MyCRA Specialist Credit Repair Lawyers

Tag: defaults

  • 16-25 and “drowning in debt” Your guide to make credit work for you.

    drowning in debtIn the news this week, we are told that the 16 to 25 age group are getting way over their heads with debt in relation to income. A News Limited story yesterday  reveals that this age group carry a much higher proportion of debt to income.  This is a worrying trend – and one that can be prevented by reaching out and educating young people on the ins and outs of credit. If you are in this age group – we give you the low-down on some important things to know which you may not have been told about credit in Australia. We show you why you don’t want to get in too much debt, and how being in control of some simple things can save you and your credit file well into your future.

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

    The stats

    The News Limited story “Young adults drowning in debt” featured Roy Morgan data showing one in three in the 16-25 age group carries more than $2500 forward in credit card debt each month and those aged 21 to 25 had an average income of $791 a week.

    The data also found 215,000 Australians aged 18-24 had a personal loan for a car and the average amount owed was $11,010.

    Why should you be concerned about too much debt?

    If you have debt which you are struggling to pay back right now – this can affect you this year, next year and for years to come. If you have ever taken out a mobile phone plan, a credit card or loan, you will have a credit file in your name. If you fail to pay your credit back on time, you will probably have notations put against your name by your Credit Provider – eg Telstra, Westpac, Energex etc.

    If you are more than five days late paying back your credit cards or personal loans – you will have that noted on your credit file as repayment history information. If you are more than 60 days late in paying ANY credit – from mobile phone bills to electricity accounts and loans, you will be issued with a default or other negative listing on your credit file.

    Defaults

    If you are issued with a default, this will have very serious consequences for years to come. You won’t be able to get credit at normal interest rates for between 5 and 7 years! You will most likely be refused major credit, and if you aren’t you will have to pay thousands more in interest. This is not the best area to go ‘alternative’ in. You want the most affordable interest rates – not paying in some cases tens of thousands more in interest just because you didn’t pay your mobile phone bill 3 years before.

    Think to yourself…what do you want to be doing in two or even five years? Maybe own a house, a car, or travel overseas? Having a default against your name can spoil all of those dreams.

    Young people in default

    Credit reporting agency Veda Advantage recently released some of their data from the last three years, which showed that Gen Y holds 60% share of all credit defaults. From telco defaults through to loan defaults – Gen Y tops the list in every category. Find out more.

    AMP financial planner Dianne Charman told News Ltd access to credit has been made much easier for the younger generations compared with a few decades ago, which has allowed them to run into debt more easily.

    “Access to credit a few decades ago just wasn’t as easy as it is now,” she says.

    “We didn’t have mobile phone access to accounts that you can run up bills on, so our kids today are faced with decisions which can rack up bills more easily, and credit cards and personal loans are far more accessible than what they have been previously.”

    What you need to know

    top five

    Here are our top five things you need to know to avoid bad credit.

    1. Be careful with all of your credit.

    It doesn’t have to be a big account to have an impact on you. Accounts which for as little as $100 which go unpaid can see you defaulted and banned from mainstream credit for five years. Likewise, any credit account can see you lumbered with a default if it goes unpaid – this goes for mobile phone accounts, electricity accounts as well as credit cards and personal loans. Paying on time, every time is your first line of defence against bad credit.

    2. If you can’t pay for it – let your Credit Provider know.

    If you run into money troubles – the WORST thing you can do is pretend like it’s not happening. If you lose your job, or run into temporary financial difficulty – the smart thing to do is contact your Credit Provider to work out alternative arrangements to bridge the gap. Asking for a financial hardship variation may save your credit file even if you are struggling to make payments. MoneySmart’s  senior executive Robert Drake also recommends contacting a financial counsellor to work out a plan.

    “The earlier you tackle the problem the better, whether it’s by getting in touch with the lender and telling them you have some problems you’re dealing with or by talking to a financial counsellor,” he told News Ltd.

    3. Tie up all financial loose ends when you move or go overseas

    A really common way that young people can find themselves in trouble with their credit file – sometimes without even knowing it – is when they move house or go overseas for extended periods. Typically an account gets sent to your previous address and remains unpaid and then listed as such on your credit file. This can occur frequently with electricity accounts. If you move around a lot, consider a P.O. Box for all your mail or alternatively a parent’s address. Likewise, make sure you contact your Credit Providers to inform them of your new address when you move – or if going overseas, have someone keep an eye on your mail. Parents are good for this!

    4. Check your credit statements and order a credit report.

    Many people of all age groups have the mistaken view that if something wasn’t right with their credit accounts or something was listed incorrectly on their credit file – that someone would inform them. This is seldom the case. It is your responsibility to check that your accounts are running right by checking your statements when they come in. Review each phone bill. Query anything you’re not sure of.

    In addition to this, you should also regularly check what is being seen by lenders by ordering a copy of your credit file. It is free once every year from Australia’s credit reporting agencies – and you should order it annually to make sure everything reads as it should.

    Young people need to insist on account accuracy and credit reporting accuracy. With defaults almost seemingly a ‘dime a dozen’ in the 16-25 age group, it is important accuracy does not take a back seat and see defaults pile up on Australian credit reports without an understanding of what constitutes a lawful listing.

    Order a free credit report.

    5. You have a right to correct mistakes

    Every Australian needs to know that mistakes can happen on credit reports. Likewise, bad credit can be listed on credit files unknowingly.

    A credit listing that you feel is inaccurate or unfair should be tested against the appropriate legislation for its validity and its accuracy. The process of dispute is not easy, but Creditors should be called to account for any inconsistencies. You should also know Creditors have a legal obligation to remove a listing which was placed incorrectly.

    Changes for the better are coming in Australian credit reporting particularly around correction of credit reporting mistakes, but education is key for every credit active individual to make best use of these changes, aware of the action they need to take to ensure their rights are upheld.

    Where to go for money help

    AMP’s Charman suggests younger Australians find themselves a money mentor to help them when facing important financial decisions, such as parents, aunts or uncles. This is a great idea. Having someone to bounce decisions off can really improve your chances of making the right decisions for you not just for now, but for later as well.

    Also go to the MoneySmart Rookie website for under 25’s, and get help with a range of financial decisions including handling credit and debt, getting a car, starting work, moving out of home, understanding mobile phone deals and plans and online transactions. You can also visit savingsguide.com.au – a great advice centre and blog for all-things money which is focused not only on saving money – but also on repaying debt. Their motto is ‘it’s not how much you earn, it’s how smart you are with what you have’.

    As a young person, getting to know your rights around credit and your obligations will empower you well into the future, and set up habits which will see you in good stead for your whole financial future. You can find more information on your credit file or disputing a credit listing on our website www.mycra.com.au  or by subscribing to our blog www.mycra.com.au/blog.

    Image 1: artur84/ www.FreeDigtalPhotos.net

    Image 2: tungphoto/ www.FreeDigitalPhotos.net

  • Watchdog criticised over lack of prosecutions for fraudsters and identity thieves

    Identity theftPeople are starting to get angry over scams and identity theft. As anyone with a computer, a telephone or who banks would know – the attempts to steal our financial information, or to scam us online are getting more and more frequent, but it seems the prosecutions are not increasing. We examine Michael Pasoce’s controversial opinion piece from todays The Age. The piece refers to criticism that the Australian Competition and Consumer Commission and Police are ignoring 99.9 per cent of scamsters.

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

    Michael Pasoce’s article Watchdog lacking any bite as scammers fleece us is pretty damning of the ACCC and the Australian Police, and their lack of ‘bite’ in matters of prosecution of fraudsters. Here is an excerpt from Pascoe’s article today:

    “The ACCC doesn’t even try to lumber fraudsters and scam artists – it just hopes to “disrupt” them with a little education of us mugs. Education is indeed a good thing and that deserves a tick, but locking up the very nasty little perpetrators wouldn’t be a bad idea either. They’re not even trying.

    Responsibility for that of course should be shared with the various police fraud squads – but they are rather hopelessly under-manned, under-skilled and really only interested in the big stuff, preferably if it’s rather simple, old-fashioned fraud.

    Many of the online and telephone con artists are based overseas, but there are plenty of low-life locals as well. Successful fraudsters keep their jobs relatively small and remain mobile. That way the police and ACCC won’t bother taking an interest, even when a case is handed to them on a platter.

    At last month’s Retail World conference (disclosure: I was paid to chair it), online retailers told how completely frustrated they were in trying to get any authority to take action over fraud.

