MyCRA Specialist Credit Repair Lawyers

Tag: free copy of your credit file

  • Comprehensive credit reporting could mean more consumers refused credit

    Comprehensive credit reporting has again come under the spotlight for its potential advantages and disadvantages for lenders and consumers alike. We look at what you should be watching out for with your credit file when the comprehensive credit reporting regime is instigated in the near future.

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

    Last week, Head of Legal at Veda Advantage, Olga Ganopolsky defended the incoming positive credit reporting regime in Broker News, claiming the new laws would help to alleviate consumers inaccurately reporting their credit situation to lenders.

    Ganopolsky argued that the wider array of information available in the new reporting regime will enable lenders to make more informed risk decisions. She claimed the regime carried a “strong link to responsible lending”.

    “When research is done on bankrupts, the astonishing results were that more than 95% of people in bankruptcy were applying for credit virtually on the eve of bankruptcy. A lot of even solid credit individuals don’t provide accurate credit information. Just under 20% of people don’t accurately report,” Ganopolsky said.

    Critics of the regime say it violates consumers’ privacy and places the burden of proof on consumers should lenders make a mistake. And though Ganopolsky claimed the regime would enable more responsible lending decisions, NSW Consumer Credit Legal Centre director Karen Cox has pointed out that a positive credit reporting regime existed in the United States during the subprime mortgage crisis,” Broker News reports.

    The introduction of additional information onto consumer credit reports in Australia is unfortunately not going to impact consumers in a ‘positive’ way.

    Unfortunately, the new comprehensive credit reporting regime just opens another door for creditors to inaccurately report information on consumer credit reports – but this time there is no forewarning.

    The information can be recorded if payments are one day late. One of the major issues we have with the proposed new laws is the ability for creditors to list late payments on a person’s credit file.

    Under current Australian credit reporting legislation, late payments are not noted on a person’s credit file until they pass to the ‘default’ stage – which is more than 60 days in arrears.

    The creditor is also bound to fulfil a series of requirements to give the consumer the opportunity to rectify the situation before listing the default – and are bound to notify the consumer of their intentions to ultimately ‘list’ the late payment of 60 days or more as a default on the consumer’s credit file.

    This legislation will remain, but the Government also proposes the introduction of the ability for creditors bound by the NCCP to make late payment entries on a person’s credit file if their payments are late even as little as one day.

    So all the rigorous Australian credit reporting laws for listing defaults remain, except a creditor can now tarnish a person’s credit file with late payment ‘notations’, which would surely have a big impact on their ability to obtain credit. If the late payment of a few days is due to delays in bank processing of transfers or direct debits, paying at Australia Post, BPay etc. – these things are beyond the control of the average consumer yet that is exactly who will get hurt.

    There can be a host of reasons why a consumer makes a payment late – illness, holidays even simply the mail going astray – but we don’t believe this reflects unduly on the consumer’s ability to service a loan – but will it?

    In these harsh economic times, any negative listing impacts a person’s ability to get a home loan. Even excess credit enquiries. So the ‘noting’ of late payments on a person’s credit file could mean they are refused credit.

    Creditors make mistakes every day when it comes to listing defaults and other official ‘negative’ listings on credit files. Luckily the consumer has an extensive legislative framework and system of redress should the creditor get it wrong and their credit file happened to be reported unfairly or inaccurately.

    Who is going to be the watchdog when it comes to these late payment ‘notations’? As is currently the case, it is up to the consumer to check the accuracy of their own credit file. What system of redress will be in place if they find a creditor has listed a ‘late payment’ on their credit file unfairly or incorrectly?

    We guess the old adage will remain – consumers will continue to be responsible for the information that is reported about them by creditors on their credit file.

    With this in mind it will continue to be essential for consumers to check the accuracy of their own credit file on a regular basis – and particularly before they apply for any credit.

    Refused credit? We can help!

