MyCRA Specialist Credit Repair Lawyers

Tag: Graham Doessel

  • Vodafone customers – ‘desperate and defaulted.’

    20070920 Image Close up of credit card bill iStock_000003981197Large GDOE 01Media Release

    Vodafone customers – ‘desperate and defaulted.’

    5 March 2013

    A Queensland family should have been relaxing in their newly purchased home after an interstate transfer, but instead they have been fighting Vodafone over a default which saw them lose their house contract – a default which they say, was ludicrous.

    Up till now, Alastair and Nikki Taylor have not been able to join the 20,000-plus Vodafone customers who are mounting a class action against the telco, because doing so could have damaged their dispute case against their Vodafone default listing.

    The default listing which has been proven to be unlawful and finally been removed by Vodafone today, saw them cop what they say, is an unfair and incorrect 5-year default on their credit file.

    “This default was stopping us from getting a home, and it is grossly unfair the time and money we have lost, not to mention the stress it has caused our family,” Alastair says.

    Alastair and Nikki purchased a wireless internet modem from a Vodafone store in Western Australia, but claim they were misled about the internet coverage it would provide.

    “At the time we verified with the sales assistant many times if it would work in the address we intended to move to as we had recently bought a new house. She assured us we would have full coverage. Upon arriving at our new address we found we were absolutely without coverage,” Alastair says.

    He says he contacted the store at least ten times, leaving messages and getting no response.

    “When I did finally get to talk to someone they rudely hung up on me. The next time I spoke to somebody, was when a debt collector called chasing the outstanding money around two months later. I told them the situation but they wouldn’t listen and were only interested in getting the money out of me,” he says.

    The couple begrudgingly paid the account late last year, when Alastair got an interstate transfer. They were told the outstanding account was affecting their credit rating and stalling their purchase of a home in Cairns.

    “We had no idea we were defaulted anyway whether we had paid the account or not. We lost the house we were after, and have had a lengthy battle with Vodafone to remove it,” Alastair says.

    Their advocate, MyCRA Credit Rating Repair’s Graham Doessel says they are certainly not alone in their experience.

    “Many telcos have historically poor levels of customer service and many times customers don’t get what they think they are paying for. What’s worse is when those botched plans end up costing the customer their credit file,” Mr Doessel says.

    The Telecommunications Industry Ombudsman’s annual report, released in October last year shows a rise in complaints about credit default listings. Complaints about consumers being credit default listed while their debt was in dispute increased 18 per cent from 3,700 to 4,370.

    “I am very concerned about the increase in the number of complaints where credit default listings are disputed,” Mr Cohen said “Credit listings can have very significant impacts on people – affecting applications for credit, including for housing and personal loans. Any credit default listing should only occur after the correct procedures have been followed.”

    Mr Doessel says preventing and disputing a credit file default from a telco often comes down to awareness of legalities.

    “Many people don’t know the rules well enough when dealing with these big companies, so it can be a little like David and Goliath and many times the big guy wins,” he says.

    He says his clients encounter difficulties with telcos at many levels.

    “In our experience it’s not just the initial sale of product which is in dispute, but the entire customer service process and often the process of default listing the client as well,” he says.

    He is hoping the very public class action will be a force of change, especially following the introduction of tougher laws for telcos in September last year.

    The ‘Telecommunications Consumer Protection Code’ was pushed through with the guidance of the Australian Communications and Media Authority (ACMA) which have amongst other things aimed to facilitate faster, better complaints-handling, with urgent complaints resolved within two days.

    ACMA Chairman Chris Chapman said at the time the ACMA would put the industry on notice, advising they would take a “far more robust approach” to ensure the industry’s compliance with the new Code.

    You can find more information on disputing a default with your telco at the MyCRA website www.mycra.com.au.

    /ENDS.

    Please contact: Graham Doessel – Founder and CEO 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 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.

  • How To Spot the Difference Between Needs and Wants

    wants and needsIn our “Make Credit Work For You” post this week, we have a great article from Savingsguide Australia. Just subscribing to this blog alone will give you some invaluable tips you can use to help you rise to greatness with your finance goals. The article today is “How To Spot the Difference Between Needs and Wants.” If you have decided to live a life of frugality and perhaps have heard of the concept of Affluenza (when too much is never enough), then you will know a bit about the distinction of wants and needs. We may need to eat, but we might only want the big screen TV. Making the decision which is which is an ongoing battle. Thinking wants are needs causes many of us to buy more than we can afford, and we find ourselves struggling to pay back credit. Too many runs of this, and we end up defaulting on our repayments and a Credit Provider somewhere penalises us with bad credit that takes 5 years to shake off. Education and awareness is the key to changing this kind of behaviour – which is natural in all of us. So have a read of this article, and hopefully it helps you spot the difference.

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

    How To Spot the Difference Between Needs and Wants

    By Fran Sidoti

    I’m always the worst when it comes to thinking of how many needs I have. I need an expensive haircut. I need clothes with a more expensive price tag. I need, need, need. Life becomes a much simpler business when I realise that, in fact, these are wants, not needs and they are not essential to my well-being.

     What do I need? Enough food to not feel hungry, a warm place to sleep at night, a couple of goals to chase and people who love me to surround myself. Beyond those things, I probably don’t need much.

    This new Zen me is a little bit inspired by Adam Baker’s guest post on Get Rich Slowly, discussing his wants and needs. Returning from their nomadic lifestyle, Baker and his wife decided to look for a rental with three bedrooms, not the absolutely necessary two bedrooms, so Baker would have a space to work.

