MyCRA Specialist Credit Repair Lawyers

Tag: Graham Doessel

  • New Credit Laws Pass House of Representatives

    Australia’s new Privacy Laws, which include a credit reporting law overhaul are coming to fruition. Amendments to the Privacy Act 1988 passed through the House of Representatives yesterday. What will this mean for you, your credit file and will it make it easier to remove bad credit?

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

    The Attorney-General announced late yesterday that the House of Representatives had passed reforms to the Privacy Act 1988. The Privacy Amendment (Enhancing Privacy Protection) Bill 2012 – which includes major amendments to Australia’s credit reporting laws –will now be introduced in the Senate where it is currently being considered by the Senate Legal and Constitutional Affairs Legislation Committee. The Government may make further amendments in the Senate in response to the Senate Legal and Constitutional Committee’s report, which is due to report shortly.

    “The House Committee has found that the reforms should be passed in their current form and the Government has moved quickly to implement those wishes,” Attorney-General Nicola Roxon said in a statement to the media yesterday.

    Ms Roxon says the reforms will focus on giving power back to consumers over how organisations use their personal information. The power will be extended to consumers in the area of credit reporting.

    “These changes will also provide much more power to consumers to be able to access and, if necessary, correct their credit reports,” Ms Roxon said.

    Through the reforms the powers of the Privacy Commissioner’s will also be enhanced to improve the Commissioner’s ability to resolve complaints, conduct investigations and promote privacy compliance. For example, the Commissioner will also be able to apply to the court for a civil penalty order against organisations for credit reporting breaches. Penalties for an individual range $2,200 to $220,000 and for a company they range from $110,000 to $1.1 million.

    We welcome the changes in the area of credit file correction. The new laws will most importantly enable consumers to force their Creditor to justify a disputed listing; and give consequences for credit reporting breaches. This is important in correcting credit listing complaints.

    Whilst the changes should make a positive difference in ease of correction, what can make or break a credit listing complaint – is the individual’s knowledge of credit reporting law. In order to make a successful complaint to justify removing a credit listing, the individual must show that the Creditor has unlawfully listed it. The complainant must also be able to give evidence to show how that occurred, which means providing supporting documentation from the Creditor– which can also be difficult for the individual to obtain. Then there’s marrying the two together. Then, there’s negotiating with the Creditor.

    All of these aspects of disputing a credit listing could still see a valid complaint come unstuck if not performed correctly.

    In addition to this, there are a myriad of reasons why a credit listing may be unlawful which are not immediately evident by the individual. Creditors can and do make mistakes with credit reporting. They don’t give the right notification to the consumer; they don’t give them adequate time to remedy the arrears; they don’t update contact details for the client; they don’t get the account right in the first place.

    So it will still give you the best chance of having a disputed credit listing fall in your favour if you open your options, solidify your case, and have the matter handled by a professional credit repairer. But it will be important to choose the right kind of credit repair and make sure you’re looked after each step of the way. Visit our main site for more details www.mycra.com.au or contact a Credit Repair Advisor on 1300 667 218.

    Image: Salvatore Vuono/ www.FreeDigitalPhotos.net

  • Can you run a business with bad credit?

    Running a small business can be extremely trying. Cash flow can be a problem for many people with a small business, and this in turn can lead to accounts in arrears. If you are unlucky enough to incur a default on your commercial credit file during your business ownership, you could find things extremely difficult. It would be difficult to borrow more money to expand your business, or buy vehicles, or even set up a mobile phone plan. This blacklisting of your credit file can even mean you are forced to sell the business or go bankrupt, or lean heavily on your personal credit file when you need to borrow money. We cover the ways you can get bad credit, and why you should avoid bad credit history attaching itself to your business and your personal life at all costs.

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

    An article published recently by Dynamic Business shows there has been a jump in the number of businesses entering external administration:

    “According to ASIC figures, the number of businesses entering external administration in the 2011-12 year was up 9.4 percent over the 2010-11 financial year.

    CreditorWatch managing director Colin Porter said data collected by his own business suggests a 22.5 percent rise in defaults in 2012, with construction/building, retail, hospitality and printing sectors the hardest hit.

    Porter said what’s more worrying is that the value of defaults is also growing, with the average dollar amount of each default registered rising 18.5 percent. This was even more marked in the final three months of the last financial year, with Q4 2011/2012 up 22 percent on Q4 2010/2011.

    “June represented the highest number of defaults registered, plus the highest dollar value of the defaults on record,” he added” an excerpt from the article Diligence key to avoiding bad debt.

    These are worrying statistics for business owners, particularly when you see the consequences of bad credit.

    Why accounts should be paid by the due date

    Bad credit can be extremely easy to cop on your commercial credit file. And you may not have the same protections as you do for your personal debts.

    Commercial credit reporting is not subject to Part IIIA of the Privacy Act, which governs notification requirements for consumer credit reporting specifically in the Credit Reporting Code of Conduct.

    In the Credit Reporting Code of Conduct, an account must be at least 60 days in arrears, and an amount of at least $100 must be outstanding for the Creditor to be able to place the default on the consumer’s credit file.

