MyCRA Specialist Credit Repair Lawyers

Tag: default;

  • Late payment grace period extended to 14 days

    grace period 14 daysAn application by the Australian Retail Credit Association (ARCA) to extend the 5 day ‘grace period’ to 14 days for late payment information  on credit reports was approved by the Information Commissioner late last week. The amendment to the Credit Reporting Privacy (CR) Code will mean consumers will have more time to pay their credit card or loan account before they cop the new type of bad credit a ‘late payment’ notation. We look at the details of this important change and what this means for you and your credit rating.

    By Graham Doessel Non-Legal Director of MyCRA Lawyers

    Since 12 March 2014, Australian credit reports can include a range of new information available to lenders, including repayment history information. Up until last week, repayment history information could be recorded on licenced credit account which was more than 5 days late.

    But following widespread concern across the community that a 5 day grace period was not long enough to ensure simple forgetfulness or mistakes didn’t see consumers hit with a black mark on their credit report, Attorney-General, George Brandis requested a change. ARCA submitted an amendment to Office of the Information Commissioner (OAIC) to extend the grace period to 14 days, which was approved last week. Consumer advocates (including myself) had argued that the original 5 days late was not long enough to indicate significant credit risk.

    “Given the concerns raised by the community and reflected by the Attorney General on this matter, we agree that a 14 day grace period is an appropriate compromise before a late payment is recorded as Repayment History Information,” ARCA CEO Damian Paull stated in a media release after making the submission to the OAIC.

    He says Repayment History Information helps improve the accuracy of predicting the credit risk of consumers, and consumers need to understand the difference between late payments and defaults.

    “One late payment on your credit report is less serious than a default. Any of us can be on holidays or forgetful, and a late payment can be offset by an overall positive history of paying most accounts on time. Defaults on the other hand are always more serious,” he said.

    I am encouraged that the grace period has been extended to 14 days, and I understand that one late payment on a consumer’s credit report should be much less serious than a default. But at the same time, I fail to see how exactly consumers are meant to understand the differences between a late payment and a default.

    We know the process of assessing credit worthiness is a matter for each lender to determine and given this, consumers have been given no information or examples from lenders in which to garner any understanding on the differences between how a default and a late payment will be treated.

    As someone experienced with seeing the effects of bad credit, I can only make assumptions based on how most mainstream lenders have treated other ‘black marks’ on credit reports. In the past, a client with a default has most often been refused credit with mainstream lenders, too many credit enquiries on the client’s credit report within a certain time frame has also in the past meant credit refusal. Consumers with these black marks who have not been out and out refused credit have alternatively been offered a higher interest rate than someone with a clean credit file.

    I predict that late payment notations will probably be treated the same way. A certain number within a certain time frame could mean credit refusal, a certain number could also mean a higher interest rate for the prospective borrower. So what’s the magic number? I guess we’ll have to wait and see.

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

  • 6 Tips For a Clean Credit File

    tips clean credit fileCurrently, we are seeing lots of people running into trouble with their credit rating. If you end up in trouble with a default on your credit file, it sticks for 5 years and can be a real thorn in your side when you go to apply for credit again. With new laws now in place from March 12 – repayments on accounts such as credit cards and loans made more than 5 days late may see you end up with a notation against your name for 2 years. It’s heavy stuff. We look at what you can do to stay savvy with credit now and in the future, and make it work for you!

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

     

    You could be forgiven for thinking that credit is the enemy…

    But we need to develop the ethos that credit is not something that is granted, it is something that is earned. At one point banks were practically throwing money at us. Now it’s tough and you have to prove yourself.

    There is absolutely nothing wrong with using credit provided you make it work for you. In fact, not having a credit rating in this day and age can be just as difficult as having a bad credit rating.

    Where people come unstuck with credit is getting to a stage where they are forever chasing their tail with repayments, falling behind. Or getting blasé about repayments and not realising the consequences.

    Credit can be wonderful provided you maximise it to suit you. If you can’t afford it now you can have the privilege of paying for it later – but understand that you will pay at some point.

    Payments on any bills which are more than 60 days late can be listed as a default on your credit file.

    This default can remain on your credit rating for 5 years and can be very detrimental to your ability to gain further credit. Even if the account was later paid, the credit reporting agency generally does not remove the default but can mark it as paid.

    Even defaults that show up as being paid can be enough for a declined home loan approval in the future. It is extremely important to keep a clear credit file because the repercussions will be felt for 5 years.

    You also need to be organised to ensure you avoid the dreaded late payment notation against your name. Too many of those could be just as detrimental to getting a loan as a default would be.

    There is no time like the present to start making credit work for you.

    Begin by checking your credit file – which you are entitled to do for free every 12 months via the major credit reporting agencies Equifax (Formerly Veda Advantage), Dun & Bradstreet and Tasmanian Collection Service.

    If you find a default, writ or Judgment on your credit file which you believe is there unfairly, unjustly or just shouldn’t be there at all – it may be possible to have it removed.

    Here are some tips:

    1. DO USE CREDIT: Having no credit history means there is nothing to calculate and the risk appears high to lenders. Start by borrowing something small. Repaying mobile phone plans, internet accounts, or store credit on time will appeal to anyone checking your credit score. Smaller purchases paid correctly contribute to approval for larger loans such as homes, vehicles, and businesses in the future because they show a person’s ability to repay. Positive repayment history on loans and credit card accounts may also help to boost your credit score after March 2014.

    2. MAKE REPAYMENTS ON TIME: Repay any bills received by the due date. Repay over the minimum amount required on credit cards. If you are having trouble paying on time, contact the creditor as they may be able to work out a payment plan rather than listing the non- payment as a default or in the case of licenced credit, a late payment notation.

    3. HAVE A STABLE ADDRESS: Lenders like to see stability. Furthermore, defaults are easy to come by when bills are sent to the wrong address. If you do travel frequently, consider a trusted family member’s address for all bills.

    4. CHECK CREDIT FILE REGULARLY: You should check your file before you need to apply for credit. That way if there are any problems you can sort it out while there is no urgency, and save yourself embarrassment and disappointment from having credit declined.

    6. DON’T LEAVE DEFAULTS TOO LATE: If there are defaults, don’t put up with them for 5 years. To find out more about removing/disputing a credit listing you don’t agree with, contact us here at MyCRA Lawyers on 1300 667 218.

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

  • Credit reporting in Australia your questions answered on bad credit

    credit in AustraliaAustralia has just undergone a major credit reporting change. If you don’t know much about credit reporting, then you could be at risk of  messing up your credit rating. Yesterday, we answered your basic questions on credit reporting. Today we answer more of your questions on bad credit and what to do about it.  Find out what you may not know about credit in Australia.

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

    I have paid my credit card bill late, what are the consequences of this?

    Accounts like your credit card, your personal loan, your mortgage or your car loan are provided by ‘licenced’ credit providers. These providers are required to hold an Australian Credit Licence. They are also able to record and access repayment history information, include late payment history. If you are more than 5 days behind in your repayments it could be noted on your credit file. So in a nutshell, if your credit provider has previously informed you that it will be collecting repayment history, expect that notation to show up against your name, including the date the account was paid. This information will stay on your credit file for 2 years. It is unclear what the consequences of one late payment notation will be. Certainly it has been said that several late payment notations will impact your ability to obtain credit.

    I have found a default on my credit rating, what are the consequences of this?

    If you discover you have a bad credit file, you will find it very difficult to obtain credit in the future. Generally this problem will keep occurring for the 5 years the default is on your credit file. This will probably prevent you from obtaining a home loan with most lenders and possibly lead to credit refusal of many kinds from loans right through to phone plans. A default is not removed unless it can be shown it was placed in error on your credit file or was placed unlawfully.