    For example, a fridge is purchased online by someone using a credit card. Fridge is delivered. The owner of the credit card phones his or her bank claiming they did not authorise the purchase – perhaps claiming a child used the card without permission. The bank refunds the money to their customer and hits the retailer with a charge-back. In the words of the Queensland Police website, the retailer then becomes the complainant – nearly all the time, police don’t want to know about it.

    What’s more, from the same website: “If the cardholder is reimbursed for the loss, financial institutions have agreed that they do not require the cardholder to report the matter to police for investigation.”

    The banks are treating this sort of fraud as merely a cost of business. The retailers are getting nothing in return for their merchant fees.

    A major online white goods retailer told me one of the fraudsters tried to hit them a second time. The retailer attempted to interest the local gendarmes in catching the thief in the act – but they weren’t interested.”

    Pascoe argues that the supposed authorities have been overwhelmed by this class of crime.

    “The law is too complicated in dealing with it, the manpower to tackle it is not forthcoming, there is yet again no sign of anyone having fire in the belly, a desire to kick heads. The scumbags who prey upon the gullible effectively have a free hand to go forth and defraud while police will visit a pop star’s hotel room to inspect a half a joint,” he says.

    So if it all too complicated – is the argument still there for reporting scams and other forms of identity theft to Police or other authorities even if no monies are lost?

    Absolutely. Without reporting, authorities won’t have any idea of the scale of the problem, and that is the first step towards fixing it. I have long been of the belief that not requiring the reporting of fraud which has been reimbursed by banks is exacerbating the problems in this area. The thing is, all of these small instances may just be a drop in the ocean, but they could all be drops from the same source.

    Was Pascoe right to call to task the authorities over a lack of prosecutions in this area?

    Absolutely. It is important that we apply pressure to government and to Police, to find a way to locate and prosecute fraudsters, or to justify why they can’t.

    In reality, prosecutions can be difficult simply because of the global nature of this crime. Small time fraudsters may be doing all of the leg work here – and on selling the information to global syndicates. Or fraudsters may be able to buy personal information obtained by international fraudsters and use it to obtain credit in Australia. It is a tangled web – but it’s one we should be throwing time, money and resources into now and in the future.

    Identity theft and your credit file

    Cyber-crime can be perpetrated by stealing the personal information of individuals, generally through obtaining it via virus software known as ‘malware’ or by phishing scams which appear to be genuine companies asking for personal details which can then be used to generate fake identification. Then the fraudster will go about taking out credit in the victim’s name. If the theft goes undetected, the fraudster can be racking up thousands of dollars in debt in the person’s name. This is when identity fraud affects the victim’s credit file. When this happens, it is not only the victim’s bank accounts that can be affected, but more importantly their ability to obtain credit in the future.

    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.

    For information on preventing identity theft, and help with repairing a credit rating following fraud, contact MyCRA Credit Repair, or call tollfree 1300 667 218.

    Image: Victor Habbick/ www.FreeDigitalPhotos.net

  • Gamers: cheating could cost you your credit rating

    If you or someone in your family is a gamer, then you would be familiar with gamershacks. Hacks and cheats are designed to give a gamer help with a game by allowing them to download useable software for assistance. But security company, AVG says downloading hacks could open up a can of worms not only for the gamer, but for anyone else that uses the computer, because you have probably also just downloaded Malware. We look at how this occurs, what Malware does and what the risks are for your personal information and  your credit file.

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

    Antivirus vendor AVG has issued a warning to gamers following research which suggests that more than 90 per cent of ‘hacks’ available online contain some form of malware or malicious code.

    Hacks and cheats are commonly incorporated into games; however, the sheer popularity of online multiplayer games has made gamers prime targets for cybercriminals.

    “The research suggests more than 90 per cent of hacks, cracks, patches, cheats, key generators, trainers and other downloadable game tools contain malware or executable code.

    These hacks are commonly delivered via unregulated torrents and file sharing sites, an easy vector for malware.

    Malware inadvertently downloaded with hacks can give attackers easy access to your online gaming account as well as other sensitive information such as online banking details, personal data and passwords for other online services,” Stay Smart Online recently advised.

    They advise gamers to only download patches from the game’s official site, and to avoid any unofficial software. They also recommend:

    Always be suspicious of any files downloaded from torrents and file sharing websites.

    Ensure you always have up-to-date security software installed on your computer.

    Use unique account logon and password information for each of your online gaming accounts (and every other online service you use).

    What is ‘malware’?

    Malware— is short for ‘malicious software’. It is a type of malicious code or program that is used for monitoring and collecting your personal information (spyware) or disrupting or damaging your computer (viruses and worms). Stay Smart Online explains in more detail:

    Spyware

    The term spyware is typically used to refer to programs that collect various types of personal information or that interfere with control of your computer in other ways, such as installing additional software or redirecting web browser activity.

    Examples of spyware include:

    Keyloggers  

    A keylogger is a program that logs every keystroke you make and then sends that information, including things like passwords, bank account numbers, and credit card numbers, to whomever is spying on you.

    Trojans

    A Trojan may damage your system and it may also install a ‘backdoor’ through which to send your personal information to another computer.

    Viruses and worms

    Viruses and worms typically self-replicate and can hijack your system. These types of malware can then be used to send out spam or perform other malicious activities and you may not even know it.  Both can use up essential system resources, which may lead to your computer freezing or crashing.  Viruses and worms often use shared files and email address books to spread to other computers.

    malwareMalware and your credit file

    If fraudsters can get their hands on your personal information they can steal passwords to not only the gaming site, but also to the bank or credit accounts of anyone who uses that computer.

    They can also create a patchwork quilt of information that can allow them to eventually have enough on you to request duplicate identity documents (identity theft), and apply for credit in your name (identity fraud).

    Running up credit all over town, perhaps buying and selling goods in your name, or in some cases mortgaging properties –you may have a stack of credit defaults against your name by the end of their ordeal – and sometimes no proof it wasn’t you that didn’t initiate the credit in the first place.

    Recovery can be slow, and in some cases you may have no way to prove you weren’t responsible for the debt – with fraudsters leaving no trail and the actual identity theft happening long before the fraud took place.

    Who might be most at risk?

    Gamers often aren’t worried about risks to their personal information as they are often young people who consider they don’t have much to lose, when in fact they do. Firstly, if Malware is downloaded – it puts the entire family at risk. But secondly, a young person is just as vulnerable as anyone to exploitation. There have been reports of crooks harvesting the personal information of young people and storing it until the victim turn 18. Australian Police have issued warnings on the issue of data warehousing in relation to Facebook in the past, but fraudsters won’t be fussy about where they get it from. It all has a lucrative price on the ‘black market’ of personal information.

    For more help with teaching kids and young people about online risks, go to the Stay Smart Online website http://www.staysmartonline.gov.au/kids_and_teens.

    Visit our main website www.mycra.com.au for more information on identity theft and your credit file.

    Image 1: Arvind Balaraman/ www.FreeDigitalPhotos.net

    Image 2: Salvatore Vuono/ www.FreeDigitalPhotos.net

  • Cyber-security to protect your financial identity.

    SSO_Logo+WebHow can what you do online impact your ability to obtain credit? Understand the risks and protect your credit rating.

    MyCRA is a partner for Cyber Security Awareness Week 2013, running this week until 24 May.  The aim of Awareness Week is 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.

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

    Cyber Security Awareness Week 2013 is an Australian Government initiative, held annually in partnership with industry, community and consumer groups and state and territory governments.

    One of the big risks for Australians is that their internet use will lead to fraudsters stealing their personal information for purposes of identity theft (now the fastest growing crime in Australia) and potentially fraud. The good credit rating of the victim could then be damaged.

    It is reported that 1 in 6 people in Australia is a victim or knows someone who has been a victim of identity theft or fraud in the past 6 months.

    Victims are not always ‘gullible’ as may be the impression in the wider community. Many experts say it is not a matter of if you experience an identity theft attempt, but when.

    Increasingly it comes from professional fraudsters whose main occupation is to steal personal information and financial details in order to commit fraud.

    The internet is a big source of personal information and its ever increasing use makes you more vulnerable to identity crime than ever.  This means identity crime can have very long arms – often it originates from overseas crime syndicates. Social networking, online banking, company databases can also be sources.

    The unlucky identity theft victim is unaware of the fraud until their identity is misused, and their credit rating with it. When identity theft damages your credit rating – it is because the fraudster has been able to overtake credit accounts, or has gained access to enough personally identifiable information about you to forge new identity documents.

