MyCRA Specialist Credit Repair Lawyers

Tag: Graham Doessel

  • Bill Shock: telco bills ruining credit ratings

    Botched phone plans and lack of data usage monitoring is leaving many Australians shell shocked over their mobile bills, with bills so large many can’t pay up or refuse to pay up, leading to an increased rate of defaults. We look at what is happening with Telco consumers, the new laws that have come in to combat bill shock, and some practical things that you can do to prevent it happening to you, and threatening your good credit rating.

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

    A large number of current credit listing complaints we receive from telco consumers relate to data usage on mobile phones. Consumers are confused when it comes to data allowance on their smartphones, and the providers up till now, have not been helping.

    Often clients claim they have gone over their allowance really quickly, or the plan they were put on was not appropriate for what they intended to use their mobile internet for. Often they can have great difficulty in cancelling the accounts or coming to a resolution with telcos over these billing issues.

    Our current statistics show almost 26% of our credit repair clientele in the 12 months to July were telco customers.

    Consumers have either reluctantly paid the bill, thought the matter was settled, only to find they were defaulted anyway, or they have just refused to pay the bill until they got some resolution – but have copped a bad credit rating through the account being more than 60 days in arrears.

    Either way, they were dished out at least 5 years of bad credit from the episode unless they have been able to make a successful complaint.

    Complaints numbers

    Recently the Telecommunications Industry Ombudsman (TIO) surveyed its services. It counted 52,231 new complaints about telcos received between January and March 2012. Almost two-thirds were about mobile phone services.

    The TIO reports new complaints about over-commitment caused by inadequate spend controls have over doubled in 12 months (4,282 in the January-March 2012 quarter, compared to 2,181 in the same quarter in 2011). In the same periods, new complaints about disputed internet charges increased 180 per cent (From 981 to 2,823).

    “It is well known that more internet browsing and downloads are now done on mobile phones and other mobile devices. With this change in consumer behaviour, we have seen complaints about excess data charges almost treble over the last year,” Ombudsman Simon Cohen said.  “The incidence of these complaints will reduce if consumers are only contracted for services they can afford, and where spend management tools such as notifications and usage meters are accurate and reliable”.

    The powers that be have heard the many complaints. Some changes have been swiftly made to improve transparency and service for telco customers. A revised Telecommunications Consumer Protection Code has been made in conjunction with the Australian Communications and Media Authority (ACMA) which will amongst other things require telcos to provide their customers with notifications when they have used 80% and 100% of their data usage in the plan.

    These changes come after pressure from ACMA for Telcos to offer better protection for consumers, or face external regulation.

    For more information on the TCP Code, see our September post ‘Telco bill shock should in theory now be a thing of the past.’

    In the meantime, many consumers are still facing bill shock. We look at what you can do to prevent it.

    Preventing Bill Shock

    Savingguide.com.au published a great article late last week detailing some practical things that you can do to avoid bill shock. Here is an excerpt from ‘How to Avoid Bill Shock’:

    Read Your Contract

    I’ve said it before and somehow I feel I shall say it again: read the contract. From start to end. Before signing up to anything. Now, let’s just say you have already signed up and you didn’t read it before, you are not off the hook. Read it now. I’m serious, go do it… like, right now!

    Now that you’ve read your contract, you’ll know exactly how much data you get for your regular fee and how much you’re going to pay if you exceed that limit. Without this knowledge, you’re really just playing a guessing game and you’re probably going to lose.

    Don’t be Silly

    Seems obvious, doesn’t it? Yet here we are. If you are on a limited data allowance, don’t fritter it away on silly things! When I first got my smart phone I was so enamoured by the fact that I could get the internet on my handset that I would lie in bed, checking the week ahead’s weather on my mobile rather than simple make the walk to the study and use my PC, on which the internet is virtually limitless! Fortunately, I did not have to learn the hard way but many people will. Don’t be one of them.

    Start Downloading

    I know, I know, I just told you not to download stuff but this is the exception. Downloading the right apps is going to make all the difference, in fact these two apps are the best way to keep your data use under control.

    Data Usage Monitor

    A data usage monitor like 3G Watchdog (Android) is a brilliant addition to your phone. Simply enter the date your billing cycle commences and your data allowance, and a little symbol appears on your phone’s desktop, changing colour to warn you when you’re reaching your limit.

    Programme Closing

    A programme-closing app is your next best friend. Apps like Advanced Task Killer enable you to close any programmes that might be running without your knowledge with the push of a button. And without programmes secretly running, chewing into your data allowance, you’re much less likely to suffer that dreaded disease, bill shock.

    This is great advice. But what about if you already have a phone bill that has left your head spinning?

    How to Dispute That Shocking Mobile Bill

    1. Attempt to resolve the dispute with the Telco first. If a bill has just popped up you don’t agree with, let your Provider know, and DOCUMENT ALL CORRESPONDENCE WITH THEM (and document who you speak with if you are calling).

    2. You may need to make a formal complaint in writing. If there is no resolution over the telephone, set out what specific resolution you require, and all the details of your complaint. The telco has 30 days to answer any written complaint you make.

    2. Get all responses in writing. The matter may seem at an end, but sometimes people believe they have sorted it out only to find out later they have been defaulted anyway. If you have come to a resolution with the telco verbally, get it in writing and make sure it clearly states what will happen from here.

    3. If the matter can’t be resolved to your satisfaction internally, take your case to the Telecommunications Industry Ombudsman. The TIO will make a decision on the matter, and their decision will be final. Make sure you provide as much evidence as you can for the Ombudsman to make an informed decision – you may only get one shot at it.

    4. If at any stage you have a credit file listing from a Telco which you believe shouldn’t be there, you can undertake professional credit repair services. The credit repairer works on the consumer’s behalf to remove credit file listings which contain errors or inconsistencies or just out and out shouldn’t be there. It gives the consumer the best chance of presenting the best case for removal of a disputed listing, and actually having an unfair listing removed completely off your credit file. The credit repairer can also escalate the matter to the TIO on the client’s behalf if necessary.

    If you would like help disputing your telco default or other credit listing, contact a Credit Repair Advisor on 1300 667 218 or visit our main website for more information MyCRA Credit Rating Repairs www.mycra.com.au.

    Image: Ambro/ www.FreeDigitalPhotos.net

     

  • Over 23,000 accounts of tax file number identity theft last year

    Numbers just out from the Australian Taxation Office (ATO) may help to demonstrate the prevalence of identity theft attempts in Australia, and show the valuable commodity that personal information has become. Personal information in the wrong hands can be used to steal your tax refund, rob your bank accounts, leave you in debt, and threaten the next 5 years of your life through bad credit history.

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

    The ATO has confirmed 23,300 Australians had their tax file number compromised in the 2012 financial year.

    This is up from 22,000 the previous year.

    CPA Australia head of taxation Paul Drum has said the delay in many tax refunds has been due to manual checking of the validity of the refund – and he revealed it is “quite often showing up as identity fraud.”

    The ATO told the Herald Sun it was working hard to combat identity theft, including information matching tools, data mining techniques and fraud models to detect potential fraud and limit the potential benefits of identity takeover.

    This type of personal information is being sought out by criminals often via online methods as a less risky route to stealing money than more traditional face-to-face methods. Theft of personal information can lead to tax fraud, and it can also lead to credit fraud, as reported in the Herald Sun:

    “A stolen tax file number can be used to lodge fraudulent tax returns or take out credit cards and loans, with the resulting credit rating damage sometimes taking years to fix,” it was reported.

    CPA’S Mr Drum offers an explanation as to the cause of the rise in numbers:

    “The fact that it’s so prevalent, it would seem to be more internet-based than something that’s physically done by going door to door, getting people’s private records from their mailboxes or from business offices or that type of thing,” Mr Drum said.

    “We think a lot of it is by computer hacking over the internet – that people are tricked into providing them when they didn’t have to provide them.”

    Recently we published a post warning readers about the threat of tax fraud ‘Is Your Tax Refund Safe? Identity Theft Warning for Taxpayers’. We addressed this issue, and featured some expert opinion as to who was getting this information and how. The ATO warned that a prevalent scam designed to catch personal information was via fake job ads.

    The fake employer requires the applicant to lodge their tax file number either during the initial application or once an offer of employment is made –that is later withdrawn. The scam is cleverly designed to pilfer the personal information of applicants, including the applicant’s tax file number for purposes of fraud.

    They also say sometimes rogue tax agents are involved in tax fraud.

    But Brett Warfield, a forensic accountant and fraud specialist at Warfield & Associates, said the biggest threat comes from organised crime groups lifting wholesale identity and salary information on employees from private firms or government bodies, either by hacking into company databases or convincing insiders to leak it.

    He told Ninemsn they then use this pilfered data to lodge hundreds of forged submissions with the ATO.

    “They tend to submit the tax returns fairly quickly after the end of June to beat the real taxpayer,” said Mr Warfield.

    He added that crime gangs still have to outsmart the ATO’s sophisticated fraud risk filters, which cross-check claims against data such as previous entries on income and expenses, mailing addresses and bank account details for wiring refunds.

    Ninemsn attempted to use freedom-of-information laws to find out how many such fraudulent returns the ATO fails to intercept, but it admitted it does not measure or even estimate its losses.