    The house they eventually settled on had flaws, but Baker suggests that by concentrating on the fact that three bedrooms was, in itself, a luxury, the flaws of the house tended to lose their importance.

    So, how can we start to fulfill our needs and appreciate our wants for what they are?

     Write it down  

    The best way to understand your own psyche is, sometimes, to write it all down. Construct two tables and write down your needs and your wants. Have a look at the list. Are there things that are under ‘needs’ and are really more things you want? Write down the list again, this time with a bit more self-reflection, and see what that reveals.  

    Ask yourself if you really need this  

    Before you buy anything, repeat the shopaholics’ mantra- do I need this? You’ll end up saving a lot of money that you might otherwise spend on unnecessary purchases. Sometimes it turns out you neither need it or, deep down, want it all that much. So many of my purchases are due to boredom or a mild inclination. Don’t buy things you’ll never really wear or use. Save the purchases for something you’ll really love.  

    Fund your needs  

    Ever spent all your money on entertainment, only to discover you’re short on rent, bills and will be reduced to eating baked beans for a fortnight? Fund your needs first, then fund your savings, and then spend some money on your wants, You might think that constant partying is the thing that makes you happiest but, in the end, the anxiety that accompanies constant money problems is probably not helping you get the best night’s sleep.  

    Know your important wants  

    In all of this, it’s easy to lose sight of how to enjoy life. Don’t cut every single want from your life. Don’t become a martyr to the savings cause. If you cut out all the little wants from your life, you’ll end up with the money to spend on the important wants- like travel, or a renovation. Use your spare cash on special things, and appreciate them for what they are. I don’t need an expensive haircut, but I know how good it makes me feel about myself and how much I love the whole ritual of a good haircut, so I’m willing to wear cheap clothes and have nights with friends at home so I can spoil myself once in a while. An odd want, but there you have it.

    AffluenzaThis concept can be easily applied to credit. Just because you use credit, shouldn’t give you a licence to buy whatever, whenever. Understand just because you don’t pay now doesn’t mean you won’t pay at some point for the credit you use. Save your credit for your important wants, and appreciate them all the more for their rarity.

    Maybe throw that long sought after holiday on the credit card and take the family away. Or take out repayments on an educational course that will change your working life forever. Or perhaps buy a home, but after years of good saving. One that fits all the requirements of what you need, rather than what you want. A home you don’t have to work 24/7 to pay off because it is priced within your means.

    What you shouldn’t do is spend money you don’t have, on things you don’t need, and ultimately find yourself with what you don’t want – debt, unhappiness and a bad credit history.

    Here’s some extra reading on this concept: http://mycra.com.au/blog/2011/07/caught-affluenza-affect-credit-rating-health/

    What does your credit file say about you?

    Think of your credit file as a mirror on your finances. It can reflect your assets, your good history, but it can also reveal your financial shortcomings. It can be a reflection of your inability to stick with something, your disregard for repayments and it shows the financial potholes we fall into that are sometimes impossible to climb out of.

    A bad credit rating can completely change your financial situation. The black marks placed there by creditors show up on your credit file for 5 years. Bad credit can limit your choices and can perpetuate the debt cycle by leading you to choose loans with higher interest rates and more fees, so the struggle to make repayments can be even harder.

    If you want to try and start again with credit, it may be possible to wipe the slate clean, particularly if your bad credit rating should not be there.  Firstly, obtain a free copy of your credit report from one or more of the credit reporting agencies, Veda Advantage, Dun & Bradstreet and Tasmanian Collection Services (TASCOL). If your credit file contains obvious inconsistencies or even if you’re not sure, you may be a good candidate for credit repair.

    A credit repairer can work with creditors on your behalf to completely clear your credit file of all defaults, clear-outs, writs and Judgments which contain errors, are unjust or just should not be there. This means we you longer have a bad credit rating, but a completely clear credit file, giving you the financial freedom to use credit whenever we need to.

    The rest is up to you.

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

    Image 2: graur razvan ionut/ www.FreeDigitalPhotos.net

  • Rising menace of extreme identity theft looms

    Identity theftTechnology law expert Profressor Faye Jones and University of South Australia law lecturer Dr Clare Sullivan warn that the rising menace of extreme identity theft looms large. In a UniSA law seminar ‘Extreme identity theft: an international challenge’ they spoke about the ongoing threat of identity theft. We look at their release to the media on this fascinating topic. They implore people to understand how valuable their personal information is, and to guard it accordingly. No one wants to end up a victim of identity theft, and have their credit file misused.

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

    Unmasking the threat of identity theft

    …Dr Sullivan, an expert on digital identity, highlights an example in the US of a teacher who, upon discovering she had a bad credit rating, unravelled a 10 year long trail of deception in which a person had forged her identity, bought a house and gained employment – using her details.

     The anonymity attached to online behaviour and the amount of personal data that is readily available online has made it easier for false digital identities to be created or assumed, says Dr Sullivan. 

     “Years ago in Melbourne there was an identity thief who would use the names and dates of births on peoples’ tombstones to apply for birth certificates. With that, they would open a bank account, apply for employment registration cards and then passports.

     “These days that information is even more readily available. A full name, date of birth, gender and one other piece of identification, most often a signature or a PIN number, are sometimes all that is needed to steal a person’s identity.”