    If credit accounts are not repaid – after 60 days you may be issued with written notification of non-payment and the intention for the creditor to list a default on your credit file. It is at this moment that some people who were previously unaware of any problems find out they have been victims of this more sophisticated type of identity theft.

    Protecting Your Financial Identity Online

    stay smart onlineYou can provide a safety buffer for yourslef and your family around one of the main channels for fraudsters to enter our lives – the internet.

    Remember the top tips

    Stay Smart Online encourages all Australians to remember these ten simple tips to improve their online security:

    1. Install and update your security software and set it to scan regularly
    2. Turn on automatic updates on all your software, particularly your operating system and applications
    3. Use strong passwords and different passwords for different uses
    4. Stop and think before you click on links and attachments
    5. Take care when buying online – research the supplier and use a safe payment method
    6. Only download “apps” from reputable publishers and read all permission requests
    7. Regularly check your privacy settings on social networking sites
    8. Stop and think before you post any photos or financial information online
    9. Talk with your child about staying safe online, including on their smart phone or mobile device
    10. Report or talk to someone if you feel uncomfortable or threatened online – download the Government’s Cybersafety Help Button

    For specific help with safe banking, we refer to the Australian Bankers’ Association’s recommendations:

    Protect your passwords – ensure you keep confidential your PIN and Internet banking logons and passwords. Avoid using the same logon/passwords for multiple websites, especially when it enables access to websites that include sensitive personal information. Set a pass code for your device and a PIN for your SIM. If your banking app allows logon with a PIN, make sure it is different to the one used to unlock your       mobile device. Make sure your password or code is something that’s hard for others to guess but easy for you to remember.  A bank will never ask you to provide passwords or PINs by e-mail or over the telephone.

    Lock – set your smartphone and tablet to automatically lock. The password will protect your device so that no-one else can use or view your information. Also store your device in a secure location.

    Contact your bank if you lose your smartphone or tablet – call your bank immediately to tell staff about the loss and provide your new phone number, especially if your bank uses an SMS message to authenticate transactions.

    Clear your mobile devices of text messages from banks especially before sharing, discarding or selling your device.

    Be careful what you send via text – never use text messages to disclose any personal information, such as account numbers, passwords or other personal information that could be used to steal your identity.

    Use only official apps – make sure to only use apps supplied by your financial institution and only download them from official app stores.

    Delete spam and scam e-mail – if the offer sounds too good to be true – it probably is.

    Guard identity information carefully and only provide it to trusted people and entities.  This includes date of birth, current address, driver’s licence and passport details.

    Anyone interested in online safety should subscribe to the email notifications from Stay Smart Online Alert Service. The Stay Smart Online Alert Service is a free subscription based service that provides home users and small to medium enterprises with information on the latest computer network threats and vulnerabilities in simple, non-technical, easy to understand language. It also provides solutions to help manage these risks.

    Also, you can look at securing different sections of your internet use in more depth with the help of Stay Smart Online’s key factsheets for online security.

    Check your credit file regularly, and act quickly on any discrepancies there – which can often be the first sign of identity theft. Copies of credit files can be ordered from one or more of Australia’s credit reporting agencies, and are free for the credit file holder once per year.

    Image 1: courtesy of Stay Smart Online

    Image 2: Ambro/ www.FreeDigitalPhotos.net

     

     

  • Lax cyber-security makes us all vulnerable: Cyber Security Awareness Week 2013

    password securityIf your password is one of the most 1,000 common passwords, it could be hacked in literally seconds…

    Are you one of the millions of Australians who have a pretty basic password? We show you how important strong passwords and other security measures are to keep you, your credit file, your business and perhaps your country safe from cyber-attack. This week is Cyber Security Awareness Week 2013, hosted by Stay Smart Online. This is an Australian Government initiative, held annually in partnership with industry, community and consumer groups and state and territory governments. As part of this week we have been fortunate to speak with online expert Daniel Smith about cyber-security. He gives us a unique insight into the importance of cyber-security awareness for every ordinary Australian.

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

    You may have heard last month about the biggest ever global brute-force attack. You may have heard about it, but like many it may have gone straight over your head. But the ramifications of an attack like this are pretty important.

    The attack was on WordPress sites, which currently powers over 60 million websites and is read by over a quarter of a billion users every month. WordPress was attacked by a botnet of tens of thousands of individual computers. The botnet targeted WordPress users with the username “admin”, trying thousands of possible passwords.

    But online expert Daniel Smith warns this attack is definitely only a small taste of things to come.

    “Last month’s attack was orchestrated on a large scale, but this happens continuously on an individual basis on sites like WordPress, Joomla, Drupal or similar,” Daniel says.

    “I liken it to a locksmith with a whole set of generic keys – he can turn the keys in many doors until he finds one that fits. Hackers have common password ‘keys’, and they roll trials of these passwords until one unlocks the computer, and enables them to use the resources powered by the site which are far more than could be gained by a singular desktop computer,” he says.

    The ramifications for individuals and businesses who become part of a botnet are loss of data, loss of secure personal information and break-down of the site.

    “I know victims who have had to close their business down because they have lost so much information,” he says.

    But he warns, hackers don’t always delete the information on these sites, but may leave it intact, putting in files in back doors so that they can go undetected – making use of these resources again and again.

    “Hackers can on-sell information to cyber-terrorists or spammers, and can also on-sell the entire bot-net to be used in a brute-force attack that is capable of crashing a country’s economy,” he cautions.

    He says individuals with a WordPress or similar blog, and small companies could be at risk.

    “They don’t have the money to spend on security protection that a larger business would – and they are the ones that think their small site or blog is ineffectual, when in fact its resources make it a prime target for hackers,” he says.

    So just how easy is it to find these passwords?

    “I did a quick 5 minute search on the internet yesterday, and found a list of 6 million usernames and passwords that are out there. If I went searching for more in depth, there would be more there,” he says.

    Daniel says what’s gone wrong, is that the way we’ve been taught to create usernames and passwords is in fact broken. He says we need to make these changes to the way we run sites like WordPress:

    1. Use secure pass phrases. Come up with a unique scheme that is a minimum of 8 characters long – for example every 3rd vowel could be a number or symbol and you should always add some uppercase letters, numbers and any character that requires the shift key to type. Use multiple words in a pass phrase. You could use two unrelated words which are memorable to you.

    2. Use a different password for each account.

    3. Use a unique username – not the default setting. Never use ‘admin’ as a username.

    4. Minimise password login attempts. Restrict the number of attempts allowed to access the site, before the user is ‘locked out’, which prevents multiple attempts to crack the password.

    5. Include a 2-step verification plug-in. You can download a plug-in which requires 2-step authentification similar to bank requirements when logging in to the site. This is harder to infiltrate by hackers, but Mr Smith says many don’t use 2-step verifications because they seem inconvenient.

     

    “We may need to get a little inconvenienced to prevent what could be a business disaster, or in worst case scenario, a future global disaster,” he says.

    So where do we as credit repairers come in to cyber-security?

    Stealing passwords or personal information through these channels can lead to identity theft and potentially fraud. Hackers can on-sell your personal information to fraudsters who have identity theft as part of their repertoire.

    Information like dates of birth, account numbers, full names etc can be warehoused and used to steal your identity and take credit out in your name. Fraudsters have been known to go so far as to take out personal loans, credit cards and even mortgage homes in their victim’s name.

    Unfortunately fraudsters are never so kind as to pay this credit back – which leads to defaults on your credit rating. Most victims are unaware of this until they apply for credit in their own right and are flat out refused.

    For between 5 and 7 years you can be locked out of credit while your credit rating shows up someone else’s defaults.

    Unfortunately in the past it has not been easy for identity theft victims to prove they did not initiate the credit, particularly if they have no idea how they were duped in the first place. Often this sophisticated type of fraud is instigated by overseas crime syndicates who don’t leave much of a trail, or even if they do, can’t be prosecuted easily.

    SSO_Logo+WebPrevention really is key to protecting your credit file from this fraud – so spend some time and make sure the passwords on your site, or others that you use, are as secure as possible.

    To stay one step ahead of fraudsters, you can subscribe to Stay Smart Online Alerts – which let you know about security issues as soon as they unfold.

    Image 1: digitalart/ www.FreeDigitalPhotos.net

    Image 2: courtesy Stay Smart Online.