    In the meantime, it is our understanding that this type of crime is on the rise. In this digital age access to our own information (and to others in the process) becomes easier, and interaction with companies which hold our information and/or use it, become less personal. In this digital age it is how we appear on paper (or rather ‘online’) through our credit ‘score’ or ‘rating’ that means doors either open or close for us in financial circles. Business is not done on a hand shake any more. Seldom does anyone give their ‘word’ and that is enough. So we are vehement with educating people about how their personal information can be compromised, and impact their credit rating. This is a big threat to our credit health – and important to understand and prevent.

    If yourself, or someone you know has been a victim of tax fraud, or any other type of scam or fraud, it is important that you manage the risk to your credit file:

    What can I do if I suspect I am a victim of identity theft?

    1. Notify Police immediately. Many people do nothing due to embarrassment, or because they don’t believe the fraud was significant enough. But is only through this crime getting reported that statistics get collated, and we start to have any chance of catching the criminals.

    2. Notify creditors. You may need to cancel credit accounts.

    3. Obtain a credit report. This report is free once per year for every Australian who holds a credit file. It will indicate to you whether any of your contact details have changed, or whether there have been credit enquiries on your account. If you act quickly enough, you may be able to stop your credit rating from being affected by black marks which would come from fraudsters obtaining credit in your name.

    4. Notify credit reporting agencies of the possible fraud. This may help to prevent any attempts to misuse your good credit rating.

    5. Police may assist you in obtaining a Victims of Commonwealth Identity Crime Certificate, if they believe you are eligible. You can apply to a magistrate in your State for this certificate, which may help in recovering your credit rating or credit accounts. Victims need to have had a Commonwealth Indictable Offence committed against them. For more information, visit the Attorney-General’s website www.ag.gov.au.

    For help in recovering your credit rating following identity theft, contact a Credit Repair Advisor on 1300 667 218 or visit the MyCRA Credit Rating Repairs main site www.mycra.com.au.

    Image: Grant Cochrane/ www.FreeDigitalPhotos.net

  • Consumer groups push for changes to new credit laws

    In a final attempt to plead for correction of what many are calling some glaring mistakes for consumers within Australia’s new credit laws, a coalition of consumer groups is urging the Federal Government to make some changes before they pass the Privacy Amendments (Enhancing Privacy Protection) Bill 2012. We look at what this group is proposing, and how the new laws, if they are passed as is, could affect you and your credit history.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs

    A coalition of consumer groups is hoping the Federal Government will make some changes to their new credit reporting laws prior to the Bill’s passing by both houses. One aspect they are opposed to is the minimum debt amount for credit listings – which currently stands at $100 .Various recommendations to increase the minimum amount were submitted to The Senate Legal and Constitutional Affairs Legislation Committee recently. Consumer groups believe the minimum should be increased to $500.

    The consumer groups are: Financial Counselling Australia, Australian Privacy Foundation, Consumer Credit Legal Centre NSW, Consumer Action Law Centre

    Here is an excerpt from the group’s media release, which featured on Financial Counselling Australia’s website Small debts lead to big problems:

    Spokesperson Kat Lane of Consumer Credit Legal Centre, said ‘under the current proposal someone’s ability to access a home loan could be ruined by one overdue electricity or phone bill.’

    ‘It’s easy to fall 60 days behind on an energy bill—it could be something as simple as the bill being sent to the wrong address or the account holder being away from home for an extended period. I don’t think many people would think this should affect someone’s ability to get a home loan,’ said Ms Lane.

    ‘If the amount for which someone could have a default listed on their credit report was increased to $500, people would be far less likely to be overly penalised for one overdue bill or for making one simple mistake.’

    Ms Lane said many small debts listed on credit reports were utility or phone debts and didn’t necessarily reflect a person’s suitability for credit. She also said that smaller debts, such as phone or utility debts, are often disputed by consumers.

    ‘We’d hate to see someone’s credit history affected because of an outstanding bill which they don’t even owe. Billing mistakes do happen and, as the Government’s plan currently stands, these small mistakes could have big consequences.’

    The group is also concerned about the additional information which will be available to lenders once the new laws are introduced, and particularly repayment information. They recommend the Government do more to educate consumers on their rights and obligations under the new laws:

    ‘If comprehensive credit reporting is introduced, Government and industry needs to make efforts to explain the new regime to consumers, especially that repayment information such as whether you repay your loans on time each month will be now listed on credit reports, and consumers’ rights to make complaints if there are disputes,’ Ms Lane says.

    We agree with the group’s proposals in the interests of consumer rights. The Government must do more to educate consumers on their rights if they are going to insist that more information about them be made available to lenders. In my experience, many consumers collectively:

    1. Do not know they can apply for a free credit check every year.

    2. Do not know that their credit file could contain errors and that they are responsible for ensuring their credit file accurate.

    3. Are not finding out they have credit listings in many cases until they apply for major credit and are refused.

    4. Are suffering mistakes with their credit listings which they have very little knowledge of how to rectify – this can go from a disputed bill, right through to blatant mistakes such as wrong names and wrong addresses.

    5. Do not know that if they pay a bill late in the very near future, that this could impact their ability to obtain.

    6. Have had very little explanation from the Government on precisely how correcting credit file mistakes will be made easier with the new credit laws

    We wait in hope that many of the current issues will be rectified following the introduction of these new credit laws. In the meantime, we will continue to try to educate consumers on how to navigate Australia’s credit reporting laws, and continue to insist on credit reporting accuracy by contesting disputable credit listings on behalf of our clients though our business of credit repair.

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

    Image: renjith krishnan/ www.FreeDigitalPhotos.net

     

  • New laws to penalise identity thieves

    The Attorney-General Nicola Roxon announced yesterday new laws in Australia will mean white collar criminals and serious and organised crime groups will face tougher penalties. We look at what those penalties will mean, and how they can prevent identity theft and subsequent credit fraud leading to bad credit history.

    This week is National Identity Fraud Awareness Week October 8-14.

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

    Legislation introduced into Parliament yesterday – The Crime Bill, will aim to deter white collar criminals and organised crime groups. The Bill will increase financial penalties for all Commonwealth crimes, and create a new offence of using a false identity when travelling on aeroplanes. It will make it a crime to use a false identity to book a flight over the internet or to take a commercial flight. It will also be a crime to use a false identity when identifying oneself for a flight.

    Another significant change as part of The Crime Bill will be an increase to penalty units. “Penalty units” in the Commonwealth Crimes Act will increase from $110 to $170. These have not increased since 1997.

    “Identity theft is one of the fastest growing crimes in Australia. This Bill will make it a criminal offence to use a false identity when travelling within Australia by air or booking domestic flights online or using a mobile phone,” the Attorney-General Nicola Roxon said in a statement to the media.

    “Organised criminals invent or steal identities in order to evade detection and commit serious crimes such as money laundering, drug offences, fraud and terrorism.

    The bill expands laws against identity theft by making it a crime to use a carriage service like the internet or a mobile phone to obtain identity information with the intention of committing another offence.

    So for instance, if fraudsters use the internet to obtain your personal information and it was shown the intention was to commit fraud, then the new laws should in theory kick in -placing a crime in not only the attempted fraud, but the actual misuse of your identity information.  Personal information is such a valuable commodity in criminal circles. Criminals can use your personal information to impersonate you, commit crimes, and also to take out credit in your name, leaving you with a pile of debt and bad credit history as the calling card. So this is a significant improvement.

    Ms Roxon said an example of the effect of the increase in penalty units was the maximum fine for obtaining a financial advantage by deception would jump from $66,000 to $102,000 for an individual.

    “This is a significant increase and should send a strong message that crime does not pay,” she told The Australian yesterday (Flying under false name to be a crime).

    Some more examples of how changes could deter criminals:

    •  A person who dishonestly uses the financial information of another person without their consent will face up to $51,000 in fines, up from $33,000. Companies who commit this crime could be liable for more than a quarter of a million dollars in fines, up from $165,000;

    •  A person who knowingly makes a false or misleading statement in documents they lodge with ASIC will face up to $34,000 in fines, up from $22,000. A company will be liable for up to $170,000 in fines, up from $110,000.

    This may go some way to deterring identity thieves within Australia. But there is still a significant amount of fraud related crime which originates from outside Australia. Widespread internet use means identity crime can have very long arms. And this is the real problem with this type of crime. It can be difficult to find let alone prosecute and penalise criminals for identity crime and other financial crimes when it doesn’t originate on our shores. But it was probably a necessary to step for the government to take to fight this global problem of identity crime nationally.

    To find out more about identity crime, and how it could impact your credit rating, you can read our last post Is your good name at risk? What you may not know about identity theft and your credit file. If you are looking to remove bad credit history after identity theft, contact a Credit Repair Advisor on 1300 667 218 or visit our main site www.mycra.com.au.

     

  • Is your good name at risk? What you may not know about identity theft and your credit file

    It is reported that possibly as many as 24 per cent of Australians* have been, or knows someone who has been, a victim of identity crime in the last six months. As this week is National Identity Fraud Awareness Week, we are hoping to do our part to raise awareness about this crime. Victims are not always ‘gullible’ as may be the impression in the wider community. Many experts say it is not a matter of if you experience an identity theft attempt, but when. So we look at the facts on identity crime both worldwide and in Australia, and hope to educate more people about this new crime wave, as it can severely impact your credit file and hinder your ability to obtain credit. It could also help to pass the information on to someone you know.

