MyCRA Specialist Credit Repair Lawyers

Tag: credit reporting

  • Brokers and clients disadvantaged by clients navigating the ‘minefield’ of credit reporting

    Media Release

    Brokers and clients disadvantaged by clients navigating the ‘minefield’ of credit reporting alone

    Brokers who don’t have contact with a reputable credit rating repairer to refer bad credit clients to, may be missing out on valuable commission through lost deals, and in some cases may also be doing their clients a disservice, says a leading credit rating repairer and advocate for credit reporting accuracy.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says whilst many people whose credit history shows up with defaults have obtained that default justly, there are also many whose credit file contains errors and omissions and he says those people should be given the chance to clear their name.

    “I would like to say it is as easy as calling the Creditor to sort out the mix-up, but in reality clearing bad credit is a minefield, and a credit rating repairer can be invaluable,” Mr Doessel says.

    Generally when a client presents to a broker with bad credit they have two options:

    (1) Send them packing to resolve the mix-up or to wait until the credit listing “falls off” their credit file in 5 or 7 years before they apply again.

    (2) Organise a non-conforming loan at a higher interest rate to absorb the risk associated with lending to those with bad credit.

    When faced with a credit rating error, Mr Doessel says the clients who are sent away may not always be able to resolve their credit reporting dispute themselves.

    “Credit reporting is governed by mountains of legislation across different industries, so it is not always about right or wrong, but how the letter of the law applies in each case. We have seen many clients who are defaulted despite doing the right thing and despite working actively to try and resolve the situation themselves,” he says.

    He says many brokers put credit repair in the “too hard” basket and prefer to steer their clients to the non-conforming market – at least for the first few years of the loan when they can then refinance.

    “There are a couple of reasons why a non-conforming loan will not always be the best choice for the client. Firstly, they can lose thousands on interest even over the first three years, and secondly with the market the way it’s been more home owners are stuck, finding they can’t refinance due to lack of equity in the home,” he explains.

    Mr Doessel wants to help educate brokers and consumers alike on some of the myths surrounding credit files:

    1. Consumers always know they have bad credit before they apply for a loan.
    There can be many reasons for people not to know they have bad credit until they apply for a loan. They may have moved, been hospitalised, been an identity theft victim or even been a victim of error with their creditor. If the client was not notified prior to the default, in many instances the listing has been placed on the credit file unlawfully, and should be disputed.

    2. Credit file listings are always correctly placed on credit files.
    Credit reporting mistakes can and do happen –but most consumers are unable to recognise credit file errors. Some estimates point to as many as 34% of credit files containing errors or omissions. [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]

    Credit reporting agency Veda Advantage recently admitted about 1% of material errors detected by their system alone.[ii] But many more may go undetected by credit reporting agencies, creditors and consumers until it’s too late and the consumer is refused a home loan.

    3. Credit file complaints are easily disputed.
    Some brokers assume if the listing is there – the client must be deserving of it. But in reality, once a listing has been placed on a credit file, it is very difficult for individuals to have removed. So even if the listing shouldn’t be there, most often people are forced to put up with it. Often they are told the listing can be marked as paid, but will not be removed from the credit file.

    4. If a Default or Clear-out is on the credit file it can never be removed prior to the end date.
    Some brokers assume credit repair must be a ‘con’, as in their experience listings are never removed. In truth, unless the client can show why the listing was placed unlawfully on the credit file it will not be removed. It is up to the client (or the credit repairer acting on their behalf) to show reason as to why the listing was placed unlawfully, and negotiate its removal.

    The process of credit repair involves an audit-like investigation of the entire case to determine, based on legislation whether the credit listing was placed unlawfully on the credit file. If this is determined, the credit repairer will formally negotiate the removal of the listing from the credit file on the client’s behalf.

    5. A bad credit client should be steered to the non-conforming market.
    If a broker considers duty of care to their client, and they believe the client should be able to obtain mainstream credit, except for bad credit history – then another step must be inserted in the process – deciding on the possible validity of the bad credit before providing non-conforming finance options to them.

    “As a successful broker in the non-conforming market for many years, with many cases I was left scratching my head as to why these perfectly suitable clients who had nothing wrong bar their credit rating errors did not have other options than to enter a loan at sky-high interest rates just to break in to the property market. That is precisely why I founded a credit repair business in the first place,” Mr Doessel says.

    6. Credit repair is a waste of money.
    If a potential borrower is able to have their unfair credit listing removed, they can reduce their interest charges by thousands just by entering a loan with a mainstream lender.

    On a loan amount of $350,000, a borrower would pay $487.62 more in interest each month over the first three years in a non-conforming loan at 9% interest vs the standard variable rate of say 7%.

    When we look at that in total, the borrower would be up for a staggering $17,554.34 more just in interest alone over those first three years.

    7. All credit repairers are the same
    Consumers do need to be aware there are some agencies out there who are happy to take money, but don’t add enough benefit to be of value over what an individual could do themselves. People looking for a reputable credit repairer should ask plenty of questions, do their homework on the company, and request some testimonials from past clients before they commit.

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO MyCRA PH 3124 7133

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

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

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

    ——————————————————————————–

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

    (2) http://au.news.yahoo.com/today-tonight/latest/article/-/10670080/credit-ratings-check/

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

  • Australian Privacy Foundation says new credit laws will work against consumers

    The Australian Privacy Foundation (APF) has come out swinging at the Federal Government’s proposed amendments to privacy legislation, which incorporates amendments to credit reporting law. During the Senate inquiry into the Privacy Amendments (Enhancing Privacy Protection) Bill 2012, the APF slammed the new laws as a “lost opportunity” to improve privacy, and specifically credit reporting practices. We look at the APF’s comments and what consumers should be concerned about in terms of these new credit laws for the health of their credit file, and ability to obtain credit in the future.

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

    The APF’s comments appeared in a recent IT News article titled ‘Australian Privacy Foundation slams Privacy Amendments’.

    APF board member Nigel Waters told the Senate inquiry that the proposed bill would “significantly weaken” privacy protections for Australians and fail to meet current international best practice standards.

    “While we are impatient for reform, we sadly feel that there are so many flaws in this package that it should not be enacted,” Waters said.

    “It should be withdrawn for further work to address the many criticisms that have been made in submissions.”

    IT News says Waters’ argument to the inquiry closely followed those made by the organisation in its written submission to the Senate committee, in which the APF accused the Government of cherry-picking recommendations from a 2008 inquiry into privacy reform.

    Here is more from this story:

    The APF was especially critical of amendments to the credit reporting regime, which the organisation said could be used against consumers, rather than helping to meet responsible lending obligations.

    Richard Glenn, assistant secretary at the Attorney-General Department’s business and information law branch, told the Senate inquiry earlier that morning that the revised regime would give credit providers “a greater richness” of information from which to make judgements about whether a person is eligible for credit.

    But Waters said the provisions would only accrue a “major loss of financial privacy for uncertain benefit”.

    “Although it will help in some ways, the balance, we fear, will be detrimental to consumers,” he said.

    Members of the financial industry called on the Government to delay the introduction of the credit reporting regime until later than the September 2013 deadline currently expected, for fear of being unable to become compliant with included requirements.

    Whilst I am in favour of any new laws which will facilitate an ease of correction of credit reporting mistakes, I have echoed the concern over the “loss of financial privacy” many times. One aspect I have maintained concern about is the additional information which will be made available to lenders in the form of late payment notations.