     

  • W.A. real estate agent criticises measures to combat property scams

    W.A. property scamsLast year it was revealed that some properties in Western Australia had been sold out from under their overseas owners by fraudsters. Consumers, government and agents were so horrified they acted quickly to introduce new laws to protect the identity of property owners and prevent any more cases of property scams in the state. But the new identity requirements to combat the property scams have come under fire from a Perth real estate agent, who says the storage of personal data could be opening up further potential for identity theft. We look at the criticism from the Perth agent, and what we might be able to expect in the future in every state in terms of identity identification and the protection of both mortgage and the clear credit file of property owners across the country.

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

    In W.A. today late last week, RE/MAX WA Managing Director, Geoff Baldwin came out in criticism of the State’s identification check legislation instigated following Perth’s property scams.

    He called the legislation “a debacle, unnecessarily inconveniencing sellers and causing confusion and in some cases anger,” he was quoted in W.A. Today.

    He said the Code of Conduct required “due skill, care and diligence” to properly identify sellers before a sale goes through, and that this meant that during a 100-point identification check, real estate agents were keeping personal documents in order to demonstrate the fulfilment of this requirement.

    “It upsets a lot of sellers who, in these days of identity theft, rightfully feel uncomfortable with having copies of their passports, licences, etc sitting in manila folders in offices across Perth which is now the requirement for agents to comply with their yearly audits,” he said.

    “There is no argument that an ID system is required to make it as hard as possible for fraudsters to succeed but the current misinformation, doubling up, copying and storing of peoples personal information in agents’ offices is madness and has the capacity to replace one security problem with another.

    Mr Baldwin suggested an alternative method of identification which he hoped would be more secure for sellers.

    “The government needs to act now to refine the one system whereby prospective sellers attend the post office once, provides the required identification which is registered online as having been cleared,” he said.

    “This ID clearance should be associated with the particular property and the secure database should be accessible using a PIN, to agents, brokers, and settlement agents for their clients only.

    But his suggestions were rebuffed by director of property industries at Consumer Protection, Stephen Meagher.

    “The public are asked to provide ID when opening bank accounts, phone accounts etc and accept that to protect their interests in property that ID checks are required when selling their home.

    “Sellers may not always be within easy reach of an Australia Post outlet – either remote in Australia or overseas. “There would be fee for service implications in the Australia Post proposal.”

    WA Property Scams explained.

    In 2010, Wembley Downs retiree Roger Mildenhall had his Karrinyup investment property sold without knowing anything about it. And in 2012 Nigerian-based scammers sold a Ballajura property without the owners’ knowledge.

    “A couple returning from overseas have advised authorities that their property has been sold without their knowledge or consent and a joint investigation has been launched.

    The previous owners were living and working overseas at the time and didn’t discover the property had been sold until they recently returned to Perth to inspect the property.

    The real estate agent involved has told investigators that he received a phone call from a man claiming to be the owner in February this year inquiring about the property. Shortly after, the agent received an urgent request to sell the property as funds were needed for a business investment, later revealed to be a supposed petro-chemical project,” Landgate announced in a statement.

    With the scale of the scam, it is understandable that Government and Agent groups would have acted swiftly to try to combat any further instances of fraud. But Baldwin probably has a legitimate argument when we look at the methods that have been taken to combat it – considering how valuable personal information has become. He, like many others, have reservations regarding the amount of personal information which must be stored by different entities, and the likelihood that that personal information could fall into the wrong hands – like an identity thief’s. It is ironic that the protections we have instigated to combat identity theft seem to put us at greater risk of it. We’re damned if we do, and we’re damned if we don’t.

    Perhaps the answer is some kind of centrally stored database for identity checks – or maybe the old-fashioned paper storage is safer in this age of rising cyber-crime.

    Personal information and your credit file

    Fraudsters now see personal information as a valuable commodity. Many are able to use that information to take out credit in the victim’s name. Often the victim is not alerted to the misuse of their credit file for some time, often not until they attempt to obtain credit themselves. By then, victims may have credit applications as a minimum and possibly defaults, mortgages and mobile phones attributed to them incorrectly.

    Once any account remains unpaid past 60 days, the debt may be listed by the creditor as a default on a person’s credit file. Under current Australian legislation, defaults remain listed on the victim’s credit file for a 5 year period.

    If a victim has defaults on their credit file following identity theft – the defaults still remain there for 5 years. The onus is then on the identity theft victim to prove to creditors they didn’t initiate the debts in their name. If they are unable to prove this, they are virtually blacklisted from obtaining further credit themselves for 5 years.

    It is important for everyone to think twice about who they allow to have access to their personal information, and to verify all transactions are legitimate before handing over their details or any money.

    For more information on identity theft and your credit file, visit the MyCRA website www.mycra.com.au.

    Image: digitalart/ www.FreeDigitalPhotos.net

     

  • Threat of identity theft looms as business cyber-assaults take new form.

    cyber-assaultMedia Release

    Threat of identity theft looms as business cyber-assaults take new form.

    20 February 2013

    The ramping up of efforts by fraudsters to go after Australian businesses holding personal information could contribute to a greater risk of identity theft and subsequent credit fraud for Australian consumers, warns a consumer advocate for accurate credit reporting.

    Yesterday new Attorney-General, Mark Dreyfus QC advised that recent national survey results for more than 250 major businesses show cyber-crime is becoming increasingly targeted and coordinated, with one in five businesses experiencing one in the last year.

    Mr Dreyfus said that cyber assaults have shifted from being indiscriminate and random to being more coordinated and targeted for financial gain. Most occur from outside the business, although it appears internal risks are also significant.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    The 2012 Cyber Crime and Security Survey Report commissioned by CERT Australia and conducted by the Centre for Internet Safety at the University of Canberra revealed that most serious assaults involved the use of malicious software, theft or breach of private information and denial-of-service.

    In one case, an organisation reported the theft of 15 years’ worth of critical business data.

    A third of instances involved the theft of notebooks, tablets or mobile devices.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says Australians should feel concerned about where their personal information could be exposed to potential company data breaches, as personal information has become a valuable commodity used to commit identity theft and potentially ruin the victim’s credit rating and their financial future.

    “We can’t take lightly the possibility that any company that keeps data on its customers could be at risk of cyber-crime. Identity theft is becoming more prevalent, and personal information is lucrative for fraudsters,” Mr Doessel says.

    Last week the Australian Taxation Office (ATO) announced the identities of four tax agents were stolen and used to fraudulently obtain AUSkeys giving access to specialist tax agent online services.

    Whilst the ATO was able to contain the threat, and cancel the AUSkeys, it said in a statement to the media that doing business online has benefits, but also comes with risks.

    “People looking to commit identity fraud constantly look for ways to profit so it is critical to remain vigilant regarding your personal information and online security,” the ATO statement said.[ii]

    Mr Doessel says this instance is one of a long line of assaults on Australian businesses and government entities in recent years.

    “Unfortunately it seems everywhere people turn one entity or another has been hacked – and it seems everyone with a computer is at risk. It is still extremely scary the level of risk peoples’ personal information undergoes these days when it is stored online,” he says.

    Personal information in the wrong hands can lead not only to identity theft but credit fraud, which involves the use of the victim’s credit rating, which can have significant long term consequences.

    “Basically, a lot of identity fraud is committed by piecing together enough personal information from different sources in order for criminals to take out credit in the victim’s name. Often victims don’t know about it right away – and that’s where their credit file can be compromised,” he says.

    He says once the victim’s credit rating is damaged due to defaults from this ‘stolen’ credit, they are facing some difficult times repairing their credit rating in order to get their life back on track.

    “These victims often can’t even get a mobile phone in their name. It need not be large-scale fraud to be a massive detriment to their financial future – defaults for as little as $100 will stop someone from getting a home loan,” he says.

    Once an unpaid account goes to default stage, the account may be listed by the creditor as a default on a person’s credit file. Under current legislation, defaults remain on the credit file for a 5 year period.

    “What is not widely known is how difficult restoring a credit file can be – even if the individual has been the victim of identity theft, there is no assurance the defaults can be removed from their credit file. The onus is on the victim to prove their case and provide copious amounts of documentary evidence,” he says.

    Changes to the Privacy Act 1988 should help consumers collectively when businesses experience cyber-crime which leads to a data breach.[iii]

    From March 2014, increased powers of the Privacy Commissioner will force organisations that experience a breach to do something about it. Previously, the Commissioner could investigate and make recommendations as to what the organisation should do, but it had no way of requiring the organisation to take action.

    The Commissioner can also issue civil penalties to organisations that experience a breach and either fail to take reasonable steps to protect the information entrusted to them, or fail to adequately respond.