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

    Australian Federal Police released a statement yesterday warning Australians to defend themselves against identity crime. AFP National Coordinator Identity Security Strike Team’s Darren Booy said this year’s focus is on limiting the amount of personl information that falls into the hands of criminals.

    “Identity fraud is an emerging threat to Australia and is growing rapidly, with identity fraudsters using increasingly sophisticated methods to manipulate their victims,” Superintendant Booy said in a statement to the media.

    Who commits identity theft?

    It can originate from someone you know – for example an acquaintance obtains identity documents or credit card details to impersonate you. Or more increasingly it comes from professional fraudsters whose main occupation is to steal personal information and financial details in order to commit fraud. These fraudsters are reportedly part of a network of criminals possibly involved in many other crimes. The Australian Federal Police recently stated that most large crime groups have built identity theft into their repertoire.

    The key to successful identity theft is obtaining your vital personal information. The internet is a big source of personal information and its ever increasing use makes you more vulnerable to identity crime than ever.  This means identity crime can have very long arms and can originate overseas. Social networking, online banking, company databases and email scams can all be havens for today’s cyber- criminal.

    You can also fall victim to a number of rampant telephone scams, credit card skimming, or criminals can also take to going through your rubbish bin for anything they may be able to use to steal your identity.

    Why is identity theft increasing?

    The pay-offs are huge for criminals. It is estimated by the Australian Crime Commission that identity crime costs Australians $1 billion a year.( OECD Committee on Consumer Policy, Online Identity Theft, February 2009, p. 37).

    In cyber circles alone, world estimated costs for cybercrime are staggering.

    Cyber-crime expert Mischa Glenny says that while there are no precise figures out there, the White House suggested in 2009 that cybercime and industrial espionage inflicts damage of around U.S.$1tn per year, which is almost 1.75% of GDP.

    “Traditional bank robbers must be absolutely gobsmacked when they hear sums like this being hoovered up by cyber- criminals week in, week out,” he said in an article Cybercrime: is it out of control?

    How would identity theft impact my life?

    We consider if someone is alerted to having money stolen from credit cards early, or perhaps is able to call their bank and stop fraud in its tracks – that they are the lucky ones.

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

    This gives the fraudster access to credit cards, loans, even mortgages which allows them to extract significant amounts of money without you realising it straight away.

    Fraudsters are never kind enough to pay back the credit they obtain in your name. After 60 days you may be issued with written notification of non-payment and the intention for the creditor to list a default on your credit file. It is at this moment that some people who were previously unaware of any problems find out they have been victims of this more sophisticated type of identity theft.

    But often the credit file holder has also had their contact details changed – and this means it is not until they apply for credit in their own right and are refused that they find out about the identity fraud. This can be a significant time after the initial crime.

    When would I know if I have been a victim of identity theft?

    Some signs to watch out for include:

    1. Strange unaccountable withdrawals on credit or personal bank accounts. It may not need to be a big amount to indicate fraud. Many criminals do ‘test’ amounts to begin with before extracting more significant amounts.

    2. Phone calls or emails from what often appear to be legitimate companies, asking for money or personal details. If you have given bank details or personal information in this way either online or on the phone there is a high chance it was a scam. Verify with the company in question.

    3. Can’t log in to social networking or bank accounts.

    4. Credit refusal

    5. Bills or letters of demand sent to you for accounts you don’t know about

    6. Missing mail – particularly credit card statements which could indicate someone has overtaken your accounts. In this case no news is not good news.

    What steps can I take 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.

    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 our 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 ACCC’s ‘SCAM watch’ website. For a list of ways your computer can put you at risk, visit the governments Stay Smart Online website www.staysmartonline.gov.au.

    10. Check your credit file regularly. A credit check at least every 12 months (which is free annually) will alert you to any suspicious activity with your credit file.

    If you think you might be vulnerable to identity theft, here are some things you need to do:

    What can I do if I suspect I am a victim of identity theft?

    1. Notify Police immediately. Many people do nothing due to embarrassment, or because they don’t believe the fraud was significant enough. But is only through this crime getting reported that statistics get collated, and we start to have any chance of catching the criminals.

    2. Notify creditors. You may need to cancel credit accounts.

    3. Obtain a credit report. This report is free once per year for every Australian who holds a credit file. It will indicate to you whether any of your contact details have changed, or whether there have been credit enquiries on your account. If you act quickly enough, you may be able to stop your credit rating from being affected by black marks which would come from fraudsters obtaining credit in your name.

    4. Notify credit reporting agencies of the possible fraud. They will be able to put an alert on your credit file.

    5. Police may assist you in obtaining a Victims of Commonwealth Identity Crime certificate, if they believe you are eligible. You can apply to a magistrate in your State for this certificate, which may help in recovering your credit rating or credit accounts. Victims need to have had a Commonwealth Indictable Offence committed against them. For more information, visit the Attorney-General’s website www.ag.gov.au.

    If you or someone you know needs help recovering their credit rating following identity theft, contact MyCRA Credit Repairs, www.mycra.com.au or call a Credit Repair Advisor tollfree on 1300 667 218 for confidential advice and help restoring your good name.

    The Australian Federal Police have established an Identity Crime Survey to test people’s vulnerability to identity crime, and we encourage everyone to take the test: http://www.afp.gov.au/what-we-do/campaigns/national-identity-fraud-awareness-week.aspx

  • Are Australian house prices set to crash?

    Is it good news or bad for the housing market? We look at what’s happening in the property market in Australia and expert opinion as to where we’re heading in the future.

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

    It has been reported by major newspapers that house prices are on the way up. RP Data’s monthly report reveals that property prices have risen for the fourth consecutive month. Capital city dwelling values rose 1.4 per cent in September, according to a Sydney Morning Herald story last week. RP Data’s research director, Tim Lawless attributed the improvement to low interest rates.

    But barely before the housing market has even gotten off the ground, there have been warnings about the over inflation of house prices and over commitment. Credit Rating Agency Moody’s Investors has warned the Reserve Bank and regulators that low interest rates could fuel a housing bubble in Australia which they say will inevitably burst – leaving the market more vulnerable to a crash. Moody’s say despite low credit growth – banks need to maintain high credit standards in order avoid a U.S. style lending surge.

    As reported by Mike King (Motley Fool) in Ninemsn:

    “Lower interest rates could encourage borrowers to load up on more debt, at a time when household debts are still fairly high.  A housing crash could see many homeowners over-leveraged and owing more than their house is worth – similar to what happened in the U.S. However, unlike the US, where banks in many states don’t have recourse to people’s other assets, Australian banks can pursue borrowers to recover any shortfalls between a home loan and the sale value of the house,” King says in the story Are we heading for a house price crash?.

    This may be good advice for many borrowers to heed in the back of their minds. It may be better to borrow conservatively, in order to cover the potential loss of a market turning backwards, and to avoid redrawing on the original amount during the early years of the loan.

    Will we really experience a housing bubble?

    If banks heed warnings from the likes of Moody’s, lending criteria will still remain pretty tight through the foreseen house price increases – at least in the short term. Also, the new information which will be available on credit reports may cause lenders to refuse credit to more people in the coming months as well.

    We are yet to see what the addition of ‘late payment’ notations on Australian credit reports (information about when accounts are paid late) will do for lending figures. Under new credit laws, the Privacy Amendment (Enhancing Privacy Protection) Bill 2012,  payments can be as little as one day late and be noted on consumer credit files.

    It is uncertain the impact these notations will have on someone’s ability to obtain credit.

    I would imagine many lenders, in the interest of ‘responsible lending’ would not want to have on record that they have loaned major credit to a serial late payer. Could lending to someone who had a few late payments on their record be classed as ‘irresponsible lending” should they default? What will be determined as too many late payments on a credit file is not yet defined and is quite a subjective aspect of these new laws which will be up to each lender/insurer to decide.

    I predict that this aspect will lead to fewer approvals as banks err on the side of caution, at least in the short term.

    For more information on repairing your credit file and removing inconsistent credit listings for good, to give you the best chance at being approved for credit at the best interest rates contact a Credit Repair Advisor on 1300 667 218 or visit our website www.mycra.com.au.

    Image: Sujin Jetkasettakorn/ www.FreeDigitalPhotos.net

  • Less home owners in arrears, but those in default have reached historic numbers.

    It seems more of the Average Joe’s are able to meet their mortgage payments. The latest figures from Fitch ratings reveal that arrears numbers came down in the second quarter of 2012 and the predictions are that this will continue. This is great news overall for credit debt numbers in Australia. But on the downside, Fitch did say low doc loans and 90 day-plus arrears reached historic highs, and also warns that declining house prices mean recovery in the property market would be slow. We look at the Fitch report in more detail. We also look at why more people may be ‘losing it’ with their repayments into the bad credit zone, and what they could do about it.

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

    According to Australian Broker in the story ‘Fair dinkum: prime arrears decrease’, Fitch Ratings’ ‘Fair Dinkum’ mortgage performance report for Q2 was positive for mortgage delinquencies:

    “Delinquencies in the Australian prime RMBS sector decreased to 1.54%, from 1.6% in Q1.”

    Furthermore, the analyst expects arrears to continue to decrease in Q3 and Q4 due to recent RBA rate cuts.

