MyCRA Specialist Credit Repair Lawyers

Tag: dispute credit listing

  • Credit law series: Bad credit mistakes in Australia

    bad credit mistakesIn this credit law series, we look at bad credit mistakes. Do you have a bad credit rating and don’t know why? Have you had bad credit placed on your credit file you don’t agree with? You are not alone. Possibly millions of people in Australia have a bad credit rating, and many people are unaware they have black marks against our name until we apply for credit and are flatly refused. We look at the ins and outs of bad credit mistakes and what you can do about them.

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

     

    What is a bad credit rating?

    ‘Bad credit’ in Australia is generally credit listings such as defaults, writs, Judgments or Bankruptcies recorded against your name on your credit file by a Credit Provider.

    Most of these listings can make it very difficult to obtain credit for 5 years for defaults and up to 7 years for bankruptcy. This can affect many major areas of your life such as buying a home, taking out personal loans for vehicles, business loans and in many cases even credit cards and mobile phone plans.

    Currently, most of the major banks are rejecting home loan applications where the credit history shows a default listing (an overdue account which has lapsed past 60 days). Many lenders are even rejecting loans for excess credit enquiries such as two in thirty days or six within the year.

    How common are bad credit mistakes?

    There are over 16.5 million credit files for ‘credit active’ people, held by the major credit reporting agencies in Australia; Equifax (Formerly Veda Advantage), Dun & Bradstreet, Tasmanian Collection Service. (16.5 million credit files are held by Equifax (Formerly Veda Advantage) alone).
    Unfortunately, there are no current statistics on the number of credit mistakes which occur on Australian credit files.

    But to give you some idea, in 2004 the Australian Consumer Association (now Choice) conducted a survey which revealed 34% of the credit files of the people surveyed possibly contained errors.

    Most people that query Credit Providers and credit reporting agencies about their bad credit – especially where there’s a default, are told that the listing can’t be removed but can be marked as ‘Paid’ if the account was settled.

    This is often not good enough if you need to use credit over the next 5 years (which is almost everyone nowadays).

    What sort of bad credit mistakes are disputable?

    You should know that any credit listing which you believe is inconsistent, unfair, or incorrect can, and should be disputed. Credit rating mistakes could be anything from the credit listing placed by your Credit Provider on the wrong credit file; to the basis of the credit listing being unfounded; to incorrect notices being provided to you; right through to system errors and incorrect spelling, to name a few examples.

    How do I repair my bad credit rating?

    One important aspect to disputing a credit listing in Australia (also known as credit repair) is to remember is that we usually only get one chance at clearing our credit file.

    Sometimes we can attempt to deal with Credit Providers to remove the credit rating default ourselves and can do more harm than good by not understanding the legislation. This is where a firm focused on credit law can help.

    What does a credit law firm do?

    Disputing (or repairing) a credit file involves reviewing documentation– including the credit file and all the circumstances surrounding the default, writ or Judgment.

    Then the credit repairer negotiates with the creditor who initiated the listing on your behalf to remove the default.
    This can also often involve lengthy requests and submissions of documentation until an agreement is reached by the creditor and the repairer to remove the offending black mark.

    Not every credit file is suitable for credit repair. The credit repair company can review your situation and determine whether your case is worthy of pursuing.

    How do I seek out the best firm for repairing my bad credit mistake?

    Credit repair with a law firm solely focused on credit law is arguably the safest choice for credit repair in Australia. The process of credit repair is often attempted by companies without a legal practising certificate.

    Some of these companies can charge big bucks to perform the service for you. Some in the ‘credit repair’ industry may also claim to give quasi-legal or legal advice without adhering to the restrictions of the law.

    A credit reporting lawyer can act in court processes; identify legal issues; provide legal advice; prepare binding agreements; conduct formal negotiations and follow through with enforcement where necessary.

    A credit reporting lawyer can also make formal recommendations to Credit Providers making reference to the law, and make representations on behalf of clients.

     

    Click here to find out more about how MyCRA Lawyers can help you with your bad credit mistakes.

  • How to get a copy of your credit report in Australia

    ddpavumba

     Are you in strife with credit or think you might have bad credit? Or do you just want to check what’s being said about your credit habits? With Australia’s new credit reporting regime now in place, it’s really important to regularly check your credit file to make sure it is accurate and up to date. We explain the important things you need to know about getting your credit report and the different ways you can access your credit file information in Australia.

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

    You can access your credit report for free.