    A record of good repayment history information may ease the severity of having a default on your credit file, but as defaults are not removed for 5 years, there is no guarantee you will be granted approval. You may also be offered a higher interest rate while the default is on your credit file.

    What can I do if there’s something I don’t agree with on my credit file?

    If there are errors on your credit file, be aware you do have the right to have them rectified. Likewise, if there are numerous strange defaults and or applications for credit that you don’t recognise you would need to immediately investigate these and notify Police in case of identity fraud.

    If you don’t agree with a credit listing that has been placed by your credit provider, and you want to dispute it, the new laws allow you to ask the credit reporting body which holds your credit file to note a dispute against it.

    Some people choose to go through the process of disputing their own credit listing, and other people prefer to leave it to a third party. Both options are there. Often it depends on a) how savvy you are b) how much time you have c) how complicated the process of dispute is going to be.

    In many cases where people have attempted to remove the default themselves, they have come across difficulties and defaults have not been cleared. Most times the creditor will explain to the client that defaults DONT EVER get removed. The best they can do is mark the listing as paid (if it’s been paid). This may not be sufficient to ensure credit is obtained with some lenders.

    If you are looking at choosing a third party to dispute your credit listing, make sure you choose wisely. You can contact the Credit Repair Industry Association of Australasia (CRIAA) for help with selecting a reputable and ethical credit repairer.

    MyCRA Lawyers is a firm focused primarily on credit disputes. Not only can we work to repair and remove your bad credit by disputing your credit listing, we can also work on your behalf in legal matters as they arise (which they frequently can).

    Images: Stuart Miles/ www.FreeDigitalPhotos.net

  • How your credit rating can be damaged when you move.

    moving houseDid you know, that every time you move house, you run the risk of damaging your credit rating? It happens if loose ends are not tied up on your credit accounts before you leave your old address. We look at some ways you can make sure you don’t risk your good credit rating, and ability to get a loan in the future when moving house.

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

    Moving is a time of stress and chaos. All of your important stuff is boxed up and in transit. You’re flat out cleaning the old place on time, let alone tending to those financial loose ends. But to maintain the integrity of your credit rating, it is really important that you have a plan for making a clean break at each residence.

    Time and again we have the situation where clients apply for a home loan and are refused because they have ‘surprise bad credit’, which when we track it back for them is due to the fallout of accounts sent to their previous address. This may not always be your fault.

    We have had plenty of clients who’ve needed help disputing their credit listing, because their Energy Provider could not work out that cancellation of their old account and installation at the new address meant that they had actually moved. Their final account was sent to their old address because they had not specifically provided a forwarding address.

    Not notifying your Credit Provider of your new address when you move can lead to a Serious Credit Infringement or ‘clear-out’ listing being placed on your credit file. This listing is, as the name suggests, much more serious than a default.

    What is a Serious Credit Infringement (SCI)?

    A serious credit infringement is an overdue debt in which the Credit Provider has been unable to contact the individual for 6 months following the overdue debt, despite reasonable attempts by the Credit Provider to do so. A SCI is listed on your credit file for 7 years. If contact is made within that time, and the overdue debt is paid, the listing is then downgraded to a default, which carries only a 5 year term.

    To avoid this, here are 5 tips for keeping your credit rating in check when moving house:

    1. Let all your Credit Providers know you will be moving and give them a forwarding address.

    You are obliged to update your Credit Providers with your forwarding address when you move. When you make that call to your Credit Provider, be sure to make a note of the day, time and person you spoke to about the request.

    Often we have people say they have told their telco or their energy company they are moving, and provided a forwarding address, but mail has still gone amiss and the client has ended up paying for it. If you have specific details of your call – the Creditor may be able to bring up the recording and verify your request.

    2. If ending an account with a Provider, request a final account.

    If you need to cancel your account, such as an Energy or home phone account when you move, make sure you request a final account for services. There may be incidental charges, or pay out fees as well as days accrued in the new bill period. Pay that notice as soon as possible.

    3. Don’t assume your account is finalised until you get it in writing.

    Once you have paid your final account, request a statement be sent in writing verifying the account is at an end. If you don’t receive that notice, chase it up.

    4. Cancel any direct debits.

    Places such as gyms and childcare centres operate payments via a separate direct debit company. If you have any direct debits set up, you should notify the company of the cancellation and of your forwarding address.

    Don’t assume correspondence with your gym is enough to cancel that account. You will have signed a separate contract with the direct debit company, and you are just as obligated to them if you have missed payments, for whatever reason.

    5. Redirect mail.

    Despite providing a forwarding address, and despite your attempts to finalise your accounts, there can be instances where a Credit Provider continues to send mail to your old address.

    Creditors can and do make mistakes, and one common mistake is simple computer or human error with billing systems. To prevent their oversight from costing you your good name through bad credit, consider redirecting mail through Australia Post to your new address.

    If you have just found out you have bad credit, there are many circumstances where you may be able to successfully dispute the credit listing. For help to dispute your default or Clear-Out listing, contact MyCRA Lawyers on 1300 667 218.

    Image: Ambro/www.FreeDigitalPhotos.net

     

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

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

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

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

    Good deposit? Check.

    Good income? Check

    Paid off most of your debts? Check

    Stable job? Check.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Image: Danilo Rizzuti/ www.FreeDigitalPhotos.net

     

  • Credit repair ‘test case’ has broker over the moon

    Happy New Year 2014Happy New Year from MyCRA Lawyers. How can we make 2014 better for you? We can recommend our credit dispute and credit file consultancy services!

    A shameless plug perhaps – but here’s why we’re doing it…

    By Graham Doessel, Non-Legal Director of MyCRA Lawyers.

    We want to tell you about one of our broker clients, who has just jumped in with us just before Christmas, and been over the moon with the results.

    Up until now, this broker had been turning clients away who had bad credit. But he’d recently heard about our success from someone he trusted, and decided it was time to give us a go.

    Why didn’t he start earlier?

    Understandably, when you find out you or your clients have bad credit it can be hard to know what to do.

    Many people in the past have been hesitant to consider having their credit file repaired.

    And for brokers, there is a fair bit of reputation at stake sending someone off to do something you don’t know much about, and the last thing you want to do is threaten that.

    Add to this the criticism that is floating around about credit repair, and some clients and their brokers can be reluctant to test the waters.

    Since MyCRA Lawyer’s inception as an Incorporated Legal Practice focusing on credit disputes, fears have been alleviated for many who were watching credit repair with interest but trepidation, including our new broker client.

    He sent us his first client, which he said after the fact was really just a test to see how we’d go.

    His client had great success – the default on his credit file was removed in less than 2 weeks. His client will now be able to apply for the home loan at interest rates he deserves.

    On top of that, and probably more importantly, the broker was really happy with how he and his client were treated by our staff – including the advice that was given, and the follow up that was provided during the course of the credit repair.

    His great experience meant he will be referring any other clients he comes across who have bad credit to us. He no longer has to turn them away, and he has found a firm whom he trusts, and whom he trusts with his most important asset, his clients.

    If you are also watching with interest, curious to learn about credit repair but afraid to test the waters…jump in and find out whether you or your clients might be suitable for credit repair with our law firm – focused on credit file consultancy and credit disputes.

    The assessment stage is quite rigorous, so you can be sure if we do decide to take the case on, we have a strong reason to go in and fight for that credit listing’s permanent removal from your credit file.

    Call MyCRA Lawyers if you have more questions about what we do. Ph 1300 667 218 and we can talk you through what’s involved as well as give more specific help for your case. MyCRA Lawyers are qualified to perform legal services.