    “Lower interest rates should result in improved affordability for existing borrowers and thus to lower arrears levels,” it [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”][Fitch] said.

    However, self-employed borrowers, low doc loans and the 90 day-plus areas continue to cause headaches, although Fitch was keen to stress levels still remain low compared to international markets, particularly the UK and US.

    “Delinquencies in the low-doc segment tend to be two, or two-and-a-half times [higher than] those of full-doc loans, but in the 12 months to end-June 2012 they were four-and-a-half times higher,” it said.

    It did warn declining house prices remain a threat to the property market overall.

    “A significant drop in house prices could negatively affect transactions, in terms of recovery rates and time,” it said.

    “As house prices fall, eventual sales prices are more likely to be below the mortgage balance, leading to losses and claims under lenders’ mortgage insurance (LMI).”

    For those many Australians looking to make their home loan more affordable and meet the repayment deadline every time, the recent interest rate cuts (and more if passed on!) should go a long way to help.

    But it seems the numbers of those who are in arrears far enough to cop a default on their credit file – those in crisis mode with 90-days or more owing on their mortgage – are at a record high. What is happening to lead more groups of people in to crisis mode? Job losses? Over-commitment? Irresponsible lending in the past? Illnesses?

    It could be all of those things or just one which leaves a home owner in dire straits with their mortgage.

    What happens to those people that reach 90 days in arrears?

    Hopefully that situation never happens to you. But if it does, what would you do?

    If you’re smart, you’ll apply for financial hardship with your bank as soon as you find out you are having difficulty making payments. They may be able to restructure your repayments to more affordable levels temporarily until your financial crisis is averted. They may also be able to put a halt on any defaults they were going to issue to your credit rating.

    If you can’t apply for financial hardship; aren’t approved for a variation in your repayments; or don’t know about your financial hardship options – then you will be defaulted.

    This means you will carry a black mark against your name for 5 years. This is irregardless of whether you have a windfall and are able to get up to date with your payments or even if you get ahead in the future.

    This black mark will mean you are virtually banned from mainstream credit for the term of the default. So credit cards, loans and even mobile phone plans are near to impossible to get. Unless, you go with a lender who is able to factor in the risk of lending to someone with ‘bad credit’, but understand, you will pay much more for this type of loan.

    On an average $300,000 home loan, you will pay over $15,000 extra in interest on a bad credit loan when compared with a mainstream lender. This is just over the first three years at 9% bad credit loan vs 7% standard loan. See our interest calculator to find out how much extra you’ll pay. Then there’s the other credit – credit card interest, payday loans – they’re all at higher rates.

    Imagine the cycle some people in this situation can get into. It’s a domino effect. More charges mean more difficulty making payments. Soon one default can then lead to another and another. Before people it they are filing for bankruptcy or having their homes repossessed.

    We are looking to educate consumers about three things to do with credit:

    1. If you can’t afford the credit, don’t get it. This sounds simple but is actually not easy to determine. Your best bet if you’re unsure what you can afford, is to seek some budgeting help. But don’t just hope for the best – because life happens – doesn’t it?

    2. If something happens and you can’t afford what you used to be able to afford – stick your hand up and ask for help with your Creditor as soon as possible.

    3. If you have bad credit, and you don’t think it should be there  – save yourself thousands and dispute it.

    Even if you’re just not sure, it would be worth getting your credit file and case assessed by a credit repairer to determine your suitability. For professional help with disputing your credit rating (which will give you the best chance of having your bad credit removed from your credit file completely) contact a Credit Repair Advisor on 1300 667 218 or visit our main website www.mycra.com.au.

    Image: graur razvan ionut/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • ID scanners in nightclubs are boosting the risk of ID theft says Privacy Commissioner

    Their purpose is to crack down on crimes of violence in pubs and clubs. But according to the Privacy Commissioner, an increasing number of complaints have been made to his office about the use of ID scanners in licensed venues. We look at what the issues are with ID scanners and whether your personal information is safe to hand over.

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

    It’s Friday night, you’re heading out to meet a group of friends in a nightclub. You head to the door, and are asked to hand over your ID to be scanned in to the venue’s ID scanner. Do you do it? Do you ask what’s happening with that information? Or do you merely let them whisk it through – knowing you’re not one of the troublemakers they’re looking for, and happily meet your friends in the club?

    Most young people would just hand over their ID, and this technology is being used in plenty of venues around Australia – with the intention of finding those holding fake ID cards, or those patrons who have been ‘banned’ or ‘flagged’ as unwanted.

    But many are calling for action over the use of identity scanners, because of the increase in risk of identity crime.

    Privacy Commissioner Timothy Pilgrim says there are a number of issues and risks associated with using ID scanning for this purpose.

    “If organisations are going to require to collect that information for reasons like that, it needs to be very clear at the point of entry that people will be asked for that information,” he told ABC’s World Today yesterday.

    “And people need to be told what will happen to that information once they hand it over. How is it going to be kept? Is it going to be kept securely? Is it going to be kept for a limited period of time, and who else may get access to it?

    “People have the right to know these things.”

    Mr Pilgrim says the use of ID scanners at pubs and clubs is increasing the risk of identity crime.

    “The more and more we’re being asked for information, the more and more it’s being stored in databases,” he said.

    “It leads to almost a honey pot sort of situation, where people who have malicious intent-criminal groups, for example, can see value in breaking into those systems.”

    The Privacy has been given new powers of penalty for businesses which breach privacy regulations, in the Privacy Amendments (Enhancing Privacy Protection) Bill 2012, which is currently before the Senate. This will include allowing him to penalise businesses which breach privacy regulations.

    “I would hope that organisations take the responsible step of putting in place proper protections for people’s personal information,” he said.

    “However, if there are serious and repeated breaches of the Act, I won’t hesitate to use the powers that I will have.”

    However, Victoria’s acting privacy commissioner, Dr Anthony Bendall, estimated more than 90 per cent of Australian businesses were not covered by the regulations in the Privacy Act because they had an annual turnover of less than $3 million.

    He says Privacy principles were unclear on businesses’ obligations if the information is compromised.

    ”If you do hold personal information and [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”][it is] breached in some way you’re not required to notify people that’s happened, and if it’s something like your licence there’s a good reason you should be telling them and to be taking steps to helping patrons protect themselves,” he told The Age on Sunday.

    Here’s more from The Age story, ‘ID scans raise privacy fears’:

    ID scanner company Scannet gives venues the rights to their own databases, and allows them to share the photos – but not the licence details – of banned patrons with other venues.

    Scannet director Joel Sheehan said it had 45 systems operating in Australia since it began selling them last year.

    Mr Sheehan said machines were password protected, with patrons generally more willing to scan their licences at clubs and pubs now.

    ”Now people that aren’t troublemakers that want to go out and enjoy themselves are all for it,” he said. ”At the end of the day the system’s voluntary, they don’t have to have their ID scanned as a condition of entry but at the same time if somebody’s not going out to cause trouble they shouldn’t have any problems having their ID scanned.”

    He said ID scanners had had a deterrent effect in clubs and pubs, as venue owners could pass on records to police of violent customers. He credited the machines with improving the safety of nightlife in Newcastle, where the company launched…

    While the Scannet website says the machines can help venues ”forecasting future business”, Mr Sheehan said that it was up to venues to comply with the Privacy Act and avoid abusing customers’ details.

    Australian Privacy Foundation board member Dr Katina Michael, said ID scanners were not effective in detecting fake IDs or deterring violent behaviour but put the majority of people at risk of identity fraud.

    ”When you’re talking about private entry to pubs and clubs … they may turn personal information into ones and zeroes at the back end and these stored identities in the future can be stolen … How do you reclaim your identity?”

    Some important points have been made here.

    1. When we are told identity crime is on the rise and is fast being used as part of the ‘repertoire’ of criminals around the world – why should people be parting with personal information unnecessarily? Especially when that information is a direct copy of an identifying document?

    2. It’s not a matter of crime groups not having the capabilities to hack into these databases…but more that it is not worth it…yet.

    3. If a data breach did occur, would those small businesses using the scanner even be required to be subjected to the big stick of the Privacy Commissioner?

    So what could happen if someone misused your identity? Your name could be attached to criminal activities; fraudsters could request tax or Centrelink payments on your behalf, as well as taking out credit in your name.

    If you have credit taken out in your name, you will often unknowingly incur debts with Creditors issuing defaults against your name on your credit file. People could be chasing you for credit you didn’t initiate, and if you apply for credit in your own right – you will be refused. This will continue for 5 years while you have bad credit.  You will be locked out of mainstream loans, credit cards and even mobile phone plans. So it’s important to protect your good name and prevent bad credit through fraud.

    My advice? Think twice before you scan your ID in next time you’re clubbing. If it was me, I would say no, or go somewhere else 🙂 Because you do have something to hide, and that’s your personal information.

    For help recovering your good credit history following identity theft, contact MyCRA Credit Rating Repairs on 1300 667 218 or visit our main website www.mycra.com.au.[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Identity theft bust in Aussie news…and how to minimise your risk of ID theft

    A significant identity crime  saga has unfolded right here in Australia. We look at how $37.5 million was extracted from victims of credit card fraud. And we give you an idea of the important steps you can take to protect yourself and your credit file from fraud, identity theft and subsequent bad credit.