    Mr Doessel says consumers need to be insisting that the companies who hold their personal information have adequate tools to prevent a data breach, but he says despite this, the changing nature of cyber-crime means it can be difficult to keep up with the technology of fraudsters.

    “Despite our best efforts to keep our details safe, we don’t have control over the IT systems of the company which holds our information, so we have to place a lot of trust in them to stay one step ahead of fraudsters. With most organised crime gangs now placing identity theft on their repertoire, more damaging and more frequent assaults are probably imminent in the future,” Mr Doessel says.

    He says as a matter of routine, consumers should check their bank and credit card statements thoroughly when they come in, and should also order a copy of their credit report regularly – which would indicate if their credit file had been misused.

    Under current legislation a credit file report can be obtained at no cost every 12 months from the major credit reporting agencies Veda Advantage, Dun and Bradstreet and TASCOL (if in Tasmania) and is sent to the owner of the credit file within 10 working days.

    /ENDS.

    Please contact:

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

    Graham Doessel – Director Ph 3124 7133

    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.

    ——————————————————————————–

    [i] http://www.attorneygeneral.gov.au/Mediareleases/Pages/2013/First%20quarter/18February2013-CyberattacksonAustralianbusinessmoretargetedandcoordinated.aspx

    [ii] http://www.ato.gov.au/corporate/content.aspx?doc=/content/00345567.htm

    [iii] http://www.oaic.gov.au/privacy-portal/resources_privacy/Privacy_law_reform.html#whats_changed

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

  • Credit rating self-checks essential for prospective home buyers

    prospective home buyersMedia Release

    Credit rating self-checks essential for prospective home buyers.

    19 February 2013

    A credit rating self-check should be top priority for prospective home buyers before finance application to ensure ‘surprise’ bad credit doesn’t mean they lose their dream home, according to a consumer advocate for accurate credit reporting.

    CEO of MyCRA Credit Rating Repair, Graham Doessel, says a credit file check will reveal any adverse listings which will lead to credit refusal.

    “Home buyers should ignore their credit file when applying for finance at their own peril. In many instances it can be more important to have a clear credit rating than a huge deposit,” Mr Doessel says.

    He says many people assume if they pay their bills on time they should have a clear credit history, but surprise bad credit and credit reporting errors can and do occur.

    “So many of my clients are unaware they have defaults until they apply for major credit such as a home loan, and are flatly refused because of defaults. The clients can lose the house and have their dreams shattered, all because of a credit file which contains defaults that may not even be lawful,” he says.

    A credit file exists for anyone who has ever been ‘credit active’ and is used by lenders to assess the risk and borrowing capacity of potential borrowers.

    Defaults are put there by creditors when accounts have remained unpaid for more than 60 days.

    Defaults remain on a person’s credit file for 5 years from the date of listing, and have the potential to severely impact a person’s ability to obtain credit.

    “Currently, any default can be enough for an automatic decline with most of the major banks. Many lenders are even rejecting loans for excess enquiries such as two in thirty days or six within the year.”

    “It also affects the type of loan people may be eligible for, the interest rate they are offered and price of establishing the loan. The lending options become more expensive and limited,” Mr Doessel says.

    He says many clients had what they thought were impeccable repayment histories, but found out the hard way that they were the victim of credit reporting errors.

    “At this time in Australia, creditors basically have the go ahead to list defaults and other negative listings on consumer credit files with very little by way of checking in terms of accuracy of that listing,” Mr Doessel says.

    The onus is on the consumer to ensure their credit file reads accurately.

    “That’s why it’s so important for everyone to know what is said about them on their credit file, and to know how to dispute any errors that come up,” he says.

    House hunters can request a copy of their credit report from one of the major credit reporting agencies such as Veda Advantage, Dun and Bradstreet or TASCOL (if in Tasmania). These agencies will provide people with a free copy of their report within 10 working days from receipt of the request.

    “If you request this report well before you are ready to buy a house, you can potentially save yourself the embarrassment and heartache of being knocked back for finance due to credit file defaults, and that’s also one less lender-generated credit enquiry on your credit file,” he says.

    Demand for ‘credit rating repairers’ has grown due to what Mr Doessel says is a credit system fraught with difficulties.

    He says many of his clients have attempted to dispute an unfair listing themselves and have come up against problems.

    “Most times the Creditor says defaults are never removed, but can be marked as paid if the account has been settled. Effectively they are bullied into paying the overdue account and are still copping the default on their credit file.”

    But Mr Doessel says if a listing contains errors or inconsistencies, it should be removed.

    “It takes someone who is aware of how to work within the legislation, demonstrate effectively where the Creditor has made errors and show cause as to why a listing is unlawful and should be removed. Unfortunately this is something many consumers have neither the time and or skills to do effectively,” he says.

    /ENDS.

    Please contact:

    Graham Doessel – CEO MyCRA Ph: 07 3124 7133

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

    246 Stafford Road, STAFFORD QLD. http://www.mycra.com.au

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

    Image: graur codrin/ www.FreeDigitalPhotos.net

  • Found your special someone this Valentine’s Day? 7 tips for joining finances

    Valentine's DayHappy Valentine’s Day to all the lovers out there!  If you are one of the lucky ones that has found that right person for you, then you may be looking at joining finances – perhaps moving in together, or taking the plunge and buying a home together. Before you do, read my 10 tips to protect your credit file when you are joining finances. Unfortunately love isn’t enough to ensure our ideas about money are always going to match up. If they don’t – make sure your credit file – your good name stays intact – even if the relationship doesn’t.

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

    1. Take off the rose-coloured glasses.

    Yes, cupid may have got you good. This may be the best person you’ve ever known. But that doesn’t mean they are perfect. No, really it doesn’t! Being in love and in particular new love can be the best feeling in the world. But let’s be honest, it’s not the most practical of states to be in. Sometimes our standards go out the window and we lose ourselves in the process of adding to our ‘relationship’ and creating an ‘us’. Before you join your finances, take off the rose-coloured glasses for just a minute, and put some real thought into how you are going to make the financial relationship work. With Relationships Australia identifying conflict over money as one of the top causes of arguments and relationship breakdowns in Australia, it makes sense doesn’t it?

    2. What’s their history?

    People will do what they’ve always done. You need to know of any skeletons in their closet that may impact your relationship and your credit file. Have a frank and open discussion about the financial decisions you’ve both made in your past.

    If you are joining finances, perhaps entering a mortgage, or even just moving in together and putting the Electricity and Gas on, effectively what you are doing is joining credit history. You need to know if their credit history up till now is clear.

    It might be worth getting a copy of each other’s credit files (you can request a free copy of your credit file and a report will be mailed to you within 10 working days). If there are adverse listings, they will impact your ability to obtain credit together for between 5 and 7 years depending on the listing type. If something on either credit file is amiss or incorrect – it is probably a good time to look at disputing it. Credit listings such as defaults, Judgments, Writs or Clear-Outs can all be removed if it can be proven that the listing was placed unlawfully.

    3. What’s their money mindset?

    Knowing their credit history should give you a good indication of how your prospective partner views money. So will knowing what debts they currently have. It will give you an indication of how they feel about money, and how much debt they consider normal to handle. You can also talk about paying bills. Do they always pay them on time? If not, why not?

    Some of us are great with money and some of us aren’t. If one of each money type get together the potential for both people to be financially damaged is greatly increased. As credit rating repairers, every day we meet people who need help with fixing credit rating issues due to no fault of their own really, but they have fallen under the financial shortcomings of a partner.

    One partner can end up with a bad credit score, simply because the other person on the account has not made repayments to the account. Often people are unaware their partner is generating defaults on their credit rating until it is too late. They apply for credit in their own right and are unable to proceed due to debts and bad credit their partner has initiated. The relationship may even have ended years ago.

    4. Do your financial goals match?

    Does one of you envision you both quitting your jobs in a couple of years to go travelling while the other has been saving for their own home? Is one’s greatest goal to pay back the 3 credit cards they’ve maxed out, while the other has plans to be debt free by the age of 40? If you establish some differences in what you want out of life, talk about whether there can be a compromise. You must identify how important each goal is and decide whether you really should be entering into a financial relationship at this stage. If your differences financially are too great – perhaps you can work out a way to still be together, but keep your finances (and credit files) separate unless your goals change.