    Whilst commercial credit has provisions in the National Privacy Principles for correction of mistakes, there is no provision for adherence to the Code of Conduct.

    So technically, if you are one day late in paying an account, a Creditor may legally be able to place a default on your commercial credit file. Despite the law, many of the Ombudsman Services do encourage Creditors to give adequate written notice to remedy an account in arrears prior to listing a default. But sometimes this issue can be a contentious one when trying to dispute what you consider to be an unfair credit listing.

    Ideas to keep the cash flowing so you don’t get in arrears

    1. Pay all accounts on time. This is the easiest way to ensure there are no discrepancies or defaults on your credit file.  You need to have systems in place whereby credit cards and all bills are paid on schedule if not by you then by administration. If the business is running behind, creditors need to be contacted and payment plans possibly worked out before the due dates to best avoid a default listing on your credit file. Many industries are tending towards offering those in financial hardship alternative payment arrangements rather than placing a default on the credit file. If you do need to request financial hardship for a case of temporary hardship, you should contact the Creditor in writing. This does not guarantee you will be successful in your request, but the Creditor has a number of days to respond prior to placing a default on your credit file for any accounts in arrears.

    2. Ensure all accounts are paid to you on time. Chase up bounced cheques and failures to pay immediately.  Too many accounts left unpaid can leave you short on cash and run your business into the ground if left to continue. Regard any client non-payment as potential risks to your credit rating.  Develop a tactful system for retrieval ahead of time – reminding clients of the risks to their credit rating by defaulting on payments to you. If overdue accounts go beyond 60 days, notify the account holder in writing you will be referring the non-payment to a credit reporting agency.

    3. Consider credit checks for all potential account holders. Anyone who requests an account of significant proportions could be required to submit a credit application before the account is instigated. This involves you running a credit check on them with one of the major credit reporting agencies. At the very least, as Porter also recommends, obtain the entity’s correct name and ABN/ACN, and verify that the ABN/ACN is active and is still legally operating.

    4. Regularly obtain a copy of your credit file – once a year is recommended to ensure it is all as it should be. If there are any discrepancies or listings which you believe should not be there, address them prior to needing the extra credit for your business. This will mean less stress for you. Clearing unnecessary defaults allows you to get on with your life, and the important business of running your company

    5. Keep credit card limits within a set budget as specified by the needs of the company. Don’t be tempted to set a lofty limit to your credit card as it may just encourage needless spending and blow out your business budget.

    6. Be aware of excessive credit enquiries. If you are not sure about your credit health, run your own check before applying for new credit.  Some lenders are rejecting loans for as little as two credit enquiries in 30 days, or six enquiries within the year – so it pays not to shop around for credit and to only apply for credit you have an intention of pursuing.

    7. Most importantly, monitor your accounts regularly.  If you are the owner of the business but not the person responsible for accounts, ensure you still have hands on knowledge of the business’ expenses.  Check accounts are being paid, check receipts and credit card statements regularly.

    In the current economic climate with businesses potentially more likely to pay accounts late, there has never been a more important time to protect your credit rating by being firm with your own and your client’s payments.

    Your consumer credit file

    SMB’s it can find be tempting to take out credit using your consumer credit rating. Redrawing on the mortgage, and taking out personal loans is evidently quite common amongst small businesses who report finding it difficult to get credit to fund their business in the current market.

    Smart Company reported back in June on new research by software firm MYOB showing 28% of small businesses use their home loan to finance their business in some way.

    The survey of over 1,000 SMEs, shows how tightly linked mortgage rates and business finance really are.

    Just under 15% of SMEs utilise a line of credit through their home loan to help fund their business, 5% have funded their business by increasing the value of their home loan and 5% funded their business by redrawing against equity in their mortgage.

    A further 4% have used cash sitting in their mortgage offset account to pump into their business.

    The danger with involving personal credit in your small business borrowing is the chance of business debt and bad credit history spilling over to the personal credit rating.

    Business is touchy and subjected to many unknowns, but the family home and your consumer credit file should be kept protected. If some major clients go under, and payments are not made – who’s going to help fund your now over-extended mortgage? You will go into a credit lock down of both consumer and commercial credit files. Your access to mainstream credit is virtually nil for the next 5 years. Not only can your credit rating be compromised, but your spouses’ as well. Any new credit will be at sky-high interest rates. You might lose the business, and any opportunities to borrow again for business in the future, but worse, you might lose your family’s ability to borrow at good rates for a mortgage, personal loan, credit cards and even mobile phones.

    So to protect your good name – choose your credit wisely, choose your clients wisely, and make paying your debts a priority – regardless of the size of your business.

    If your good name has been compromised by bad credit history, and you believe it should not be there, you may be suitable for credit rating repair. Contact a Credit Repair Advisor on 1300 667 218 or visit our website www.mycra.com.au for more information.