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

    Federal Police have arrested and charged a Sydney couple for their role in what Police are calling the “most significant identity crime syndicate disruption” in Australia’s history.

    A 40-year-old Ryde man and a 48-year-old Ryde woman were arrested and charged on Thursday. This brings the total arrests since October 2011 to eight from what Police are describing as a highly sophisticated identity crime syndicate.

    “Police have now seized more than 15,000 false credit cards, with an estimated potential fraud value of $37.5 million. This includes 12,000 false credit cards seized in November 2011, which was the largest singular seizure of fake credit cards in Australian history. Major manufacturing equipment has also been seized throughout the investigation.

    The arrests come as a result of an Identity Security Strike Team (ISST) investigation which began in April 2011. The investigation focused on the activities of a Sydney based crime syndicate involved in the manufacture and supply of fraudulent identity documents and credit cards.

    The ISST is comprised of members from the Australian Federal Police (AFP), New South Wales Police Force, New South Wales Roads and Maritime Services and the Department of Immigration and Citizenship (DIAC),” AFP announced in a joint media release on Thursday.

    Police will allege that the couple was manufacturing fraudulent documents from their home to falsely obtain credit cards. They will appear in a Hornsby Court on October 25.

    These victims may now be facing defaults and other negative credit listings on their credit file. Thankfully, arrests have been made, names have been recovered and those people who did fall victim, may have a chance at recovering their good name.

    For those victims in similar but separate incidents, they may not be so lucky to have had their perpetrators arrested. Restoring their clean credit file in this situation can be a nightmare to say the least. First they have the debt owing, then to clear the credit listings from their credit file so they can borrow money again – they need to prove they didn’t initiate the credit in the first place.

    This can be tricky if they don’t know when or how the identity theft occurred, and don’t have a perpetrator. Some can be faced with 5 to 7 years of bad credit through no fault of their own.

    So prevention is really better than the cure. If you want to know how you might prevent this happening to you, check out the identity theft prevention tips put out by www.Savingsguide.com.au over the weekend. You never know, just one thing you do differently could see you preventing having your life turned upside down from bad credit due to identity theft.

    Prevent Identity Theft: 10 Steps

    Identity theft is an increasing risk in today’s hyper-technological world, and can have significant effects on our finances. While there are means to redress the problem, like all things, it’s better to prevent identity theft from occurring than to fix it after the fact. Here are ten ways to protect yourself, inspired by Reader’s Digest.

    #1: Cover Your Card
    It’s not being paranoid to cover your card when using it. In the days of mobile phones, it’s fairly easy to take a snap of card and use the digits later. It doesn’t take much to keep part of it covered.

    #2: Check Your Statements
    Often, an identity thief will take an initial, tiny amount out of your account to see if you’re checking it, then go in for the swoop a couple of days or weeks later. Check it once a week, and report anything you don’t recognise.

    #3: Get Bills Online
    There are protections against people seeing your bills online. Not so for people being able to nick them out of the letterbox.

    #4: Destroy Financial Items
    Recycling bins could be a treasure trove, so make sure your paper is well-shredded or, even better, good fodder for your next bonfire. Make sure your cards are seriously well cut up, and don’t chuck out half-filled loan applications without blacking out the details first.

    #5: Strange ATMs
    If the ATM looks different, or has an extra attachment on it, walk away and report it to the bank responsible.

    #6: Debit Cards
    Credit cards have fraud insurance, debit cards don’t. Be wary about where you are using the debit card, and stick to places you trust.

    #7: Consider A Photo
    Noticed that people at checkouts don’t even look at your signature? Scary isn’t it. Consider getting a credit card with your photo on it, it’s hard to miss and far harder to pass off as an identity thief.

    #8: Lock Your Mailbox
    New credit cards, debit cards and bills all come into your mailbox. It’s a simple thing to get a lock on it, and at least make it a sight harder for someone to steal the card and activate it.

    #9: Keep Smart Online
    Look for the SSL or TSSL padlocks whenever you’re entering any details, and don’t save financial data online. Quicker it may be, but far more exposed to identity theft. [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”][Ensure any financial transactions are made using a secure browser https rather than http.]

    #10: Passwords And Pins
    They’re almost impossible to remember, the plethora of pins and passwords we now need, but if you’re serious about protecting yourself from identity fraud, have several and change them often. Don’t keep your pin anywhere in your wallet, no matter how well-disguised. You can run into trouble with insurance should you have your pin close to your card and are a victim of identity theft.

    If you have run into trouble restoring your good credit rating following identity theft, then you may be a candidate for credit repair. Credit repair is about uncovering and providing evidence for instances where the Creditor has unlawfully placed a default or other adverse listing on your credit file and negotiating on your behalf for the removal of that incorrect credit listing by the Creditor. We can put our vast knowledge of industry and credit reporting law behind your case and help negotiate the removal of bad credit which shouldn’t be there. Contact a Credit Repair Advisor on 1300 667 218 to discuss your suitability.

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

  • How do I fix my bad credit?

    In this day and age everything works on credit. If you cop a default on your credit file – you will be refused credit with mainstream lenders (at affordable interest rates). If you do get a loan, often the interest rate is much higher. You may also find you can’t get credit cards or mobile phones on a plan. So you can’t afford to let bad credit history stand in your way – especially if that credit listing shouldn’t be there. Let’s look at what you can do if you want to fix bad credit.

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

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

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

    2. You can use a professional credit repair service.

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

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

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

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

    A professional credit repairer will often dig deeper to conduct an audit-like investigation of your credit complaint to uncover errors or non-compliance.

    What’s the process for a credit repairer to fix my bad credit?

    Credit repair is not an exact science, because every case is different but there are some common threads which run through credit reporting law which we follow.

    Firstly, we order a free copy of your credit file on your behalf from one or more of Australia’s credit reporting agencies which tells us exactly who and what we are dealing with in relation to the bad credit.

    Then we investigate any avenues for disputing your credit listing or listings with your creditor. This involves requesting documentation from your creditor about your account. The creditor can at times take a while to provide the information they should.

    Then the information we receive is cross-referenced against the appropriate legislation for potential compliance errors.

    Then we formally communicate with your creditor to request the removal of what we would then deem to be a listing placed on your credit file unlawfully. This process can be a bit ‘back –and- forth’, as there are procedures that we, and they have to follow in accordance with industry and the law as well as negotiations which take place behind the scenes with creditors. The complaint may also need to be escalated to a higher authority such as an industry Ombudsman if there is no satisfaction with the creditor.

    If the creditor agrees to remove the listing, we ask you to contact the credit reporting agencies at a later date to confirm it has been removed. (You don’t generate a credit ‘enquiry’ on your credit file if you request the information yourself – and too many credit enquiries could see you refused a loan).

    How long will it take to fix my bad credit?

    The length of time it will take to remove bad credit from your credit file is very much an unknown factor.

    It could depend on the particular facts relating to your application, including the evidence required to support each party’s claims; on the amount of cooperation we receive from your creditor/s including how quickly they respond to our requests; on the number of issues raised in your application; the volume and relevance of information and supporting documents provided by you and the complexity of the legislation relating to your particular defaults.

    At MyCRA Credit Rating Repairs, the costs involved are not based on the amount owing nor the time it takes to remove the listing, but are on a per-listing basis. For more information on costs, visit our main website www.mycra.com.au.

    Warning

    Not all credit repairers are the same.

    What makes a good Credit Rating Repair Company?

    1. Transparency

    You need full disclosure of fees and charges up front. You need to know exactly what the service will cost before you spend a single cent. Are there any Guarantees in place, what about refund policies. Then, is it all written down?

    2. History

    Are there testimonials, and can you verify them? Anyone can write a testimonial, but are they willing to put their name on it and have you call them? If you can’t call the person that’s raving about the Credit Rating Repair Company, how do you know it is a real testimonial and not just made up?

    3. Expectations

    What are your chances of success, what are the refund policies, how long is it going to take? These are all questions that you should be able to answer before you speak to anyone. This information should be published on their website.

    In addition to these 3 items, there are a few others to check on as well.

    -Are they a “One Man Band”?
    – Do they have the resources to do what they say they do?
    – Is it a Registered Company or just a business name? (how to check..)
    – Are they registered with the ATO (Australian Taxation Office) for GST (Making more than $75,000 PA requires registration) (How to check..)

    The main message here is:

    Before you hand over your hard earned cash, make sure you do your homework and know who it is that you are dealing with.

    MyCRA Credit Rating Repairs publishes costs, product information, is fully registered, has the resources and experience, has verifiable testimonials, is registered for GST, and is an established business in Both Australia and New Zealand. You can speak to MyCRA for FREE and if we don’t think we can help, we won’t charge you a thing.

    If you’d like to speak to a real person about how we can help fix your bad credit, contact a Credit Repair Advisor on 1300 667 218.

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

     

  • Unfair electricity prices subject of Senate Inquiry

    Having your electricity disconnected, or copping a default on your credit file because you just can’t afford the astronomical power bills you are receiving may be less frequent, if a Senate Inquiry which begins today in New South Wales is successful in helping to cap soaring electricity prices. This type of Inquiry is typical of what will be happening in every state across Australia in the near future, or states have been warned by the Gillard Government that come this December, it will make moves to regulate energy.

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

    The Senate Select Committee on Electricity Prices will also hold hearings in Melbourne, Perth, Brisbane and Canberra, and is due to report back on November 1.