    It seems ludicrous to give Creditors more powers to effect a credit rating in the form of late payment notations (especially when those notations may not be subject to the same rules as an official credit listing would be) when they are having trouble getting credit reporting right as it stands now.

    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 the consumer’s credit file for 2 years. See more in this story: Access Denied… How late payments may ruin your home loan application.

    In this post I urge consumers to be on their guard with this new type of bad credit – late payments – and I predict it will have an impact on those people that otherwise should qualify for a loan.

    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.

    Despite new legislation giving consumers the legal avenue severely lacking in the current laws in some cases to be able to effectively dispute an unfair or incorrect credit file listing, it will continue to be up to the consumer to know the law to be able to apply it to their own case, and this is where credit rating repairers will continue to be needed – to close the gap and help enforce the legislation that Creditors are bound to comply with.

    Credit rating repairers will also continue to be needed – along with consumer groups such as the APF, to ensure that consumers are given a voice following the introduction of these privacy amendments. To put our hands up on behalf of consumers if needed and give accounts of any difficulties that may arise.

    Image 2: healingdream/ www.FreeDigitalPhotos.net

  • Default rates soar amongst over 65’s

    A study on generational trends in credit activity over the past ten years put out by credit reporting agency Veda Advantage reveals that the rate of default amongst the older generation (65 years and above) has increased a staggering 200% over the past ten years. We look at why this could be occurring and the possible ramifications of bad credit history for this age group.

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

    Veda’s study results, released on June 1 in a report titled: New data from Veda shows surprising differences in credit activity between generations reveals this age group have become more reliant on credit which has led to the increased level of defaults as some struggle to meet financial obligations.

    This topic was explored further by the Herald Sun in its article Bad debt increases among over-65s. It reports Veda general manager of consumer risk Angus Luffman saying 6 per cent of over-65s had more debt this year than last year. He said most debts related to living costs such as utility and telecommunications accounts.

    Here is an excerpt from that story:

    Financial counsellors said yesterday people could find it difficult to reduce their spending when they reached retirement and the supply of easy credit was a major problem.

    “After retirement, some people find that their incomes have decreased but their credit card limits can be quite high,” Financial Counselling Australia chief executive Fiona Guthrie said.

    “The adjustment can be hard (and) many older Australian are simply poor.

    “They may be using credit to simply make ends meet.

    “It is also frustrating to hear that industry still tries to sheet the blame home to consumers for what in fact has been the irresponsible marketing.”

    It is a worrying trend that older Australians are having to rely on credit to simply make ends meet. The reasons for the increase in the rate of defaults could be simply these age groups not having the necessary funds to meet their repayments, or as speculated by Angus Luffman, it could also be due to a lack of education around credit.

    In Veda’s report, Mr Luffman said that education is needed within all age groups on the risks of being enticed into credit as a result of factors like low introductory interest rates.

    “The fact is that consumers of all ages still fail to realise that missed monthly mobile phone, utilities, and credit card or loan repayments can all affect their credit rating.   It is vitally important that consumers consider and understand the difficulties they could face when they take on credit commitments that they can’t meet,” said Luffman.

    We assume that the over 65’s have it all worked out financially. This report debunks that and shows that bad credit history can occur at any age group, and can be as much a result of a lack of education about credit obligations as it can be about not having the necessary funds to meet those obligations.

    I always maintain that there is a lack of education about consumer rights and responsibilities around accessing and repaying credit and likewise in addressing credit listing complaints. Credit reporting law is hugely legislated and Privacy Principles cross a number of different codes of conduct for different industries. The difficulty for ordinary consumers in understanding these laws is reflected in a) the number of consumer defaults and b) the volume of consumers seeking credit rating repair services to fix their bad credit.

    More education would go a long way in preventing the rate of default in the first place. It would also allow consumers to understand their rights within credit reporting law. Many are unsure what to do if they find themselves with a credit listing which they believe should not be there, and when they try to address the issue with the Creditor, they can be left no better off.

    Perhaps older Australians are the most uneducated generation on their rights and responsibilities around credit. This generation is traditionally the ‘saving’ generation – most would have used very little credit in their younger years and the trend towards credit in society today has possibly pushed them into a realm they may be ill-equipped for. A meagre pension propped up by small levels of Superannuation for this generation can also be a contributing factor.

    Direct debit problems, bill disputes, divorce or separation issues, even identity theft can all lead to an unncecessary bad credit rating and can be a problem for any generation. And what about those grey nomads tripping around Australia – what if people have failed to tie up all loose ends and have left a bill unpaid or unsettled? In reality, an overdue account will lead to bad credit. They could be listed with a Default and have 5 years of bad credit. If the Creditor can’t get hold of them – they will have a Clearout listing against their name – that’s 7 years of bad credit.

    So what can people do if they find this happens to them?

    Consumers should address credit listing complaints straight away. What they shouldn’t do is wait 5 or 7 years if the listing should not be there. The best chance of getting that bad credit history removed is for people to contact a credit rating repairer and put their circumstances to them, so it can be established whether they are a suitable candidate. There are some cases of bad credit which cannot be removed. But if there are inconsistencies, there is a good chance that a credit repairer can help them with their case for removal of the credit listing.

    And for older generations who want or need to use credit, there is no time to waste on bad credit history that shouldn’t be there.

    Image: www.FreeDigitalPhotos.net

     

  • A wait and see approach to logistics of new credit laws

    Most people are very positive about changes to Australia’s Privacy Laws which are coming through Parliament, effectively bringing Australia out of the 1980’s and closer to other countries in our treatment of Privacy and personal information. But others are a little unsure they go far enough in many areas. We look at one opinion of how the new credit laws apply to credit reporting .

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

    An interesting post came through from ‘The Conversation’ yesterday written by Bruce Arnold, Lecturer of Law at University of Canberra. The post Two cheers for privacy law reform? Let’s wait and see looks at the potential benefits of these new Privacy Laws, and where perhaps the laws may be lacking:

    “For many people the bleeding edge of privacy law has been their credit records. The Bill rationalises the current credit reporting regime, which has featured strong disagreement between competing industry bodies and examples of bad practice by particular enterprises. That rationalisation is to be strongly welcomed by consumers and business as providing greater transparency and certainty. Its success however will be dependent on action by the national Privacy Commissioner, an entity within the national Office of the Information Commissioner. Under the proposed law, credit providers will have access to additional personal information with the expectation that more data will facilitate “a more robust assessment” of credit risk and “responsible lending” that may also “result in reductions to the cost of credit for individuals”. As with much finance, we will trust that lenders will pass on their savings to consumers.

    The Bill aims to give the Commissioner greater powers, for example scope for “own motion” investigations rather than in response to complaints by individuals who claim that there privacy has been disrespected. It is unclear whether the Commissioner will make effective use of those powers, given difficulties with resourcing and perceptions – fair or otherwise – that the office lacks both the will and expertise to take on particular interests. Historically it has endorsed industry practice that although commonplace, is below overseas benchmarks and is less than desired by many Australians.

    The Commissioner will be able to recognise external dispute resolution mechanisms, something that is consistent with the trend to outsourcing and administration and presumably welcomed by business.

    The Bill does not provide for a tort of serious invasion of privacy – that is, scope for an individual to seek compensation over an invasion of their privacy by an individual or an organisation. That tort has been recommended by the ALRC and by the law reform commissions of New South Wales and Victoria. It is thus hardly a radical or alarming notion, although it has been strongly opposed by the major media groups and some legal practitioners. The Government’s willingness to proceed with suggestions for establishment of the tort as we head towards an election is unclear.