    Image: Idea go/ www.FreeDigitalPhotos.net

  • Your home on the line: be vigilant with bills this Christmas.

    Media Release

    repayments ChristmasYour home on the line: be vigilant with bills this Christmas.

    28 November 2013

    Australian consumers need to be extremely careful with their repayments over the Christmas period as paying even ONE DAY late on some accounts could mean their credit rating is weakened, warns a consumer advocate for accurate credit reporting.

    Graham Doessel, Non-Legal Director of MyCRA Lawyers, a national firm which helps clients dispute their credit rating, says regardless of the size of the Christmas credit card bill – delaying payment on licensed credit could prove to be a long term credit disaster and reduce the chances of securing a home loan.

    “The majority of Australian consumers seem unaware that as of December last year if you default on making a licenced credit payment by the due date, it is noted, and from March 2014, this information will show as part of your credit history for two years,” he warns.

    This new data set of repayment history information (RHI) is part of amendments to the Privacy Act 1988 (Cth) and is intended to capture those individuals who are at risk with credit.

    Mr Doessel says it is unclear the weight lenders will give to RHI when assessing credit worthiness.

    “We don’t know precisely how many notations will be too many and mean credit refusal.  We also don’t know if having as little one late payment notation will move the individual to a higher ‘risk’ category with lenders, which will mean they are charged more in interest,” he says.

    March 2014 will see a new Credit Reporting Code of Conduct come into force, which will include a probable grace period of 5 days for late payments, but until the time frame is set – there is no room for mistakes.

    5 Tips For Saving Credit File Over Christmas

    1. Watch out for identity theft.
    Be aware fraudsters are out in full force at Christmas. Don’t be lax with personal information, and take care online to minimise the risk to your credit rating from misuse by identity thieves.

    2. Stay organised.
    With the busy lead up to Christmas, repayment of your accounts should still remain a priority. Develop a system so you don’t forget – or you will pay the price later. Try to pay at least a couple of days before the due date to allow for any systemic delays with banks or BPay.

    3. Pre-pay your bills before you go away.
    Don’t get caught out with a bill sitting at home unpaid while you’re away – pre-empt any bills which may come up during that time period.

    4. Spend within your budget.
    Whilst using credit at Christmas fosters the ‘pay later’ mentality – remember that you will pay at some point for what you spend now -so consider what you can really afford.

    5. Police your Credit Provider.
    Credit Providers can also be affected by Christmas. The volume of transactions may increase while staff decrease, putting pressure on systems.Check statements – make sure they are correct, and also keep abreast of which bills are due and when. If you notice you haven’t received a bill and you believe it’s due, you should chase it up.

    Christmas is also a good time for people to check their credit rating, to ensure the accuracy of their information.  They can request a copy of their credit file at no charge, from one or more of the credit reporting agencies and a credit report will be sent within 10 working days. Contact MyCRA Lawyers on 1300 667 218.

    About MyCRA Lawyers: MyCRA Lawyers is an Incorporated Legal Practice focused on credit file consultancy and credit disputes. MyCRA Lawyers means business when it comes to helping those disadvantaged by credit rating mistakes.

    /ENDS.

    Please contact:

    Graham Doessel – Non-Legal Director MyCRA Lawyers Ph 3124 7133

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

    www.mycra.com.au  www.mycra.com.au/blog

    MyCRA Lawyers 246 Stafford Rd, STAFFORD Qld Ph 07 3124 7133

    Links:
    http://www.oaic.gov.au/privacy/privacy-resources/privacy-fact-sheets/credit-and-finance/privacy-fact-sheet-16-credit-reporting-repayment-history-information
    http://www.austlii.edu.au/au/legis/cth/num_act/pappa2012466/sch2.html

    Image: “repayments Christmas” – Naypong/www.FreeDigitalPhotos.net

  • Not all credit repair law firms are created equal.

    Media Release

    20131021-MyCRA-Lawyers-Logo-medNot all credit repair law firms are created equal.

    6 November 2013

    One of the country’s top credit repairers has stepped up to fill a gap in the credit repair industry with the establishment of a law firm.

    Non-legal Director and well known consumer advocate for credit reporting, Graham Doessel says the establishment of MyCRA Lawyers has been motivated by an identified need to do more for consumers.

    “Credit advocates play an essential part in credit reporting, but the only way to truly cover all bases for consumers is to be part of the legal process,” Mr Doessel says.

    He says that in reality, when disputing a client’s credit listing, credit repairers can be met with varying responses and lengthy delays, and are not always taken seriously.

    “We believe that a law firm can provide strength in dealing with a Credit Provider,” he says.

    “Being a law firm allows us to go to the next level on behalf of our clients and bring real quality to our work – without restriction.”

    The credit repair industry has grown in popularity in Australia with tight lending conditions post-GFC.

    At last count 34 firms claim to be affiliated with credit repair or to repair bad credit.

    With that popularity has come criticism from bodies such as Ombudsman Services, other legal centres and even ASIC about questionable practices within the industry. Many have called for the formal regulation of the credit repair industry.

    Mr Doessel agrees more credit repairers should be held accountable, and that Regulation needs to follow.

    “MyCRA Lawyers believe it’s time to stand above the morass, be a leading firm and ensure that it acts to the highest standard.”

    He believes being a law firm with the duties and obligations this brings, will achieve this.

    Legal Practitioner Director and Principal Solicitor, MaryAnn Armstrong (JD. MEd. BEd ) says MyCRA Lawyers are one of the few firms who can legally offer Judgment removal services legally and professionally within the credit repair industry.

    “Preparing and submitting Court documents, preparing Affidavits – these are all actions which are legally required to be performed by a practising legal firm – and I would argue that any credit repair firm which is claiming to handle any Court matters such as Judgments and Writs should hold a practitioner’s certificate,” Ms Armstrong says.

    She also argues that credit repair is a grey area when it comes to the law –and those in the credit repair industry who are giving the impression of performing a legal service, could be doing so illegally.

    “The law states that any firm which acts on behalf of a consumer in legal matters is deemed to be performing a legal service, and must hold a practising certificate.”

    “Throwing around phrases such as ‘cheaper than a lawyer,’ ‘check if your debt is legal’ or ‘we provide legal removal services’ could be dangerous,” Ms Armstrong says.

    Whether or not Australia’s credit repairers would be required to cease operation in the future could come down to the perception of whether or not these firms were deemed to be crossing the line into a legal service.

    “It could come to light that many credit repair firms are currently operating as well-intentioned law breakers,” she says.

    Mr Doessel says both he and Ms Armstrong are keen to continue to speak out for consumers in matters of credit reporting accuracy.

    “With Australia’s new credit laws coming to fruition in March 2014, it will be incredibly important to be a voice for consumers in the credit reporting arena,” Mr Doessel says.

    He says MyCRA Law’s pricing model remains at a fraction of the cost of many other legal services, but it is not cheap.

    “Our clients are those people who are experiencing credit rating errors, omissions and inconsistencies, which are holding them back from obtaining major credit. We want our services to remain accessible, but we despise the predatory tactics from credit repair firms who target people who are down on their luck – so cheap and nasty is not for us,” he says.

    /ENDS.

    For interviews, please contact:

    Graham Doessel – Non- Legal Director MyCRA Law Ph 3124 7133

    MaryAnn Armstrong – Legal Practitioner and Director, Principal Solicitor MyCRA Law Ph 3124 7133

    For general media enquiries, please contact:

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

    MyCRA Lawyers 246 Stafford Rd, STAFFORD Qld

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

    MyCRA Lawyers…permanently removing defaults, Writs and Judgments from credit files.