    For more information on your credit file, or to obtain a free copy of your credit file, contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit www.fixmybadcredit.com.au.

    Image: Ambro/ FreeDigitalPhotos.net

  • How to dispute a bill and keep a clear credit file

    What many credit repairers don’t want you to know…There’s a wrong way to dispute your bill. The wrong way can lead to bad credit history – leaving you unable to obtain credit for 5 to 7 years. Here is how you should dispute your telephone, internet, energy or basically any bill which you disagree with before it ruins your credit file.

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

    Customers who refuse to pay a bill because they believe it has errors are making a grave mistake that could harm their ability to get credit in the future.

    One of the most common mistakes people make which leads to bad credit history is not paying a disputed bill by the due date.

    Creditors make mistakes with billing all the time, otherwise however infallible they may like to think their system is, otherwise there would be no need for professional credit repair.

    It can be really difficult getting the matter resolved with some creditors. But no news is definitely not good news.

    Where many customers go wrong, is assuming just because they have spoken to someone on the phone about the bill, they are no longer obliged to pay it by the due date.

    Under current credit reporting legislation, an account which is more than 60 days late can be listed by the creditor as ‘unpaid’ on the customer’s credit file. This is regardless of whether the customer believes there are errors in the details of the bill or with the payment amount.

    Many clients dispute the offending bill with the company and made the mistake of leaving the bill unpaid well past the due date while waiting for correspondence from the company. Many are not aware they have incurred a default anyway, until they apply for credit in a different circumstance.

    These defaults remain on a person’s credit file for 5 years. Under current legislation, defaults generally don’t get removed from a credit file, but can be marked as paid if they have been paid.

    Currently, defaults – even those that are marked as ‘paid’, will prevent you from obtaining a home loan with most lenders. In fact, even having a few too many credit enquiries can be enough for an automatic decline.

    So it’s really important we don’t leave ourselves open to having a default listing slapped on our credit file, ruining our good name.

    Here is the process people should take when disputing a bill in Australia:

    1. Contact the bill provider as soon as you receive the bill and attempt to resolve the discrepancy.

    2. Make a note of the date of all conversations, the name of each person you speak to and the nature of the discussion with each. Note any resolutions that were reached and ask that those be emailed or sent to you in writing.

    3. If the credit provider fails to honour the discrepancy, advise them you will be contacting the appropriate ombudsman.

    4. If the due date for the bill approaches and the issue has not been resolved, pay the bill by the due date. You can always seek reimbursement at a later date, but this will prevent a default for that bill being listed on your credit file.

    5. If there is still no resolution, take the matter further, usually with the appropriate Ombudsman.

    So don’t assume anything or take someone’s word for it, get it in writing and preserve your clear credit file.

    If you already have bad credit history from a bill dispute that went wrong – it may not be all lost. The best way to fix your credit score is to seek professional credit repair.

    Australian credit reporting legislation allows for you to resolve any inconsistencies on your credit report. But the problem with attempting to dispute errors on your credit file with creditors yourself is two-fold. Without knowledge of the legislation, people almost invariably get caught in legal ‘loop-holes’ which see the default, writ or Judgment left on the credit file, or at best see the listing marked as ‘paid’.

    Both of these results DO NOT fix your credit rating because lenders still consider even a ‘paid’ listing as bad credit history. Secondly, by negotiating with creditors, people can also accidentally ‘alert’ creditors to any mistakes the creditor may have made in the initial method of credit reporting – allowing them to fix up their mistakes and negate the need to remove the credit file default which was placed in error.

    Good professional credit repair gives you the best chance at fixing your credit.  A credit repairer can help you get a free copy of your credit file, and go through the bad credit history with you. They can then use their knowledge of credit reporting legislation to see where any errors in credit reporting were made, and help to enforce the legislation that creditors are bound to comply with.

    If they are successful, you not only get help with removing errors from your credit file, but many times you are able to start off with a completely clean credit rating.