     “Most often people do this for reasons of fraud and their victims may not know what has happened until weeks or months later. The victim is on the back foot and they have to prove that they are who they say they are and that is not necessarily easy.”

     As to possible remedies, the suggestions of keeping Government compiled databases on individuals’ identities would have huge privacy and security implications.

     “Once you start putting those things into just one big database, well no database is secure,” Dr Sullivan says.

     “This was an issue for the UK and their identity scheme. In a way it’s more vulnerable – it’s like putting all the crown jewels in just one cupboard.

     “Technological innovations, including those which use biometrics – fingerprints, face scans and iris scans have error rates. Sometimes the error rate is low but they do exist. TV shows like CSI give a public perception that biometrics are infallible but they are not.”

     “The best advice is to recognise just how valuable your personal information is, try not to collect all your details together in one place and also try to build personal relations with people in organisations, like a bank for example, who will recognise you, who could verify your identity.”

     The absence of personal contact in the modern world is one of the reasons why identify theft is easier to facilitate says Dr Sullivan, and the assumption of a person’s identity is an issue not just confined to electronic fraud.

    In an echo of the Leonardo DiCaprio film Catch Me If You Can, which charted the life of a young con artist, in January a teenager who had impersonated doctors in hospitals in Adelaide was arrested and charged with identity theft.

    Pretty scary stuff. What’s worse is the identity theft victim then needs to prove to Creditors they didn’t initiate the credit in their name in order to have the offending defaults removed from their credit file. This is not always an easy thing to do with very few consumers knowing what to say to get the right information they need to prove their case and often the identity theft taking place long before the victim finds out about it.

    According to a survey in the U.S. by Javelin Strategy and Research, incidents of identity fraud in the United States are at their highest in three years. Incidents of identity fraud affected 5.26 percent of U.S. adults last year. That’s up from 4.9 percent in 2011 and 4.35 percent in 2010. The company put the total number of identity victims in 2012 at 12.6 million.

    In Australia, it is evident we are not immune and it is important to stay vigilant. Here are some simple steps you can take NOW to improve your chances of avoiding identity theft.

    What You Can Do To Prevent Identity Theft.

    1. Keep virus software up to date on your computer. Install automatic updates and perform regular virus scans.

    2. Keep your privacy settings secure on all social networking sites.

    3. Keep your passwords and PIN numbers secure. Don’t carry PIN numbers with your credit/debit cards, change  passwords regularly and use a variety of passwords for different purposes.

    4. Check all your credit card and bank statements each time they come in.

    5. Cross-shred all personally identifiable information which you no longer need, rather than throwing it straight in the  bin.

    6. Buy a safe for your personal information at home.

    7. Do not give any personal information or credit card details to anyone via phone or email unless you are sure the site is secure, and or you can verify the company details.

    8. Be aware of who gets your personal information and for what purposes. What can these people do with the information they are gathering? For instance, is it really necessary for the site you are registering on to have your date of birth?

    9. Keep up to date with the latest scams by subscribing to the government’s ‘SCAM watch’ website.

    10. Check your credit file for free every 12 months. By requesting a copy of your credit file from one or more of the major credit reporting agencies, Veda Advantage, Dun & Bradstreet and Tasmanian Collection Service (TASCOL) you can be aware of any discrepancies which may need to be investigated. Often it is only through a credit check which comes back with defaults on our credit file do we realise we have been victims of identity theft.

    11. Report any incident of identity theft, no matter how small, or even if you have been reimbursed for the damage – to the Police. The more of us that report identity theft, the more effective will be our Government and Police response to it.

    Image: Chris Sharp/ www.FreeDigitalPhotos.net

     

     

  • Don’t launch a cyber-assault on Australian businesses – just look in their rubbish bins.

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    dumpster divingMedia Release

    Don’t launch a cyber-assault on Australian businesses – just look in their rubbish bins.

    21 February 2013

    The identities of thousands of Australian consumers could be at risk every day through simply having their personal information dumped into the rubbish bins of Australian businesses, and a consumer advocate for accurate credit reporting says this practice is an appalling oversight when personal information has become so valuable to fraudsters.

    The National Association of Information Destruction (NAID-ANZ), which is the peak body for the secure destruction industry, recently hired a detective agency to find out what customer information was being thrown away unsecured in business rubbish bins.[/fusion_text][fusion_separator style_type=”default” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” class=”” id=”” flex_grow=”0″ top_margin=”” bottom_margin=”” width=”” alignment=”center” border_size=”” sep_color=”” icon=”” icon_size=”” icon_color=”” icon_circle=”” icon_circle_color=”” /][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container][fusion_builder_container hundred_percent=”yes” overflow=”visible” type=”flex”][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” 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” align_self=”flex-start” border_sizes_undefined=”” first=”true” last=”true” hover_type=”none” link=”” border_position=”all”][fusion_text][i]

    The investigator went through the contents of publicly accessible waste bins used by 80 Sydney businesses that have an established responsibility to client data, with the aim of discovering the relative percentage of confidential waste that might be available on a given day.

    They found 11 per cent of those businesses contained crucial personal information readily accessible to passers-by and identity thieves.

    “Some sectors did better than others,” said NAID CEO Robert Johnson. “For instance, of the nine randomly sampled trash bins serving government offices, no confidential information was found. On the other hand, bank branches fared less well with 40 percent found to be casually discarding confidential financial information.”

    The study involved someone ‘casually’ looking at a bin, rather than dissecting it in an overly-thorough manner.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says “dumpster diving”– a practice of looking through rubbish bins for personally identifiable information is well used amongst fraudsters – and unlike many other forms of attempted identity theft, can be easily prevented through careful destruction of personal information.