  • Identity fraud survey: Find out if you are protected

    Identity FraudIt’s Identity Fraud Awareness Week 2013 this week running October 13 to October 19. Identity fraud can leave your credit file in ruins, and in some cases can mean a five year battle to recover your good name. Find out how protected you are from identity fraud by taking the Australian Federal Police’s (AFP) online identity fraud survey. Read more about how identity crime can impact your credit file. Know the basic things to keep you and your credit file safe. And this week, take steps to safeguard yourself in the future, and pass on the message of safety to the people around you.

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

    Identity theft victims who have had credit taken out in their name can often struggle to recover from having their identity stolen long after the initial fraud has occurred.

    People can have mobile phones and credit cards taken out in their name as a minimum. Some can even have mortgages and cars purchased in their name.

    The real pain comes when a victim discovers defaults on their credit file – which not only ruins their ability to obtain credit at the time, but those listings remain on their credit file for usually five years from the initial fraud.

    What is not often realised is how difficult getting default listings removed from the credit file can be. Even for a victim of identity theft, there is no guarantee the defaults can be removed from their credit file. The victim often has to try to prove they didn’t instigate the credit in the first place. This can be difficult if victims are not aware of how or even when the identity theft occurred.

    The Australian Crime Commission now sites high-tech organised crime as costing Australians $15billion a year, and is reported to be the fastest growing crime in the country. And the Australian public is starting to become concerned.

    Results from the Office of the Australian Information Commissioner’s (OAIC) 2013 Community Attitudes to Privacy survey were released last week. The survey reports that 48% of Australians believe that online services, including social media, now pose the greatest privacy risk. Only 9% of survey respondents considered social media websites to be trustworthy in protecting privacy.

    To know if you may be vulnerable to identity fraud – take the AFP’s identity crime survey this week, and pass it on to people you know. Most involved in identity crime prevention agree that Australians need to increase their knowledge of identity theft, and how to protect themselves – particularly with the volume of computer use in this country. Here are some ways the AFP suggest we can all protect ourselves form identity theft:

    How can I protect myself from becoming a victim of identity theft?

    You can take some simple steps to reduce the risks of having your personal information stolen or misused:

    • secure your mail box with a lock and make sure mail is cleared regularly

    • shred or destroy your personal and financial papers before you throw them away, or keep them in a secure place if you wish to retain them

    • always cover the keypad at ATMs or on EFTPOS terminals when entering your PIN, and be aware of your surroundings— is anyone trying to observe or watch you, are there any strange or loose fixtures attached to the machine or terminal?

    • ensure that the virus and security software on your computers and mobile devices is up-to-date and current

    • don’t use public computers (for instance, at an internet café), or unsecured wireless ‘hotspots’, to do your internet banking or payments

    • be cautious of who you provide your personal and financial information to—ensure that there is a legitimate reason to supply your details. Don’t be reluctant to ask who will have access to your information and which third parties it may be supplied or sold to. Ask to see a copy of the Privacy Policy of the business before you supply your details

    • only use trusted online payment websites for items won at online auctions or purchased online. Never make payments outside of trusted systems—particularly for goods which you have not yet received

    • regularly review your bank statements and obtain a copy of your credit history report. Report any unauthorised transactions or entries ASAP

    • ask your bank or financial institution for a credit or debit card with an embedded ‘micro-chip’—they are more secure than cards with only magnetic stripes

    • do not respond to scam emails or letters promising huge rewards if bank account details are supplied, or in return for the payment of ‘release fees’ or ‘legal fees’

    • if responding to an online employment or rental advertisement, be wary of transmitting personal information and copies of documents via email or electronically. If asked to attend an interview, do some prior research to confirm the legitimacy of the company or employment agency

    • in relation to social networking sites, always use the most secure settings. Take extreme care if placing personal details such as date of birth, address, phone contacts or educational details on your profile, and do not accept unsolicited ‘friend’ requests

    • for other useful tips, refer to the “Protecting Your Identity booklet – What Everyone Needs to Know (PDF, 700KB)“, published by the Attorney-General’s Department.

    • take our online identity crime survey to see how secure your identity is.

    I believe it is also really important to be aware of what your credit file says, and to know if there have been any changes you haven’t initiated.

    In my experience often credit file discrepancies can be the first sign we have been victims of identity theft. It is a good idea to regularly obtain a copy of your credit report to ensure that everything on your credit file is as it should be. Strange credit enquiries, changes of contact details, and of course default listings you are unaware of can mean someone has been using your identity.

    A credit file report can be obtained for free every 12 months from the major credit reporting agencies Veda Advantage, Dun and Bradstreet and Tasmanian Collection Service and is sent to the owner of the credit file within 10 working days. Or you can pay to have it sent urgently.

    If you are vulnerable to identity theft, you may also be able to purchase an alert service with credit reporting agencies – to be kept updated on any changes to your credit file which can indicate identity theft attempts.

    This Identity Fraud Awareness Week, the take home message from MyCRA would be:

    • stay vigilant (you never know when identity theft could strike)
    • stay informed (fraudsters are always thinking of new ways to trick people so try to stay one step ahead – it might help to sign up for alert services from Stay Smart Online, and check the ACCC’s Scamwatch website regularly)
    • and talk to others (you don’t want family and friends to become the next victim).

    Image: Victor Habbick/ www.FreeDigitalPhotos.net

  • Australians on ‘credit-collision course’ without better education.

    Media Release

    credit collision courseAustralians on ‘credit-collision course’ without better education.

    15 October 2013

    A consumer advocate for accurate credit reporting hopes the introduction of a public scoring system from Veda Advantage will be the catalyst to boost dangerously low credit awareness and reduce the likelihood of credit disasters following the implementation of new Privacy Laws next year.

    Graham Doessel, CEO of credit repair company MyCRA says the Veda credit score is calculated from interpreted data at Australia’s biggest credit reporting agency, Veda Advantage – and has up till now been used by many lenders to assess credit worthiness.

    “This information is now available to consumers, and this is a positive step in terms of transparency,” Mr Doessel says.

    “But what I am most hoping will happen, is that more Australians will find this new number an easy and attractive starting point to finding out more about managing their own credit-worthiness.”

    He warns if we don’t facilitate credit-savviness now, possibly millions of Australians could be severely disadvantaged come March 2014 when new data sets are available on Australian credit reports.

    “The need for knowledge is going to be greater next year, as more people are going to get caught out with a bad credit score, and be scratching their heads to understand why,” he warns.

    Recently Veda Advantage released results of its analysis of 300,000 VedaScores with consumer research of 1,000 Australians, and found that an astounding 80% of people had never accessed their credit report.

    “…despite 15% of Australians being at risk of a credit default being recorded on their credit report in the next 12 months, considerable lack of awareness exists about what a credit history is, or how a poor credit report can impact chances of getting credit from lenders,” Belinda Diprose, Veda Marketing Manager says.

    Mr Doessel says it demonstrates an alarming rate of ignorance in the community.

    “It’s not really the fault of consumers. In my opinion there has not nearly been enough emphasis on public credit education right across the board up until quite recently,” he says.

    Mr Doessel says there are some important basics about their credit rating that Australians should know.

    5 Things You Need To Know To Manage Your Credit Worthiness.

    1.  You don’t have to pay to see your credit file, just your credit score.

    In most cases you can access your credit file for free annually from all of Australia’s credit reporting agencies, and this will remain at a standard 10-day issue from receipt of application. It is important to apply for your credit file with each credit reporting agency – as you may have defaults with only one company. They are: Veda Advantage, Dun & Bradstreet, Tasmanian Collection Services, and Experian.