    Enactment of the Australian Privacy Principles is a step forward, deserving of two cheers even if we ask why has it taken so long and wonder how the APP will be interpreted by the Privacy Commissioner. Rationalisation of credit reporting law, in conjunction with the National Consumer Credit Protection Act 2009 (NCCPA) is also meritorious, although in one of the most messy areas of privacy practice we will need to see how business implements the revised arrangements and whether there is meaningful enforcement by the Privacy Commissioner,” Mr Arnold says.

    It will be interesting to see how the actual application of dispute resolution pans out in the credit reporting landscape including how the changes will alter the Credit Reporting Code of Conduct. We will certainly adopt the ‘wait and see’ approach as to whether the changes will indeed make it ‘easier’ to dispute credit listings and fix unnecessary bad credit as claimed by Attorney-General Nicola Roxon.

    Image: Stuart Miles/ Free Digital Photos.net

     

  • Credit repair industry body the Credit Repair Industry Association of Australasia to hold first Board Meeting Thursday.

    Media Release

    Credit repair industry body the Credit Repair Industry Association of Australasia to hold first Board Meeting Thursday.

    28 May 2012

    New industry body for credit rating repair, the Credit Repair Industry Association of Australasia (CRIAA) has scheduled its first Board Meeting this Thursday.

    The nine board members – who were ratified last Tuesday, will meet Thursday 31 May at 9:30am EST to discuss a range of topics which will move towards solidifying the CRIAA as an entity designed to deliver both credibility and voice to the credit repair industry and those promoting credit reporting accuracy in Australia.

    The board includes 6 credit repair industry members, and three finance industry members, including President of the Finance Brokers’ Association of Australia, Peter White. The meeting will comprise establishing formal positions on the board, and reviewing the ASIC-inspired draft Code of Conduct for the CRIAA.

    Board Member Graham Doessel – CEO of MyCRA Credit Rating Repairs says the drive of the Code of Conduct will be to develop a framework to ensure that members conduct themselves with high standards and ethics.

    “Credit rating repair is largely unregulated and some dodgy practices have caused the overall impression of the industry to at times be less than savoury,” Mr Doessel says.

    He says this impression overshadows the crucial role credit rating repairers play in correcting credit rating inconsistencies for consumers and the real place credit repair has in the credit reporting landscape.

    “The CRIAA Code of Conduct is a vital step to move the industry forward with credibility. It will provide some formal standards and minimum qualifications for members and cement a set of ethics that members can uphold,” Mr Doessel says.

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO MyCRA Board CRIAA         Ph 07 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.

  • Credit reporting changes introduced into Parliament

    Further to news on changes to Australia’s Privacy Laws, the Attorney-General Nicola Roxon announced that much awaited changes to the Privacy Act 1988 were introduced into Parliament yesterday. These changes will affect your credit file and how your good and bad credit history is shown.

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

    The Attorney-General said The Privacy Amendment (Enhancing Privacy Protection) Bill 2012 represents the most significant developments in privacy reform since Labor introduced the Privacy Act in 1988.

    All of these changes have significant bearing on credit reporting accuracy in Australia, as an individual’s credit file contains so much personal information which is checked to assess risk when an individual applies for credit. It can also be subject to misuse and error.

    The laws are promised to strengthen the power of the consumer over this important Privacy right.

    “These new privacy laws focus on giving power back to consumers over how organisations use their personal information,” the Attorney-General said in a statement to the media yesterday.

    This statement also addressed credit reporting specifically.

    The Government has promised to ‘modernise’ credit reporting arrangements. The Attorney-General was more specific with some of the changes coming in with the introduction of comprehensive credit reporting as part of these Privacy Act 1988 reforms:

    • making a clear obligation on organisations to substantiate, or show their evidence to justify, disputed credit listings
    • making it easier for individuals to access and correct their credit reporting information
    • prohibiting the collection of credit reporting information about children
    • simplifying the complaints process by removing requirement to complain to the organisation first, complaints can be made directly to the Privacy Commissioner, and by introducing alternative dispute resolution to more efficiently deal with complaints.

    The Government says it expects the credit industry will benefit because the reforms provide a more accurate picture of an individual’s credit situation to help them make a robust assessment of credit risk, which is expected to lead to lower credit default rates.

    Namely, this refers to the controversial introduction of late payment notations on consumer credit files. Late payments will be added by licenced creditors even if a bill is one day late. The notation remains on the individual’s credit file for 2 years. It is unclear at this stage the exact process of law governing how late payments may be added to credit files, nor the precise way these late payments will be used when assessing risk and the potential impact on an individual’s ability to obtain credit.

    I can’t help expecting some real confusion over this type of data to occur particularly in the early days whilst data has been collected without individuals knowing the potential impact on their credit file information, and generally arguments and confusion from consumers over what may constitute a bad credit risk after these laws are introduced.

    Australian Broker published an article Credit Agencies rejoice as positive regime gets a kickstart, today in which Dun & Bradstreet’s Director of Consumer Services, Steve Brown said comprehensive credit reporting should open up credit for some groups of people.

    “The use of comprehensive rather than just negative credit information provides greater visibility of under-served consumers who would otherwise find it difficult to access credit,” Mr Brown said.

    This assumption would be due to people being able to now ‘counteract’ a late payment notation or potentially a default listing through their repayment performance history. This could mean that if people have a 5 or even 7 year listing on their credit file, they may be able to show that over a period of 2 years (the length of repayment performance history recorded) they have managed to pay their bills on time. It would then be up to the lender to assess whether they believe a consumer or business with a default who has paid their bills on time for the past 2 years is or isn’t a credit risk.

    Whilst in theory this works, I am concerned this is very subjective and lenders could err on the side of caution especially initially.

    At the moment I believe ‘repayment performance history’ only adds to the volume of negative data which will be visible on consumer credit files. I will be interested to see if in the coming years and months the advantage to this system does in fact materialise in the form of consumers with defaults being given a fairer go due to better repayment history before I am truly convinced.

    Some significant submissions put forward to the Senate Finance and Public Administration Legislation Committee which were accepted by the Government and which should benefit consumers include:

    • Streamlining the correction and complaints process for credit reporting
    • During a correction complaint, the Creditor must give justification for credit listings and actually substantiate the information is reports on credit files.
    • Consumers may complain directly to the appropriate Ombudsman rather than having to go through the organisation’s complaints process first.
    • The provision for remedies such as compensation for consumers who are negatively impacted by a Creditor who has failed to comply with credit reporting law.

    MyCRA will be very intent on seeing how the laws pan out for the actual application of these significant changes for consumers and their credit file information.

    If people have bad credit history which they believe shouldn’t be there, or the data on their credit file is inconsistent – they can contact a professional credit rating repairer to get advice about formulating a credit listing complaint. Call MyCRA Credit Rating Repairs on 1300 667 218 or visit our website www.mycra.com.au.

  • Credit reporting accuracy advocate throws credit rating repair fee structure under the spotlight

    Media Release

    Consumer advocate for credit reporting accuracy throws credit rating repair fee structure under the spotlight.

    26 April 2012

    A consumer advocate for accurate credit reporting says the fee structure for the credit rating repair industry must be investigated with a view to creating some best-practice reforms in the interests of consumers.

