MyCRA Specialist Credit Repair Lawyers

Tag: default credit file

  • Stay Smart Online and Keep Your Credit File Safe

    prevent identity theftJoin MyCRA Lawyers as we support ‘Stay Smart Online Week’ running 2 – 6 June 2014. This week aims to help Australians using the internet – whether at home, the workplace or school – understand the simple steps they can take to protect their personal and financial information online.

    This year’s theme – ‘On The Go’ – reflects the importance of staying safe and secure online while using mobile devices when social networking, banking, shopping, and navigating the internet. In this post, we give you an overview of what MyCRA Lawyers will be doing to promote awareness during Stay Smart Online Week 2014, and briefly explain why we choose to partner in this week and how important staying smart online is for the safety of your credit file.

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

    Stay Smart Online - Proud Partner LR

    The 2014 Stay Smart Online Week (formerly Cybersecurity Awareness Week) is the seventh consecutive annual event conducted by the Australian Government in partnership with industry, the community sector and all levels of government.

    A range of activities are taking place around Australia, including seminars, industry events and community activities which you can attend or participate online.

    What will MyCRA Lawyers be doing during Stay Smart Online week?

    Monday: Staying Smart Online: Why you need to subscribe to Stay Smart Online Alerts.

    Tuesday: We will be exploring the theme for this year “On The Go” and look at how you can best secure your mobile device when social networking, banking, shopping and generally on the internet, as well as the ramifications of not securing your devices.

    Wednesday: We look at how you can protect your child online – particularly when it comes to their credit file. If you are a parent, and didn’t realise your children can be vulnerable to identity theft, then you don’t want to miss this post.

    Thursday: We are holding Stay Smart Online Awareness Day in our office. The team is getting involved and wearing the Stay Smart Online colours to promote this week. We will also be putting out a series of Facebook posts around crucial online safety topics. Don’t miss out on our great safety tips for protecting yourself and your credit file. In addition, we will post in our blog about Facebook itself in more depth and take a look at the dangers of Facebook to your credit file.

    Friday: We look in more detail the reasons why online security and savviness is so important for your credit file, and feature the best tips to protect yourself in the online space to prevent credit file misuse.

    Why did MyCRA Lawyers choose to partner for Stay Smart Online Week?

    It has never been a more important time to think about protecting personal information.

    Recent statistics released from the Australian Institute of Criminology show 1 in 5 Australians surveyed had been a victim of identity theft. The survey revealed 1 in 5 Australians have had their personal information misused, and 10 per cent had experienced the misuse in the past year. The statistics are higher than similar research conducted in the United Kingdom and the United States.

    Dr Clare Sullivan, an identity crime expert and law lecturer at the University of South Australia, says people get upset about the loss of money, but that was usually temporary, and was actually the least of their worries.

    “It’s the loss of identity. Once that has been compromised it’s compromised forever. People don’t realise how important that is and it could come up in six months or a year’s time or five years’ time,’’ she told news.com.au following the release of the survey.

    It is precisely this loss of identity which can lead to an even bigger type of fraud than simple bank or credit card fraud. If a fraudster is able to garner enough personal details to get duplicate documents in your name, they not only have your identity – they have access to your credit rating as well. This means they can take out credit in your name…and if they’re well-versed in this process – it may not be evident your identity is even compromised until you go to take out credit yourself and are refused.

    Unravelling the tangled web of identity theft at this point can be at times impossible. And unlike bank or credit card fraud, there’s not always reimbursement to be found. Some victims have found they have had to cop the 5 year default on their credit file, because they don’t understand and therefore can’t prove how the identity theft occurred in the first place.

    So our message this week is: take heed online, and safeguard your personal information to prevent identity theft and credit file misuse.

    For more information on credit file misuse, or to get more help or information about the security of your credit file, visit our main site www.mycralawyers.com.au, or you can contact us on 1300 667 218.

     

    Image 1: marin/ www.FreeDigitalPhotos.net

    Image 2: Courtesy of Stay Smart Online

  • Flood affected? Ask for help early to protect your credit rating

    flood victimsAs flood and cyclone victims across Queensland and New South Wales start to take stock of their homes and businesses, they may not know that their obligations to lenders still apply unless they take some necessary steps NOW to prevent being defaulted. We look at what flood victims should do to get back on their feet again and in the process, hopefully save their credit file.

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

    Today the Credit Ombudsman COSL has urged lenders to show compassion to flood victims when considering cases of financial hardship.

    Ombudsman Raj Venga says lenders and mortgage managers have previously responded sympathetically to borrowers who have experienced financial stress as a result of natural disasters and hopes they will continue to do so.

    “We expect they will again show the same compassion to affected borrowers in Queensland and northern New South Wales, and take into account COSL’s Position Statement on financial hardship.  We also urge borrowers who may be experiencing financial difficulties as a result of the flooding to contact their lenders or mortgage managers as soon as possible to discuss payment variation options available to them,” he said in Australian Broker today.

    How could I be affected by defaulting on my loan?