    The Committee will hear a number of submissions from industry and consumer groups in order to identify why prices have soared and investigate how households and businesses could reduce their costs.

    One vocal advocate for consumers helping to stop rising electricity prices is consumer group Choice, who made 14 recommendations to the Senate committee ahead of today’s hearing.

    His comments were featured in The Australian today in the story Inquiry into electricity bills to begin:

    Matt Levey, head of campaigns for consumer group Choice, will tell the inquiry that regulatory change is needed to stop the “gold plating” of the energy network.

    He said the main driver of higher power prices was the billions spent on power infrastructure.

    “This is clearly a broken system, and our governments need to cooperate and ensure we never see these sorts of cost increases again,” Mr Levey said.

    The average NSW household’s annual electricity bill has more than doubled since 2007 to about $2,200, according to Choice.

    Mr Levey’s comments were also highlighted in this story, Choice urges electricity price reforms:

    In its submission, Choice urged the Senate committee to consider strengthening the Australian Energy Regulator and to allow it to scrutinise the cost-effectiveness of infrastructure spending.

    It also wants networks to invest in the most cost effective solutions to meet consumer needs and an emphasis on reducing peak demand.

    “Moves to help households switch electricity providers, like banning exit fees, are welcome but they are no substitute for doing the heavy lifting and putting a stop to the wasteful spending that is pushing up electricity costs,” Choice head of campaigns Matt Levey said in a statement.

    The Energy Retailers Association of Australia (ERAA) in its submission to the committee has said energy retailers have very little influence over the causes of price increases in recent years.

    “It is important that senators understand that retailers are the billing agent for the entire electricity industry value chain, meaning they bear much of the consumer backlash over rising electricity prices,” ERAA chief executive Cameron O’Reilly said.

    Whilst energy retailers may have had little influence over prices in recent years, they do have an influence on how they deal with energy complaints and energy default disputes – and this may also be what also contributes to customer dissatisfaction at soaring prices.

    When we hear recently that 10,000 South Australian energy consumers had their power disconnected in the 12 months to July, because they just can’t pay their bills and that this is an increase of 38 per cent in disconnections, then you do have to wonder, how efficient is the system?  Likewise, despite many programs within energy companies for customers experiencing hardship, the above statistics beg the question, how efficient and accommodating have energy providers been in delivering these hardship provisions to those clients that need it most? After all, power is a basic essential – not a luxury item.

    The Australian Council of Social Service’s (ACOSS) submission to the senate inquiry into electricity prices included some recommendations on how to improve on affordability for those on low incomes:

    ACOSS recommends that consideration be given to more flexible billing options to help low income households control their expenditure, such as:

    • The introduction of pre-payment meters on a voluntary basis where they suit a customer’s needs and appropriate consumer protection policy is in place.
    • Offering monthly billing to reduce bill shock often caused by the current quarterly billing in arrears.

    ACOSS also recommends that people on Allowances should receive the Utilities Allowance to which people living on pensions are entitled.

    These seem like great recommendations to help those battling the rising cost of living.

    In the area of disputed energy credit listings, another big issue which we find arises amongst our clients is the lack of adherence to correct notification procedures when placing a default on the customer’s credit file. Many of our energy clients believe they have not been given enough time to remedy the outstanding account, prior to being issued with the default. Does this also demonstrate an eagerness to crack the whip without regard for those doing it tough?

    We hope the Inquiry addresses some of those wider issues as well. We look forward to hearing the outcome of this Inquiry, and subsequent inquiries in the other states come November 1.

    If you have an energy default, Clear-Out writ or Judgment you would like help to dispute, contact a Credit Repair Advisor at MyCRA Credit Rating Repairs 1300 667 218.

    Image: tungphoto/ www.FreeDigitalPhotos.net

  • For those about to default on their home loan

    A recent survey on Australian Mortgage Stress has revealed a fifth of first home owners risk defaulting on their mortgage in the next few months – are you one of them? We look at who might be vulnerable to mortgage stress, why you want to avoid defaulting on your home loan, and what you can do to prevent things reaching that stage.

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

    An ‘Australian Mortgage Stress Analysis’ survey released last week shows almost 20% of the 26,000 Australian households surveyed were under mortgage stress.

    The results from Digital Finance Analytics (DFA) showed 16% of those homeowners surveyed currently fall into the ‘severe mortgage stress’ category.

    Those in Tasmania are leading the crisis with 17.2 per cent falling behind in repayments, being driven to refinance or pressured by banks to sell. This was closely followed by Northern Territory (17 per cent), New South Wales and South Australia (both 16. 4 per cent), Victoria and Queensland (both 16 per cent), ACT (15.2 per cent), and Western Australia (14.4).

    Digital Finance Analytics says rising household costs and budget blow outs can land first-home buyers in hot water.

    The survey showed the number of suburban homes in the severe mortgage stress category will rise by 4000 from 43,600 by June 30 next year.

    How could I be affected by defaulting on my home loan?

    Obviously, if you default on your mortgage for a certain period of time, you risk the bank taking the home. But even if you default once, but then begin to make up the repayments you are still putting your future at risk.

    If you fail to make repayments on our loan past 60 days, the bank will make a notation on your credit file – a ‘default’ credit listing. Once you have a default against your name – it will stay there for 5 years. The intention of adding default credit listings to credit history is to warn future credit providers you would potentially have trouble keeping up with repayments. Likewise, as part of ‘responsible lending’ it would mean the credit provider would be acting irresponsibly to lend you money – so most don’t.

    A default on your credit file means you have very little access to mainstream credit for the five year term. If you really need to borrow money – you may be able to get a non-conforming loan – but that’s going to be at a much much higher interest rate. You may also find it difficult to access all secondary forms of credit – such as mobile phone plans, credit cards and store credit. This is how people end up going for alternative loans and paying massive amounts of interest. If you fall into this cycle (and sometimes there can be no choice) you can often end up getting into more and more debt without the funds to climb out of it.

    This credit lockdown is the very reason why people with legitimate credit rating errors seek help through a credit repairer, and fight so hard to have those credit listings which shouldn’t be there removed from their credit file. Our society works on credit, so it is often very difficult to live with defaults or other adverse listings on your credit file.

    So to avoid this ‘debt cycle’ through living with defaults on your credit file, what you want to do is avoid defaulting on your home loan (or indeed any other forms of credit) at all costs.

    What can I do if I am experiencing mortgage stress?

    Yesterday Sydney Morning Herald’s Money section featured some great advice for people in the situation of mortgage stress in their story Tell them to cut you a break. The article gives you some great practical tips on what to do to reduce the size of your mortgage payments, which should hopefully help to reduce the strain on your household and allow you to get back on track without resorting to missed payments.

    The article was all about speaking up, and asking the banks for what you need. Recently there have been some big moves to increase competition in the mortgage market place, through for instance banning exit fees. This may mean your bank is more willing to reduce your interest rate:

    If your loan is with a big bank and you’re paying the advertised interest rate, you’re being ripped off. It used to be that customers who knew to ask could secure 70 basis points off that rate, but in recent competitive times, that discount has leapt to as much as 100 basis points.

    You won’t be able to get any reduction from one of the new breed of online lenders; it’s their cut-price rates that are forcing discounting elsewhere. But banks, and even some building societies and credit unions, will have wiggle room. The beauty of this information is that you could use it to make an instant saving with your lender, sparing you from having to remortgage.

    Be warned, though: getting the full 1 per cent might require a genuine threat to leave. And even then, you may have to play the ”I’m a long-term, loyal customer” card, the SMH article says.

    If this doesn’t work – the article advises threatening to leave (but beware exit fees if your loan was taken out prior to Jul 1, 2011).

    A report by the Australian Securities and Investments Commission found that more than 50 per cent of people who complained about an early-termination fee saw it reduced or waived. However, the survey of 20 lenders found fees were still levied in 75,000 cases between July 1, 2010, and February 15 last year.

    So it’s the knowledge of the deals banks are doing that will save you.

    If you are in severe financial strife which won’t be helped with a slightly reduced interest rate – then it’s time to tell put up your hand and tell your bank.

    ”No way – keep it quiet for as long as possible,” I hear you say, and I understand that rationale. But you also have to realise that your lender doesn’t want you to default. They’ll lose all that lovely interest you’ve signed up to pay, and if the situation becomes so drastic that they sell your house from under you, the price they’ll fetch will be paltry.

    The lenders will help you – with revised repayment schedules, spreading them over a fresh 25 or 30 years, and even with interest-rate discounts – because it’s in their interests to do so. What’s more, they made a commitment to the government during the GFC to go easy on borrowers in distress. And today, they’re under more political and public scrutiny than ever,” the same article said.

    How do I apply for a revised repayment schedule with my bank to avoid a default?

    Firstly, you need to make it clear to your bank that you fear if you aren’t able to restructure your home loan repayments that you will fall into arrears. If you have a situation of temporary difficulty, such as unemployment, illness, injury or other reasonable issue which would mean making repayments will be difficult, this is essential to do. You will be requesting a financial hardship variation to your repayments. This may mean your repayments are reduced accordingly and the lender may take action to stop a potential default on your credit file.