    Most people are unaware you don’t have to pay to see what is on your credit file. Under Australia’s credit reporting laws, you can access your credit report for free from all of Australia’s credit reporting agencies annually. This allows you to keep an eye on your credit information and make sure it is accurate. You can and should make a request with each agency for your credit report – as there might be different information listed with different agencies. This copy is sent within 10 working days.

    Equifax (Formerly Veda Advantage) is the primary credit reporting bureau in Australia (holding approximately 16.5 million credit files), as well as Dun & Bradstreet, Tasmanian Collection Services (if in Tasmania) and new entrant Experian.

    If you need it urgently you can pay for your credit report.

    Most credit reporting agencies also offer a faster service (usually within 24 hours) for a fee.

    You can also check your credit ‘score.’

    [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”][At the time of writing] Only one credit reporting bureau, Veda Advantage (Now Equifax) had provided their credit score to the general public. The VedaScore can be obtained for a fee, and can be handy to obtain, especially if you intend to apply for major credit such as a home loan soon. Veda explains their score:

    Your VedaScore is calculated based on the information held in your credit file at a given point in time. Your VedaScore is dynamic and predicts the likelihood of an adverse event, like a default, being recorded on a credit file within the next 12 months. Your VedaScore shows where you sit in relation to other credit-active Australians in our credit-reporting database. This may be used by lenders as part of the credit assessment process; however, lenders will also use their own criteria and policies when assessing your application not only your VedaScore.

    Once you have your credit report, you need to check your personal details.

    If you obtain a copy of your credit report, the first thing you should do is run over your basic personal information to make sure it is correct and to make sure the information is yours. If it isn’t, you should take steps immediately to rectify this. Possible explanations for conflicting personal information could be:

    • the wrong person is attached to your credit file name or
    • you may be a victim of identity theft.

    Contact the relevant credit reporting bureau who can help you get to the bottom of it.

    You can then look at your Summary Characteristics or summary of information.

    This will tell you at a glance the items of note on your credit report such as any adverse listings.

    Importantly, check for cross-references.

    This is another point where you may have cause to find people other than yourself attached to your credit file. This can happen if someone with a similar or the same name resides in your area or uses the same Credit Provider as you. Any issues with cross-references can be fixed through notifying the Credit Reporting Bureau.

    Your credit history goes into detail about your credit habits.

    Items of note which could be impact your ability to obtain credit could include adverse lisitngs such as defaults, Court Writs and Judgments, bankruptcies and debt agreements, late payments. It could also include excess credit enquiries, and excess credit accounts or amounts, just to name a few.

    How your credit history can impact you.

    All adverse listings could lower any credit score calculated.  In this current economic climate even too many credit applications are often considered to be ‘black marks’ on the individual’s credit file in addition to defaults, clearouts, Court Writs and Judgments.

    The impact of late payment notations on the credit score or on assessment of credit suitability is still unknown since the information is only newly available to lenders. Speculation has centred around just how many late payment notations will be too many to mean (a) credit is refused or (b) a higher interest rate is offered. Most times the loan options available to you are at significantly higher interest rates in order to cover the risks associated with taking on someone with bad credit.

    What if my credit report is wrong?

    If there’s anything on your credit report you disagree with, you can contact the credit reporting bureau to fix it. If it’s something significant like an adverse which you believe is inconsistent, unfair, or incorrect it should be disputed. Credit rating errors could be anything from the credit listing placed by the Credit Provider on the wrong credit file; to the basis of the credit listing being unfounded; to incorrect notices being provided to the individual; right through to system errors and incorrect spelling, to name a few examples.

    You can attempt to fix it yourself.

    This involves dealing directly with Credit Providers in your dispute. The process of dispute is not always easy, particularly if you are time poor, or do not have the necessary skills or knowledge of the relevant legislation pertaining to your case. This doesn’t mean you can’t fix your unfair credit listing without knowing it, but it makes a massive difference to the chances of removal to have this knowledge (or to employ someone who does).

    Some people have in the past made a verbal dispute with their Credit Provider about their listing only to be told it can’t be removed, but can be marked as paid if it has been paid. This can deter individuals from pursuing their case of dispute. Put simply, a Credit Provider should remove a credit listing if it has been demonstrated that the listing was placed unlawfully on the credit file. It is in the demonstration that many people fall short.