    2. Your credit score rates you based on other credit-active Australians.

    Your credit score based on Veda data will be available to you when you pay to see your VedaScore with your credit report, via this particular credit reporting agency. Veda Advantage holds roughly 16.5 million Australian credit files – so the data should be quite predictive of your overall credit worthiness in comparison to other credit-active Australians. If you are applying for credit in the near future, this credit score could be important to know.

    3. There are several factors that make up your credit-worthiness.

    Items such as negative credit listings (defaults, Court Writs, Judgments and Bankruptcies); number of credit enquiries and the type and size of credit requested in your past application can all impact your credit worthiness.

    But there are other pieces of information about you which also have a bearing on your credit score – including your address; your age; how long you’ve lived at your current address; any business directorship or partnership you have, and the address of the business and length of time there.

    Information on the VedaScore calculation can be found on Veda’s website.(1)

    4. There will be more factors affecting your credit-worthiness next year.

    As of March 2014, there will be 5 new data sets available on Australian credit reports, and this data will be used in any credit score calculation.

    They are: repayment history information; the date on which a credit account was opened; the date on which a credit account was closed; the type of credit account opened; and the current limit of each open credit account.

    5. Late payments will impact your credit file.

    You will still be defaulted if you are more than 60 days late in making repayments to any Credit Provider, but in addition if you are more than 5 days late paying a licenced Credit Provider, you will be issued a late payment notation and this will show on your credit file from March 2014.

    Repayment history information applies to credit such as loans and credit cards and is being collected NOW. Too many late payments will more than likely reduce your credit score significantly.

    Mr Doessel says better credit education should eventually lead to fewer inconsistencies in credit reporting.

    “Credit rating errors are quite common, and the onus of ensuring the credit file is accurate rests with the consumer – so better education across the board could result in more errors being ironed out in the credit reporting systems,” he says.

    /ENDS.

    For interviews please contact:
    Graham Doessel – CEO Ph 3124 7133

    For media enquiries please contact:
    Lisa Brewster – Media Relations media@mycra.com.au

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

    MyCRA Credit Repair 246 Stafford Rd, STAFFORD Qld

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

    (1) http://www.veda.com.au/yourcreditandidentity/check/vedascore/how-my-vedascore-calculated

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    Image: nuttakit/ www.FreeDigitalPhotos.net

  • How To Make Your CREDIT CARD work for you

    choose best credit cardIn this week’s ‘Make Credit Work For You’ post we look at credit cards. Do you currently have a credit card? Do you know what your interest rate is? Do you know if you really have the right credit card for your financial circumstances? With so many choices for rates, fees and rewards – it’s smart to spend some time thinking about the appropriate one for you. Knowing how to make your credit card work for you, which starts by picking the right card might just save you from credit debt and ensure your credit history is clear as you work towards larger financial goals.

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

    Almost half of Australians are in the dark about their credit card. According to a Choice Survey last month, 48% of Australians who used their credit card recently weren’t sure how much interest they would be charged.

    This “interest rate ignorance” has according to Choice, meant a big windfall for the creditors.

    Since June 2011, the average credit card interest rate has moved 176 basis points above the Reserve Bank’s cash rate, earning the banks an extra $630 million this year alone.

    Bit by bit, the banks have been sneaking their rates further away from the baseline. At the moment the average credit card interest rates sits 14.41% above the cash rate, up from 12.65% in June 2011, according to calculations from commercial comparison website Mozo.

    That adds up to a lot of debt – and a lot of uncertainty.

    “As a nation, we’re paying interest on more than $36 billion of credit card debt, yet almost half of us are uncertain what it costs us,” says CHOICE CEO Alan Kirkland.

    This “interest rate ignorance” points to a wider symptom of credit ignorance which has many households making poor financial decisions for their individual situations. It can be paralleled with the prevalence of high interest rate home loans for people with poor credit history. Whilst some people may need to choose this type of home loan – it isn’t always the right option, and can end up costing families tens of thousands more in interest unnecessarily.

    Whilst it is imperative to know the interest rate on your credit card – what is even more important to know – is that you have the right card for your circumstances. One which you can pay back – on time!

    Too many times people can be lured in to choosing cards with rewards or other gimmicks – which are not suitable for them and which can end up costing them severely for years to come.

    Facts about Debt and Credit Cards

    If you are more than 5 days late paying your credit card this will show up on your credit history as a ‘late payment notation’. This notation will remain on your credit file for 2 years. Multiple late payments will probably mean you are refused mainstream credit for 2 years, or only offered credit at much higher interest rates.

    If your credit card goes unpaid for 60 days or more – you will have a default placed against your name. Defaults remain on your credit file for 5 years.

    Any adverse credit listing will mean you are either refused mainstream credit, or only offered credit at higher interest rates. So you want to avoid this ‘credit death sentence’ by choosing the right card for you in the first place.

    Recently Savingsguide.com.au covered in depth the pros and cons of each different type of credit card, in their article How To Choose The Best Credit Card.

    credit cardHow Do You Use Credit?

    You need to ask yourself some great questions to be clear about your credit card usage.

    If you don’t know what you’re paying in interest – that would be a great first question to ask. The other question to ask – is how am I using my credit card? Is it for emergencies only, am I a hefty credit card user or somewhere in between? Do I tend to pay the balance off each month or carry it over? Do I have a current debt on my card I need to pay down?
    The answers will all determine which card is right for you.

    SavingsGuide make some suggestions about who should choose what card:

    They advise, if you are just going to use the card for emergencies – you are probably best looking for one with low or no annual fees.

    “This card is perfect for people who rarely use their credit cards, save their credit cards for an emergency or religiously pay off their credit card before the interest period.

    “If you’re never earning any interest on your card, it’s more important to save money on the annual fee than it is to consider how the interest rate would affect you.”

    If you use your card regularly – and if you pay the balance off each month –then you are probably the best type of person for a rewards program.

    “If you use your credit card regularly for everyday purchases and are capable of consistently paying it off within the interest-free period, then a rewards card might work well for you.”

    If you are having trouble paying the entire balance off each month – a low interest rate seems ideal.

    “If you’re totting up interest on a card, it’s essential to keep your interest rate as low as possible. Otherwise, you’ll find it increasingly difficult to get on top of the credit repayments.”

    If you have debt you need to pay down – you could switch to a balance transfer which allows you to pay off the card with low or no interest.

    “If you need some breathing space, being able to pay off debt without having to worry about interest for a couple of months might be exactly what the doctor ordered.”

    Tips to prevent bad credit history from credit card debt

    Create your own credit limit.
    Set yourself a limit based on what you can comfortably afford to repay. It’s important to realise that you will pay at some point for the credit you use. Make sure at worst case scenario you can afford to repay it. You will then have confidence in your spending without the temptation to overspend.

    Don’t exceed the credit limit.
    This will just mean you incur hefty charges.

    Pay off the balance each month.
    Ideally, pay off the entire card balance within the interest free period. If you don’t, you will be charged interest right back to the date you purchased each item. You not only lose the interest-free period on those past purchases, but until you pay off the balance there will be no interest free period on anything you spend in the future.

    Or, choose a low interest card, but still pay more than the minimum repayment amount each month.
    If you have debt which carries over on your card month to month you should look at a card that has a lower interest rate. It may not offer an interest free period, or hefty rewards points, but the lower interest rate should mean the carried over debt is more manageable for you, and will prevent you from getting into trouble with credit and ending up with defaults or late payment notations on your credit file (bad credit history).

    Avoid cash advances.
    Interest usually applies immediately on any cash advances from credit cards – whether the withdrawal is within the interest free period or not.

