MyCRA Specialist Credit Repair Lawyers

Tag: credit reporting

  • 2012: A new year, a new money plan

    5 steps to help clear your debts; clean up your credit file and pave the way for new finance goals in 2012.

    For those of you who have made a New Year’s Resolution in 2012 to get back in control of your finances and reign in all those outstanding debts from last year, you are not alone.

    According to a recent survey by ING Direct, of the two thirds of Australians who will make a New Year’s resolution for 2012, more than half will focus on their finances.

    ING Direct says among those making financial resolutions, 34 per cent resolved to save more in 2012, 24 per cent resolved to reduce their debt, 16 per cent said they intended to take control of their spending and another four per cent said they planned to switch banks in the New Year.

    ING’s Executive Director Brett Morgan says “It’s good to see Australians are focusing on the importance of financial goals for 2012 and there are steps we can take to stay on track with these resolutions throughout the year.”

    “Make sure your resolutions aren’t too big or difficult to achieve. It also helps to quantify your goals – aiming to save $50 each week is a more concrete goal than simply aiming to ‘save more’.”

    So here are five practical, positive steps anyone can take to improve their finances.

    1. Understand your debt.

    Before you can start saving a significant amount, you need to really understand how much you owe. Savingsguide Australia recommends for anyone who has made a New Year’s resolution to get out of consumer debt, they should first tally up everything they owe.

    “Without the big number, however terrifying it is, you won’t be able to start a serious schedule of getting yourself clear of consumer debt,” Savingsguide recommends.

    The good news is – generally with Christmas and New Year celebrations and expenses out of the way – the next month’s credit card statements should automatically look better before you even start.

    2. Make a plan to repay your debt.

    Most people with significant debt generally have it stacked up on a credit card – or cards. Unfortunately most are at high interest rates which make it often impossible to get on top of. Many experts recommend switching all debt to one card with a lower interest rate, or even swapping to a personal loan. But the best advice we can give on credit card debt is to repay above the minimum amount set by the bank – which will allow you to actually make progress on clearing the debt because you will be saving interest.

    If you continue to have multiple cards, the Government’s Money Smart website has these recommendations:

    Dealing with multiple credit cards

    Got more than one credit card? Step your way to credit card freedom and feel the stress go away.

    Step 1: Keep up your repayments
    Pay off as much you can on the total amount owing on the main credit card you are using each month. This will let you take advantage of any interest-free period and help you pay off the whole debt (not just the interest, fees and charges).

    Step 2: Pay the smallest debt or highest interest rate
    Choose one of the two strategies below:
    Pay off the smallest debt first – Continue making minimum payments on all cards but aim to clear the one with the smallest debt first. Then work on paying off the next smallest debt, and so on. You will reduce the risk of incurring multiple charges for late or missed payments and save on annual fees. The money you save can be used to pay off other debts.
    Pay off the card with the highest interest rate first– Continue making minimum payments on all cards but pay off the credit card with the highest interest rate first, then work your way through your other cards. This may save you money on interest payments.

    Step 3: Close the account as you clear each card
    Whatever option you choose, stop using all but one of your credit cards (and try to only use it for emergencies). As you clear each card, cut it up and close the account. If you don’t, you may still have to pay fees on the account, even if you aren’t using it.

    Step 4: Lower the limit on your last card
    Finally, lower the limit on your last credit card to an amount that you can repay within 3 months, say $2,000.

    3. Be more aware of what you are spending.

    Make a resolution to not bury your head in the sand about bills. Pay them straight away if you can or diarise their repayment. Read all of your bank and credit card statements when they come in. While you are attempting to implement the new savings pattern, read and keep all of your receipts.

    If you are not particularly organised – you may even like to resort to the ‘shoebox method’ – which is basically keeping every receipt for the week or month in a shoebox, and transferring it after that time onto a spreadsheet which allows you to track your spending and gives more focus to where you might be blowing out your budget.

    You may find after reviewing your spending you can see where you are wasting money. Maybe taking lunch to work or eating out less can make a significant dent in your spending – or perhaps just skimping on all those takeaway coffees will give you enough extra money that you can squirrel away.

    4. Commit to savings.

    Savingsguide’s Must Do Moves for 2012 include striving to save 20 percent of your income, albeit after repayments are made on existing debt. They also advise setting up a separate savings account which can’t be accessed easily.

    “Look for an account with a high interest rate and rewards for accounts that don’t have withdrawals,” they recommend. “Set up automatic deductions, and don’t touch it.”