    Image: tungphoto/ www.FreeDigitalPhotos.net

     

  • Bill shock, power disconnected…just the tip of the iceberg for energy complaints

    Power bills are reported to be so high that more people are getting their electricity disconnected because they just can’t afford to pay their bills. This in turn is leading to credit file defaults. We look at why this might be occurring and look at the other energy customer complaints such as lack of notification of arrears which has led to more energy credit defaults, and more customer complaints about this industry. We believe the energy industry is overdue for some attention by regulators to stop the rising power prices and possibly a public inquiry into energy issues similar to what we had with the telecommunications industry.

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

    I read a shocking story in Adelaide Now today, titled Thousands going without power as electricity bill defaults skyrocket.  It tells how the number of people in South Australia who have had their power disconnected is at a decade high– a 38% spike in disconnections. Here is an excerpt from that story:

    MORE than 10,000 households had their power disconnected after failing to pay their bills – the highest cut-off rate in almost a decade.

    Figures released by the industry regulator yesterday showed that 10,100 homes lost power in the 12 months to July, compared to 7300 the previous financial year.

    Soaring power prices are being blamed for this 38 per cent spike in disconnections, with welfare groups reporting those on fixed incomes suffering the most – including one man who had to resort to cooking his meals over a wood fire in his back-yard for six months after being disconnected.

    Welfare agency Anglicare said it had reports of disconnected households commonly using candles for lighting, heating rooms with  barbecues – and keeping perishables such as milk and butter in Eskies.

    Retailers are being asked by the Essential Services Commission of SA to be more flexible when dealing with “consumers experiencing genuine financial hardship”, because it is essential they have “continued access to energy”.

    The number of reconnections is only about a third of the number of disconnections recorded in 2011/12, the figures show.

    Further to this issue of 10,000 customers having their power disconnected because they just can’t pay their bills, is the other issue of questionable tactics by power companies when it comes to issuing defaults for unpaid or late accounts.

    One of biggest issue with our energy credit repair clients is that many had not receive the any notice that they were in arrears prior to the energy company adding the default to their credit file. So in effect, the clients believe they have had no time to remedy the outstanding account prior to being issued with the default. This happens time and again with energy clients – despite many saying they had provided a forwarding address for any outstanding accounts to their energy provider if they have moved.

    The energy company, when questioned claims to not have the forwarding address. At other times, they say they have provided notification to the client – but the client has not received it.

    Who is right? It becomes a big he-said she-said! If individuals attempt to fight their case on their own – what chance do they have? Without the right skills for negotiating or access to and knowledge of legislation many wind up having to live with the default on their credit file even if they believe they shouldn’t be there. This means they are blacklisted from credit for 5 years.

    Many experts are calling for a public inquiry into the energy industry. This we believe is long overdue.

    In the meantime, energy customers will continue to face soaring prices in many States of Australia, and confusion over crippling defaults that may or may not be valid.

    If you have an energy default, writ or Judgment that you need help in disputing, contact a Credit Repair Advisor at MyCRA for help and to assess your suitability 1300 667 218 or visit our main site for more information www.mycra.com.au.

    Image: vorakorn/ www.FreeDigitalPhotos.net

  • Are you spending more than you earn? You’re not alone….

    It was reported yesterday that one in seven households in Australia is on ‘struggle street’ – spending more than it earns. It seems many Australians are living on credit, including some of our richest. We look at the concept of living on credit, and how existing this way can not only put pressure on the household, but when it all catches up and you are lumbered with bad credit history – threaten the family’s ability to get the best credit at the best rates for years to come. We look at how you get there, why you want to avoid it, and what to do about it.

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

    News.com.au featured some interesting statistics put out by the ABS yesterday in its article ‘Aussie strugglers living beyond means’:

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

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

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

    Of the poorest 20 per cent of households, one in five could not pay their bills on time and one in four spent more than they earned.”

    Living this way is living dangerously. Often you are said to be robbing Peter to pay Paul. But if something goes wrong, you can run a real risk of getting into arrears. If your accounts fall 60 days behind, then your Creditor will place a default on your credit file – and this will impact you and your family for years and years to come. You will be banned from mainstream credit. The credit you do buy after that will be at a pretty high price. You may not even be able to get a mobile phone on a plan.

    How did we get here?

    Sure petrol prices are ridiculous, and grocery bills seemed to rise no end, and then there are reports out there that people have had to use bbq’s and eskies because they can’t pay their power bill – but the average person can afford these essentials. It’s the luxuries we have issues with – and what we consider to be luxuries and essentials today may have something to do with it.

    A while back, I blogged about the concept of “Affluenza” an idea put out there by Australians Clive Hamilton and Richard Denniss’ in their book, Affluenza: When Too Much is Never Enough.

    Affluenza is a disease of the 21st Century that can make us sick, and it can make our credit file sick with it –pulling us into a crazy cycle of spending and debt. Many of us are struggling to stay happy under a pile of ‘things’ and a pile of debt.

    It is the disease of consumerism and it is being fuelled by big corporations urging us to buy more, persuading us with clever advertising aimed at selling to our emotions. It drives us to work crazy hours leaving no time for ourselves and our families. It drives up the mental health problems, the suicide rates, the divorce rates, the drug addictions, fraud, the stress related health problems – all these things seem to be a curse of living in the 21st Century in the Western world.

