impact on the consumer’s ability to obtain finance.
    Lenders are sure to see late payments as a potential credit risk. If the late payment of a few days is due to delays in bank processing of transfers or direct debits, paying at Australia Post, BPay etc. – these things are beyond the control of the average consumer yet that is exactly who will get hurt.

    Under current credit reporting legislation, late payments are not noted on a person’s credit file until they pass to the ‘default’ stage – which is more than 60 days in arrears. The creditor is also bound to fulfil a series of requirements to give the consumer the opportunity to rectify the situation before listing the default. This legislation will remain, but the ‘repayment performance history’ will also be added. The potential for error in this instance is high.

    There are more than 14 million credit files in Australia (14.7 million files are held by credit reporting agency, Veda Advantage alone), and approximately 3.47 million negative listings (Veda Advantage, 2009), but the number of possible errors which exist is not certain.

    The possible volume of credit files with errors was revealed by a small scale study conducted in 2004 by the Australian Consumer Association (now Choice Magazine), revealing about 30% of credit files were likely to contain errors.

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

    Transferring those figures from the Choice study to the number of credit files in Australia today, could mean potentially 4 million errors currently exist on credit files in Australia.

    Recently Channel 7’s Today Tonight interviewed Veda Advantage’s Head of External Relations, Chris Gration on the possible number of errors on credit reports. He admitted errors within their system alone amounted to 1%.

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

    Even if as little as 1 per cent of those 14 million credit files contained errors, that would still currently leave 140,000 credit files in Australia containing errors that just shouldn’t be there.

    Under current credit reporting legislation, it is up to the consumer to check for errors. Credit file holders are able to obtain a copy of their credit report from one or more of Australia’s credit reporting agencies for free every 12 months.

    But the problem is, consumers are often not aware across the board of their responsibility to check the accuracy of their own credit file, so many errors go undetected.

    Often it is not until people apply for a home loan that they learn they have a bad credit rating, but by then it is too late and they are generally refused credit or forced to take on non-conforming loans at sky-high interest rates to secure the home.

    When disputing any adverse listing, it is up to the credit file holder to provide reason as to why the creditor has not complied with legislation. Unfortunately many people find this process difficult – negotiating with creditors is not always easy for the individual to undertake.

    The job of credit repairers is to check the process of listing defaults for legislative and or compliance errors, any such errors could deem the credit file default listing unlawful, at which time the creditor is advised to remove the default.

    Given the difficult process of default removal, it is worrying for consumers that getting ‘late payment’ errors removed from credit files may be just as problematic.

    If people want to obtain more information on removing errors from credit files, they can contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit the main website www.mycra.com.au.