    If your Credit Provider refuses to remove the credit listing, then you can take your case to the relevant industry Ombudsman. This can be helpful in many cases, but in some cases it may not be in your best interests to pursue this course. It is important to note that the Ombudsman acts impartially and is not advocating for you. This means there may be areas where they can’t or won’t investigate.

    You can get help to dispute your credit listing. 

    You can seek out external help from a third party such as a lawyer focused on credit law. A credit reporting lawyer can act in court processes; identify legal issues; provide legal advice; prepare binding agreements; conduct formal negotiations and follow through with enforcement where necessary. A credit reporting lawyer can also make formal recommendations to Credit Providers making reference to the law, and make representations on behalf of clients.

    You can also seek help from a credit repair company. A word of warning though, it is important to do your homework to avoid getting ripped off. There are some ‘dodgy’ players out there who may seem cheap, but who in the end could cost you and your dispute case dearly. Consumers can consult the Credit Repair Industry Association of Australasia at www.criaa.org.au for advice on choosing a credit repairer.

    Be careful about cheap and nasty credit repair. If you can’t afford to employ a demonstrated reputable and ethical advocate, consider disputing your own case instead.

    Need help to check your credit report?

    MyCRA Lawyers can help you check and analyse your credit rating and help assess your credit worthiness.

    Get a credit file analysis.

     

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

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

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

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

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

    Good deposit? Check.

    Good income? Check

    Paid off most of your debts? Check

    Stable job? Check.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Image: Danilo Rizzuti/ www.FreeDigitalPhotos.net

     

  • Australian credit habits under the microscope – are you ready?

    Press Release

    credit habits under the microscopeAustralian credit habits under the microscope – are you ready?

    10 May 2013

    The credit habits of Australians will be scrutinised like never before when new credit reporting laws take effect in March next year, and a consumer advocate for accurate credit reporting warns, now is the time to make some big changes to protect your future.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says this is an important time to know about Australia’s credit laws, and to be careful with how you use and repay credit.

    “Australian consumers are currently under the microscope with their repayments, and if they are more than five days late paying a loan or a credit card that will go on their credit file for two years and show up as of next year,” Mr Doessel advises.

    “This information will be part of five new data sets to show up on your credit report – and Australians need to be credit savvy to make the changes work for them,” he says.

    This new information for lenders is part of wide-sweeping amendments to Australia’s Privacy Act, which includes a new Credit Reporting Code of Conduct.

    Mr Doessel outlines some things that every credit-active should know about our new laws:

    What you need to know and do to be credit savvy

    1. Pay on time, every time. Make repayments on accounts (such as credit cards and loans) on time to avoid having late payment notations recorded on your credit file. There is a five day grace period. It doesn’t have to be a big amount to impact you. Too many late payment notations may mean you’re refused credit, or offered a higher interest rate.

    If you let your account go more than 60 days in arrears you will also be default listed. This listing will show on your credit file for five years, and applies to amounts over $150.

    2. If you can’t pay, actively seek help. There will be new laws to help prevent you from being defaulted if you are under financial hardship. You need to make arrangements early with your lender, and this will be recorded on your credit file. If you make your repayments on time, you may be able to offset the variation. So there is a new incentive to get in and work it out with your lender prior to letting your accounts go into arrears and copping a default listing.

    3. Take precautions when applying for credit. The volume of credit you apply for and the type of credit you apply for can hinder any future credit application you may make. Whilst it is a great idea to research credit before applying – you should only make a credit application you have full intention of pursuing. In addition, high interest’ or ‘bad credit’ loan applications may shave points off your rating.

    4. Seek cautions credit limits. If you’re not using it, don’t have it is the general rule. If you take out a credit card or other line of credit, it’s probably not wise to opt for a lofty limit, but ask for an amount closer to what you intend to use. Any credit ‘rating’ may be reduced by credit limits which are too high.

    5. Prevent identity theft. Understand how lucrative your personal information can be in the wrong hands, and take steps to keep abreast of how it can be at risk from identity theft, which can lead to the stealing of credit by fraudsters accessing your credit file. Victims can end up with defaults on their credit file and blacklisted from credit for 5 years.

    New laws will allow you to place a ban period on your credit information if you believe you may be at risk of identity theft, which can prevent fraudsters from accessing credit in your name – so if you feel you may be at risk – acting quickly may prevent your credit file from being impacted.