    “It is best practice in my organisation and I am sure in many others, to cross-shred every piece of personal information that is no longer required. If it is good enough for small business, it should be good enough for bigger business such as banks to properly dispose of this information,” he says.

    On Monday new Attorney-General, Mark Dreyfus QC warned that Australian businesses were increasingly being targeted for cyber-assaults.

    “Cyber attacks have shifted from being indiscriminate and random to being more coordinated and targeted for financial gain. Most attacks occur from outside the business, although it appears internal risks are also significant,” Mr Dreyfus said.[ii]

    Mr Doessel says whilst cyber crime is becoming increasingly prevalent, basic data destruction is still a pressing topic.

    “We can’t forget about educating Australian businesses on data destruction and this simple way they can prevent their clients’ personal information from being stolen by identity thieves,” he says.

    He says consumers should feel unnerved that it was so easy for the investigators to come across personal information in rubbish bins.

    “Pieces of personal information are basically the building blocks of identity theft. Crucial details such as full names, addresses and dates of birth can all be used to build a profile on the victim which can then be used to assume their identity and even take out credit in their name. Often victims don’t know about it right away – and that’s where their credit file can be compromised,” Mr Doessel 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 for the five year term,” he says.

    He says what is not widely known is how difficult credit repair can be – even if the individual has been the victim of identity theft.

    “There is no certainty that defaults can be removed from a victim’s credit file. The onus is on them to prove their case and provide copious amounts of documentary evidence,” he says.

    /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

    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.brokernews.com.au/news/breaking-news/brokers-trump-banks-in-protecting-client-info-148810.aspx

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

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

  • 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 cards: The real deal on choosing the plastic fantastic.

    choosing the right credit cardCredit cards are not always bad, but you have to make sure you get the right one that fits you and your lifestyle. It’s important to read the fine print before you decide on a credit card. Avoid getting enticed by rewards and low interest periods, and take the time to understand what you can afford so you can choose the card that is right for you. That’s the key point to avoid bad credit history through credit card debt and make credit work for you.

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

    Choosing the right credit card is essential to your finances – in the end it can be the difference between good and bad credit history.

    Money saving website, Savingsguide Australia have 5 tips for choosing the right credit card.

    5 Tips When Getting A Credit Card:

    1. At The End Of The Month. If you’re unable to pay off your credit card at the end of the month, Yahoo! Personal Finance suggests looking for cards with 45 days of interest free and then cards that have the lowest interest on purchases. I would also suggest keeping credit use to a minimum until you’re able to pay it off at the end of the month.

    2. Fee. If you’re planning on using your credit card frequently and for rewards programs, then an annual fee might be a worthwhile spend. You could be looking at anywhere between $50 to $250 a year, but if you’re redeeming your points for money-saving purchases like flights or accommodation, it might be a worthwhile investment. If, however, you’ve got the card as an emergency back up when you go overseas, you may as well just get a card that doesn’t have an annual fee.

    3. Interest Rate. When getting a credit card, it’s essential to weigh up whether any outlay on the card is a worthwhile investment. The same is as true of interest as it is of the annual fee. The card might have a high interest rate but if you can be certain you’re going to be able to pay it off at the end of every month, then those cards can also offer great rewards. Often, it’s stipulated you have to be earning over a certain amount to qualify to use the card.

    4. Use It Everywhere. People look dismayed when they come to my work and pull out an Amex or Diners. Sure, we can transfer it. At the cost of a 3% surcharge, which usually precludes anyone from wanting to use it. Amex and Diners come with great rewards but a lot of businesses, at least in my town, have no interest in processing them so you have to rely on two cards. Recently, however, cards have been released where they are two cards in one (an Amex and Visa, or an Amex and Mastercard). So if you’re keen for the reward points, it could be worth investigating that option.

    5. Bonuses. Credit cards are big business, and they want to make sure that they keep yours. Hence, the amazing world of bonuses for your credit cards. The most obvious, and the most commonly used, is the protection should you be a victim of fraud. If it happens on your credit card, the bank will usually cover you as part of your credit card contract. If the same thing happens on your debit card, you’re not always as lucky. Other bonuses can include short-term insurance on items bought on your credit card or little luxuries like privileged access to concert tickets when they go on sale and the best seats. If a credit card fulfils all your other criteria, a bonus scheme could be a great way for you to save a bit of money throughout the year.

    Some great advice there on choosing credit cards. One important point is to not be sucked in by promises of rewards or other special deals when choosing credit cards – concentrate on the fees, interest and repayments. If you can afford all of that, then look at the possible benefits rewards can bring.

    Here is my advice to prevent bad credit history from credit card debt:

    Create your own credit limit.

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

    Don’t exceed the credit limit.

    This will just mean you incur hefty charges.

    Pay off the balance each month.

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

    Or, choose a low interest card, but still pay more than the minimum repayment amount each month.

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

    Avoid cash advances.

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

    You can also visit ASIC’s MoneySmart website for further information on how to choose the right credit card or watch this youtube video featuring ASIC Commissioner Peter Kell.

    http://youtu.be/YFLDegKGgLI

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

    Image: hin255/ www.FreeDigitalPhotos.net

  • Small business finance regulation deferred

    small business financeIt seems the controversial draft legislation regulating small business finance has been deferred – with the Government now saying it wants to take the time to get reforms right. This follows a barrage of criticisms from business groups that the new laws would make it much harder for small businesses to get funding.