    Obviously, if you default on your loan for a certain period of time, you risk the bank taking the home. But even if you default once, but then begin to make up the repayments you are still putting your future at risk.

    If you fail to make repayments on our loan past one payment cycle, you will probably end up with a late payment notation on your credit file. If that extends out to more than 60 days, the bank will list a default on your credit file. Once you have a default against your name – it will stay there for 5 years. The intention of adding default credit listings to credit history is to warn future credit providers you would potentially have trouble keeping up with repayments. Likewise, as part of ‘responsible lending’ it would mean the credit provider would be acting irresponsibly to lend you money – so most don’t.

    A default on your credit file means you have very little access to mainstream credit for the five year term.

    What can I do if I am experiencing mortgage stress due to the storms and or floods?

    Ask for help early!

    The Australian Bankers’ Association (ABA) told Australian Broker banks are already offering a range of emergency relief packages to assist people affected by the severe weather in Queensland and New South Wales.

    Steven Münchenberg, chief executive of the ABA, says:

     “If someone’s home, income or business has been affected by the floods or storms, they should contact their bank as soon as they are able to. Banks are providing support to help their customers get back on their feet.”

    Banks offer a range of support options and the assistance provided will depend on their individual circumstances and needs, but may include:

    ■ deferring home loan repayments;

    ■ restructuring business loans without incurring fees;

    ■ giving credit card holders an emergency credit limit increase;

    ■ providing payment holidays on personal loans or credit cards;

    ■ refinancing loans at a discounted fixed rate;

    ■ waiving interest rate penalties if term deposits are drawn early; and

    ■ deferring repayments on equipment finance facilities.

     “If you are worried about the financial effect of the flooding and storms, talk to your bank about the support that is available. It is often not well understood that banks do offer their customers assistance during these difficult times and go beyond what might be legally required to offer immediate financial relief and support to affected customers and their communities. If you know someone affected, let them know that banks are offering emergency packages,” Mr Münchenberg says.

    “The best way to contact your bank is to speak to your relationship manager or call the bank’s dedicated emergency relief or financial hardship support number. These numbers can be found on the ABA website www.bankers.asn.au or at www.doingittough.info along with additional information to assist people that might be experiencing financial difficulty. You can also speak to a free, independent financial counsellor by calling 1800 007 007.”

    Tips for Applying for financial hardship

    – Work out what you can afford to pay prior to requesting a hardship variation. This would involve taking the bull by the horns and doing up a serious budget on what’s coming in and what your repayments are on all of your credit accounts. The best place to start looking for some help would be ASIC’s MoneySmart Website. If you feel like you’ll struggle across a number of credit areas in the short term – consider requesting a reduced payment for other credit accounts as well.

    – Put your request in writing and keep a copy as a record.

    – You may need to use the actual words “hardship variation” for your lender to officially recognise the request, and to avoid confusion as to what you’re asking for.

    – Check your loan agreement as to the terms you entered into around financial hardship. Those agreements post-1 July 2010 have a clause which requires the lender to respond to you within 21 days.

    – Creditors are legally required to consider a person’s request for variation on payment arrangements, but are not obliged to agree to any hardship variation proposal put forward. If a lender either refuses or fails to respond to your hardship request, you can lodge a complaint with their independent dispute resolution scheme, such as the Ombudsman they are a member of.

    – Research how to apply for financial hardship. You can do this through ASIC’s MoneySmart Website, or through sites like Money Help, a website run by the Victorian State Government.

    Image: khuruzero/ www.FreeDigitalPhotos.net

     

  • Get organised for Christmas to save your money and your credit rating

    Christmas is coming!!! Less than two months to go – gulp. If you have started to think about buying gifts, but don’t have much cash to do that with – then now is the time to start saving or to think about taking out credit to cover the costs. We look at the best ways to stay smart about credit over the Christmas period – and show you how a budget could save you money and reduce your chances of succumbing to bad credit history by racking up Christmas credit card debt you can’t pay back.

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

    David and Libby Koch recently wrote a great article on saving money over Christmas ‘Budget for the festive financial cliff.’ They advise you to start saving now, and sidestep credit as much as possible to avoid the February blues after the credit card bill comes in.

    “The Christmas, New Year and summer holiday period can leave even the best-run family budget in tatters.

    It can be a huge drain on family finances and cause a lot of undue stress. But by starting to plan early you can make sure that it’s a relaxing and affordable time for everyone, even the organiser.

    We’re not talking about two weeks out, we mean two months out and that’s now,” they write.

    Planning is great advice, and that can include sitting down now and writing your shopping list, whilst you are calm and slightly removed from the Christmas madness which often sees us overspending on everyone.

    The Kochs’ advise setting a budget, “set realistic limits and ensure everything is accounted for.”

    Their top tips include:

    • Suggest a Secret Santa

    A great way to keep the cost of presents under control is through Secret Santa, where everyone draws a name out of a hat and only buys a present for that person. This works best for big extended families and with a pre-agreed limit for everyone to spend on their gift.

    Not only does it put a cap on costs, but also means everyone gets one good present instead of lots less useful gifts. That’s the plan anyway.