    6. Check your credit file regularly. With the new information, it will be more important than ever to check your credit file. Many people don’t know you can do this for free annually through the Australia’s credit reporting agencies and a copy is sent within 10 working days. There will be five new data sets of information available to Credit Providers who request a copy of your credit report. These will be:

    1. repayment history information;

    2. the date on which a credit account was opened;

    3. the date on which a credit account was closed;

    4. the type of credit account opened;

    5. and the current limit of each open credit account.

    It is up to you to ensure your credit file reads accurately.

    7. Correct credit information which you believe is inaccurate, inconsistent or unfair. To offset the new information, new laws are currently being devised to make it fairer for those disadvantaged individuals to access and correct their credit report.

    But beware, there will still be a requirement to work within and have knowledge of credit reporting law when disputing an inaccurate or unfair credit listing, and it is important to note, that Credit Providers and Ombudsman cannot advocate on your behalf. You can start by contacting your Credit Provider yourself to alter incorrect information, or you can seek help from a credit repairer or lawyer. You should take steps to rectify mistakes before the information has any bearing on a credit application you may make in the future.

    After March 2014, if your Credit Provider disagrees with your request to correct your credit information, you can have your dispute noted on your credit file and this would be worthwhile requesting if you believe your listing shouldn’t be there.

    /ENDS.

    Please contact:

    Graham Doessel – CEO Ph 3124 7133

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

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

    MyCRA Credit Repair 246 Stafford Rd, STAFFORD Qld

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

    Image: ddpavumba/ www.FreeDigitalPhotos.net

  • Are you getting bad credit for Christmas?

    Media Release

    Are you getting bad credit for Christmas?

    An advocate for accurate credit reporting warns every credit-active Australian should make sure they’re not getting bad credit for Christmas, as surprise bad credit can happen to anyone, even those who pay all their bills on time.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says it is important for Australians to understand how easy it is to wind up with a bad credit rating and not know it.

    “There are no class lines, whether rich or poor if you have taken out credit then you could be at risk. I would like to say it is always cut and dried – don’t pay, get bad credit but in reality it’s not that simple. The only way to be sure is to check your credit file regularly,” he says.

    A default listing can be placed on a consumer credit file if a bill payment is late more than 60 days.

    But Mr Doessel says there are many reasons why a consumer can be defaulted other than simply choosing not to make bill payments on time.

    “Creditors don’t always comply with the law, and sometimes they make mistakes – wrong names, wrong addresses, as well as human and computer errors,” he says.

    He also says certain circumstances can leave consumers more vulnerable.

    “Identity theft, separation from your spouse, bill disputes, overseas trips and even moving house would definitely be situations where afterwards I would be checking my credit file to make sure it was clear,” he says.

    Mr Doessel says unfair credit listings should be disputed, as negative listings such as defaults will mean credit refusal or higher interest rates for the term of the listing.

    He says listings are not removed by creditors unless the credit file holder or a third party acting on their behalf can provide adequate reason and lots of evidence as to why the listing shouldn’t be there.

    “It’s not easy to dispute a credit listing – but it is a point worth fighting for,” he says.

    Consumers are entitled to obtain a free copy of their credit report from Australia’s credit reporting agencies once per year. This is sent within 10 working days of the request.

    “If you have some time off soon, this might be a great time to do your credit file check. If there is something amiss on your credit report, you can dispute it with your Creditor yourself or you can contact a professional credit repairer to do it for you,” Mr Doessel says.

    People can visit http://www.mycra.com.au/credit-file-request/ for help to get their free credit report.

    /ENDS.

    Please contact:

    Graham Doessel – CEO 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 Repair is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files.

    Image: posterize/ www.FreeDigitalPhotos.net

  • More buyers apply for home loans, but dreams could be shattered by credit rating blunders.

    Media Release

    More buyers apply for home loans, but dreams could be shattered by credit rating blunders.

    A consumer advocate for accuracy in credit reporting says the finance sector should focus on educating prospective home buyers about their credit file in the wake of signs more Australians are capitalising on interest rate cuts and applying for home loans.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel, says many buyers will be caught out with a bad credit rating at the time of finance application, because they simply don’t know the importance of checking their credit file for inconsistencies beforehand.

    “We find many people do not know what a credit file is – many more don’t know the process for being listed with bad credit, and more again assume that if there was something amiss with their credit file, that they would somehow be informed.”

    ”They don’t realise that the onus is on them to check their credit history on a regular basis – at least once per year – just to make sure that errors have not been made on the credit file,” Mr Doessel says.