    5. Clear your credit file of errors.

    There is no point making a significant dent in your consumer debt and saving regularly if you are unable to make use of your new found financial prowess. Many people find they do all the hard work of saving towards a home or car loan, only to find their past comes back to haunt them.

    They may apply for a loan, only to be refused due to credit file defaults which show up on their credit report. Basically any creditor is able to place a default on a person’s credit file if a repayment is later than 60 days. There may be times when this has occurred and you are unaware of it.

    Whatever the situation, credit file defaults need to be treated very seriously. They are most times an instant negative for any bank who is thinking of lending you money. And the thing is…they hang around for 5 years. What are your financial goals 5 years from now????

    It is good financial practice to get a copy of your credit report each year, and make sure everything is as it should be. This report is FREE every year from the credit reporting agencies. You may have listings with one or more of the credit reporting agencies.

    There is a potential for errors to be present on your credit report.

    Credit reporting mistakes do happen, but the watchdog is YOU!

    If a default has been listed ‘unlawfully’ you have the right to request its removal from or amendment of your credit file.

    Many people get the run around from creditors when they try to do this – or they get bogged down in all the legalities. Unfortunately the potential is there to ruin your chances of getting the default removed if it is not handled the right way. We suggest you get a credit repairer on the case, they know the legislation and can work within it to force creditors to honour their obligations under Australian law and negotiate the removal of any errors from your credit report.

    Visit MyCRA’s main site www.mycra.com.au for more information.

    Image: digitalart/ FreeDigitalphotos.net

    Image: tungphoto/ FreeDigitalphotos.net

  • Consumers slugged almost $23,000 more in additional home loan repayments

    Media Release

    1 November 2011

    Home loan rates are set to be reduced today, but for millions of Australians who are living with defaults on their credit file, they will be hit with $22,867.15 more in home loan repayments over the first three years of the loan.

    The Reserve Bank of Australia is today tipped to hand over a reduction of a quarter of one percentage point in interest rates, taking the cash rate down to 4.5 per cent.

    Some big banks are expected to respond immediately, with the potential to pass on a saving of $49 per month to the average householder.

    But for those approximately 3 million or more Australians who are living with credit rating defaults, the interest rates cuts will be negligible.

    A national credit rating repairer says those families who are unlucky to have defaults on their credit file for 5 years will be paying a staggering $702.21 more per month with non-conforming loan interest rates.

    “We talk about massive savings for the average Australian with these cuts, we talk about encouraging people to switch lenders to increase competitive rates, but this is not a reality for people with defaults.”

    “Most banks won’t lend them money, forcing them into non-conforming loans and paying top dollar because their credit file shows they are a bad risk – and it may not be true,” says Graham Doessel from MyCRA Credit Repairs.

    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, but the number of possible errors which exist is not certain.

    The possible volume of errors on Australian credit files was exposed by a small scale study conducted in 2004 by the Australian Consumer Association (now Choice Magazine). It revealed 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.

    Mr Doessel says,

    “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 Mr Doessel says 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 loan that they learn they have an adverse listing on their credit file, 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,” he says.

    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.  Our job as 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 we advise the creditor to remove the default,” he says.

    /ENDS.

    Please contact:  Lisa Brewster media@mycra.com.au

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

    Links:

    1. 3.47 million negative listings in Australia, Veda Advantage November 2008
    2. Based on average loan of $400,000 over 30 years on non-conforming loan interest rate of 95.% vs standard variable rate of 7%
    http://www.mycra.com.au/calculators/do-i-need-credit-repair.php
    3. http://lws.vedaadvantage.com/personal_solutions/personal_default.aspx
    4. http://www.theage.com.au/news/business/record-class-action-possible-against-veda/2007/05/01/1177788141045.html
    5. http://www.mycra.com.au/media/television.php

    Image: jscreationzs / FreeDigitalPhotos.net

  • Thousands of Christmas flights won’t be honoured

    Media Release
    4th November 2011

    Australian travellers may be left stranded at the airport holding bogus airline tickets at Christmas time after suffering at the hands of scammers.

    A government agency has warned Australians about cheap flight deals through fake travel websites which have travellers believing they have purchased legitimate airline tickets, but all they have done is been skimmed of their money and left vulnerable to identity theft.

    With a current warning issued by the Australian Competition and Consumer Commission’s SCAMwatch website (www.scamwatch.gov.au ) for flight booking scams, a national credit repairer, MyCRA’s, Graham Doessel says people could find it is more than just Christmas that is ruined.