    5. Identify needs and wants.

    If you decide you want the same things out of life, it might be a good idea to agree on financial priorities, so you don’t blow out all of your good intentions buying things you don’t really need. This could reduce your fights about money and ensure you’re both really on the same page. For instance, if you decide the most important thing is to save for your own home – you can agree that the new car, the expensive dinners and the designer wardrobe are only wants and can be put off until you reach your ultimate goal.

    6. Make a joint money plan.

    It may be a good idea to make a budget plan for you both to stick to, particularly if you have made a big credit purchase like a mortgage, car or business loan. There are a number of great free websites – ASIC’s Money Smart Website is a good place to start. You can decide who is paying bills, how they are going to be paid on time, where the money is coming from, how you are going to save and what money you will have left over for luxuries. If you don’t end up being the person in charge of paying bills – that doesn’t mean you can bury your head in the sand about your finances. Check the accounts every now and then. If there are any problems or your partner has missed payments – you’ll both want to know about it before your credit file is defaulted.

    7. Leave emotion out of it.

    During your financial relationship, things can go wrong – arguments can still occur despite your best efforts to prevent them. When it comes to money, agree for your disagreements to remain business-like. That way you can always keep a dialogue about money and there are no heated emotions attached to your discussions.

    Likewise, if the relationship should turn sour you are still able to separate love and money. There may be less likelihood of post-relationship revenge purchases impacting your credit file. If you do break up and you have joint credit, notify your Creditors that you are no longer together. Make sure you both get separate statements and endeavour to separate credit files (by dissolving joint credit) as quickly as possible in order to keep control over your own credit history and keep your credit file clear.

    If you haven’t been lucky in love, and your partner has left you with a bad credit rating, MyCRA Credit Rating Repair may be able to help. Contact a Credit Repair Advisor on 1300 667 218 for more information and to determine whether you may be suitable for credit repair.

    Image: anekoho/ www.FreeDigitalPhotos.net

    Image 2: photostock/ www.FreeDigitalPhotos.net

  • Credit reform about to take effect March 1 2013

    credit reformWe look at Amendments to important legislation to take effect from 1 March, and how this will impact consumers and all involved in the credit system.

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

    The Australian Securities and Investment Commission (ASIC) has advised subscribers in a recent newsletter to be aware of new credit obligations commencing as part of amendments to NCCP.

    From March 1, the National Consumer Credit Protection Amendment (Enhancements) Act 2012 will bring reforms to a range of credit areas and ASIC will be the single regulator.

    ASIC Commissioner Peter Kell has outlined the main areas of reform, which most impacted individuals and businesses should be familiar with. Here’s the main points:

    * Changes to procedures for hardship applications under the National Credit Code.

    * Restrictions on the use of certain words, including ‘independent’ and ‘financial counsellor’.

    * Remedies for unfair or dishonest conduct by credit service providers.

    * Specific protections for reverse mortgages – such as the requirement to provide consumers with projections of the debtor’s equity in the property under a reverse mortgage and a reverse mortgage information statement.

    * Additional obligations, including new disclosure requirements, on consumer leases to provide greater regulatory consistency between leases and other functionally similar forms of credit.

    * The introduction of disclosure requirements in relation to the use of employer payment authorisations.

    * A ban on short-term credit contracts (that is not a continuing credit contract; where the credit provider is not an authorised deposit-taking institution (ADI); the credit limit of the contract is $2,000 or less; and the credit contract is for a maximum term of 15 days or less).

    * New obligations for small amount credit contracts (that is not a continuing credit contract; where the credit provider is not an ADI; the credit limit of the contract is $2,000 or less; and the credit contract is for a maximum term of 1 year) including:

    * introducing presumptions of unsuitability where a consumer is in default of an existing small amount credit contract; or in the preceding 90 days, a consumer has been a debtor under two or more other small amount credit contracts

    * disclosure requirements for licensees’ premises and websites; and * a ‘Protected Income Amount’ where the borrower is Centrelink-dependent.

    COMPLIANCE AND ENFORCEMENT APPROACH:

    Immediately following the 1 March 2013 commencement date, ASIC will adopt a balanced approach to administering the new requirements when industry makes genuine efforts to comply. ASIC will generally be tolerant of those genuinely trying to achieve compliance and will work with industry participants to address and rectify any problems.

    However, ASIC will certainly take a tougher approach where it encounters deliberate breaches, serious misconduct or significant risk of consumer detriment.

    ASIC will review its approach and compliance expectations after the first few months after which industry should have fully adapted to the new obligations.

    CONSUMERS who consider that a lender or broker has not complied with the new obligations can make a complaint to the lender or broker directly. If the problem cannot be resolved – the consumer can proceed to an external dispute resolution scheme (EDRS). Consumers can also make a complaint to ASIC to consider whether there has been a breach of the legislation.

    Further information for consumers will be available from 1 March 2013 on ASIC’s website www.moneysmart.gov.au.

    The streamlining of laws around financial hardship is a significant step in credit reform. The encouragement of an open dialogue with Creditors at times of debt stress, and the option for people to negotiate alternative arrangements with their lender other than being hit with a default on their credit file is so vitally important.

    The consequences of having a negative credit listing, whether that be a default, a Judgment, a writ or a clear-out being generally a ‘lock-down’ of mainstream credit services for the term of the listing (5-7 years).

    This means some consumers unable to secure a hardship variation, can fall into a ‘debt trap.’ Once that lower-interest option is no longer available, then alternative lenders may be sought – especially in times of emergency.

    Within this legislation, is also the cap on payday lenders which the Government hopes will stop loan sharks from exploiting vulnerable Australians:

    “The Gillard Government has moved to reduce the financial harm caused by lenders who ruthlessly impose excessive fees and charges simply because vulnerable consumers cannot obtain alternative access to credit. These reforms continue the Gillard Government’s ongoing commitment to deliver a fair go for all Australians,” Minister for Financial Services Bill Shorten said in a statement to the media last year following the bills passing.

    The Enhancements introduce a cap for small amount credit contracts where the amount borrowed is $2000 or less, and the term is 1 year or less. For these loans the maximum any lender can charge is an establishment fee of 20 per cent of the amount of credit upfront and 4 per cent for each month of the loan. This provides for maximum charges of $72 on a loan of $300 over 1 month.

    Caps on payday loans may deter loan sharks – but there is a bigger picture for those forced out to the fringe. Some people who are in situations where they can’t get mainstream credit are there because the system has failed them. Not all defaults deserve to be there, but they all have the same outcome for prospective borrowers.

    Where people are getting let down is in copping the mistake in the first place, and also in the correction of the credit reporting mistake. Whilst the powers that be say that there is a legitimate avenue for correcting credit reporting mistakes for the individual, any consumer who has had the pleasure of dealing with a big company for even small issues will attest to the difficulty in getting a straight answer, getting someone who knows what they’re talking about first time, and ultimately correcting the mistake. This is a common complaint of many of our credit repair clients. Most people are told if it’s paid up they can mark it as such but that’s about it.

    The effectiveness of consumers being able to correct credit reporting mistakes will still be a large piece of the puzzle to complete when we talk about ‘fairness’ for disadvantaged Australians in the credit system. Promised reforms to the correction of credit reporting mistakes as part of the Privacy Act 1988 amendments won’t take effect till later this year.

    Hopefully those amendments will genuinely ease the correction of credit reporting mistakes. But they must also be looked at in conjunction with the other amendments to the Privacy Act. It is not known how ‘late payment notations’ (collected now) will impact credit suitability and how unfair late payment notations will be viewed or whether they will be part of the new correction laws at all.

    So there is still going to be a time of uncertainty for many involved in credit, including for consumers. My hope is that eventually, we will see a better and fairer credit system for all – but the road to that goal could be a rocky one.

    If you are struggling with obtaining credit after being defaulted, and you believe the listing may be incorrect or unjust in any way, consider credit repair as an option to permanently remove unlawfully placed Defaults, Writs, Judgments and Clear-outs from your credit file. Call a Credit Repair Advisor today on 1300 667 218 to discuss whether you might be a suitable candidate for credit repair.

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

  • Prevent a credit default during a time of mortgage stress.

    mortgage stressMedia Release

    Prevent a credit default during a time of mortgage stress.

    12 February 2013

    For the thousands of Australian home owners who are under financial strain, interest rate cuts may have come too little too late – but a consumer advocate for accurate credit reporting says those families falling behind on mortgage repayments need to be educated about what they can do to try to keep their home and their good credit rating.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says it is vital that when someone is suffering financial hardship of some kind that they open up a dialogue with their Creditors as early as possible.