    You can also visit ASIC’s MoneySmart website for further information on how to choose the right credit card.

    For help repairing bad credit history, or more information on your credit rating, visit our website www.mycra.com.au or call MyCRA Credit Rating Repairs tollfree on 1300 667 218.

    Image: adamr/ www.FreeDigitalPhotos.net

    Image 2: naypong/ www.FreeDigitalPhotos.net

  • Technology makes Australians more vulnerable to organised crime

    cyber-crimeInterested in the changing face of cyber-crime? The International Serious and Organised Crime Conference was held in Brisbane on Tuesday, and shed some light on where we’re heading. The Conference has heard that technology changes has made organised crime more complex and more open to new crime markets – including intellectual property crime, and cyber-crime. The conference heard that Australian law enforcement was no longer working in relative isolation, and that it has been necessary over the last 10 years to expand partnerships, both nationally and internationally. We examine the relevant subjects in this important Conference, and look at what this means for your financial identity and your credit file in the future.

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

    Minister for Home Affairs and Minister for Justice, Jason Clare released Organised Crime in Australia 2013 on Tuesday – the Australian Crime Commission’s report on serious and organised crime in Australia. This year marks the 10th anniversary of the Australian Crime Commission.

    The report concludes that organised crime is more pervasive, more powerful and more complex than ever before.

    “Organised crime worldwide makes more than $870 billion every year. That’s bigger than the GDP of Indonesia. If organised crime was a country it would be in the G20.” Mr Clare said.

    The Australian Crime Commission estimates that organised crime costs the Australian economy alone $15 billion each year.

    Australian Crime Commission CEO, John Lawler revealed at his keynote address to the conference that 67 per cent of our nationally significant serious and organised crime targets are linked to at least one international jurisdiction, with most focused in South-East Asia. These targets have a detrimental impact on Australia, and are sourcing illicit commodities from overseas including from Asia, Africa, Europe and South America.

    “Once, encounters with organised crime were largely restricted to those who sought out illicit commodities or illegal activities. Today, any Australian on any day can be impacted.

    What used to take a number of people and considerable time to commit a crime against 10 others, can now be committed by one individual against many more from behind a computer screen,” he told the Conference.

    He also identified an increasing incidence of Australian investors falling victim to investment scams as well as credit card or identity fraud.

    “Organised crime is no longer its own institution; it has now moved into every estate, it has pervaded each level of global society…And in Australia, we are seeing organised crime increasingly hiding clandestine activities through legitimate business enterprises,” Mr Lawler said.

    “Today, more than ever, the affect of organised crime on Australians is unparalleled. It’s pervasive, powerful and complex.”

    He says the only way to break the business of organised crime is through rich, contemporaneous, and comprehensive criminal intelligence. The ACC says it’s focused on data sharing with national and international agencies and businesses. ‘Big data sharing’ will be the way of the future.

    “Data, on its own, is of little use to law enforcement. It’s only when we pull the data together, analyse it and make links, that the real discovery and prevention can happen,” Lawler said.

    He says in the modern era, this also means partnering with law enforcement and Government, as well as private industry.

    As a result of recent legislative changes to the Australian Crime Commission Act, the ACC now discloses information to private industry.

    “We want to work with industry to use the Commission to build a strong understanding of risk and threat; to strengthen practices and ultimately make it difficult for organised crime to operate in Australia.

    This is also about a whole-of-community approach. The public are now key players in the fight,” Mr Lawler said.

    Task-Force Galilee: Investment Fraud

    During his speech, Mr Lawler describes the work the ACC did in dealing with a rampant investment fraud impacting Australians. Here is an excerpt from his speech, detailing the nature of the fraud, and the process the ACC went through to identify the groups involved:

    We had intelligence of 2600 Australians with losses in excess of $113 million. This crime was being committed off-shore. Traditional law enforcement efforts were being frustrated. These organised crime groups have established a sophisticated business model. They rely on global inconsistency around legislation and jurisdiction and target developing countries from which to perpetrate their crimes.

    Most callously, they target the elderly at a time when they should be enjoying their retirement.

    In response, Task Force Galilee brought together approximately 20 agencies to put together a multi-layered response.

    An important component was a public awareness campaign which included holding industry briefings, lauching a public report with the AIC to provide a picture of the threat.
    And, for the first time in law enforcement history, we partnered with Australia Post and sent a letter to every household in Australia warning them about this criminal activity and providing information on how to avoid becoming a victim.

    Market research undertaken following this campaign indicated increased public awareness and preventative behaviour from the public and high-risk groups when approached or targeted by investment fraudsters.

    Task Force Galilee has also had some successful operational outcomes, a huge feat when working across international borders.

    The most recent outcome occurred in April, when following a referral from the ACC, Thai authorities raided a suspect business premises in the central business district of Bangkok.

    During the raid, Thai authorities located nine foreigners as well as a number of Thai nationals. A range of incriminating evidence including telephones, call scripts, client lists and computer equipment were also located and seized.

    The criminal syndicate responsible had engaged a plethora of professional advisers located around the globe to assist their fraudulent behaviour ranging from corporate consulting firms to company incorporation and taxation advisers.

    Using a sophisticated website, supported by fraudulent prospectuses and the illegal use of company brands, the syndicate was able to sell non-existent shares in more than 20 companies.

    The complexity of the syndicate’s operations allowed it to successfully target victims in 19 countries across the world.

    The Australian Crime Commission estimates that the operation had generated at least A$45 million from Australian-based victims alone.

    The ACC and other international agencies have focused a significant amount of their efforts in unravelling the ‘dark market’ out there. To see the connections which exist between the internet and organised crime. To identify the fraudulent opportunities that can be thought up, bought, and perpetrated on a global scale. The ease with which international access can mean the big players can dodge detection and dissipate their possible negative impact. So the web is pretty tangled and requires lots of effort to find out what forces are at play. When you look at a scam email which has made its way to your email address – it might be pertinent to question, who is it really from? And who will benefit if you fall for it?

    The impact of cyber-crime on you can be far reaching. Falling for scams, whether large scale like the investment scam or even disclosing your personal information to the wrong person can put you at risk of identity theft. You may never have your bank accounts touched, but someone may gain access to your personal information, generally through obtaining it via virus software known as ‘malware’ or by phishing scams which can then be used to generate fake identification. Fraudsters may then create a fake identity in your name and even take out credit.

    If the theft goes undetected, the fraudster can be racking up thousands of dollars in debt in your name. When this happens, it is not only your bank accounts that can be affected, but your financial identity – your good name which is destroyed.

    In Australia, if a credit file holder fails to make repayments on credit past 60 days, then a default can be placed on their credit file by the creditor. This default remains on the credit file for 5 years, and can severely hinder their chances of getting credit once it is placed. For the identity theft victim, this can leave them severely disadvantaged for 5 years, and unable to take out legitimate credit. The only way they may be able to restore their good name is through lots of hard work proving to creditors they did not initiate the credit.

    So prevention is key. Made possible through education, through strong protection from Police and Government agencies, and through appropriate legislation to prevent ‘loopholes’ which make Australians targets for cybercriminals.

    Image: Victor Habbick/ www.FreeDigitalPhotos.net

  • Card skimmers in Brisbane pose identity theft risk.

    Media Release

    atm card skimmingCard skimmers in Brisbane pose identity theft risk.

    Stafford (BRISBANE), 1 August 2013.

    As police announce ATM card skimming devices have been found once again in the Brisbane area, a credit expert is warning the public about the lesser known but more dangerous effects of card skimming – identity theft.