    Graham Doessel, foundation member of an industry body in the early stages of development, the Credit Rating Repair Industry Association of Australasia (CRIAA) and CEO of credit rating repair company MyCRA, says the industry is ripe for criticism for confusing consumers due to the vast differences in fee structure across credit rating repair companies and lack of clear guidelines for advertisement and configuration of customer payments.

    “Where the credit rating repair industry falls down, is that there are some inconsistencies in the way companies are delivering and advertising their services – some are not advertising their fees, some are charging way too much and delivering too little – and this creates mistrust across the board and tarnishes the reputation of what is actually a necessary service,” he explains.

    This mistrust was apparent in 2010 from credit reporting agency Dun & Bradstreet, who advised consumers in a media release to be wary of third party promises to remove negative listings from credit reports.

    “Dun & Bradstreet urges consumers to think carefully about these services arguing that not only are the third party fees unnecessary but promises to remove adverse events are often unfulfilled. Instead consumers should contact regulated credit reporting agencies directly to obtain a copy of their report and if they believe it contains any errors they can discuss that with the agency at no charge. If consumers do feel they need third party advice they should seek assistance from an independent financial counsellor or advisor,” Dun & Bradstreet advised (1).

    Mr Doessel says a good credit rating repairer is not only valid, but crucial to getting errors removed from consumer credit files.

    “Consumers are just not getting creditors to remove inconsistencies on their own. Yes, you can contact creditors and credit reporting agencies yourself and get credit file inaccuracies addressed – but it is a bit like defending yourself in Court. There’s just too much time involved in investigation, knowledge of legislation and negotiation ability required to make a successful case yourself,” he explains.

    He believes the implementation of the CRIAA as an industry body to help regulate codes of conduct for its members such as fee structure should give consumers and all associated entities the chance at being able to select a credit rating repairer whatever the customer business payment model and have faith that they will do the right thing by the consumer.

    “It’s about creating a level playing field for consumers – making it fair, and reasonable and giving them a system of redress from within the industry for any dodgy practices,” he says.

    Mr Doessel has published a White Paper titled Credit Rating Repair Customer Costs – A Tale of Two Business Models, which examines fee structure within the credit rating repair industry and sets out some recommendations for improvement on both models (2).

    One of the main points uncovered in the paper is the lack of clear advertisement of all fees and charges and definition of terms and conditions of payment across the board from credit rating repairers.

    “For instance, some no win – no fee customer business models can be vague in their advertising of both when payments are due, and exactly what defines a ‘win’. Also, some customers could be left angry when they find out they are charged administration costs regardless of success when it is not stated clearly these will be charged prior to the engagement of business,” he says.

    He hopes opening up for discussion customer business payment models in the credit rating repair industry will be the starting point for all relevant groups both in and out of the industry to provide their opinion on a best practice structure for customer fees.

    “Both the CRIAA and myself hope that by bringing credit rating repair customer costs into focus from all arenas we can come up with a framework which is successful and fair and which we can carry forward as the first stone which cements the entire industry and takes credit rating repair to new heights of credibility,” Mr Doessel says.

    /ENDS.

    Please contact:

    Graham Doessel – Founder CRIAA 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.

    (1) http://www.dnbcreditreport.com.au/latest_news/consumers_should_be_wary_of_misleading_credit_report_offers/indexdl_6144.aspx

    (2) http://grahamdoessel.com/wp/credit-rating-repair-customer-costs-a-tale-of-two-business-models/

  • Credit Rating Repair Customer Costs – A Tale of Two Business Models

    “It was the best of times, and it was the worst of times.” Nothing could be truer for this time in the credit rating repair industry –we are at a turning point. It is time to examine the credit rating repair industry’s customer business payment models and decide going forward what models and methods are in the best interests of consumers, credit rating repairers and associated companies.

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

    Consumer demand in recent years has demonstrated the true value of third party credit rating repair. Unfortunately much of the consumer recognition has been lost from a credibility standpoint under a wave of confusion over the credit rating repair industry’s customer business payment models. I examine the current credit rating repair business models in terms of best interest for consumers with a view to the application of some best practice standards for fee structure.

    In this post, I share my examination of credit rating repair customer costs with you and show how both business models can co-exist to benefit consumers, provided going forward, some recommendations are taken on board across both models to streamline transparency and fairness for consumers.

    In the article Credit Rating Repair Customer Costs – A Tale of 2 Business Models, I investigate the two customer payment business models current in the credit rating repair industry, ‘fee for service’ and ‘no win no fee’ payments.

    The fee structure for the credit rating repair industry must be investigated with a view to creating some best-practice reforms in the interests of consumers. The industry is ripe for criticism for confusing consumers due to the vast differences in fee structure across credit rating repair companies and lack of clear guidelines for advertisement and configuration of customer payments.

    Where the credit rating repair industry falls down, is that there are some inconsistencies in the way companies are delivering and advertising their services – some are not advertising their fees, some are charging way too much and delivering too little – and this creates mistrust across the board and tarnishes the reputation of what is actually a necessary service.

    Differing customer business models in the credit rating repair industry

    ‘Fee for service’ in the credit rating repair industry, means a fixed amount charged to a client for an agreed level of service. This is charged based on the level of service and or performance. This means that the fee structure is provided to the client up front, and as the client approaches each stage of service, the fee for that service will be due.

    The fee for service business payment model, by its very nature is more transparent, and applies principles which are in the best interest of the consumer – for these reasons:

    Upfront fees give the consumer more reassurance they will be told what they are going to get, how much it will cost, and because money has changed hands – the credit rating repairer will be bound to deliver what they have promised.

    This model allows the credit rating repairer to give better service to the consumer, through the increased level of commitment by the consumer.

    The introduction of a refundable assessment fee takes the benefits of fee for service to another level – by assuring those that enter into this business payment model are refunded any monies should they not proceed beyond the assessment stage of credit rating repair.

    The difficulty in a fee for service model is its restriction on consumers who can’t afford upfront payment, and can’t borrow due to a bad credit rating. At the same time, the fee for service credit rating repairer would likely impose less ‘defaults’ on consumer credit files.

    ‘No win no fee’ cost agreements are also known as conditional cost agreements. No win no fee broadly means that the client only pays credit rating repair costs if their claim is successful.

    The definition of a “successful claim” may vary between credit rating repairers. Ideally a best practice scenario should be where a successful claim is defined as a negative listing removed from the client’s credit file.

    When contrasted with fee for service, the win no fee business payment model has some significant disadvantages for consumers – particularly where the disclosure of fees and charges are concerned.

    Extra costs; and hidden costs dumped on consumers regardless of their success in credit rating repair can lead to confusion and anger over fees and charges.

    There is also the potential to skip vital steps in assessment which can lead to an inadequate volume of information prior to the engagement of credit repair – potentially leading to promises of credit repair not based in fact.

    Furthermore, should non-payment arise, the company may be forced to place defaults on credit files– a woeful situation that no credit rating repairer wishes to be in.

    Despite the disadvantages, the no win no fee business payment model has merit due to the ability to help those people who otherwise could not afford credit repair.

    In deciding which customer business payment model to adopt for the credit rating repair industry, I address other professions where these debates have occurred.

    The financial planning industry is on the cusp of streamlining a fee for service payment model across the entire financial planning sector. This has been in response to demand for better transparency to combat criticism of conflict of interest – and uses a ‘best interest’ approach.