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

    The Government’s Christmas ‘surprise’ for small businesses in the form of draft legislation to regulate commercial lending certainly met some criticism in the lending and small business sector.

    The legislation proposed prohibiting people from “engaging in credit activities” in relation to a small business credit contract or a small business consumer lease unless they hold a permit.

    Business publication SmartCompany confirmed last week in the story ‘Government backflips on plans to regulate access to credit for small business‘ that Treasury will put off any action on small business finance.  T

    hey said Financial Services Minister Bill Shorten announced the withdrawal of the draft legislation at a meeting with the Council of Small Business of Australia and the Commercial Asset Finance Brokers Association of Australia last week.

    It was also reported in Australian Broker today in the story ‘Commercial lending off the table…for now’ that Treasury indicated that its consultations had found “a need to further examine a number of key issues” relating to business credit.

    “Treasury’s release said that the Government considers that it is important to get the reforms right, given the important role that small businesses play in the Australian economy,” Gadens Lawyers partner Jon Denovan told AB.

    The CAFBA said in a statement that the government’s move to dump the draft legislation was a common sense result.

     “CAFBA maintained staunch resistance to all aspects of the draft regulation and was unwilling to accept or compromise its position, as CAFBA fully understood the debilitating impact of the proposed regulation and the flow-on effects to every small business in Australia,” it was reported in SmartCompany.

    This was our position on the draft legislation when it was released just days before Christmas:

    CEO of MyCRA Credit Rating Repair, Graham Doessel says the proposed changes would be widely criticised by small business advocates as stifling the flow of business credit in Australia and that the changes are unnecessary form of “hand holding” for Australian business owners.

    “Australian small businesses are already doing it tough getting credit out there post GFC – this is going to mean they will struggle even further to expand and there will be less start-ups,” Mr Doessel says.

    Where we did want to see change, was in the basic rights afford to commercial credit file holders before recovery is commenced.

    In the consumer landscape, if an account is overdue, then the account holder is afforded a 30 day right to remedy under the Credit Reporting Code of Conduct. This is meant to ensure that fair and reasonable means have been taken to attempt to recover the outstanding amount before further action is taken, and before the consumer’s credit file is defaulted.

    As commercial credit is not covered under the Code, this right is currently not provided to commercial credit file holders.

    The common courtesies which consumers are afforded and which many assume stay with them in the commercial sphere just don’t apply – many don’t realise just how big a risk commercial credit is.

    Here’s more from our media statement:

    “It’s like the ‘wild, wild west’ out there with some lenders defaulting small businesses with little to no warning.”

    Once a default is placed on a commercial credit file, then the length of time it remains on the credit file is legislated by the Privacy Act 1988.

    “A commercial credit file holder is still subject to 5 years of bad credit if they end up with a default listing, the ramifications are still the same – they are generally refused mainstream credit, refused mobile phone plans, car finance and credit cards – but the rules for how the default gets there in the first place are just not there,” Mr Doessel says.

    “In theory, you can be one or two days late in paying a commercial account and you can have your ability to obtain credit ruined. There is no right of redress, as there is no legislation governing notification requirements in the commercial credit sphere.”

    Mr Doessel says the Government has completely missed the mark on what small businesses need to thrive and survive.

    “Most don’t need restrictions on available credit, they just need the basic credit reporting rights that they deserve,” he says.

    We’re glad the Government has put this legislation on the backburner, but still hope at some stage commercial credit reporting will be reassessed.

    Image: franky242/ www.FreeDigitalPhotos.net

     

  • 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

  • A ‘fair go’ in the credit system for those under financial strain still a way off.

    Media Release

    [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”]

    Financial Hardship
    Financial Hardship

    A ‘fair go’ in the credit system for those under financial strain still a way off.

    14 February 2013

    From March 1, national credit reform will see steps made towards a fairer credit system for disadvantaged Australians, but whilst a consumer advocate for accurate credit reporting welcomes the changes, he says those consumers suffering credit impairment may still come across difficulties getting fair treatment in the credit reporting landscape.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says for those Australians experiencing financial hardship, better protections will be afforded through significant reforms to the National Consumer Credit Protection Act which is due for implementation on March 1 2013.[/fusion_builder_column][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]

    “For those people doing it tough – one of the most important things they need is to be able to open a dialogue with their bank and make moves to guard their asset and their credit file during periods of financial difficulty, and this will be formalised under the new financial hardship laws,” Mr Doessel says.

    But he says for credit impaired individuals, we are yet to see the full extent of any ‘fairness’ until the implementation of amendments to the Privacy Act 1988 occur in 2014.

    “Whilst there are many aspects to this credit reform which will be helpful to those disadvantaged Australians, such as hardship provisions and capping pay-day loans, the most significant change for people forced ‘on the fringe’ will be within the area of correcting credit reporting mistakes, which won’t be implemented until March 2014,” he says.

    The Privacy Amendment (Enhancing Privacy Protection) Bill 2012 will change the Privacy Act 1988 in the area of correction of credit reporting inconsistencies, including enabling consumers to force their Creditor to justify a disputed listing; and give consequences for credit reporting breaches.

    Next month’s implementation of the National Consumer Credit Protection Amendment (Enhancements) Act 2012 will also bring reforms to a range of credit areas, with the sole regulator being Australian Securities and Investment Commission (ASIC).

    A range of credit reforms will include;

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

    * 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

    * 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.