    Graham Doessel who is CEO of MyCRA Credit Rating Repair, a national firm based in Brisbane’s Stafford, says many people are aware that banks will reimburse monies lost due to card skimming and other related fraud, but when it comes to fraudsters assuming the victim’s identity and taking out credit in their name, they have no idea how difficult a task recovery is.

    “You can’t be ‘reimbursed’ for identity theft – it is a difficult process to try and recover a good name which has been tarnished, because the victim must prove they didn’t initiate the credit and show cause as to why the credit listing is unlawful,” Mr Doessel says.

    He goes on to say, that with fraudsters often preferring a more ‘instant’ gratification, identity theft from card skimming is probably not widespread – but is a risk nonetheless.

    “A patient fraudster has a lot to lose, but a lot more to gain from attempting this form of fraud, so it could potentially mean the card holder is not a victim of any un-authorised transactions right after the skimming, but their details are misused in the future for credit applications,” he says.

    “With no easy way to trace the source of the identity theft, unfortunately the victim’s life can be made a living nightmare – with a mountain of debt and locked out of credit for 5 years unless they can prove their case of identity theft to Credit Providers,” he says.

    He says the best way of preventing this type of fraud is for consumers to be aware of what ATM card skimming devices look like – and take a moment to check the machine before they use it.

    Queensland Police state on their news website that the device found on an Ascot ATM in late July had a cover plate placed over the original card entry and a small camera – no more than a tiny dot at the bottom left side of the device which records the victim’s PIN number. 

    “It is believed that all information data obtained by the skimming devices has been retrieved by police and security of the credit card details has not been compromised,” Police assure.

    When card skimming devices were found at two separate locations in Brisbane’s Queen Street Mall last November, the Queensland Fraud Squad’s Detective Superintendent Brian Hay explained how to check whether ATM card slots had been tampered with.

    “When you go to an ATM look for a skimmer. Look at the entry point, make sure it’s a nice integrated, sealed or one piece unit,” he told Brisbane Times.

    “Make sure it doesn’t look like there’s an attachment to the facial plate. Grab that card entry point, give it a bit of a wiggle and make sure there’s no flexion … It can pop off in your hand.”

    Superintendent Hay also warned consumers to be wary of identity theft.

    “Understand, that if you’ve been compromised it’s not just your money that’s been lost, but the crooks now have your identity,” he said.

    Mr Doessel says consumers need to stay up to date with the latest scams and ways their personal and financial details can be at risk.

    “At the very least, log on to sites like the ACCC’s SCAMwatch regularly, and get to know what new threats are out there that could put you and your credit file at risk,” he says.

    The SCAMwatch website warns about the risks of card skimming and identity theft.

    “Card skimming is also a way for scammers to steal your identity (your personal details) and use it to commit identity fraud. By stealing your personal details and account numbers the scammer may be able to borrow money or take out loans in your name,” the website states.

    Police say if anyone believes that they have located a skimming device on an ATM they should contact their local police station or Crime Stoppers on 1800 333 000.

    /ENDS.

    MEDIA ENQUIRIES

    Please Contact:

    Graham Doessel – Founder and CEO MyCRA Ph 3124 7133

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

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

    246 Stafford Rd, STAFFORD Qld

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

    Queensland Police say a skimming device like the one pictured, was fitted to an ATM in the Ascot area. http://mypolice.qld.gov.au/wp-content/uploads/2013/07/ATM-skimming.jpg

    http://mypolice.qld.gov.au/blog/2013/07/18/atm-skimming-devices-brisbane/

    http://www.brisbanetimes.com.au/queensland/bank-customers-under-threat-from-card-skimmers-20121122-29roj.html#ixzz2a0wDyBIv

    http://www.scamwatch.gov.au/content/index.phtml/tag/CardSkimming

    Image: naypong/ www.FreeDigitalPhotos.net

  • The bad credit nightmare affecting Australian home buyers.

    Media Release

    bad credit nightmareThe bad credit nightmare affecting Australian home buyers.

    25 July 2013

    Consumers all over Australia every day are faced with surprise bad credit when they apply for a home loan, and according to an advocate for credit reporting accuracy, many consumers get railroaded into living with debilitating defaults on their credit file that simply should not be there.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says many home buyers end up angry and disappointed when their finance is declined due to bad credit, particularly when they believe their credit file shouldn’t have any black marks.

    “While paying your bills on time is the best way to ensure you have a clear credit file, it does not guarantee your credit report will be clear. 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. At the time of finance application, it is too late,” says Mr Doessel.

    He says often consumers who query a credit listing with their Credit Provider are told that credit listings cannot be removed, but can be marked as paid if they have been paid. But he says the ramifications of bad credit are so huge, consumers should not be burdened by them if there are inconsistencies.

    “A default – even a paid default – will impact your ability to obtain credit generally for the entire time it is listed on your credit file – which is 5 years.”

    “If you are convinced a credit listing shouldn’t be there, or is inaccurate in some way, then you should dispute it,” Mr Doessel says.
     5 Steps to Fixing Your Bad Credit History 
    1. Determine what account the default is for. If you don’t have a copy of your credit report, you will need to order one. If you haven’t ordered a copy in the last 12 months, it will be provided at no cost from the credit reporting agencies in Australia. They are Veda Advantage, Dun & Bradstreet, Experian, and TASCOL (if in Tasmania). You may have listings with one or all of these credit reporting agencies. They will take 10 working days to send you a copy of your report. For a fee you can have one sent to you urgently. On your credit file, will be the company the default is with, and an account number. This should correspond with an account you have with them. If it doesn’t, or if you don’t have any accounts with the company in question, there is a good chance there may be a mistake on your credit file.

    2. Gather all your information first, and try and determine how the default made its way to your credit file. Before you call the company in question, sort out what you know about the situation. Have they made a mistake? How have they made it?

    3. Write to the Creditor to ask for information on the account. You may need to find out more about how the default got there. Every company keeps a file on its customers and you can write to them and request your account information to date.

    4. It is going to be hard going. Most people find it really hard to correct their credit listing themselves -especially if it’s complicated. For one, the Credit Provider has to comply with a whole heap of legislation that crosses different codes, and if you don’t know legally where they may have made errors – it’s pretty hard to persuade them they have done the wrong thing. Secondly, negotiating anything on your own behalf can be tricky – the old foot in the mouth routine can get you into trouble and see you stuck with the listing for the whole term. If you are able to show cause as to why the listing was put on your credit file unlawfully, there is a chance it will actually be removed.

    5. You may need an advocate. If you find out you have bad credit, and you have neither the time, skill, nor the patience to investigate and dispute your credit listing, you can consult a credit repairer. They will conduct an audit-like investigation of your case and the circumstances surrounding the credit listing, based on the relevant legislation applicable to your case. And most importantly, they will probably think of things you had never thought of to strengthen your case for the default removal.

    Mr Doessel says credit repair is not suitable for everyone, and sometimes if people have ‘done the crime’, they may need to do the time. He says if you are a serial offender for late payments, or if you are currently struggling to keep your head above water, then new credit- especially major credit – is NOT going to make it all better.

    “But if you have been unfairly treated, or there has been a mistake on your credit file, then you have a right to insist on that inconsistent listing to be removed or corrected,” he says.

    He says avoiding bad credit requires a combination of good repayment habits, good communication with Credit Providers, and regular reviews.

    “Every consumer should order a copy of their credit report regularly – at least once a year – to ensure everything reads accurately. It is also important to check your credit report before applying for any major credit – so if there are any inconsistencies they can be addressed prior to the finance application,” he says.