    This consumer ‘best interest’ approach has strong merit when constructing any best practice customer payment model in the credit rating repair industry.

    In the legal arena, the no win no fee model popular in personal injury claims has been criticised for misleading advertising and hidden costs, something which the credit rating repair industry should keep in mind when making any reforms.
    With both business models having merits for credit rating repair, a number of recommendations across the board on both models would need to be instigated to create a level playing field for consumers.

    These include refundable upfront fees plus full disclosure of all fees, charges, terms and conditions on advertising. These changes make customer payments fair and simple to understand.

    These best practice reforms to business payment models would create transparency and credibility and would vastly contribute to providing a valid place for credit rating repair in Australasia’s credit reporting landscape in the future.

    The biggest criticism of the credit rating repair industry is that professional credit rating repairers are seen to be charging fees for what consumers can technically do for themselves.

    In reality, credit reporting can be a minefield for the individual to navigate. A good professional credit rating repairer can do much more for a consumer, and has a much greater chance of success, through knowledge of legislation and relationships with and ability to negotiate with creditors.

    This greater transparency will allow the industry to focus on the real issues within credit reporting which have previously been hidden under a cloud of heresay and confusion from outsiders.

    It can be said, that the footsteps the credit rating repair industry leaves during this time will allow credit rating repairers to march forward, revolutionising credit reporting itself in Australasia.

    Full article can be read on Graham Doessel blog here: http://grahamdoessel.com/wp/credit-rating-repair-customer-costs-a-tale-of-two-business-models/.

     

    Image: vichie81/ FreeDigitalPhotos.net

    Image: Stuart Miles/ FreeDigitalPhotos.net

  • New Credit Rating Repair Industry Body CRIAA positive step for Brokers and consumers

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    UPDATE: The CRIAA has been shut down by Founder Graham Doessel, due to non-compliance of unlicensed credit repair agencies with their own code of conduct.  Mr Doessel realised that if these unlicensed credit repair agencies could not follow their own code of conduct, he as the founder of the CRIAA had no alternative but to shut it down to protect the community.

    “I’m deeply disappointed at having to take such decisive action, but as the CEO of Australia’s only true Specialist Credit Repair Law firm, I have no choice but to distance myself from possible rogue operators that refuse to take the CRIAA Code of Conduct, and associated laws seriously.” Mr Doessel said.

    The CRIAA was closed in 2014.

    It is exciting to see where the credit rating repair industry is heading and I am proud to be a part of the formulation of a new industry body which will improve credit rating repair across the board for Australasia. Australian Broker magazine published an article today on this new industry body the Credit Repair Industry Association of Australasia (CRIAA) of which I am an executive member. We held our first meetings yesterday, chaired by Finance Brokers Association of Australia (FBAA) President Peter White, and it was a great success.

    The Australian Broker story was titled The CRIAA to make tough times for dodgy operators by Adam Smith. Here’s the story in its entirety:

    CRIAA to make tough times for dodgy operators

    Self-regulation of the credit repair industry could involve brokers, and ultimately benefit their clients.

    The burgeoning Credit Repair Industry Association of Australasia has held its first meetings, and executive member Graham Doessel, founder of credit repair agency MyCRA, said the formation of the industry body should help put brokers at ease.

    Doessel said the CRIAA would look to institute a code of conduct and minimum qualifications for the credit repair industry, and that introducing these standards would give brokers peace of mind about working with credit repair agencies.

    “Mortgage brokers referring to a CRIAA member can have more confidence that the work is done correctly, and therefore it protects their reputation and the money of their clients,” Doessel said.

    Doessel said the agency had sought help from ASIC and the FBAA in drafting its code of conduct and standards, and had received strong interest from credit reporting agencies. He commented that brokers may even be invited to become members of the association.

    “We’re trying to set it up to be the genuine representative body of the industry and all its stakeholders, so we’re not going to be exclusive. We’ll be looking at inviting mortgage brokers who refer clients to credit repair agencies. They’re directly affected and I think their inclusion is a good idea,” he said.

    Doessel conceded that the credit repair industry had seen disreputable operators, and said the formation of an industry body could stem the tide of unethical businesses by introducing an industry standard.

    “Any good credit repair firm works within the legislation and makes sure the creditor works within the legislation. The CRIAA is hoping we will ensure that all members have minimum qualifications and workflow standards,” he said.

    Ultimately, Doessel said he hoped the formation of the CRIAA helped to raise the reputation of credit repair agencies.

    “We’re looking to make it harder for less reputable businesses to operate effectively,” he said.

    About the Credit Repair Industry Association of Australasia (CRIAA)

    The Credit Repair Industry Association of Australasia (CRIAA) has been established as the result of an identified need to increase transparency and professionalism across the credit repair industry as a whole.

    The key aim of the CRIAA is to provide a strong and consistent foundation for credit repair clients in an industry that has been largely unregulated and lacking formal standards.

    The CRIAA is in the process of establishing a ‘quality service’ framework for consumers, enhanced by best practice operational standards. This ensures members conduct themselves with high standards and ethics, based on the Association’s code of conduct.

    The CRIAA aims to deliver some significant benefits to consumers which have not been available before from the credit rating repair industry.

    Consumers should be able to confidently select an ethical and reputable credit rating repair company or organisation to look after their personal affairs from the CRIAA member companies.

    A code of ethics is vital for the credit rating repair industry. The credit rating repairer is privy to a large volume of personal information from consumers. A code of ethics upheld by CRIAA members will increase the likelihood high standards of privacy are upheld, minimising the instances of fraud and breaches of privacy.

    The CRIAA ‘quality service’ blue-print, will mean consumers can expect a higher level of service from those CRIAA members. Input on service standards will be provided by key CRIAA members from both inside and outside the credit rating repair industry.

    The CRIAA seeks to have an influence on decisions of credit reporting law moving forward – whether directly or indirectly. The aim is to increase the legislative voice for those who are ultimately responsible for ensuring credit reporting accuracy. This voice belongs to consumers and the credit rating repairers who act on their behalf.

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

    Image: cooldesign/ FreeDigitalPhotos.net

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  • How to help more clients… A former award winning broker shows why the millions of Aussies with bad credit are not lost

    Those brokers who are just in it for the money are few and far between in this market.  Those that have hung around despite all the market conditions thrust upon them must have a passion for the job, and a drive to see people realise their dreams of home or business ownership. We show you why more of the people you come across every day could end up being your biggest fans and clients for life.

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

    As brokers, you are restrained by so many conditions which are simply out of your control in the current market.

    Left over from the Global Financial Crisis (GFC) are tighter lending conditions and nervous borrowers. Put this together with regulations for National Consumer Credit Protection (NCCP) compliance, and the result is unfortunately a diminished client base.

    Let’s face it – in this market, if you have to pick between a client with a perfect application or one which is slightly tarnished or impaired with bad credit (paid or unpaid), then it’s likely that you’ll choose the squeaky clean one…no headaches, no worries…and no extra indemnity insurance on a non-conforming loan.

    But most brokers do not know there is another way.

    In more than 9 out of 10 cases, bad credit history can actually be repaired. Engaging credit rating repair for a bad credit client gives the client the home at the best possible interest rates, and you the commission – and trail.

    Everyone wins.

    Plus, all parties are doing their part to help improve consistency in credit reporting through ensuring creditors enter listings fairly and accurately.