    Here is an excerpt from that book:

    “Our houses are bigger than ever, but our families are smaller. Our kids go to the best schools we can afford, but we hardly see them. We’ve got more money to spend, yet we’re further in debt than ever before. What is going on?

    The Western world is in the grip of a consumption binge that is unique in human history. We aspire to the lifestyles of the rich and famous at the cost of family, friends and personal fulfilment. Rates of stress, depression and obesity are up as we wrestle with the emptiness and endless disappointments of the consumer life.

    When I read yesterday that one in seven of us are still living on borrowed money, it makes me realise that not enough Australians understand the power of credit. It is a great concept, but as long as we make it work for us. We should use it to enhance our lives so that we can spend time with the ones we love, or to really improve our quality of life. Not make ourselves slaves to it.

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

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

    What does your credit file say about you?

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

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

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

    A credit repairer can work with creditors on our behalf to completely clear our credit file of all defaults, clear-outs, writs and Judgments which contain errors, are unjust or just should not be there. This means we no longer have a bad credit rating, but a completely clear credit file, giving us the financial freedom to use credit whenever we need to.

    The rest is up to us.

    Contact a credit repair advisor on 1300 667 218 for more information on repairing bad credit, or visit our main site www.mycra.com.au.

    Image: hin255/ www.FreeDigitalPhotos.net

     

     

  • The 7 worst mistakes you can make with credit which can lead to defaults

    What are some of the big mistakes made with credit which could lead you into battling debt and having creditors sending letters of demand and listing defaults on your credit file? We look at the 7 mistakes with credit that could increase your changes of getting bad credit history.

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

    1. Leaving no room for emergencies

    Borrow within your budget. If you have a revolving line of credit or use credit cards you will need to be disciplined. Consider what you can afford and try to live frugally, rather than spending right up to your credit limit. It’s important to realise that you will pay at some point for the credit you use. If you are consistently struggling to make your repayments – then it’s time to take stock of things. Many people get into trouble with their repayments and end up with defaults on their credit file because – well – life happens and they haven’t left any room in their repayments for saving or for emergency funds. Try to separate wants from needs when you borrow.

    2. Thinking you need a large credit limit

    Ignore what the card company or bank sets for your limit – what can you comfortably afford to repay? If you intend to apply for further significant credit in the future, you will need to consider that a lower credit limit looks better to a prospective lender – so if you don’t need it – consider reducing it.

    3. Redrawing on your loan

    If you have a redraw facility on your loan – the temptation can be high to borrow against it. But you should tread carefully here. Remember you are going to be paying interest on this money – you may be better to just save it from your wages. Credit cards can also offer cash advances, but do bear in mind the interest charges on this money are exorbitant. Cash advances are a common way people can blow out their credit card debt to epic proportions leaving them no way to pay, and with defaults which destroy their ability to get new credit for 5 to 7 years.

    4. Choosing the wrong kind of credit

    Make sure your credit suits you. Make it work for you, not the other way around. What kind of payer are you? What do you need the credit for? There’s no point getting a line of credit if you are the big-spender type – you are certain to get into trouble. These types of facilities only work if you are disciplined with your spending. When you choose a credit card – consider what you need it for. If you are going to use it a lot – perhaps the rewards points could be a deciding factor. But if you are only going to use it sporadically – maybe the annual fees should be more important.

    The same goes for any big ticket item you purchase using credit – like houses and cars. What does it need to do for you? What can you actually afford? How long will you need it for? Remember a car always depreciates in value. And whilst houses can make you money in the right market, and possibly a 4 bedroom ensuite home might be a good long term investment – can you actually afford to live comfortably with this debt? If you need to go down to one income at some point – how will your repayments look then? It can cost you thousands in agent’s commission, stamp duty and legal fees to sell if you decide you have bitten off more than you can chew after you move in. Or if you default on your repayments you will probably be unable to borrow for years to come – so choose wisely.

    5. Repaying only the minimum amount

    On credit cards, you should pay off the entire credit card balance within the interest free period to avoid the high interest charges. If you don’t, you will be charged interest right back to the date you purchased each item. You not only lose the interest-free period on those past purchases, but until you pay off the balance there will be no interest free period on anything you spend in the future. This can see some people come unstuck and their credit card debts can snowball with interest until they reach the point where they are unable to pay and begin to get into arrears.

    You can find low interest credit cards, but it is still advisable to pay more than the minimum repayment amount each month. If you have debt which carries over on your card month to month you should look at a card that has a lower interest rate. There may not be as many ‘perks’, but the lower interest rate should mean the carried over debt is more manageable for you, and will prevent possible bad credit history.

    Likewise on any other type of loan that you actually want to pay off – paying the minimum amount will not get you there. You will need to pay a significant amount more to start paying into the principle – especially in the early days of the loan.

    6. Not Checking Statements

    You should check that your credit and debit card statements are correct every month – and query anything you’re not sure about. Maybe you were charged twice for an item, or charged too much. It is a good way to be alerted early to identity theft as well. You should also check your bank account statements in the same way.

    Checking your statements will also allow you to get a good handle on just where you’re spending too much and allow you to adjust your spending next month to compensate.