    “It’s all bad for these poor scam victims. At best they can be left with no holiday – but at worst fraudsters can take their personal details and use them to construct a fake identity which would allow them to borrow in their name – the ramifications of that can last for years,” Mr Doessel says.

    SCAMwatch says it has received a number of reports of fraudulent traders who have copied the ABN and look of legitimate travel websites.

    “Some victims have lost in excess of $1000 for fake international flight bookings, while others report instances of identity theft after interactions with the fake trader,” the SCAMwatch website warns.

    Currently the Australian Crime Commission sites identity theft as the fastest growing crime in Australia, and a recent study presented by the Attorney-General’s office revealed 1 in 6 people have had their identity stolen or misused in some way.

    Identity theft occurs when criminals use a person’s personal details, usually to obtain credit in their name. The benefits can be lucrative, gaining access to large amounts of credit – enough even to mortgage a property in the victim’s name. It is often not until the victim goes to apply for credit in their own right and are refused because of credit rating defaults they didn’t initiate, that they realise they have had their credit file misused.

    “Unfortunately identity theft can turn the victim’s life upside down. Adverse listings can be difficult to have removed, simply because it is up to the victim to prove to creditors they didn’t initiate the credit,” Mr Doessel says.

    MyCRA advises people to take these precautions when booking travel:

    – Be wary of any offer that comes via an unsolicited email.

    – For legitimate-looking websites, check the URL is correct for that company. If it looks suspicious – it may be a fake. Do the research on the airline or travel agency’s own website or contact the company directly to verify details in the offer.

    – Never make the purchase through a link in an email.

    – Take five minutes extra to research the company that is offering the deal to ensure they are genuine.

    – If the flight seems too cheap – it may be a fake.

    – For people who think they may have fallen prey to a scam, they should  contact Police, and if they think their personal details may have been compromised – obtain a copy of their credit file.

    Australians are able to obtain a free copy of their credit report every 12 months from one or more of the credit reporting agencies.

    “If someone suspects fraud, their credit file could show changes, which if detected early, would prevent their good name from being ruined. If there are any unusual credit enquiries, or some attempt to alter personal contact details this should be a red flag. People should alert creditors to prevent their credit rating from being ruined and protect their ability to obtain credit in the future,” he says.

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

    /ENDS.

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

    Graham Doessel  – Director  Ph 07 3124 7133

    www.mycra.com.au www.mycra.com.au/blog 246 Stafford Rd, STAFFORD Qld

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

    Image: Free DigitalPhotos.net

  • 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.

  • 7 ways to improve your credit rating in Australia

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

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

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

    What exactly is my credit file?

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

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

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

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

    A negative credit reporting system

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

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

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

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

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

    1. Reduce credit limits.

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

    2. Reduce credit enquiries.

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

    3. Check credit file.

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

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

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

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

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

    4. Pay any outstanding amounts.

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

    5. Remove errors.

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

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

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

    6. Make repayments on time.

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

    7. Show stability.

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

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

    Image: vichie81 / FreeDigitalPhotos.net

  • Consumer debt struggles and solutions

    A recent survey revealed that about one in three Australians said they will struggle to repay their debts in the coming September quarter. If this many Australians have money problems, then more should be done to educate people on our credit reporting laws, and what can happen to people’s finances, should they end up with a bad credit rating.

    When things get bad enough that repayments are getting missed, people need to be aware of the cycle they may be getting themselves into.

    Black marks on people’s credit reports remain there for 5 – 7 years, and can severely hinder their chances of getting further credit, from mortgages to mobile phone plans.

    If people are struggling to make repayments, they need to take a pro-active approach to managing the solutions.

    It is human nature for people to not want to admit their failings, but it is important for people to realise that the choices they make with their debts today can affect them as far as seven years down the track.

    All forms of credit, from mortgage repayments through to our utilities bills have the potential to affect our credit rating should they get too far in arrears.

    Debt survey

    Credit reporting agency Dun & Bradstreet released its bi-annual debt survey recently. The survey revealed that almost one third of Australians will struggle to meet their credit commitments in the September quarter. It also revealed that 37 percent intend to use their credit card to purchase something they could otherwise not afford. Twenty-one percent say their household debt will increase over the next three months, and almost half say an interest rate rise in the September quarter would negatively affect their household’s finances.