    The warning comes as new housing figures from the Australian Bureau of Statistics released on Monday point to a continued rise in the number of home loans.

    September’s key figures reveal owner occupied housing commitments rose 0.9% to 46,395, up from an upwardly revised 45,983 in August.[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]

    With a possible new influx of buyers to the finance market, Mr Doessel says it is vital that people know about credit reporting and how it can impact their ability to get a home loan.

    He says many people may believe their credit history is clean, but creditors can and do make mistakes with credit reports, and often it is not until people apply for finance and are refused, that they find out they have bad credit.

    “This surprise bad credit is happening to many people, from all walks of life – businessmen, families – we have even had a millionaire require our services to remove an error on his credit file so he could purchase a home for his wife,” he says.

    Bad credit is shown on the credit file for between 5 and 7 years, and most often impacts the credit file holder’s ability to get mainstream credit.

    “Most are forced into three scenarios – 1) ride out the 5 or so years until the listing falls off their credit rating; 2) get a home loan at a much higher interest rate with a non-conforming lender; or 3) dispute the credit listing which they believe shouldn’t be there,” Mr Doessel says.

    But he says at the time of finance application the process of investigation and complaint can be stressful and can sometimes mean the prospective borrower misses out on the home loan while the credit rating discrepancy is addressed.

    “Disputing and removing an unfair credit listing can be a difficult and time consuming process, made more stressful if the credit file holder has pressures from finance deadlines,” he says.

    People can check their credit file has the “all clear” before they apply for finance, by contacting Australia’s credit reporting agencies Veda Advantage, Dun and Bradstreet and TASCOL (if in Tasmania) and requesting a copy of their credit report – which is free once a year. This report is mailed within 10 working days, or for a fee to the credit reporting agency, it can be sent urgently.

    “If there are any inconsistencies or out and out errors on the credit file, generally thousands and thousands of dollars in interest is saved by having them removed, as the credit file holder can then take advantage of those interest rate cuts by applying for a home loan with a mainstream lender at competitive rates,” Mr Doessel says.

    For more information on removing or disputing credit rating errors, contact MyCRA Credit Rating Repairs on 1300 667 218.

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO Ph 3124 7133

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

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

    246 Stafford Rd, STAFFORD Qld

    MyCRA Credit Rating Repairs is Australia’s front-runner in credit rating repairs. We permanently remove defaults from credit files.

    ——————————————————————————–

    [i] http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5609.0Main%20Features1Sep%202012?opendocument&tabname=Summary&prodno=5609.0&issue=Sep%202012&num=&view=

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

  • ASIC finds widespread and systemic misleading and deceptive conduct by debt collector

    A Federal Court has heard that one of Australia’s largest debt collection agencies was found to be harassing and misleading debtors in an attempt to recover outstanding debts. Accounts Control Management Services (ACM), which was under investigation by the Australian Securities and Investment Commission (ASIC) was found to have engaged in harassment and widespread and systematic misleading and deceptive conduct in chasing debts, including “rude, condescending and vicious” calls and threats of imprisonment. if you have an outstanding account  the Creditor may have on-sold the debt to a debt collector– and it is this company which places a default on your credit rating. In dealing with a debt collection agency, it’s important to know your rights, and just what is appropriate behaviour from debt collectors when they are attempting to recover debts from you.

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

    ASIC presented to the court 96 phone calls and the ACM debt collector training manual, which the court found and ruled in its October 26 2012 decision “made it very plain that debtors should be threatened with litigation”. ACM’s clients include Telstra, the National Australia Bank and the Commonwealth Bank.

    Yesterday Smart Company featured the story ‘Why you need to be careful about outsourcing debt collection: Court finds agency harassed and misled debtors’ by Cara Waters. Here is an excerpt from this story:

    The court found ACM had engaged in repeated threats to inform a debtor’s husband about her debt in circumstances where her husband did not know about it and ACM knew that she did not want him to know about her debt.

    The debt collection agency also made threats to call a debtor’s friends and employer until the debt was repaid, made threats to have Sheriff’s officers attend a debtor’s home or place of employment in a marked car and made telephone calls to neighbours and friends of a debtor.

    ACM made a threat to issue a warrant for a debtor’s arrest and a threat to take action that would result in a debtor being unable to travel overseas.

    The court was scathing in its description of the tone of one of ACM’s supervisors as “rude, condescending and vicious, no description of this call (and some of her later efforts) can adequately capture the offensiveness involved”.