    7. Not Checking Your Credit Report

    Most people don’t know that every year they are able to request a copy of their credit report for free from Australia’s credit reporting agencies. This report is important, because it shows you how you will be viewed by lenders if you ever apply for a loan. You should check that all of your personal details are correct. You should check the credit enquiries are valid (id theft risk). You should also check to see whether you have any negative entries against your name. Defaults, Clear-outs, Judgments, Writs can all mean you will be refused credit if you apply.

    If you don’t believe the credit listing should be there, if you didn’t know about it or you think there might be a mistake, then the worst thing you can do is leave it there. It will mean you are locked out of mainstream credit for between 5 and 7 years – depending on the listing type. It will often mean you are told by Creditors and the agencies that the bad credit is there to stay for the term – it can’t be removed. But this may not be true.

    For professional advice on how to tackle Creditors and the credit reporting agencies about a listing which should not be there, a credit repairer will be able to determine whether your circumstances would allow for repairing the credit rating and actually negotiating the removal of the bad credit history from your credit file.

    If you want to see what is said about you on your credit file, you can contact MyCRA Credit Rating Repiars to request a free copy of your credit report. We can also help to repair bad credit history, or give you more information on your credit rating. Visit our website www.mycra.com.au or call MyCRA Credit Rating Repairs tollfree on 1300 667 218 for more details.

    Image 1: adamr/ www.FreeDigitalPhotos.net

    Image 2: David Castillo Dominici/ www.FreeDigitalPhotos.net

     

  • Is Your Tax Refund Safe? Identity Theft Warning for Taxpayers

    Identity theftAt tax time, there are some things you need to know about to protect your identity from criminals. We look at the two most common types of identity fraud associated with tax refunds, and look at what you can do to ensure you don’t lose your refund, or become an identity theft statistic with a bad credit rating that will be a nightmare to recover from.

    By Graham Doessel, Founder and Chief Executive Officer of MyCRA Lawyers

    Criminals Lodging Fraudulent Tax Claims

    There have been reports over recent years of Australians unable to lodge their own tax return, because they have found that one has already been lodged in their name. Fraudsters have been able to canvas the tax file number and personal details such as full name, address and date of birth of the individual, and have lodged a claim in their victim’s name, pilfering the return before the victim has even thought about putting their tax in. These people are also vulnerable to bad credit through identity theft – if fraudsters take out credit in the victim’s name as well.

    It was reported in Ninemsn yesterday that the Australian Taxation Office (ATO) blocked payments worth $40 million last year that would have gone to criminals. This represents more than double the revenue the tax office protected the previous year in identity crime-related cases – with the reported interception of 8,000 fraudulent tax claims.

    But officials tell Ninemsn they have little idea how much money they lose to identity thieves who con them into actually paying out on fraudulent returns. Last year it was reported in The Telegraph that in the previous financial year the number of stolen tax file numbers suspected of use in identity fraud topped 31,200 – from 12,669 the previous year.

    How do criminals get your tax file number?

    The ATO recently sent out a media release warning about the recent surge in fake job adverts over the internet asking prospective employees to provide their tax file numbers as part of a job application or once they are made an offer of employment, which is later withdrawn.

    Ninemsn also reports temporary visa holders such as foreign students are offered cash for the tax file numbers they will no longer need once they leave Australia.

    They also say sometimes rogue tax agents are involved.

    “People are trusting people they shouldn’t,” Greg Williams, a deputy commissioner in the ATO’s compliance division told Ninemsn.

    People who share the same name and birthday are also in the “at risk” category.

    But Ninemsn reports, the reasons go deeper:

    “… 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.

    They then use this pilfered data to lodge hundreds of forged submissions with the ATO, he said.

    “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.

    But when ninemsn used freedom-of-information laws to find out how many such fraudulent returns the ATO fails to intercept, it admitted it does not measure or even estimate its losses.

    This is despite increases in funding to detect fraud as well as criticism from the Commonwealth Ombudsman that the ATO fails to investigate or attempt to recover funds in cases of identity theft where losses were deemed “relatively small”.

    An ATO spokeswoman said its focus is on detecting fraudulent claims before refunds are paid out — a strategy they say is more effective than trying to recoup sham refunds that have already been issued.

    What to do if someone has made a fraudulent claim on your tax refund

    Contact the ATO immediately. Last year the ATO established a “client identity support centre” to assist people whose identities were stolen. You could also contact and make a formal complaint to the Commonwealth Taxation Ombudsman if you are unable to come to a solution or been able to lodge your correct refund.

    Considering the very important personal information these fraudsters have for you, you should order a copy of your credit file as soon as possible. Check it carefully to make sure there have been no attempts, nor successes in obtaining credit in your name. Notify Police if you find anything strange on your credit file – look for address changes, credit enquiries you didn’t make, and credit accounts.

    If criminals have been able to take out credit in your name, it will mean you may have incurred some repayments in arrears and Creditors could be in the process of adding a default or other negative listing to your credit file, even if it doesn’t show up as such right away. You should contact those Creditors as soon as possible to advise them of the identity theft.