    “…the reliance on credit for household purchases in spite of apprehension about their ability to meet these commitments is worrying, as an issue that can affect their future credit rating and ability to access credit – often when they need it the most,” Dun & Bradstreet’s CEO Christine Christian says.

    Credit reporting explained

    Current legislation allows creditors of any form to list a default on a person’s credit file when the repayment is more than 60 days late. These default listings remain on a person’s credit file for 5 years. In the current market, most major banks are currently rejecting loan applications because of defaults, and many even for excess credit enquiries. So anyone who wishes to obtain credit should be ensuring they sort out any debt problems before they escalate to default stage.

    Under current legislation, people can see what is reported about them on their credit file, by obtaining a free copy of their credit report every 12 months. They may contact one or more of the credit reporting agencies, Veda Advantage, Dun & Bradstreet and Tasmanian Collection Services and it will be posted to them within 10 working days.

    If people find defaults, writs or Judgments which they believe are unjust, contain errors or just simply shouldn’t be there, they do have the right to have them removed. Credit rating repairers can assist with this removal by negotiating directly with creditors on a person’s behalf.

    Solutions for debt to avoid a bad credit rating

    1. Contact creditors immediately. People may be able to negotiate either a short-term or long-term change to their repayments. Many creditors, especially the major banks have options available to struggling families to help them keep up with repayments. Many appreciate people keeping in touch and working out solutions everyone can live with.

    2. Put the spotlight on spending. Paul Clitheroe advises those who can’t make repayments to keep a spending diary for a week or two.

    “This will show you exactly where your money is going, and chances are you’ll find plenty of little-but-often outlays that quickly add up to much larger amounts. Cut back on these and you’ll free up money for repayments,” Mr Clitheroe says.

    3. Consider the difference between wants and needs. People
    should consider how many of the items they regularly spend money on are necessities, and how many can be sacrificed for the short term in order to ensure their long term financial future is safe? People could choose to live without life’s little perks – like the Foxtel account, magazine subscriptions, or eating out while they get on top of their credit issues.

    4. Downgrade if necessary. For people in serious financial trouble, it may be a matter of swallowing their pride and downsizing or selling the family home, or moving to cheaper rental accommodation until they get back on top of things.

    For people who have defaults, writs and Judgments which are unfairly disadvantaging them, and they feel they should not be there – they can contact MyCRA Credit Repairs. We permanently remove black marks from credit files.

    Image: nuttakit / FreeDigitalPhotos.net

  • Experian plans to enter Australian credit reporting – good news or bad?

    A newly formed credit reporting agency is set to change the nature of credit reporting in Australia.
    UK credit reporting giant Experian plans to enter the Aussie market. The company proposes to form a joint venture “Experian Australia Credit Services” with leading financial institutions ANZ, Citibank, Commonwealth Bank, GE Capital, NAB and Westpac. Experian will own 76% of the company, with the financial institutions owning the remaining 24%.
    Reporter for The Australian, Teresa Ooi ran the story on Friday, titled Experian Plans Credit Bureau in Australia. Experian’s newly appointed managing director, Kim Jenkins says the venture will increase bureau competition, drive innovation and deliver better services for clients and consumers.
    The aim of the new bureau will be to improve credit reporting efficiency, particularly in light of forthcoming plans to permit positive credit reporting, which is currently under consideration by the Government.
    “The prospect of an inclusive bureau in Australia, accessible to all industry sectors, will strengthen standards in credit reporting, data quality and governance — which is particularly important in a changing regulatory environment,” Ms Jenkins said.
    I believe the introduction of Experian into the Australian credit reporting system will increase competition, and can only improve efficiency and transparency. The changes which will occur when or if we switch to a positive credit reporting system will be well serviced by a company who has had years of experience with the system in the U.K.

    What does concern me, however is the joint venture with leading Australian financial institutions. Does a credit reporting agency remain neutral when its owners are effectively creditors? Since creditors are responsible for listings on a credit file in the first place, does that create a conflict of interest for Experian in providing objective credit reporting?
    The other question is, how much say will these financial institutions actually have? Currently Australian law gives a bigger voice to smaller shareholders in a company. With these institutions all having a common interest as ‘creditors’ and all having a smaller share in the company – where will the interests of the company as a credit reporting agency actually lie – with consumers or creditors?
    Perhaps our current credit reporting laws will be tough enough to ensure that all credit reporting remains neutral, regardless of the ownership of the company.
    It will be very interesting to see what develops from this issue.