    For those who don’t know, here is how credit rating repair works…

    Bad credit can occur for a number of reasons:
    • Due to a dispute on a bill, such as a telephone or power bill;
    • Because of a change of address;
    • A major sudden upheaval such as illness or death;
    • Identity theft or fraud; or
    • Simple human error by the creditor

    The creditor defaults the consumer on one or more of their credit records held by the three (soon to be four) Credit Reporting Agencies in Australia.

    Defaults and other negative listing entries are strictly controlled by several pieces of legislation and several more codes of conduct. This aspect itself creates many grey areas and of course, is subject to interpretation.

    Consumers are blessed in Australia to live in a place where they are highly protected. Some of these protections are spelled out throughout the several thousand pages of legislation that works with and around Credit Reporting Law.

    Because the legislation is lengthy and involved, it gives those that are informed quite a lot of power. This knowledge is sometimes weighted heavily on the side of the creditor and leaves consumers with little ability to effect change in their own circumstances.

    For this reason, credit rating repairers have grown in popularity, as we are often the only people on the side of the consumer with the knowledge needed to fight the case on their behalf.

    As credit rating repairers we know this legislation. We review and consult it on a daily basis, looking to discover new and interesting methods to have bad credit set aside.

    During the process of discovery, we receive mountains of paperwork from your client’s creditors – which often include account statements, invoices, contracts and file notes.

    We review this documentation, constantly referring back to the legislation to formulate a case for your client. Once we are aware of any errors in the way the listing was added to your client’s credit report, we alert the creditor that the listing may be unlawful and request its immediate removal.

    At this stage it can sometimes get interesting, as many creditors genuinely believe that what they have done has been lawful and it’s up to us to educate them on where they have made errors.

    Occasionally, this can be a lengthy process and sometimes it may require the assistance and rulings of external governmental bodies.

    In more than 9 out of 10 cases, your client will be victorious. They can then go back to you to have their mortgage approved, their home loan settled, and their family can move into their very own home.

    I’m imagining a blue, round kiddie pool in the backyard, with a little sandy coloured puppy chasing the kids as they run up the slide to the cubby house, laughing and giggling all the way. That was my backyard a few years ago. My kids are all grown up now – one is about to get married. But those fond memories of us as a young family in our own home still remain.

    That is the power you have in your hands right now – to make someone’s dreams come true.

    Contact MyCRA Credit Rating Repairs tollfree on 1300 667 218 to speak with a consultant about our broker referral system.

     

    About Graham Doessel and MyCRA Credit Rating Repairs.

    Graham Doessel is the founder and CEO of MyCRA Credit Rating Repairs – Australia and New Zealand’s leading credit rating repair specialists.

    Graham’s origins are in finance, and he formed/owned the award-winning non-conforming brokerage “Mortgage Now.”
    Graham is a consistent spokesperson in the media for credit reporting issues in Australia and New Zealand.

    MyCRA Credit Rating Repairs, now in its fourth year of operation, has recorded an impressive track record of up to 91.7% rate of removal of inconsistent or inaccurate negative data from the Australian and New Zealand credit reports of both consumers and commercial entities.

    Graham and MyCRA Credit Rating Repairs are proud to be a part of developing a self-regulating framework for the credit rating repair industry through the lead role in the formation of a credit rating repair industry body.

    MyCRA Credit Rating Repairs is nominated for the 2012 Telstra Small Business Awards and the 2012 Start-Up Smart Awards.

  • Housing finance numbers rise: ABS Housing Finance December 2011

    Good news again for the housing market as ABS figures from December show another rise well above that expected by economists. But there is a warning: it could mean more people present with a bad credit report as confidence returns.

    By Graham Doessel founder and CEO of MyCRA Credit Repairs and www.fixmybadcredit.com.au.

    ABS Data shows December housing-finance approvals in Australia rose a seasonally adjusted 2.3 per cent in December 2011 from November.  Economists expected a rise of around 1.8 per cent in December.

    DECEMBER KEY POINTS FROM ABS BELOW:

    VALUE OF DWELLING COMMITMENTS

    December 2011 compared with November 2011:

    The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.8%. Investment housing commitments rose 0.9% and owner occupied housing commitments rose 0.7%.
    In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 3.8%.
    NUMBER OF DWELLING COMMITMENTS

    December 2011 compared with November 2011:

    In trend terms, the number of commitments for owner occupied housing finance rose 1.1%.
    In trend terms, the number of commitments for the purchase of established dwellings rose 1.2% and the number of commitments for the purchase of new dwellings rose 0.7%, while the number of commitments for the construction of dwellings fell 0.1%.
    In seasonally adjusted terms, the number of commitments for owner occupied housing finance rose 2.3%.
    In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 20.9% in December 2011 from 20.0% in November 2011.

    Ninemsn reports interest rate cuts in November and December and the widespread expectation of more to come might have contributed to better figures for December. The article says the December figures mark a two-year high for housing finance figures and cast doubt over a March interest rate cut.

    “In any case, lending has picked up.
    And, given that the RBA keeps close tabs on bank activity, it is possible that the strength in lending in December figured in the decision on February 7 to keep the cash rate steady.

    For this indicator, the question now is whether the February decision took some of the heat out of demand for loans.

    The earliest indications of that will not be available until the February housing finance figures are released by the ABS on April 11.

    In the absence of any sign of a subsequent waning in loan demand, the December housing finance numbers constitute an early goal scored by the ‘no rate cut’ team.

    Still, there are plenty of economic data releases between now and the next RBA policy meeting on March 6, so the market is not rushing to make a judgment,” the article says.

    Could this new rise in figures be slowed by the RBA’s decision to leave interest rates in February? Bank lending criteria may still be tight with these questions still looming over the future of housing finance and market confidence, and of course a myriad of global factors.

    In the meantime, it will still be essential for borrowers to present with a clean credit file to ensure finance approval. For those who are living with credit file errors and inconsistencies, there is a solution.

    How many people could be living with credit file defaults that shouldn’t be?

    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.

    With 14.6 million Australian Veda Advantage credit files alone 1 per cent of errors amounts to 140,000 Australians’ financial lives potentially in ruins through no fault of their own.

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

    Transferring those figures from the Choice study to the number of credit files in Australia today, could take the figures to over 4 million errors, inconsistencies or flaws.

    We feel based on the ACA study and the Choice survey that the real figure across the board is likely to be in the middle somewhere – much higher than 1%.

    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.

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

    Errors do occur, but often people aren’t aware of they have an adverse listing on their credit file until they apply for a loan, but by then it is too late to correct errors 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 at best – negotiating with creditors is not always easy for the individual to undertake.  Our job as credit repairers is to check the creditor’s process of listing defaults for legislative and or compliance errors, any such errors could deem the credit file default listing unlawful, at which time we advise the creditor to remove the default.

    If potential borrowers need help with credit repair, they can contact us at MyCRA Credit Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

    Image: Salvatore Vuono / FreeDigitalPhotos.net

     

  • The dead not protected from identity theft

    Even in grief identity theft can strike us and affect our credit file and the clear credit file of those we leave behind. Grieving relatives may need to protect themselves and their loved one’s good name against this fraud, following a recent spate of identity theft of deceased individuals.

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

    There are so many things to think about when someone dies and it is very unfair that grieving relatives need to think about possible identity fraud on top of everything else, but the fact is it may be necessary to protect not only their memory, but the good credit file of the living.

    Last year a Sydney court sentenced a man and a woman to two years jail for identity theft.