    For tax crime, which is a Commonwealth indictable offence, Police may advise you that as an identity theft victim, you could be eligible to apply for a Victims of Commonwealth Identity Crime Certificate – which can go a long way in helping to prove you didn’t initiate any credit taken out in your name. This could mean you would be able to recover your ability to obtain credit in your own right and could help with debts that have been incurred in your name.

    Fake tax refund scams

    On the other side of the coin, if you have been able to successfully lodge your tax return with the ATO, beware of fake emails claiming to be from the ATO asking for confirmation of personal details in order to send your refund to you – or for you to claim your refund.

    Here’s what one of these emails might look like, but they take many different forms (picture courtesy of ATO Online Security webpage):

     

    scamWhat you should do if you receive an email like this

    The ATO advises it will never email you asking for personal or credit card details and you should never provide this information.

    One version of this scam contains an attachment infected with a virus. This email purports to be from the ATO and asks for the recipient to complete the attached form to receive a tax refund. There is zip file attached to the message that contains a malicious program. If you receive an email like this, do not open the attachment.

    Under no circumstances should you give personal information including credit card or banking details. Anyone who has received a suspicious phone call or email should contact the ATO immediately.

    A good way to stay ahead of scams and other ways your identity and credit file could be at risk, is to sign up to the Government’s Stay Smart Online alert service, which will inform you of new scams as they unfold, and hopefully prevent you from becoming a victim, losing money and incurring debt and bad credit as a result.

    To get a free copy of your credit file, or if you need help to recover your clean credit file after identity theft – we might be able to help. Contact a credit repair advisor on 1300 667 218 or visit our main site for more details www.mycralawyers.com.au.

    Image: Arvind Balaraman/ www.FreeDigitalPhotos.net

  • Inside Secrets for the Best Mortgage

    Can we trust everything we believe to be true about applying for finance? We look at some great information to help you get the best deal on your home loan – and look at why a bad credit is something you should know about before you apply for a mortgage, to avoid being refused credit.

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

    Yesterday I read a great article in the Herald Sun titled “Time To Topple Mortgage Myths”. The article uses the information from top finance professionals to debunk five common mortgage myths. We look at the advice of those finance experts, and give you further advice as it relates to your credit rating and risk assesment. Here is the Herald Sun’s article:

    Myth 1: Lowest interest rate loans are best

    Unfortunately many borrowers will judge one home loan against another simply on the interest rate, which can be a big mistake.

    If they make their decision on this “headline” rate, it could cost them tens of thousands of dollars extra, Resi Mortgage chief executive Lisa Montgomery says.

    “Most borrowers don’t look at the comparison rate but they must,” Montgomery says.

    “Check the comparison rate. It’s a great rule of thumb that helps you understand at a glance the true cost of a loan.
    “It includes all the upfront and ongoing fees that need to be paid during the course of the loan.”

    Fees and charges can add several basis points to the cost of the loan. Read the mortgage contract for all the details.

    Whilst it is true the lowest interest rate may not always be the best, a high interest loan isn’t either. I am referring to a non-conforming loan used by people with negative listings on their credit report (or “bad credit”). In terms of saving money, this is seldom a better option. If there is any inkling that the bad credit shouldn’t be there, you will always save money if you can have your credit rating repaired by a professional credit repairer rather than continuing with a non-conforming loan – even if for only three years. For example, on a $300,000 loan – it would cost you $23,000 more in interest over the first three years at 9% interest, versus a more “mainstream” rate of say 7%. If you have bad credit, you should find out if you are suitable for credit repair before entering a high interest loan.

    Myth 2: Bad credit ratings prevent borrowing

    Your credit rating can both help or hinder the type of mortgage you are offered. If you have a poor record, it does not automatically mean you won’t get a loan.

    But it can mean a lender will consider you a greater risk and want to charge a higher interest rate.

    Not all unpaid bills and default histories will stop you getting the best deal.

    Mortgage broker 1300HomeLoan managing director John Kolenda says defaults on utility bills or phone bills can be explained and overlooked.

    “But it is very important to make sure you tell your lender about your history,” Kolenda says.

    “Don’t let them find out when they do your credit worthiness search.”

    It is not always the case that people are refused a home loan if they have bad credit, but it is never ideal. As mentioned above, depending on how high the interest rate will be – it may make more sense to look at those bills or other defaulted accounts that can be “explained” or which were unfair or mistaken and have them negotiated to be removed so as to get the best deal you can.

    If you do want to discuss your options with your lender while knowing you have bad credit, yes it is very very important to be honest with them about your credit file. But where many people come unstuck and are refused credit is when they don’t know about it before they apply. This surprise bad credit can occur for a number of reasons, maybe the Creditor had the wrong billing address, or the default was a mistake, or you weren’t notified. Either way, it looks bad for you and means you fail that credit worthiness test. Surprise bad credit is often worth investigating to ensure the listing was put there lawfully by your Creditor.

    Myth 3: Offset accounts are the best way to cut your interest

    Financial research company Canstar analyst Mitchell Watson says there are much better ways to cut your interest costs than using an offset account.

    “A lot of people will have their wages or salary paid into a mortgage offset account each month but for the average wage earner this isn’t going to be worth much at all,” he says.