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

    Mr Doessel says whilst the new obligations for Creditors will have significant advantages, they are only part of the credit reform ‘puzzle’. He says credit reporting mistakes still occur frequently, and individuals can be disadvantaged and refused mainstream credit by a system that has failed them.

    “People with defaults on their credit file can be severely disadvantaged – locked out of mainstream credit for 5 years. Not all defaults deserve to be there. People are getting let down by the system and have equal trouble correcting their credit reporting mistakes.”

    “Whilst the powers that be say that there is a legitimate avenue for correcting credit reporting mistakes for the individual, many consumers who have dealt with big companies for even small complaints 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,” he says.

    He is hopeful that a large piece of the puzzle for those suffering hardship unfairly will be completed once the Privacy Act 1988 amendments come into effect in March 2014.

    “It remains to be seen next year how changes in credit reporting law will allow credit impaired individuals to be able to address inconsistencies on their credit report which can see them disadvantaged and funnelled into expensive credit such as payday loans,” Mr Doessel says.

    He hopes Privacy Act amendments will see fewer of those consumers locked out of mainstream credit unnecessarily – but he says it is a matter of seeing how the laws pan out.

    “My concern is, how ‘late payment notations’ (which are being recorded now as part of the Privacy Act changes) will impact credit suitability and I would hope repayment history information will not undo credit approval if the debtor has managed to avoid a default and negotiate a variation of repayment terms because of temporary hardship under these new laws,” he says.

    “So there is still going to be a time of uncertainty for many involved in credit, including for consumers. I know the intention is that eventually, we will see a better and fairer credit system for all – but I think the road to it could be a rocky one,” he 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://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

    [ii] http://www.asic.gov.au/asic/asic.nsf/byheadline/ASIC+Credit+Reform+Update+-+latest+issue?openDocument

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Financial freedom: are you self-sabotaging?

    self-sabotaging financial freedomIn today’s ‘Make Credit Work For You’ post, we look at advice from the Editor of Smart Investor magazine, Nicole Pedersen-McKinnon. Her article “Financial freedom: are you self-sabotaging?” was featured in Sunday’s Sydney Morning Herald. Nicole gives you some excellent advice for how to make the best of your money, and make sure you are not making basic mistakes that could see you taking longer to reach your ultimate financial goal of being debt-free.

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

    Financial freedom: are you self-sabotaging?

    IT’S likely the people around you know whether you’ll ever ”make it”; that is, make and keep enough money to secure the life you crave. They’ll know this simply by observing your behaviour. And they’ll know it quickly.

    If you’re game, ask their opinion to see if they squirm.

    The wrong attitude to your cash – leading you to do the wrong things with it – indicates a ticking financial time bomb. Here are the mistakes that will lead to an explosion:

    ■ Missing the (second) once-in-a-lifetime opportunity to repay your mortgage fast and save a fortune. Official interest rates have returned to the record lows set during the credit crack-up, and home-loan rates have plunged about 4 percentage points. Say they hypothetically stayed here and you hadn’t ever reduced your repayments, the extra $700 or so you would be contributing to a $300,000 mortgage would save you $118,000 and almost 11 years.

    ■ Keeping lazy savings. There is no excuse for holding money in low-interest savings accounts. You should be getting about 5 per cent (taxed) or, better still if you have a mortgage, an effective return of about 5.5 per cent (tax-free) by sticking it in there.

    ■ Not grabbing gifts such as government allowances, benefits and super giveaways. The big ones you need to apply for include first-home buyer concessions, family tax benefits, baby bonuses or paid parental leave, childcare assistance and the super co-contribution.

    ■ Falling into the yawning traps set by finance companies. The largest are making new spending on 0 per cent balance-transfer credit cards – this will be charged at an eye-watering interest rate. If you are ahead on mortgage repayments, then taking up a thoughtful offer to reduce your repayments is designed to recoup the lender’s lost interest. Also, if you breach the conditions to get the headline rate on savings accounts, you will lose out. You must hit the monthly requirements or the institution wins.

    ■ Staying out of the sharemarket, perhaps in favour of cash or bonds. Yes, the credit crack-up was confronting but you need growth assets such as shares and property to reach your goals. The key is to balance these with more stable, income-producing assets. The fortunes of markets can turn on the head of a pin – witness the 20 per cent share recovery in the past year – and you need to be invested to benefit. Remember this applies to your super, too.

    ■ Over-leveraging. Heed the main lesson of the global meltdown and use investment debt sensibly: limit it to an appropriate amount and have the means to cover it if a market turns hostile.

    And the big one:

    ■ Year after year using credit to spend more than you earn. This short-sighted behaviour has the greatest potential to sabotage your future. To be a financial success you don’t need to be particularly clued up, but you can’t be clueless, either.

    The last point might seem simple, but it can be tempting to bury your head in the sand about what your incoming finances actually are, and live your daily life on credit, spending more than you earn.

    This thinking isn’t limited to those with a low income. In fact, Australian Bureau of Statistics reported late last year that spending more than you earn can occur across every level of income.

    “One in seven Australian households is spending more than it earns, as the working poor struggle with monster mortgages and surging power bills.

    Nearly 8 per cent of the nation’s richest households were living on credit, the Australian Bureau of Statistics reported yesterday.

    Of the top 20 per cent of households earning the most money, 3 per cent could not afford to pay a gas, electricity or phone bill on time during 2009-10.