    “Too many people go into denial about their debts, and this only makes the long term prospects for recovery much worse. If I could give one piece of advice, it would be to talk to your bank and as soon as you encounter difficulties,” Mr Doessel says.

    Despite a recorded decrease in mortgage delinquency rates across the country to 1.2 per cent in September 2012 from 1.6 per cent in March 2012, credit ratings firm Fitch Ratings has recorded some continuing troubled areas where delinquencies remain high.

    Many of these ‘repayment blackspots’ have reportedly been impacted by the global economy through a drop in tourism numbers.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    Mr Doessel’s credit repair firm deals with many clients who are attempting to salvage their lives and their credit rating after financial hardship, and he says sometimes effective communication and persistence may have prevented defaults.

    “If you are suffering hardship, get on the phone and discuss it with your bank. They may not issue a default on your credit file if you successfully negotiate to put repayments on hold or reduce the repayment amount – as long as you make a firm plan to get back on top of things, and you are able to stick to it,” he says.

    Credit file defaults are issued after credit accounts are 60 days in arrears, and late payment notifications are issued after repayments are one payment cycle late.

    Mr Doessel says the ramifications of having credit file defaults are generally refusal of mainstream credit – including credit cards, store cards and mobile phone plans for the 5 year term of the listing. Too many late payment notations may also impact credit approval.

    “If you are able to borrow, often the interest rate is much, much higher. If your bank can’t contact you, they may even issue you a Clear-out which has a 7 year term,” he says.

    “So you want to avoid having your credit rating black listed if possible.”

    People who need to negotiate with their lender because of hardship issues should now find the process much easier.

    Last year credit reform saw the introduction of changes to procedures for hardship applications. From 1 March 2013, The National Consumer Credit Protection Amendment (Enhancements) Act 2012 takes effect, giving debtors a statutory right to request a hardship variation if they cannot meet their obligations under a credit contract regardless of the amount of credit that is provided under their contract.[ii]

    Tips for Applying For Financial Hardship

    1. SPEAK UP. Firstly, you need to make it clear to your bank that you fear you may fall into arrears on your repayments – especially if you have a situation of temporary difficulty, such as unemployment or illness.

    2. WHAT CAN YOU AFFORD TO PAY? Work out what you can afford to pay prior to requesting a hardship variation. You can get budgeting advice through ASIC’s Money Smart website www.moneysmart.gov.au.

    “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,” Mr Doessel says.

    3. BE PRECISE. Put your request in writing and keep a copy as a record. You may need to use the actual words “financial hardship variation” for your lender to officially recognise the request, and to avoid confusion as to what you’re asking for.

    4. KNOW YOUR RIGHTS. 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.

    5. DO YOUR RESEARCH. 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.

    6. BE CONSISTENT. If you do get a variation on your repayments – keep up all repayments on time every time. And keep an open dialogue with your bank.

    “This fresh chance may be the catalyst to put in place some real changes in how you think about credit – taking a fresh look at ‘things’ ‘wants’ and ‘needs’– and making credit work for you next time instead of the other way around. This doesn’t ensure that mistakes won’t happen with your credit file, but it will ensure that a negative credit listing won’t make its way to your credit file through any fault of yours,” Mr Doessel says.

    /ENDS.

    Please contact:

    Graham Doessel – CEO Ph 3124 7133

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

    http://www.mycra.com.au/ 246 Stafford Road, STAFFORD QLD. Ph: 07 3124 7133

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

    ——————————————————————————–

    [i] http://www.news.com.au/realestate/news/australias-mortgage-blackspots/story-fncq3gat-1226570977744#ixzz2KAbn7xXq

    [ii] http://www.asic.gov.au/asic/asic.nsf/byheadline/ASIC+Credit+Reform+Update+-+latest+issue?openDocument http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;db=LEGISLATION;id=legislation%2Fbills%2Fr4682_third-reps%2F0001;query=Id%3A%22legislation%2Fbills%2Fr4682_third-reps%2F0000%22

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

  • Smart borrowing to be taught in schools

    Smart Money Teaching ProgramMedia Release

    Smart borrowing to be taught in schools

    24 January 2013

    Classroom changes aimed at improving financial literacy in Australia have been welcomed by a consumer advocate for accurate credit reporting, who says teaching kids about money, and especially credit is long overdue. He says a new generation needs to be clever with credit to survive.

    Financial literacy lessons are to be rolled out nationally as term one of the school year begins, with the inclusion of Australian secondary schools to the ‘Money Smart Teaching Program’, developed by the Australian Security and Investment Commission (ASIC), adding to a primary school program that began last year.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    About 120,000 children and 6000 teachers will take part in the trials, with the secondary schools topics set to include compound interest, supermarket unit pricing, finding the most cost-effective mobile phone plan and borrowing money.

    ASIC senior executive for financial literacy Robert Drake says it is hard to succeed in modern life without mastering money skills.

    “Knowing how to handle your money and the choices you have got to make as a consumer is a challenging thing in modern life, and really is a core skill”, Mr Drake told the Daily Telegraph on Monday.”[ii]

    CEO of MyCRA Credit Rating Repair, Graham Doessel says credit is an integral part of today’s culture, but many young Australians do not know how to make it work for them.

    “Many young people amble through their early years with credit, making mistake after mistake that can cost them dearly down the track. I have often said it should be taught in schools,” he says.

    He says he has seen many young people caught in the credit trap – robbing Peter to pay Paul – and in the end their good name suffers for five to seven years due to credit infringements.

    “I have seen young people get in deep with credit – putting cars and electrical goods on hire purchase and getting behind in repayments which sees them taking out new credit just to pay off the old credit. Before they know it, they’re 20 years old and facing Bankruptcy or Court Action and years of being locked out of the finance market coming into the crucial years when they need it most,” he says.

    Mr Doessel says teaching kids the importance of responsible borrowing and encouraging the exploration of philosophies of consumerism would be invaluable to reshape a whole new generation’s attitude to credit.

    “If we can arm our young people with more money knowledge, then collectively they may have a better break when it comes to home ownership and investments, things that seem to have eluded the current generation of twenty-something’s,” he says.

    “To go further, even basic legal responsibilities and requirements around credit would be an invaluable addition to the Australian secondary curriculum which could see rates of default decline as those kids enter the credit market.”

    ASIC’s trial program will take feedback from schools, with an aim to make it available more broadly from 2014.

    /ENDS.

    Please contact:

    Graham Doessel – Director Ph 3124 7133

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

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

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

    ——————————————————————————–

    [i] http://teaching.moneysmart.gov.au/professional-learning/moneysmart-teaching-packages

    [ii] http://www.dailytelegraph.com.au/money/money-matters/schools-to-run-finance-classes/story-fn300aev-1226557978782

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

  • Money: The Top 4 Relationship Busters

    relationship financeWhat are the ways your relationship may be at risk due to money matters? Last week we featured how your credit rating can be at risk when you enter joint debt. This week, we look at how your relationship in general can be impacted by finances. To follow we feature a great article from SavingsGuide.com.au, titled ‘Relationship Finance: The Top 4 Romance Busters’. Here it is in it’s entirety:

    Relationship Finance: The Top 4 Romance Busters.

    Money is the major reason for divorce, as well as the major source of friction in many relationships. Researchers are increasingly seeing that ‘financial cheating’- as in, lying or hiding financial issues from a partner- is as damaging as the traditional kind. Likewise, finding a financial simpatico with another person is one of the major pillars of a good relationship. So what are the top 4 relationship busters when it comes to money, and how can we avoid them in our own relationship? Inspired by an article from Investopedia.

     Weigh Me Down

    It’s unlikely, in the modern world, that two people can come together without one or both bringing with them some kind of debt. From youthful indiscretions with a credit card, student debt, a mortgage, a car loan- debt is a major factor in most of our financial arrangements. Sadly, when it’s not dealt with openly, it can also be a major sticking point i our relationships. The Fix: The only course is to be straight up. This debt is going to be a drain on your finances for a while yet, and will mean you can contribute less to the joint finances. That’s the reality of the scenario, and honesty is the only way to approach it. Your partner will deal with it, or they won’t.

    Joint Or Separate

     Relationship finance is often regarded as a tell-tale sign for the overall wellbeing of the couple. Serious judgement calls are attached to how couples deal with their finances. Either they split everything, and “they’re not committed”, or they’re completely financially entangled, and “heading for disaster”. Trying to organise your finances according to what the rest of the world says will only strain the relationship. The Fix: Your relationship is unique, as your financial organisation should be. The key is to communicate with your partner about what they feel is appropriate, and be open to change it as the relationship evolves.