    It found ACM persistently misled debtors by implying that it was a firm which specialised in commencing legal proceedings for the recovery of debts and that it frequently commenced legal proceedings.

    “The constant references to litigation were not an accident. They were the intended outcome of a house manual which promoted threatening litigation as a means to achieving recoveries,” the court found.

    “The operators were told to make references to legal proceedings and lawyers and it is only natural that this is what they did.”

    The court awarded declarations of misconduct and injunctive relief which restrain ACM from future similar conduct.

    ASIC Commissioner Peter Kell said ASIC will not tolerate behaviour designed to intimidate and mislead debtors.

    “This includes cases where the debtor’s family, friends and associates are also threatened with unreasonable behaviour,” Kell said.

    …SmartCompany contacted ACM but did not receive a response before publication.

    What are the rules for debt collection agencies?

    If you are unsure whether the debt collector you are dealing with is behaving according to the law, you can download ASIC’s brochure (PDF) ‘Debt Collection: Your Rights’ which outlines the general rules debt collectors need to follow when attempting to recover a debt. In this document ASIC has been specific as to what is not acceptable behaviour by a debt collector – so if you are not sure if a debt collector has been behaving fairly, you can check this list or contact ASIC or the Australian Competition and Consumer Commission (ACCC).

    Remember, at no time is extreme conduct such as force, trespass, or intimidation acceptable behaviour, and ASIC also considers harassment, verbal abuse, and an overbearing manner to be unreasonable contact.

    ASIC’s key points for dealing with debt collectors are:

    1. A debt may be collected by a creditor themselves or by someone acting on their behalf, like a debt collector.

    2. If you are contacted by a debt collector, be polite and cooperative. In turn, you should expect to be treated in a professional and courteous manner.

    3. When, where and how a debt collector can contact you is regulated by guidelines designed to ensure you are not harassed.

    4. As a guide, a debt collector should only contact you when it is necessary to do so and for a reasonable purpose.

    5. If you feel a debt collector has breached the guidelines, and the debt is in relation to a financial service, contact ASIC to make a complaint.

    It is important to know that debt collectors should not make false or misleading statements to you about your debts and the ramifications of it:

    Debt collectors must not:

    • make false statements about the amount you owe, or the status of your debt, for example:

    – say you owe a debt when you do not
    – say the amount you owe is greater than it is
    – say that you have no choice but to pay a debt if you have a valid defence against payment, unless there has been a court judgment (if you are disputing a debt, a debt collector should stop collection activity until any reasonable request for information—such as giving you copies of accounts and contracts – has been met, and the debt has been confirmed)
    – say that your spouse or partner must pay your debt when they have no legal liability to do so
    – say that there has been a court judgment if this is not true

    • make false statements about what will happen if the debt is not paid, or what the debt collector intends to do, for example:

    – say that unpaid debts are a criminal offence involving the police or possibly jail (being in debt is not a crime!)
    – say that your children can be taken away from you (this is completely false)
    – say that you will be made bankrupt immediately, even though there has been no court judgment or bankruptcy proceedings started
    – say that your goods (for example, your car) will be seized and sold immediately, even though there is no mortgage over the goods and no court judgment (if there is a mortgage over the goods, generally you must be given notice and 30 days to pay first)
    – say that your wages will be garnished (taken), even though a court order to allow this has not been obtained
    – say that your credit rating will be damaged, if that is not true (privacy laws limit the type of information that a credit reporting agency can hold on file, how long it can be listed on file, and who can access the information)

    • use other misleading appearances or actions, for example:

    – send letters demanding payment that are designed to look like court documents
    – pretend to be (or pretend to act for) a solicitor, court or government body.

    If you think that a debt collector has breached the ASIC/ACCC Debt Collection Guidelines, call ASIC’s Infoline on 1300 300 630 or email Infoline@asic.gov.au, or visit www.asic.gov.au/complain to make a complaint online.

    If you need help with disputing a credit listing, either from a debt collection agency or Creditor then contact you should consider credit repair. A credit repairer can conduct an audit-like investigation on your case. MyCRA Credit Rating Repairs can give you the best chance of having the disputed credit listing removed by fighting your case on your behalf and requesting that if a credit listing has been proven to be listed unlawfully, it should be removed from your credit rating.

    Contact a Credit Repair Advisor for more information call tollfree 1300 667 218 or visit the MyCRA Credit Rating Repairs website for more information www.mycra.com.au.