    Of the poorest 20 per cent of households, one in five could not pay their bills on time and one in four spent more than they earned,” it was reported in news.com.au in the story News.com.au ‘Aussie strugglers living beyond means’.

    And the end result can be the same. People can bomb out with their finances at every level. And Creditors don’t care what your income is when you’ve defaulted on your credit, only when and how you intend to pay.

    If you have over-extended yourself – even if it hasn’t yet made it to default stage – act now to reduce that debt. Make a plan – find a good financial counsellor (call ASIC’ financial counselling hotline on 1800 007 007 for a reputable one) – and make some tough decisions about your life. By all means necessary, avoid that default or any other impairment to your credit file.

    What Ms Pederson-McKinnon didn’t mention, is another way you could be sabotaging your own financial freedom – by living with defaults on your credit file that shouldn’t be there. A default on your credit file will give you 5 years of blacklisting from mainstream credit, meaning if you need credit during that time you will be paying thousands more (on an average home loan tens of thousands more) in interest over the term of the loan.

    By having your credit file reviewed by a credit repairer to check your suitability, you may find you are one of those lucky ones that is able to have their credit default removed. This process happens legitimately and legally by people who are experts at auditing your Creditor for compliance issues which can deem your credit listing unlawful and therefore removed from your credit file.

    Contact a Credit Repair Advisor if you need more information on credit repair 1300 667 218.

    Good luck with your own path to financial freedom.

    Image: digitalart/ 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]

  • Seven habits of highly frugal people

    seven habits of highly frugal peopleIn this ‘Make Credit Work For You’ post, we look at what an expert recommends as good money habits. No matter what income you are on – Finance Blogger David Ning says it is what you do with that income that sets you apart and means you have a better life. His views were featured in news.com.au this week and we look at what those seven habits are, and how you can improve your dealings with money and protect your finances and your credit file for a better life.

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

    You don’t have to be poor to be broke, and statistics prove it. In September last year the Australian Bureau of Statistics revealed that nearly 8 per cent of the nation’s richest households were living on credit.

    Of the top 20 per cent of households earning the most money, 3 per cent could not afford to pay a gas, electricity or phone bill on time during 2009-10. See more in the article ‘Aussie strugglers living beyond means.’

    Living this way is living dangerously. Often you are said to be robbing Peter to pay Paul. If something goes wrong, you can run a real risk of getting into arrears and copping a default on your credit file – or worse.

    The secret of not living paycheck-to-paycheck (or card repayment to card repayment) is by following some simple life habits.

    Frugality doesn’t mean giving up luxury and the things you love but changing your attitude towards money.

    David Ning says that the well known 7 habits of highly effective people can be adapted to become the seven habits of highly frugal people and help you live a happier and more frugal lifestyle.

    Here are those 7 habits of highly frugal people as featured in news.com.au:

    Habit one: Be proactive Mr Ning compares the habits of highly frugal people to the seven habits of highly effective people and the first step is to take responsibility.

    Quit blaming your childhood, your school, your boss or the Government and accept that you are in control of the direction of your life.

    The more you ignore the situation, the worse it will get.

    “Take a long hard look at your finances — your budget, debts, income, and expenses, and try to understand where your money is going and where you can budget better,” writes Mr Ning.

    Then you must tell people of your hope of being more financially stable which can help you focus on your goal and avoid the peer pressure that makes budgeting and frugality hard.

    Habit two: Begin with the end in mind Those who are successful in reaching their goals are those who can envisage them from the beginning.

    “If you don’t visualise what you want, then you’re at risk of other people and external circumstances influencing your life – because you’re not influencing it yourself,” he says.

    You must decide if your goal is to be debt free, build a savings account of a certain value, or live on one income in a two-income household.

    Then decide how you’re going to get there. This involves identifying obstacles standing in your way such as credit card debts. Or behavioral obstacles such as spending $10 every day on junk food.

    Habit three: put first things first Knowing why you’re doing something can help make you do it and that means knowing what is most valuable and worthy to you. It’s a lot more difficult to say “no” to something if you don’t know why you’re saying no and not focused on what’s important to you.

    It’s easy to spend more than your budgeted amount each month when you put everything before your finances such as “worrying about missing out on a dinner with friends, feel as though you have to cater a birthday party for your son and 50 of his closest friends, or don’t want to wear the same suit to a work conference two years in a row.”

    It’s important to be able to “just say no”.

    Habit four: Think win-win Don’t compare yourself to others and constantly compete with others. Instead, it’s better to have a win-win mindset which will allow you to see mutual benefits from all your dealings with people and realise that there’s enough for everyone to benefit from situations.

    Don’t think “it’s not fair” that others have a better car or a bigger house because you don’t know the whole story – and it could just be a façade for covering their huge debts.

    It’s important to focus on your own finances and know you’ll get to where you want to be some day.

    “True wealth is not measured in possessions, but in assets. When the value of your assets is greater than the amount you owe on mortgages, car loans, and credit card debts, then you have a strong net worth and are truly wealthy.”

    Habit five: Communication Listening with the intention to understand can help you reach your goal of frugality. “Don’t just wait for your turn to talk; pay attention to what people are trying to tell you,” writes Mr Ning.

    To be effective in your goal of frugality, you need to be able to listen to and understand the goals and behaviours of the other people in your life. If you’re saving but your partner is spending like crazy then your behaviours offset each other and you won’t reach your goal.

    Instead understand the needs of the people in your life and work out a way to be more frugal without them having to give up the things that are most important to them.