    /ENDS

    Please contact:

    Graham Doessel – Founder and CEO MyCRA Ph 3124 7133

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

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

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

    Credit Rating Errors In Australia: Background information

    To date, there are no official statistics provided to the Australian public on the number of defaults or other credit listings on Australian credit files.

    Likewise, there are currently no statistics on the numbers of disputed credit listings, or on listings which have been removed or altered on Australian credit files.

    This arguably makes it difficult to obtain any scope on the prevalence of bad credit and on the prevalence of credit reporting inconsistencies. We argue lack of information on the number of disputes makes it difficult for consumers to have any scope for the likelihood they may succumb to credit reporting errors, and may make them less likely to routinely check their credit file for inconsistencies.

    In 2012 a Veda Advantage spokesperson commented on the possible number of errors on credit reports within Veda. 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,” Head of External Relations, Chris Gration told Today Tonight. (i) 

    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). (ii)

    It revealed 34% of the credit files surveyed contained 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. (iii)

    Transferring those figures from the Choice study to the number of credit files in Australia today, could balloon the figures to almost 5 million errors, inconsistencies or flaws. But unfortunately these figures are only estimates – due to the lack of real statistics.  

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

    (ii) http://www.smh.com.au/articles/2004/02/09/1076175103983.html

    (iii) http://www.caslon.com.au/reportingprofile3.htm

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  • Your Credit Rating – How to Get a Free Credit Check and What to Do if Your Credit Report Comes Back with Defaults

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    check credit fileWe recently read a comprehensive article on getting a free copy of your credit report written by Alex Wilson over at online savings website – www.Savingsguide.com.au.

    From the long list of comments on this issue, we can see just how many people in Australia still remain in the dark about how to even simply get a copy of their credit rating, let alone dispute any bad credit which they believe should not be there. We take you through some important points from this article and look in more depth at what you should do if you have something like a default or Judgment or other credit listings on your credit report that you feel is incorrect, inaccurate or unfair.

     

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

    In the article How To Do A Credit Check – Check Your Credit Rating & Credit Report For FREE – you will learn how to perform a credit check to obtain a copy of your credit report. The importance of checking your credit rating – particularly prior to applying for a home loan, or other significant credit – cannot be overstated.

    In this day and age, everything works on credit so you need to have a clear credit rating to be able to function well in society. If you cop a default on your credit file – you will be refused credit with mainstream lenders (at affordable interest rates). If you do get a loan, often the interest rate is much higher. You may also find you can’t get credit cards or mobile phones on a plan. But there are many people who don’t know they have a default on their credit file until they apply for credit and the bank does a credit check on them. To be one step ahead, it is better to check your credit file first – and give yourself a chance to dispute any bad credit history and have incorrect listings removed prior to applying for credit.

    “I was worried about my credit report

    If you are anything like me, you have probably missed a few phone bills, perhaps missed a mortgage repayment by accident or even worse – gone overseas and been missing in action for a few months with banks frantically trying to get in touch with you.

    It made me wonder whether these oversights would affect my credit history and in turn my ability to borrow money come time for a home loan,” Alex writes in the article.

    On a side note, oversights like forgetting a credit card bill, a mortgage repayment or any type of payment to a licenced Creditor will see a late payment notation added to your credit file now – and that will be visible from March 2014.

    Just what impact this will have on your ability to obtain credit is still up in the air – but having too many late payments, or even just one, could mean you are refused credit, or offered credit at a higher interest rate in the future.

    How to Check Your Credit Rating For Free

    You can contact us at any stage to do the work for you to obtain a free copy of your credit file  or alternatively, here is a run-down of how Alex checked his credit rating for free:

    The first credit rating provider I am going to use is called ‘My Credit File’ – they are part of Veda Advantage, one of Australia’s largest credit reporting agencies.

    Like many credit rating providers, they offer both a paid and free service. I am of course opting for the free service. All this means is I have to wait a little longer for it to arrive I am told. Not a huge deal.

    How to do a free credit check with Veda/MyCreditFile [Now Equifax]

    1.)  I went to www.mycreditfile.com.au 2.)  I then went to the ‘personal’ tab 3.)  Scrolled down to find the button stating ‘Free – Find out more’ 4.)  Loaded the page called ‘Free Credit File’ which tells you all the details you need to fill out 5.)  I then downloaded this form to request a free copy of my credit report 6.)  I attached a scanned copy of my drivers license (or passport) and also a copy of my utility bill proving my name and residential address. 7.)  Done

    I have to say, it was all rather easy. I now just have to wait 10 working days for my credit report to arrive.

    Why do they offer a paid version of your credit rating report?

    If you are wondering what the difference is with the paid version from MyCreditFile – please note that the only difference is that you pay $99.95 and it in turn comes to you via post, email or fax within 1 working day. E.g. you save 9 days. Still the same report.

    Dun and Bradstreet credit rating reportCredit Report

    Like Veda[Equifax], Dun and Bradstreet are one of the big players in credit ratings. They are used by many companies as the source of reporting on credit.

    They by law have to offer you a free credit report and free copy of your credit history as discussed earlier. Here is how to get it.

    How to get a copy of your credit report from DNB 1.)  Go to https://www.dnbcreditreport.com.au/ 2.)  Look to click on ‘standard credit report’ or similar – e.g. not fast tracked. 3.)  On the standard request page you then fill out the online form (takes around 3minutes) 4.)  Attach copies of your identification 5.)  Submit/mail it 6.)  You’re done.

    Much easier than the MyCreditFile.com.au website – it’s as if the previous site was trying to hide the free report (well they certainly made it hard to find).

    A bit about the Credit Score

    If the bank does a credit check on you, they will obtain your credit score. But you are not privy to this number if you order a copy of your credit report – paid or otherwise.

    People often ask ‘what is a good credit score?’ – however these credit scoring metrics are often kept confidential with the lenders and credit reporting agencies.

    They are a metric that lets them give you an assigned score based on how much debt you currently have, how many credit applications you have filled out recently and more. It is more for the lenders to use to easily categorise people, so it isn’t often you get to find out your exact credit score – which in turn can make it hard to improve your credit score.

    In my opinion, everyone should have access to their credit score, and the method used to calculate it.

    How do I fix my bad credit?

    If you have bad credit – you have two options….

    1. You can attempt to remove the default or other credit listing yourself, and there are processes to do this – OR

    2. You can use a professional credit repair service.

    The benefit in fixing your own bad credit is that it’s cheap. You may have very little costs associated with disputing your own credit listing. But similarly to defending yourself in Court – the cheap option may not be the best one for you.

    Credit rating errors are quite common, and the onus of ensuring the accuracy of your credit file rests with you. But how do you know if a listing has been placed accurately on your credit file, or if it should be there in the first place?

    There are strict codes of conduct and legislation which must be adhered to when your Credit Provider is placing a default or other credit listing on your credit file. These laws are in place to protect consumers from unfair and damaging credit reporting. Creditors are largely aware of this legislation (yet may not have adhered to it), but there are very few consumers who are well-versed in credit reporting and industry legislation.

    In order to dispute a credit listing which you believe shouldn’t be there, you must identify where the Creditor has not adhered to current legislation when placing the notation on your credit file. There is a whole barrage of points which need to be met in order to constitute a valid listing, and if you have not been made aware of all the avenues for dispute, then you could be doing yourself and your case a disservice.

    A reputable credit repair Lawyer should dig deeper to conduct an audit-like investigation of your credit complaint to uncover errors or non-compliance.

    For more information on credit repair, visit our website www.mycralawyers.com.au or contact a Credit Repair Advisor on 1300 667 218.

    Image: Ambro/ www.FreeDigitalPhotos.net

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