     Know The Type

     When you get together, nothing is more important than whether he likes Neil Young or not. We tend to spend so much time on the inconsequential, often the really big issues get left to the side. However, you’ll be able to get a pretty good feel for how a person deals with money. Spender? Saver? Frugal to the point of no fun? These are big issues, and pretending otherwise is just putting your head in the sand. The Fix: Be open with how you see money, and where you would like your finances to be in 5 and 10 years. Talk about how their parents dealt with money, research shows it’s a big indicator.

     Little Tykes

     Every self-help book in the world has told us what issues to avoid talking about when we start a relationship. Heaven forbid you scare him off, talking of kids or money. Well, the final major relationship buster is a combination of the two- the finances of having kids. The Fix: Generally, you ascertain whether you want to have kids first, but with the costs of raising a kid now hitting the $1 million mark, you also have to discuss how to structure your finances to adapt, especially with one partner out of the workforce for a while.

    As we discover in this post, and also last week in the post ‘How to Avoid Sexually Transmitted Debt’ the most important aspect to the meeting of financial minds is to keep an open dialogue about money. Talking freely and honestly, preferably keeping the emotion out of your discussions will save your relationship. It would also help you to avoid surprise bad credit from your partner.

    If you have Sexually Transmitted Debt  – that is defaults, writs or Judgments that you didn’t initiate, and you believe are impacting your credit file unnecessarily, talk to one of our Credit Repair Advisors about where you might stand with getting your bad credit repaired. Ph 1300 667 218.

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

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

  • “Bank of Mum and Dad” financing for kids can put your credit rating at risk.

    Bank of Mum and DadMedia Release

    “Bank of Mum and Dad” financing for kids can put your credit rating at risk.

    14 January 2013

    A recent survey shows high property prices have sparked one in three Australians to seek financial assistance from their parents for their first home, but an advocate for credit reporting accuracy warns that if assistance extends to a parent equity loan, parents need to know there are significant risks to their credit rating.

    ING Direct’s recent global survey, as reported in Australian Broker reveals that the average age of a first home buyer in Australia is now 26 years old, with one in three tapping the “Bank of Mum & Dad” to put their housing finances on a firmer footing.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    The research found that the younger the age group, the more likely they are to have received financial help. Over half of 18-24 year old homeowners received money either towards their purchase or to help with home loan repayments, compared to 38% of 35-44 year olds and only 22% of those aged over 55.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says in some cases putting up a deposit is not enough, and the parent is required to go guarantor or put up equity to secure the loan for their child.

    But the danger for parents is that their credit rating is then linked with the credit rating of their child through a loan like this, despite parents having little control over the outcome of repayments.

    “If for some reason repayments are not met, the parent becomes liable for this debt, and may be defaulted along with the child. Unfortunately they may not be aware the loan is or was in default until such time as they attempt to take out credit for themselves and are refused,” Mr Doessel says.

    He says a negative entry on a person’s credit report will mean it is difficult to get credit. He says defaults impact the ability to obtain credit for 5 years, and even too many late payment notations may make things difficult for 2 years.

    “In cases of significant arrears, the bank begins to use the property the guarantor put forward as collateral to recover lost debts. The guarantor is in danger of losing their home,” he says.

    He suggests parents considering going guarantor on their child’s loan should sit down and ask some tough questions before committing.

    “The most important question parents need to be asking is ‘could we make the repayments on this loan should our child be unable to?’ If in doubt, don’t risk your good name to guarantee the loan,” Mr Doessel says.

    With ING reporting that three-quarters of Australians still agree it’s better to buy than rent, Mr Doessel says parent equity and guaranteed loans may continue to rise.

    He recommends parents take some things into consideration before signing off on the loan:

    1. Seek independant and or legal advice prior to any agreement being made.

    2. Insist there is safety net for anything that may go wrong during the term of the loan, such as life insurance and income protection insurance.

    3. Set a specific amount that will be guaranteed.

    4. Ensure there is an ending to the time period of the guarantee.

    5. Request a copy of all bank statements during the course of the guarantee, so that parents are aware of any late payments. This way, payment problems can be addressed prior to any defaults, and while the parent’s good credit rating is still intact.

    /ENDS

    Please contact:

    Graham Doessel – CEO Ph 3124 7133

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

    http://www.mycra.com.au/ 246 Stafford Road, STAFFORD QLD. Office Ph: 07 3124 7133

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

    ——————————————————————————–

    [i] http://www.brokernews.com.au/article/aussies-fear-next-generation-wont-be-able-to-afford-to-buy-homes-147718.aspx

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

  • Stay safe this Christmas: Scam victims should be worried about 5 year blacklisting on their credit rating

    Media Release

    Stay safe this Christmas: Scam victims should be worried about 5 year blacklisting on their credit rating

    As more Christmas scams come to the fore, a consumer advocate for accurate credit reporting is warning consumers that scammers are not just after the money in their bank accounts, but are after much more – their financial identity.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says consumers need to be wary of the opportunities fraudsters may take to misuse their personal information.

    “Scams and other fraud attempts are becoming much more sophisticated as profits get more lucrative. Many fraudsters are into building a profile of their victim – extracting layers of information which allows them to access credit in the victim’s name – including loans and even properties.”

    “The difficulty for recovery when someone has tapped in to your credit rating is that generally you have unpaid debts in your name, which are placed in default – which basically means for 5 years your own ability to obtain credit is ruined,” Mr Doessel says.

    This warning comes as the Australian Banker’s Association (ABA) last week announced reports of a telephone scam where fraudsters were impersonating them and offering instructions on how to obtain a ‘refund’ for overcharged bank fees.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    The ABA said criminals asked customers to proceed to a post office to receive the so-called ‘refund’ – ranging from $5 000 – $7 000.

    Victims are then asked to wire money via Western Union for costs associated with the ‘refund’.

    But in addition, scammers also tacked on a request for personal details, which signifies an attempt to misuse those details in the future, possibly for identity theft purposes.

    Fraudsters asked these questions:

    – With whom do you bank?
    – For how long?
    – What is your credit card number?
    – What is your driver’s licence number?

    Mr Doessel says fraudsters are attempting to gather extra information from their victims over and above what they might already have in front of them.

    “If they have your full name plus who you bank with, and your driver’s licence number – they have the basic building blocks for an identity theft attempt. They can call the bank and have some kind of identity information on which to proceed with accessing bank accounts AND accessing further credit in your name,” he says.

    The bank refund phone scam has been added to a long list of scam attempts running over the past few months, and many more could emerge as Christmas approaches.

    Mr Doessel says sometimes people don’t know they have been a victim until after they apply for credit and are refused.

    “By that time, it is such a struggle to recover your good name. For an identity theft victim to have a chance at removing bad credit history, you must prove you didn’t initiate the credit in the first place. This can be difficult if the scam happened months or years before,” he says.

    What to do if you suspect you have fallen for a scam

    1. Contact the Police immediately. Don’t be embarrassed or dismiss it because you don’t think the amount was significant enough. It is only through identity theft being reported that data gets collected and appropriate preventative measures eventually get put in place.

    2. Contact your Bank. They should be able to flag your accounts so that no credit can be obtained in your name.

    3. Contact the credit reporting agencies that hold your credit file. In Australia, this is Veda Advantage, Dun and Bradstreet and TASCOL (if in Tasmania). You should inform them that you may be at risk of identity theft and they may have a plan of action for protecting your credit file.

    4. At this time, you should also order a copy of your credit report. If there are any inconsistencies on your credit report – change of address, strange credit enquiries and instances of credit you don’t believe you’ve access, then you may already be a victim – and should do all that’s possible to follow up on each account so as not to accrue defaults on your credit file that should not be there.

    5. If you find you have defaults that shouldn’t be there, take steps to remove them. Although it seemed so easy for the fraudster to use your good name in the first place, you are now faced with proving the case of identity theft with copious amounts of documentary evidence in order to get the credit listings removed from your credit file.

    If you have neither the time nor the knowledge of Australia’s credit reporting system and credit legislation that you may need to fight your case yourself, you can seek the help of a professional credit repairer.

    Visit www.mycra.com.au for more information on identity theft and bad credit or call MyCRA on 1300 667 218.

    /ENDS.

    Please contact:

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

    Graham Doessel – CEO Ph 3124 7133

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

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

     

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    [i] http://www.bankers.asn.au/Media/Media-Releases/Media-Release-2012/Phone-Scam-Alert[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]