    The Courier Mail ran details of the story in September last year, in which the court heard the couple “spent nine years trawling cemeteries across Australia collecting the details of dead people, with Queensland targets including a disabled man and a baby less than two days old.”

    “The couple created fake “identity kits” using the details of the deceased, including bogus passports, Medicare cards, drivers’ licences and bank accounts, which they sold to criminals for up to $30,000 each”, the story said.

    In October, The Australian ran a story ‘Backlog of births, death records prone to identity theft’, detailing the possible prevalence of these instances of ID Theft. It told of data processing backlogs at some government birth, deaths and marriages registries that have left the door open for fraudsters to assume the identities of dead Australians.

    The fixing of the identity loophole had been delayed by a dispute with developer UXC, whose contract with the NSW Registry was terminated in 2009. The registry said it had received $2.9 million in damages as a result.

    A new contract had now been negotiated with Objective Consulting for $11.4m, with the first release of a new registry due in June next year.

    Queensland too is yet to digitise its birth, death and marriages records to enable automatic cross-checking between births and deaths data.

    “The project is currently in the final stages of contract negotiation with digitisation currently scheduled to run from early 2012 to 2014,” a Queensland Births, Deaths and Marriages Registry spokeswoman said.

    Queensland’s 2009-10 budget had allocated $20.8m for digitisation of records.

    The spokeswoman said when digitised, its operators would be required to complete an electronic search of Queensland death records before releasing a birth certificate.

    Software developer John Doolan, who has worked with birth, deaths and marriages registries across the Australian eastern seaboard for more than 20 years, said the enormous backlog in unmatched birth and death records was a headache.

    “We are aware of cases of false identities that have been created and stolen,” said Mr Doolan, the chief executive of KE Software, which has different versions of its software operating in Queensland, NSW, Victoria and Tasmania.

    The ability of a person involved in immigration fraud, tax evasion, social security rorts and even terrorism to obtain a legitimate birth certificate by using a dead person’s identity is still possible at these registries.

    While states are rushing to digitise this process, relatives should be aware of how a deceased person’s personal information could be compromised, and act quickly to protect their  credit file and good name in death.

    – Relatives can start by obtaining several copies of their loved one’s death certificate, and providing one to each credit reporting agency in Australia. The credit reporting agency can then ‘flag’ the credit file so that no future credit is issued in that name.

    – Also pay particular attention to how much information is given away in the obituary. As in life, in death, personal information is a valuable commodity. Restrict the publication of any details which could allow fraudsters to piece together details to create a false identity.

    – It is also important to provide a death certificate to financial institutions and notify all other credit facilities of the death, particularly where joint accounts may be involved. This could prevent the other person attached to the joint account of the deceased having their clear credit file compromised by possible identity theft.

    If fraudsters gain access to someone’s good name – living or dead they may be able to drain bank accounts, or open new lines of credit in the person’s name.

    Often people don’t find out about the identity fraud until they attempt to take out credit and then find out they have a bad credit score due to a series of defaults they have no knowledge of. It was reported that in the case heard by the Sydney courts, the names of the deceased were used to create false Medicare cards, birth certificates, drivers’ licences, bank accounts and credit cards. Forged documentation and identities were sold to criminals, including members of the Lone Wolf bikie gang, so they could apply for passports.

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

    Relatives left with the task of trying to repair the credit file of their deceased, particularly the credit files of joint account owners can find the task a difficult one. To restore the clear credit file the identity theft victim needs to prove to creditors they did not initiate the credit. Not only are victims generally required to produce police reports, but large amounts of documentary evidence to substantiate to creditors the case of identity theft.

    If people need help credit rebuilding and restoring credit activeness following identity theft, please contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit the main website www.mycra.com.au

    Credit rebuilding is not easy for anyone to undertake themselves, particularly those who are facing grief. Many times when restoring credit individuals will be told that listings can be marked as paid, but this does not give the victim a clear credit file.

    Using a credit repairer skilled in credit reporting legislation will help to enforce rules creditors are bound to comply with, and coupled with negotiations will ensure the best chance at a clear credit file.

    Image: Arvind Balaraman / FreeDigitalPhotos.net

     

     

  • How to dispute a bill and keep a clear credit file

    What many credit repairers don’t want you to know…There’s a wrong way to dispute your bill. The wrong way can lead to bad credit history – leaving you unable to obtain credit for 5 to 7 years. Here is how you should dispute your telephone, internet, energy or basically any bill which you disagree with before it ruins your credit file.

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

    Customers who refuse to pay a bill because they believe it has errors are making a grave mistake that could harm their ability to get credit in the future.

    One of the most common mistakes people make which leads to bad credit history is not paying a disputed bill by the due date.

    Creditors make mistakes with billing all the time, otherwise however infallible they may like to think their system is, otherwise there would be no need for professional credit repair.

    It can be really difficult getting the matter resolved with some creditors. But no news is definitely not good news.

    Where many customers go wrong, is assuming just because they have spoken to someone on the phone about the bill, they are no longer obliged to pay it by the due date.

    Under current credit reporting legislation, an account which is more than 60 days late can be listed by the creditor as ‘unpaid’ on the customer’s credit file. This is regardless of whether the customer believes there are errors in the details of the bill or with the payment amount.

    Many clients dispute the offending bill with the company and made the mistake of leaving the bill unpaid well past the due date while waiting for correspondence from the company. Many are not aware they have incurred a default anyway, until they apply for credit in a different circumstance.

    These defaults remain on a person’s credit file for 5 years. Under current legislation, defaults generally don’t get removed from a credit file, but can be marked as paid if they have been paid.

    Currently, defaults – even those that are marked as ‘paid’, will prevent you from obtaining a home loan with most lenders. In fact, even having a few too many credit enquiries can be enough for an automatic decline.

    So it’s really important we don’t leave ourselves open to having a default listing slapped on our credit file, ruining our good name.

    Here is the process people should take when disputing a bill in Australia:

    1. Contact the bill provider as soon as you receive the bill and attempt to resolve the discrepancy.

    2. Make a note of the date of all conversations, the name of each person you speak to and the nature of the discussion with each. Note any resolutions that were reached and ask that those be emailed or sent to you in writing.

    3. If the credit provider fails to honour the discrepancy, advise them you will be contacting the appropriate ombudsman.

    4. If the due date for the bill approaches and the issue has not been resolved, pay the bill by the due date. You can always seek reimbursement at a later date, but this will prevent a default for that bill being listed on your credit file.

    5. If there is still no resolution, take the matter further, usually with the appropriate Ombudsman.

    So don’t assume anything or take someone’s word for it, get it in writing and preserve your clear credit file.

    If you already have bad credit history from a bill dispute that went wrong – it may not be all lost. The best way to fix your credit score is to seek professional credit repair.

    Australian credit reporting legislation allows for you to resolve any inconsistencies on your credit report. But the problem with attempting to dispute errors on your credit file with creditors yourself is two-fold. Without knowledge of the legislation, people almost invariably get caught in legal ‘loop-holes’ which see the default, writ or Judgment left on the credit file, or at best see the listing marked as ‘paid’.

    Both of these results DO NOT fix your credit rating because lenders still consider even a ‘paid’ listing as bad credit history. Secondly, by negotiating with creditors, people can also accidentally ‘alert’ creditors to any mistakes the creditor may have made in the initial method of credit reporting – allowing them to fix up their mistakes and negate the need to remove the credit file default which was placed in error.