    “An offset account for someone on about $65,000 is only going to save about $20 a month interest. Over the life of the loan, however, it does add up to about $14,000.

    “However, if you make fortnightly payments instead, so you divided the monthly amount by two and pay it every fortnight, you will save about $55,000 over the life of the loan and cut your loan term by four years.

    “Better still, do both – use an offset (account) and fortnightly payments.”

    Myth 4: If you pay off your credit card, you’ll be able to borrow more

    Wrong. Even if you owe nothing on your credit card, the limit will still be counted towards your total potential outstanding debt, according to 1300HomeLoan.

    “Your credit card limit affects your maximum borrowing capacity with some lenders. For that reason, you should reduce your limit or cancel the cards you are not using before applying for a home loan,” Kolenda says.

    Even with new information provided for in our new credit laws which are in the process of going through Parliament, your credit limit, rather than the amount owing will be used to assess your debt level.

    Myth 5: Pre-approved loans are pretty much guaranteed money

    This is not true, the experts say.

    Pre-approval is an offer to lend money based on a percentage of the property’s value.

    The price you pay is not necessarily its value, Montgomery says.

    “Always sign a contract of sale ‘subject to finance’ even if you have a pre-approval,” Kolenda adds.

    “Your valuation needs to stack up and you will still need final approval.”

    Are you sure the lender has done a credit check before providing the pre-approval?

    The best course of action is – prior to applying for a home loan, request a copy of your credit report from Australia’s credit reporting agencies yourself. It is free once every year and will be mailed to you within 10 days. This way, you will know whether your credit file will let you down at the mortgage application stage and you won’t accumulate a ‘credit enquiry’ or any black mark against your name by letting the lender do the credit check and find out too late that you have problems that could have been fixed.

    If you would like help to fix bad credit before applying for a home loan, contact a Credit Repair Advisor on 1300 667 218 or visit our main website for more information www.mycra.com.au.

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

  • Attorney-General’s survey shows identity theft is on mind of most Australians

    A national identity theft survey reveals that most of us are worried about identity theft, and the number of us who have been or know someone who has been a victim of identity theft has increased. We look at what the survey reveals, whether these fears are founded, and what we can do to alleviate them.

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

    The Attorney-General Nicola Roxon has published results of a nationwide survey into identity theft. The research released today was commissioned by the Attorney-General’s Department and repeats a similar id theft survey conducted in July 2011. The key findings include:

    • 89 per cent of respondents are concerned about identity theft and 61 per cent think identity theft will increase in the next year

    • 24 per cent of respondents had been, or knew someone who had been, a victim of identity crime in the last six months – an increase of seven per cent since 2011

    • When identify crime occurred, 58 per cent involved the internet, through either a virus or an online scam, 35 per cent involved the loss of a credit or debit card, 18 per cent involved mail theft and 9 per cent involved the theft or loss of physical identity documents such as a passport and drivers licence.

    The results of this research will inform the review of the National Identity Security Strategy currently being undertaken by the Department in conjunction with the States and Territories.

    Ms Roxon assured Australians there were solutions and preventative measures to combat the ongoing problem of identity crime, which is one of the top three enablers of serious and organised crime in Australia, and can have serious financial implications for business, governments and individuals.

    “While identity theft is understandably concerning, Australians can take some simple steps to protect their identity,” Ms Roxon said in a statement to the media.

    “Making sure you don’t respond to suspicious e-mail or store personal details on your mobile phone are two easy steps to prevent identity theft.”

    She also made mention of the Document Verification Service – currently a government agency service which allows key identity documents such as passports, driver licenses and birth certificates to be cross-checked between departments. The government will roll out the DVS to the private sector next year.

    “From next year, the financial and telecommunications sectors will be able to access the DVS to check Commonwealth identity documents, such as passports and visas – further helping the private sector to protect their customers’ identity,” she said.

    Should Australians be afraid of identity theft?

    From our point of view, the more you are educated about identity crime and how to prevent it – the less fear it sparks in your mind.

    Let’s look at a broader survey – the Australian Bureau of Statistics Personal Fruad Survey. This surveyed a total of 1.2 million Australians over 2010-11 and was released in April this year.

    Whilst it was reported that Australians lost in total $1.4 billion due to personal fraud, the ABS puts the national vicitmisation rate for actual identity theft at 0.3% (a decrease from 0.8% in 2007).

    Perhaps there has been an increase in identity theft since the ABS survey was published, but what may likely have occured, is that people are talking about identity theft more. It could be that more people “know someone” who has been a victim of identity crime or personal fraud. Could we assume that more people are talking about their experiences, and hopefully reporting instances of fraud and identity crime?

    Without people reporting instances of identity theft, it is difficult to get ahead of fraudsters.

    It is a very real fact that full-blown identity theft – where someone steals your personal information and assumes your identity – can have very disastrous consequences. Identity fraud can involve crooks taking loans out in your name. This not only means you could be lumbered with random debt, but often you are unable to get any loan of your own for 5-7 years because your credit file is blacklisted when these debts fall into default.