    Tips for Applying for financial hardship

    – Work out what you can afford to pay prior to requesting a hardship variation. 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. Could burying your head in the sand be the main reason why you find yourself in this situation in the first place? If so, it would be a great idea to seek professional help in managing your budget for your entire future. The best place to start looking for some help would be ASIC’s MoneySmart Website. If you feel like you’ll struggle across a number of credit areas in the short term – consider requesting a reduced payment for other credit accounts as well.

    – 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.

    – 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.

    – 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.

    A rethink about money

    If you have been accepted for a hardship variation – and you don’t end up with a default on your credit file, consider that you have dodged a bullet. But are you sure you won’t get into any kind of credit stress in the future? This whole episode will be worth it if you are able to learn from what’s happened. My advice on avoiding future defaults? Overhaul your finances and 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.  Unfortunately this doesn’t guarantee that mistakes won’t happen with your credit file, but it will guarantee that a negative credit listing won’t make its way to your credit file through any fault of your own.

    For help with disputing credit listings which you consider unfair – including where instances of financial hardship have not been recognised – contact a Credit Repair Advisor on 1300 667 218 or visit the main site www.mycra.com.au for more details on your possible suitability for credit repair.

    Image: digitalart/ www.FreeDigitalPhotos.net

    Survey statistics courtesy of Herald Sun Article: First time buyers at risk of home loss

  • Are you ready to buy a home? Read this first

    Saving for a home? We tell you what you might need to know to put you in the best position to get the best loan out there for you. We show you what the lenders might be looking for, and how they calculate risk by looking at your credit history.

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

    In the 21st Century, being approved for a mortgage is a complicated affair. Not only are savings, income and debt level all taken into consideration, but also how your credit rating appears. It is all about risk calculation. The lender is gauging the likelihood you will default on your repayments. Banks have tightened their belts in the wake of the global financial crisis, so risk assessment plays a big part in home loan approval.

    8 things you need to know before you apply for a home loan

    The first three on the list are generally viewed together. The trifecta of savings, income and debts….

    1. Savings.

    Many people are saving 5-10% deposit prior to applying for a home loan. In many areas of Australia houses are so expensive this can take years to achieve. In fact, it was revealed in The Australian newspaper last month, it takes the average first home buyer in Australia a long five years to save up enough deposit for a home.

    In the same paper today in the story ‘Savings the key to first home – survey’ we see that most buyers are in fact saving up to 10% deposit before entering the market:

    RAMS head of brand and marketing Chris Thornton said first home buyers appeared to be saving more now for a deposit than in previous years.
    “A few years ago deposits were around five per cent for the average first homebuyer, and now it’s often more than 10 per cent that people are saving for,” he said.

    “People are really very serious about saving before they jump in.
    “In the past, people have really squeezed themselves to get over the line, but now, they’re just being a bit more cautious.”
    Living with parents and using high-interest savings accounts appeared to be key in the savings process, Mr Thornton said.

    If your income isn’t high or if you have more debts you may actually require a higher deposit of say 10% to ensure approval.

    2. Income amount.

    The amount of income required is generally determined by the amount of income earned relative to debts and expenses.

    So, the more you earn, and the fewer debts you have – the more you will be able to borrow. If you have a lower income, it may be worth paying off existing debts before applying for a home loan. Also, the more deposit you have saved, the lower the income requirements on the same loan.

    According to Homeloanfinder.com.au in its article ‘How Much Salary Should You Have for a Home Loan,’ lenders use two different formulas to determine how much people can borrow:

    1. Front end ratio. “The front end ratio method will determine how much of your income will be used on the repayments of the home loan. Most people will agree that when using this method you should not exceed 28% meaning only 28% of your income should be used paying off your home loan.”

    2. Back end ratio. “The back end ratio method will consider all debts when determining how much money you will have free to pay off the loan. When using the backend method, most people will agree that you will only want about 36% of your income going on debts and expenses,” the article says.

    3. Debts and credit limits

    The lender will generally assess your debt level to determine the amount you are able to borrow. So reducing debt can increase borrowing power.

    Part of this debt calculation also includes the credit limits which are present on any credit cards or line of credit loans you may hold. This credit limit will be used to determine the debt amount based on the amount of money you have access to, rather than the actual amount the loan or card currently has owing on it.  So if you have a credit limit of say $20,000 on your credit card, the debt amount on that card will be stated as $20,000 – even if the actual amount you owe on that card is only $5,000.

    So seek to reduce the credit limits on any cards or loans prior to applying for a mortgage.

    4. Stable employment.

    Generally lenders are requiring 6-12 months with the same employer. So think twice about changing jobs if you also want to buy a home in the future, even if the wages are significantly better in the new position.

    5. Credit checks.

    When you put in your application for a home loan, the lender will perform a routine credit file check on you to make sure there are no adverse listings present. An adverse listing can be a default, clear out, Judgment, Writ or bankruptcy which is placed on a person’s credit record by a creditor.

    The most common type of adverse listing is a default, which can be placed on a person’s credit file if they fail to make repayments on any form of credit past 60 days. This includes telecommunications and utilities bills.

    Defaults need not be for big amounts – late payments on bills for as little as $100 can be listed on people’s credit files. Defaults and Judgments remain there for 5 years, with clear outs, Writs and bankruptcies remaining for 7 years.

    Any adverse listing, even an unpaid phone bill will have a huge impact on a person’s home loan approval. Most of the major lenders will refuse to lend to someone who has an adverse listing. In fact, that person would probably have difficulty even getting a mobile phone plan.

    6. Excess credit enquiries.

    Whenever a person other than you makes an enquiry on your credit record – that enquiry is recorded against your credit file. Currently there is no way of seeing on someone’s credit report if the loan was approved or not, only that the application was made.

    Some lenders are refusing applications due to too many credit enquiries, such as two enquiries within thirty days or six within the year.

    If you decide to shop around for the best deal, beware of excess credit enquiries. You could find too many enquiries can mean you blow your chances of approval – even if you would have been approved for every deal. So while it is great to talk a variety of brokers or lenders prior to making an application, you must stress to them that they are only gathering information and are not wishing to make an application until you have decided on a lender.

    7. Obtain a credit report

    If you intend to purchase a home within the year you should request a copy of your credit file. This report is free for the credit file holder every 12 months – and tells you what the lender will see about you when you apply for credit.

    There are 4 credit reporting agencies in Australia, Veda Advantage, Dun & Bradstreet, Tasmanian Collection Services (if in Tasmania) and new entrant Experian. You can request a report from all of these agencies. The report will be mailed to you within 10 working days of your request.

    There is the potential for creditors to make mistakes when adding credit listings to credit files. So regardless of how diligent you think you may have been with your repayments, it is important to get hold of a copy prior to applying for a loan.

    Adverse listings can sometimes occur due to identity theft; some people are caught in issues over separation from their spouse; some have been disputing the bill which went to default stage and many people are just victims of the fallout from inadequate billing procedures – wrong names, wrong addresses errors with creditor computer systems, and sometimes human error.
    Many times people are unaware they have adverse listings on their file until they apply for a home loan. Unfortunately at that time it can be stressful, and they can lose the home, or be forced to choose a different loan with a higher interest rate.

    8. Dispute any inconsistencies on your credit file.

    If you find inconsistencies on your credit file, or a credit listing which is wrong, unfair or you believe it simply should not be there, current legislation allows for you to have those inconsistencies rectified.

    If you have settled the account, it can be updated to ‘paid’ status, but this may not be enough to ensure finance approval.

    Credit listings are not removed by creditors unless you can provide adequate reason and lots of evidence as to why the listing should not be there. Credit repair also requires knowledge of the legislation and perseverance. But for those people whose financial freedom is hindered because their credit file contains errors, it is a point worth fighting for.

    Most people have neither the time nor skills to get up to date with the full barrage of credit reporting law if they want to fight a credit listing which has been placed on their credit file.  They are also unwilling or unable to attempt to negotiate with creditors on their own behalf.

    Often a credit repairer is the best person to give you the best chance of having inconsistencies completely removed from your credit file, because similarly to trying to fight your own case in Court, if you don’t get it right, often you don’t get another chance to clear your name, and can be stuck with the bad credit for the term of the listing (5 to 7 years depending on what it is).

    A clear credit record can allow you the option to choose the best loan to suit you, with the best interest rate so it is vital it reads as best as possible to allow as many options as possible – and ultimately save you money.

    For more information on credit repair, contact our Credit Repair Advisors on 1300 667 218 or visit our main site www.mycra.com.au.

    N.B. This post is intended as information only, and should not replace seeking professional financial advice for your situation.

    Image: digitalart/ www.FreeDigitalPhotos.net

  • Credit file warning: Organised crime groups focused on stealing your identity

    In the future, the security of your personal information may be more crucial than ever. A warning coming from the Australian Crime Commission that organised crime groups will be more likely to hone in on opportunities associated with identity theft to commit crimes in the future. This could have serious implications for every aspect of your life. Your identity is basically your good name, and financially, it is also the key to your ability to obtain credit through your credit file. If you become an identity theft victim, you may also become a victim of credit fraud and end up in serious debt and with bad credit history for years. We look at what is happening, what is predicted for the future, and the 10 ways you can protect your personal information.

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

    The Australian Crime Commission (ACC) has said at a national conference for credit professionals that identity crime is used by almost all of the serous and organised criminal groups operating in Australia and is a key enabling activity for a range of frauds.