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

  • Access Denied… How late payments may ruin your home loan application

    You’re a busy young couple, both employed in good paying jobs, you’ve never defaulted on your loans, and you’re in the middle of saving hard for a home loan. Once you’ve got the deposit, you should be a bank’s dream customer right?
    But if you miss paying a few bills, you may not be so lucky. A warning to all future first home buyers about the new laws around late payments that could see you denied that home loan despite all of your good financial deeds.

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

    Comprehensive credit reporting is about to be brought in to Australia. The Government has introduced new legislation into Parliament to amend Australia’s current Privacy Laws under the Privacy Act 1988, which includes the area of credit reporting.

    In total there are 236 pages of amendments to the Privacy Act 1988 within the Privacy Amendment (Enhancing Privacy Protection) Bill 2012, which had its second reading in Parliament in late May.

    These new credit laws are heralded as ‘revolutionising’ credit reporting in Australia, and in theory there are some great changes about to take place which should see more emphasis put on the much-neglected realm of credit reporting accuracy.
    But not all changes will see more people given access to credit.

    The most important change to be aware of is the addition of repayment history information to credit files. In layman’s terms, this means if you pay your bills even a bit late – the company can make a note of it on your credit file.

    Late payment notations will be added to credit files by licenced creditors even if a bill is one day late. The notation will remain on your credit file for 2 years.

    This extra information will be further used to assess credit risk by lenders. The Government says these reforms will lead to decreased levels of over-indebtedness but will also allow people who have a credit file listing the chance to ‘make up’ their negative listing with consistent positive repayment data.

    In discussing New Zealand’s move to comprehensive credit reporting – which occurred in April this year, credit reporting agency and supporter of comprehensive credit reporting, Veda Advantage said it would be the pattern of late payments rather than one or two late payments that will stop someone from obtaining credit.

    “A few hiccups should not hurt anyone’s ability to borrow money for a house, car or holiday in the future,” Veda Advantage New Zealand’s John Roberts told Business Day.

    But lending criteria is quite subjective, too subjective to guarantee those ‘hiccups’ will not penalise potential borrowers. Initially lenders will probably err on the side of caution, particularly if the economy isn’t great and adopt a policy of exclusion rather than inclusion to the credit market.

    Many people will take a big gulp when they think about all the bills they have paid late – often more through accident than not having the money – which could now see their loan declined. Who says how many is too many late bill payments? Would three a year be too many, or two in six months?

    And who says when this information will start being collected? I think if you want credit in the future (most of us) you should be on your guard now, be vigilant with making payments ON TIME every time to ensure these late payment notations don’t stop you from getting credit in the future.

    Accuracy Concerns

    The big area of concern around late payment notations from consumer advocates – including myself has to do with accuracy. At the moment credit rating mistakes are pretty common. The other issue is how difficult it is for people to dispute a credit listing themselves, let alone a late payment notation.

    NSW-based Consumer Credit Legal Centre Principal, Katherine Lane told the Sydney Morning Herald last year she was concerned over the fairness of listing a payment that is only slightly overdue or late for a good reason. She says credit reporting continues to operate as an “honour system” relying too heavily on the word of the creditor.

    ”My overriding concern is fairness,” Lane says of the exposure draft, which is now the subject of submissions to the Senate Finance and Public Administration Committee.

    ”Fairness is clearly a problem under the current law and they haven’t fixed the problem.”

    With the new legislation will be laws which will allow you to dispute your credit file listing easier if you believe it has been placed in error. But the thing is it will still be up to you to know the law to be able to apply it to your own case, and this is where credit repairers will continue to be needed – to close the gap and help enforce the legislation that Creditors are bound to comply with.

    To ensure you remain a good candidate for a home loan in the future, pay your bills on time, and prior to loan application order a free copy of your credit file to make sure you’re not going to be disadvantaged by someone else’s mistake. If there’s something you don’t agree with – contact a professional credit repairer to see if you would be a candidate for credit repair to remove credit rating errors.

    Image: basketman / www.FreeDigitalPhotos.net

  • Mistake On Your Credit Report? Here’s How To Correct Them

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    Mistake on your credit report? It can be remedied! If your credit file has incorrect information, or the default listing is wrong, we look at what you can do to fix your bad credit in Australia.