    Habit Six: Synergise Synergising is the habit of working as a team to get better results than if you were working on your own.

    When you have genuine interactions with people, you’re able to gain new insights and see new approaches to your problems — ones you might not have thought of before.

    Talk to people to discover new ways to do things and processes that can really help you save money. Surrounding yourself with like-minded people can help.

    “Find people who are where you want to be by joining online frugal-living forums, striking up a friendship with a fellow coupon-cutter, or starting a sewing club,” writes Mr Ning. “When you’re around people with the same goals as you, you’ll be able to share ideas and learn from each other.”

    Habit seven: Sharpen the saw In order to maintain all these habits and achieve any goal in life it’s important to look after yourself physically, emotionally, mentally and spiritually.

    This can be done frugally too by: eating better by starting a vegetable patch; exercise frugally by going for a walk or jog; interacting socially to make you feel better emotionally; exercise your mind by reading or volunteering; and spend time close to nature and expand your spiritual self through meditation, music, art, or prayer.

    Image: Feelart/ www.FreeDigitalPhotos.net

     

  • Lonely hearts ripped out and ripped off this Valentine’s Day by scams.

    romance scamsMedia Release

    Lonely hearts ripped out and ripped off this Valentine’s Day by scams.

    7 February 2013

    A warning this Valentine’s Day for those who use internet dating: be on the lookout for scammers. A consumer advocate for accurate credit reporting warns that getting sucked in by a scammer may not only leave you broken hearted, but can also leave you broke.

    CEO of MyCRA Credit Rating Repair, Graham Doessel warns that because of the personal nature of dating scams, many intimate personal details may be shared, and scammers could not only extract money, but can also garner enough information to steal your identity and take credit out in your name.

    “The costs of identity theft can be significant long term and are magnified by the fact that identity fraud is often not detected until you attempt to take out credit in your own name and are refused due to credit rating defaults from unpaid credit you didn’t initiate,” Mr Doessel says.

    The NSW Fair Trading Commission has issued fresh warnings recently in regards to romance scams, saying consumers are at risk of high debt and dissatisfaction.

    Commissioner Rod Stowe warns if you are looking for love -get introduction agency agreements in writing and beware of predators online and elsewhere.

    “Repeated requests for more money are standard practice for traditional and online romance scammers, whether the requests come from an agency or prospective partners,” he said in a recent media release.[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]

    “Once you’re on the hook, a scammer will reel you in as long as you take the bait. The internet presents a whole range of risks for consumers looking for love. The ACCC [Australian Competition and Consumer Commission] reported Australians lost $21 million to dating and romance scams in 2011. The average loss for a victim reporting a scam to the ACCC was more than $20,000.”

    Romance scams are so rampant in Australia, that the ACCC now requires online dating sites to display scam warnings and will threaten action against companies that fail to comply.

    Scammers target victims by creating fake profiles on legitimate internet dating services.

    The ACCC warns once you are in contact with a scammer, they will express strong emotions in a relatively short period of time and will suggest you move the relationship away from the website, to phone, email and/or instant messaging. Scammers often claim to be from Australia, but travelling or working o/s.

    “They will go to great lengths to gain your interest and trust, such as sharing personal information and even sending you gifts. Scammers may take months, to build what seems like the romance of a lifetime. They will then ask you for money, gifts or your banking/credit card details.” the ACCC warns on their website.[ii]

    The ACCC says scammers can site various reasons for needing money, including to cover the costs associated with non-existent accidents and illnesses, various fees and charges associated with precious goods such as diamonds, gold bullion and gemstones, or to arrange a meeting which never occurs.

    Mr Doessel says it is not always easy to forget a romance scam if the fraud has impacted your credit file.

    “If you fall victim to identity theft, you are hit three times – you may have lost a large sum of money, secondly you may be emotionally heartbroken, then thirdly you are locked out of credit for 5 years because of defaults on your credit file.”

    “You may not even get a mobile phone plan if you can’t prove you didn’t initiate the credit in your name,” he says.

    The ACCC’s SCAMwatch outlines some ways people can protect themselves when dating online:

    – ALWAYS consider the possibility that the approach may be a scam…Try to remove the emotion from your decision making no matter how caring or persistent they seem.

    – Talk to an independent friend, relative or fair trading before you send any money. THINK TWICE before sending money to someone you have only recently met online or haven’t met in person.

    – NEVER give credit card or online account details to anyone by email.

    – Be very careful about how much personal information you share on social network sites. Scammers can use your information and pictures to create a fake identity or to target you with a scam.

    – If you agree to meet in person, tell family and friends where you are going…

    – Where possible, avoid any arrangement with a stranger that asks for up-front payment via money order, wire transfer or international funds transfer. It is rare to recover money sent this way.

    -If you think you have provided your account details to a scammer, contact your bank or financial institution immediately.

    – Money laundering is a criminal offence: do not agree to transfer money for someone else.

    If you think you may be ‘dating’ a scammer, contact the ACCC on 1300 795 995 and if you have given over money, contact Police immediately.

    MyCRA Credit Rating Repair’s website also contains information on identity theft and your credit rating www.mycra.com.au.

    /ENDS.

    Please contact:

    Graham Doessel – 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.

     

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    [i] http://www.fairtrading.nsw.gov.au/About_us/News_and_events/Media_releases/2013_media_releases/20130131_valentines_day_warning.html

    [ii] http://www.scamwatch.gov.au/content/index.phtml/itemId/694213

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