    The ACC’s Chief Executive Officer, John Lawler presented at the Dun and Bradstreet Consumer Credit Conference, ‘Credit risk in Australia – The road ahead’ last week. Mr Lawler spoke on ‘Global trends in consumer fraud’. Mr Lawler said identity crime is a “key facilitator” for organised crime groups because it is an anonymous crime which can enable significant fraud.

    “Every single person in this room and the various sectors and organisations that you represent are targets for organised crime,” he told the Conference.

    “Criminals will exploit technology to not only carry out new crimes but commit traditional crimes on a much larger scale.”

    The ACC estimates organised crime is currently costing the Australian economy at least $15 billion per annum – and that the impacts of this are significant and growing.

    Globally, the cost of cyber-crime alone has been calculated at $388 billion annually. This is more than the global market in marijuana, cocaine and heroin combined ($288 billion).

    Mr Lawler says the amount of personal information requested and stored online, along with the growing popularity of social networking sites, provides organised crime with a larger pool of victims and data to harvest:

    •Phishing attacks have become well designed and targeted.
    •Companies are being increasingly targeted as criminals are attracted to large volumes of data stored in single systems.
    •Organised criminals are also warehousing data for later use, making it more difficult to detect when and how data breaches have occurred.

    He says that the most threatening crime groups are diversified in the nature of their crimes – so they are running several ‘games’ and warned that these groups are increasing their level of involvement in fraud. He says this is due to the big pay offs. It’s anonymous so generates less risk, whilst bringing in “some significant profits.” The range of fraud types can include credit card fraud, mass marketed fraud, revenue and taxation fraud, superannuation fraud and financial market fraud.

    “Organised criminals seek to conduct significant research on their intended victims and tailoring their operations to target weaknesses.

    Serious and organised crime is embracing technology and the cyber environment like never before. The use by organised crime of professional facilitators, the use of false and stolen identities provides them with access to systems and data on an unprecedented scale. One manifestation of this is the unlawful access to and supply of illicit commodities, malware and illegal firearms through online sites such as darknets.

    This interface is occurring at all levels from an individual perpetrator to sophisticated serious and organised criminal networks. The anonymity and obfuscation of identity/location provided by the cyber environment facilitates these criminal acts,” he said.

    He warned of the prevalence of “white-collar” fraud like investment fraud. Which don’t target the naïve, but target those with plenty of money looking to invest prior to retiring. The scams are extremely well thought out:

    “Fraudulent syndicates rely on establishing a perception of legitimacy, trustworthiness and success. Syndicates typically establish virtual offices or fictitious corporations which mirror legitimate businesses. They build a perception of legitimacy through highly professional looking websites that provide press releases and make false claims of outstanding corporate performance. They are often linked to false regulator sites and can manipulate search engine data so that those undertaking due diligence are provided with affirmative responses in relation to the investments that are being yielded,” he explained.

    The ACC says education is key to improving our steeliness against this type of crime. They have written a letter via Australia Post to every householder in Australia warning of the risks of serious and organised investment fraud in Australia.

    But they say both businesses and the public sector have a role to play in understanding the ways they can minimise risk to all consumers.

    10 Ways To Protect Your Personal Information From 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 we no longer need, rather than throwing it straight in the bin.

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

    7. Don’t 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, you can be aware of any discrepancies which may need to investigated. Often it is only through a credit check which comes back with defaults on your credit file that many realise they have been victims of identity theft.

    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 people that report identity theft, the more effective will be Australia’s Government and Police response to it.

    If you are already an identity theft victim, it can be difficult to navigate the current credit reporting system to have the bad credit history removed from your credit file.

    MyCRA Credit Repairs can completely remove bad credit history such as defaults, clearouts, writs and Judgments from credit files that have errors, are unjust or just shouldn’t be there. Contact a Credit Repair Advisor on 300 667 218 or visit www.mycra.com.au for more information.

    Image: Salvatore Vuono/ www.FreeDigitalPhotos.net

     

  • What Does Your Credit File Say About You?

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    Our credit file is like a mirror on our finances. How healthy are you looking? Here’s a back to basics look at the ins and outs of taking on credit in Australia, and why it’s important to look your best when applying for credit by having a clean credit history.

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

    When you apply for credit, the lender will, after assessing your savings history, your income and your debts – order a credit check on you. This involves contacting one or more of Australia’s credit reporting agencies, to order a credit report from your credit file.

    What the lender sees on your credit file 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, or the financial potholes that are sometimes impossible to climb out of. Let’s look at what a lender might see about you on your credit file, and how you can make sure it looks squeaky clean.

    Your Credit File

    Is a collation of your credit history. As soon as you become credit active, you have a file opened in your name. This file is then attached to you as long as you apply, use and unfortunately abuse credit – it will follow you everywhere in Australia.

    If you have applied to borrow money, or have established an account for services you are considered credit active.

    Every creditor inputs information about you to one or more of the credit reporting agencies in Australasia. Australia’s CRA’S include: Equifax (Formerly Veda Advantage), Dun & Bradstreet, Experian & Tasmanian Collection Services (TASCOL) if in Tasmania.

    What a credit file contains

    – Your credit file includes identity information – such as your full name, date of birth, gender, driver’s licence details, addresses and employer information.

    It also includes other information about your credit and repayment of credit history:

    -Any current active credit and details of current credit providers, for instance mortgages, personal loans and credit cards.
    – Any overdue credit accounts – these may be reported as either a ‘payment default’ or a ‘clearout’.

    How long will I have bad credit?

    Credit Reporting Body Equifax reports these time periods for holding information on your credit file:

    How long is the information held on my credit file?
    • Credit applications and enquiries and overdue accounts are held on your file for five years
    • Overdue accounts listed as a payment default are held for five years
    • Overdue accounts listed as a Clearout are held for seven years
    • Bankruptcy Act Information is held on your file for seven years (prior to January 1998, Bankruptcy Act Information was held for five years)
    • Court Judgments are held for five years
    • Writs & Summons are held for four years
    • Identity information, which includes name, date of birth, sex, drivers license, address history, and linked names (if any) are held for the life of the credit file. This information is used to distinguish the credit file from others held in the database
    • Purge dates are calculated on the date the information was added to the file, and are based on the time limits provided in the Privacy Act 1988
    • Files are scanned each month and out of date information is automatically purged to ensure the files are accurate.

    NB: Even when an overdue account or clearout has been brought up to date or paid in full, it will not be removed from your file.

    All payment default listings remain on file for five years from the date of listing. All clearout listings remain on file for seven years. The fact that an account has become overdue, and then been paid becomes part of your credit history.

    Your credit report

    As the credit file holder, you are legally able to obtain a copy of your credit report for free from all of the credit reporting agencies in Australia every 12 months – and a written copy of your credit file will be provided within 10 days from your written request.

    Every credit active person should obtain a copy of their credit report annually  – regardless of whether or not they think they have a bad credit rating. It is important that when checking your credit file, you obtain reports from all possible credit reporting agencies.

    Definition of a ‘bad’ credit rating

    If you don’t already know you have bad credit, you would be notified at the time of credit application, when the credit provider obtains a copy of your credit file.

    In broad terms, any credit defaults, court actions or writs, external administrations and bankruptcy are all recorded on your credit file and would be considered ‘bad’ credit history by most credit providers.

    In this current economic climate even too many credit applications are often considered to be ‘black marks’ on your credit file.

    Impact of a bad credit rating

    If you discover you have a negative listing on your credit file, you will find it very difficult to obtain mainstream credit in the future, generally for the term of the listing (5 -7 years).

    You will likely be refused a home loan with most lenders and possibly be refused credit of many kinds from credit cards to phone plans right through the term of the listing.

    Too many credit enquiries on your credit file may also stop you from getting major credit with most lenders.

    Most times the loan options available to bad credit clients are at significantly higher interest rates in order to cover the risks associated with taking on someone with bad credit.

    Can you change what is said about you on your credit report?

    It depends if the information on your credit report is accurate or not. If your address or other personal details are inaccurate, you may want to contact the credit reporting agencies to have this rectified. But you should also consider why. Do you think it’s possible that there are inconsistencies on your report? If you also have defaults or other credit listings which you feel shouldn’t be there, you should pursue the matter through making a claim with the Creditor to dispute and remove any listings which should not be there.

    Any credit listings which you feel are unfair, incorrect or just shouldn’t be there should be addressed well before you need to apply for credit. The impact of bad credit is pretty severe – and can haunt you for a long time. Spend the time to make sure everything is correct on your credit report.

    You may only get one chance at clearing your credit file – so it’s important to give yourself the best chance of having any inconsistencies removed from your report by using a professional credit repairer.

    Sometimes individuals can attempt to deal with creditors to remove the credit rating default themselves and can do more harm than good by not understanding the legislation.

    Credit repair is a lengthy process, involving the review of all documentation from an individual – including the credit file and all the circumstances surrounding the default, writ or Judgment.

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

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

    For advice about whether your adverse listing may be suitable for credit repair, contact a Credit Repair Advisor on 1300 667 218 or visit our website for more information www.mycralawyers.com.au.

    Once your credit file is restored and your bad credit is removed, you will be looking great to the lender, and ultimately feeling great when you have access to the best credit you can, at the best rates.

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

    Image 2: imagerymajestic/ www.FreeDigitalPhotos.net

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