    Good professional credit repair gives you the best chance at fixing your credit.  A credit repairer can help you get a free copy of your credit file, and go through the bad credit history with you. They can then use their knowledge of credit reporting legislation to see where any errors in credit reporting were made, and help to enforce the legislation that creditors are bound to comply with.

    If they are successful, you not only get help with removing errors from your credit file, but many times you are able to start off with a completely clean credit rating.

  • Helping clients save money through credit repair

    As brokers we are continually faced with meeting clients whose credit report lets them down. These clients stack up financially on all levels…until that last minute credit check reveals they have an adverse listing on their credit file.

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

    Many brokers who come across clients with a bad credit rating either turn them away or if they are otherwise suitable for finance, guide them into a more flexible non-conforming loan.

    But many brokers may be surprised to know it can be cheaper for the client to undergo credit repair  – and if the client identifies errors or inconsistencies in their credit report – it could ethically be the best option for the client.

    For instance, let’s calculate the figures on an average loan of $400,000 over 30 years, comparing non-conforming loan interest rate of 9.5% with a standard variable rate of 7%. The client would be paying a staggering $702.71 per month with non-conforming loan interest rates. They will be hit with $22,867.15 more in home loan repayments over the first three years of the loan.

    Credit repair would not be suitable for those people who demonstrate an inability to make repayments. But as credit repairers many times we find the client has errors on their credit report, or the listing is unjust – and that we can rectify. Often we can determine that the file can be completely cleared, allowing the client access to a whole range of loans they were previously unsuitable for.

    The popularity of credit repairers is due to a large volume of errors made by creditors on credit files, and a system of redress which is often difficult for the credit file holder to navigate.

    The number of errors on credit files in Australia is astounding. Many of our clients thought they had impeccable repayment histories and would have never dreamed they would end up with a default. Let me tell you mistakes do often happen. Sometimes simple human error by the creditor leads to defaults incorrectly listed.

    Whilst paying bills on time is the best way to ensure a clear credit file, it does not guarantee a clear credit report.

    Statistics released by the Australian Consumer Association (now Choice Magazine) from a study conducted in 2004 showed around 34% of the clients surveyed had credit files which potentially contained errors in some way.

    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.

    The nature of credit reporting is that there is much opportunity for human error and these errors are usually not uncovered until people go about checking their credit file. Often people are unaware of their responsibility to maintain the accuracy of their own credit file – and so they don’t find out about their credit issues until they apply for a home loan.
    Then, once people find problems with their credit file – they often find the process of removal of errors from their credit report difficult.

    Current legislation does allow people to have inconsistencies removed from their credit file, but in reality many people are not successful when they attempt to fix it themselves. Often it is because they are not schooled enough in the legislation or can’t devote the necessary time to it to ensure a successful credit repair. Sometimes people who attempt default removal themselves can do more harm than good through lack of knowledge, or difficulty in negotiating with creditors.

    One thing brokers can do to encourage a better transaction is to refer clients to us to have their credit checked prior to applying for finance. They can take advantage of their yearly free credit file check, which would uncover any problems with the credit file prior to finance application, and ensure the client is in the best possible position for qualifying for a loan. Plus a client does not generate a credit enquiry when they request a copy of their own credit file.

    Brokers can also potentially save thousands in lost commission by helping those that may otherwise be turned away to get a clear credit file.

    Once the credit file is repaired the client is then passed back to the referring broker to be fitted to the loan of their choice.

    For more information for brokers on the benefits of referring clients, contact MyCRA Credit Repairs or call tollfree 1300 667 218.

  • How to improve your credit score: what to do when you have a bad credit history

    Help for frustrated Australians who find out they have a bad credit rating.

    By GRAHAM DOESSEL – CEO and founder of MyCRA Credit Repairs and www.fixmybadcredit.com.au.

    There are approximately 3 million Australians* with adverse listings on their credit file, also known as a ‘bad credit rating’. Adverse listings can include, default listings, writs, Judgments, bankruptcies*, even excess credit enquiries. All of these can impact your ability to obtain credit. The consequences of having any issues with your credit file include home loan refusal, personal loan declined, and even being turned away from getting a mobile phone plan.

    One problem is many people go searching on the internet for help with ‘improving their credit score’. This is most commonly an American term which has no bearing on Australian credit reporting law.

    The Australian credit reporting system is currently a ‘negative’ reporting system. Only negative entries are included, and generally when a lender requests a credit report and sees listings on your credit file, they will be seeing these entries as negative. The laws are currently undergoing changes – but as a general rule – you don’t want late payments, defaults or credit errors holding you back from an otherwise perfect ability to service a loan or forcing you into choosing a loan at sky-high interest rates. You could pay thousands extra on a higher interest rate than your standard variable rate.

    So you may be wondering, how then, can I fix my bad credit?

    Well it depends on what comes up on your credit report….

    The first thing you need to do is request your credit report. This can be obtained from one or more of the credit reporting agencies, and is a file on all of your credit information. You can request a copy of your credit file for free every 12 months.

    If there are any adverse listings on your credit file which you believe are incorrect, contain errors or just should not be there – then you have the right to have those credit file errors removed.

    The problem with attempting to dispute errors on your credit file with creditors yourself is two-fold. Without knowledge of the legislation, people almost invariably get caught in legal ‘loop-holes’ which see the default, writ or Judgment left on the credit file, or at best see the listing marked as ‘paid’. Both of these results DO NOT give you that home or car loan as lenders still consider even a paid listing as bad credit history.

    Secondly, by talking to creditors themselves about credit file errors, people can accidentally ‘alert’ creditors to any mistakes they may have made in the initial method of credit reporting – allowing them to fix up their mistakes and negate the need to remove the credit file default which was placed in error.

    If you are just starting out and wondering “How can I repair my bad credit?” then the best course of action is to instill the help of a credit repairer before you do anything yourself. They can help you get a copy of your credit file, and go through the bad credit history with you. They can then use their knowledge of credit reporting legislation to see where any errors in credit reporting were made, and help to enforce the legislation that creditors are bound to comply with.

    If they are successful, you not only get help with removing errors, but many times you are able to start off with a completely clean credit rating. You have a clean slate and can go for any loan you choose at the best interest rates.

    Once you have those defaults removed, then you can certainly ‘improve’ your credit history in the future with these 5 easy steps:

    1. By ensuring all bills are paid on time. Keep track of and be aware of any stray bills – particularly when major changes are occurring in your life like moving house, divorcing, death, and illness.

    2. By using credit. Having no credit history means there is nothing to calculate and the risk appears high to lenders. We should start by borrowing something small. Repaying mobile phone plans, internet accounts, or store credit on time will appeal to anyone checking our credit report.

    3. Obtain a credit report every 12 months. This ensures there are no errors on your credit file. Sometimes human error means the wrong person gets the bad credit file entry, or adverse listings are entered incorrectly or unlawfully. If in doubt, talk to a credit repairer.

    4. Beware excess credit enquiries. Only apply for credit you feel you have a very good chance of being approved for, and only applying for credit we have full intention of pursuing.

    5. Show stability. If you are thinking about applying for major credit in the near future, consider that lenders are looking for a stable address, stable income stream and regular savings as well as a squeaky clean credit file to help with assessing your suitability for a loan.

    * Veda Advantage 2009

    * MyCRA Cannot remove bankruptcies from credit files

    Image: graur razvan ionut/ FreeDigitalPhotos.net