    • Write down what you want for Christmas

    Try writing down the things you want to buy for yourself over the next couple of months. Then, next time somebody asks, think back to that list and hopefully you’ll get something you would have spent money on anyway.

    They also suggest:

    • Buy in bulk and give extended family the same item.

    • Give a voucher for your time – to babysit, garden, etc.

    • Make a gift such as craft items or cookies.

    • Regift any of those unwanted presents.

    • Make a tax-deductible donation to charity.

    Want more tips? Earlier in the month savingsguide.com.au posted some tips for getting frugal over Christmas ‘A Frugal Christmas: 5 Things To Do Now’. Here are a couple of great ideas:

    • Tally up what you spent last year

    There’s no way to prepare for the event- a joyous one to be sure, but difficult to fit into already stretched budgets- without knowing exactly what you spent[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”][last year]. My figure always gives me a heart tremour when I see it. You might be resolved to spend less, but it’s crucial to know what you’ve been spending.

    • Budget Cuts

    Shave ten dollars off each present you have to buy, commit to not buying presents for yourself as the season really kicks off (I am deeply guilty of that one, every year) and look at organising three of four major events, as opposed to trying to attend twenty smaller ones. Rewrite your budget to take into account your ideal expenditure.

    Credit can be really handy at Christmas time – but just because you’re putting something on ‘the card’ doesn’t mean you can ignore a budget. At some stage you will pay that credit back. So it is really important to watch out for overspending with credit at Christmas. It’s easy to get caught up in the “Christmas spirit” – but don’t spend what you can’t afford.

    You may, as many do, feel the pressure to “give” so much you do so at the expense of your own budget and ultimately end up with a debt you can’t pay back. The end result of this can be getting into more debt to pay the original debt. It eventually catches up with you, and you end up with loan commitments you can’t meet or other bills get neglected because you just can’t afford to pay it all. Creditors start to default your credit file. Your financial freedom is compromised.

    This is why budgeting is so important.

    There is always something great you can buy that fits in your price range.  It just takes a bit of thinking. Besides – isn’t it the thought that counts? If you take the time to think cleverly now, you won’t be tempted to overspend in a mad panic later. And at the end of the day, your good credit rating won’t be suffering in the New Year, due to credit card debt.

    If you have a default on your credit file, or other bad credit history which you don’t believe should be there, then we may be able to help remove it and give you back your clean credit rating. Contact a MyCRA Credit Rating Repairs to have a no-obligation chat with a Credit Repair Advisor about your situation. If you want to know more about your credit rating, or credit repair – or visit our main site www.mycra.com.au.

    Image: nuttakit/ www.FreeDigitalPhotos.net

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

  • ACMA is set to get tough on dodgy Telcos

    It seems regulators will be stamping their authority over Telcos that breach new customer service rules when they are released in a month’s time. We have been heavily following the introduction of these new laws as a much-needed safeguard for those consumers who have been suffering at the hands of poor advertising and complaints handling from the Telco industry. This has led to many defaults being unfairly placed on credit files, and also invariably sometimes credit file errors.

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

    The Sydney Morning Herald reported yesterday in its story Regulator takes tougher stance with Telcos that in the lead up to the instigation of a new Telecommunications Consumer Protection Code, the Australian Communications and Media Authority (ACMA) is warning telcos it will have little patience for those that ignore the new regulations:

    “The communications regulator is warning of “more investigations [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][and] more court cases” against telcos that breach new customer service rules starting in four weeks.

    The new rules will stop telcos using the word “cap” and force them to offer clear pricing information, usage alerts and better complaint handling services. It also set up Communications Compliance – an industry funded body that will monitor breaches.
    General manager of content, consumer and citizen at the Australian Communications and Media Authority, Jennifer McNeill, said it will have little patience for telcos that flaunt the new Telecommunications Consumer Protection code.

    The ACMA previously used a gentle ‘engage and educate’ method to help telcos comply, but this attitude would be replaced with a tougher stance, she said.

    “You will see more investigations, more directions and more court cases,” she told a room full of telco industry representatives at a briefing.

    “We expect immediate compliance with the obligations that have been substantially carried over from the old code.”

    Ms McNeill said the ACMA would no longer tolerate “good natured incompetence” as an excuse for breaches and would also ask telcos to substantiate any unbelievable service offers. Staff had been shifted around within the ACMA to bulk up its ability to enforce compliance, she added.

    When the code starts on 1 September, if telco’s breach the code, the ACMA can direct them to comply with it.  If they don’t comply with the ACMA’s direction, the Federal Court can impose a penalty of up to $250,000.

    The industry body that drafted the code, Communications Alliance, is conducting briefings and training sessions around the country to help companies prepare for the changes.

    If your Telco has placed a default on your credit file which you believe is unfair, incorrect or just shouldn’t be there – then you may have grounds to request its removal from your credit file. To discover whether you may be a suitable candidate for credit file repair, give the MyCRA Credit Rating Repairs team a call on 1300 667 218.

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