    Bad credit is not pretty. Many times people don’t find out about a default or a mistake on their credit file until they are sitting in front of the lender – mortified, frustrated and heartbroken at the loss of a mortgage, business loan or car loan. This ‘bad credit’ listing will remain on your credit file for the next five years, and for the next five years you will be restricted on your access to credit and forced out of the mainstream market. Heck, even a mobile phone plan is looking unlikely. All because a credit provider decided you had been late paying an account.

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

    But what if the creditor has gotten it wrong? What if the wrong information is on your credit file or a mistake has been made on your credit file?

    Firstly, you are not alone. Thousands, maybe millions of Australians are facing this issue of credit rating errors caused by a mistake right now. Some of those people have tried to dispute an unfair credit listing, and many of those people have been unsuccessful. They have been told that credit listings are never removed, that they will remain on your credit file until the ‘drop off’ date. If they have been paid, they can be marked as such, but there will still be some notation on your credit file.

    Don’t buy into it!

    If a credit listing has been placed unlawfully on your credit file, if there is any mistake in any aspect of the credit listing, or the listing just should not be there, then you may have the right to have those inconsistencies removed.

    Some basic things to look for with default listing rules:

    1. More than 60 days must have elapsed since the account was officially in arrears.

    2. You must have received written notification of the default before it was listed.

    If either of these has not occurred, then you should contact the creditor in writing to request the default’s removal – as the creditor has not followed basic rules whilst listing the default on your credit file and it has been ‘unlawfully’ placed on your credit file.

    3. Has the default been listed for more than five years?

    The listing should have ‘dropped off’ your credit file, and you should request the creditor remove the default from your credit file.

    When it’s a little more complicated, or you want to ensure you have the best chance of the incorrect or mistaken listing being completely removed from your credit file, often it is best to seek professional help.

    Dangers In Disputing Your Credit Listings Yourself…

    Often you only get one shot in disputing a credit listing. If you alert creditors in the wrong way that you have issues with a credit listing, there is a danger they may make changes to records to correct the mistake, or delete certain records from their files in order to solidify evidence that the listing was applied correctly.

    Listings are not removed by creditors unless the credit file holder can provide adequate reason and lots of evidence as to why the listing should not be there, and this lack of evidence can also let people down in their case for removing an incorrect listing.

    Professional Credit Repair Law Firms

    A credit repair lawyer is uniquely qualified in disputing defaults and other credit listings which should not be there. They will investigate the disputed credit listing, request further information as required and draft a considered complaint to your creditor. They are well versed in the approx. 8,000 pages of legislation which relates to credit reporting, and they can cross-reference this legislation as it applies to your particular case.

    You may have a listing removed due to the creditor not complying with some of the more well-known credit reporting legislation, or a credit repair law firm could find more specific evidence which can aid the case for removal of the credit listing which you may never have found yourself. It is in the investigation and presentation of the case for removal and finally in the negotiation with the creditor that people can see the true value of a credit repair lawyer.

    Credit repair lawyers also know what avenue to take if the creditor refuses to remove the listing, and will if necessary escalate your complaint to courts.

    Who Chooses Credit Repair?

    People choose to use a credit repair lawyer when they don’t have the time, patience, negotiating ability, temper, or knowledge of legislation to dispute their credit listing mistake with the creditor themselves. People who want the best chance of getting a default removed will use a professional experienced credit repair law firm, just as most people would use a lawyer if they were defending themselves in court. It’s a bit like David and Goliath in many cases – so credit repair lawyers like MyCRA Lawyers provide the benefit of their experience to tackle the big guys on your behalf.

    Volume of Credit Rating Errors Or Mistakes

    A Veda Advantage (now Equifax) spokesperson, was recently interviewed by Channel 7 Australia’s Today Tonight, about the possible number of errors which are contained on Australian credit reports.

    “We give out about 250,000 credit reports to consumers every year. But only in 1 per cent of cases is there a material error on the file, so a default or an enquiry that’s incorrect,” Mr Gration told Today Tonight.

    But an Australian Consumer Association (now Choice) survey from 2004 revealed that 34% of the credit files surveyed in their small scale study contained errors or inconsistencies.

    A similar study was conducted in 2015 and in January 2016, where it was revealed that 12 years on, approximately 30% of credit ratings still contain mistakes.

    We think the current real figure is probably somewhere in between that. But in any case, there are far too many people with inconsistent credit reports and far too many people left in the dark about how to correctly dispute them.

    So it’s important to raise awareness, and show people how to give themselves the best chance at clearing bad credit.

    Image: digitalart/ www.FreeDigitalPhotos.net

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