    The message we want to send is that your personal information needs to be guarded well. If you safeguard your personal information as much as possible, you put yourself at less risk of identity theft.

    Educate yourself on the ways that fraudsters could misuse your personal information or your credit rating. Put as many preventative measures in place as you can (such as anti-virus software, paper shredder, safeguarding information, regular credit file checks) to ensure that you have the least possible chance of becoming a victim.

    And most importantly, stay up to date with scams that are out there. Identity crime and scams are changeable – what worked for fraudsters one week quickly becomes public knowledge, so they move on to something new. Getting on to something like StaySmartOnline’s Alert Service, or checking SCAMWatch regularly will go a long way to helping you to stay ahead of identity crime.

    And talk, talk, talk about what you know about identity theft, to help educate the community around you. Talk especially to young people who might not fully understand the consequences of giving away their personal information (and there are consequences even for under 18’s) and also talk to older people – who may be more vulnerable to these predators and could need help with education and updates to computer software.

    If you or someone you know have been a victim of identity crime which has impacted your credit rating, all may not be lost. We may be able to help you recover your good name. Contact a Credit Repair Advisor on 1300 667 218 to discuss your suitability for removing bad credit, or visit our main website for more information www.mycra.com.au.

    Image: Salvatore Vuono/ www.FreeDigitalPhotos.net

    Image 2: phanlop88/ www.FreeDigitalPhotos.net

  • 7 ways to be smarter with your money and clean out the cobwebs on your finances this spring

    Are your finances in need of a spring clean? Well this week is MoneySmart Week in Australia. We give you some inspiration to get in and tidy up those loose ends with your money and also your credit file – with our 7 ways you can be smarter with your money.

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

    MoneySmart Week is being held 2-8 September in Australia. It has some major Ambassadors, including our Governor-General Her Excellency Ms Quentin Bryce AC CVO and money commentator Paul Clitheroe.

    MoneySmart Week is an independent, not-for-profit national initiative promoting the importance of financial literacy. The MoneySmart week website explains the importance of financial literacy:

    MoneySmart Week 2012 includes:

    • A call to action for all Australians to take the next step in their financial health: ‘Do a Money Health Check’.
    • A National Awards program to recognise outstanding achievements in financial literacy.
    • Promotion of existing money management programs, tools and resources.
    • A range of special activities and events in workplaces and the community.

    Why is financial literacy important?

    Financial literacy is about understanding money and finances and being able to confidently apply that knowledge to make effective financial decisions. It affects quality of life, opportunities we can pursue, our sense of security and the overall economic health of our society.

    To find out more about financial literacy, visit www.financialliteracy.gov.au

    Do you consider yourself smart with your money? Many of us do I am sure, but are we always completely on top of everything? You can check how you rate by taking part in the Money Health Check – an online questionnaire to test how savvy you are with your personal finances. We would encourage everyone to get in and do the Health Check or at the very least, dust the cobwebs off those financial documents and make sure everything is in order.

    We have devised some reminders for getting your finances together:

    7 ways to be smarter with money this spring

    1. Make a money ‘map’ to ensure you are aware of what you have, what you don’t and what you owe. This is the best way to be clear you are living within your means. By doing up a money map, you will have the benefit of knowing where you can squirrel away extra cash to help pay off any debts faster – you may have never known you had that extra money available without creating a budget.

    For help with putting together a money plan ASIC’s MoneySmart website has a great budget planner. The Victorian Government’s Money Help website also has some great tips.

    2. Make debt reduction a priority. Any extra cash that comes your way would be well used by reducing debt – especially those debts where the interest rate is high.

    3. If you are able to, put extra onto your home loan. Increasing your mortgage repayments even slightly, can see you cut years off your home loan

    4. Make sure every bill will be paid on time. This can come down to organisation as much as funds. With new credit laws on the horizon meaning lenders will be recording bills that aren’t paid on time as “late payment notations, it is advisable to get into the habit of paying your bills well before the due date every time to ensure you don’t miss one, and threaten your credit file health and ability to obtain credit  in the future.

    Bills missed past 60 days will mean your credit file is defaulted and you will face 5 years of bad credit – so it is absolutely essential to get repayment schedules right.

    5. Assess your insurances – are they the best plans for your needs? Are they accurate and up to date?

    6. Check your credit file – take advantage of your free annual credit report. A free copy of your credit report can be obtained from one or more of Australia’s credit reporting agencies – Veda Advantage, Dun & Bradstreet, and Tasmanian Collection Services (if in Tassie). Your free report will be mailed to you within 10 working days.

    When you get your credit report back, here are some things to check for:
    -Check your name is correct
    -Check your date of birth is correct
    -Check your driver’s licence number matches up
    (If any of those things are not correct – you may be vulnerable to identity theft or mistakes on your credit report).
    -Check your address history is correct
    (If there is an address you don’t recognise on your credit report – this could also mean you may have been a victim of identity theft, or mistakes have been made in credit reporting where credit has been issued to your credit file incorrectly).

    -Also assess each credit entry and make sure it is correct.
    Are all the credit enquiries initiated by you? This is one of the first signs of an identity theft attempt.

    If you have a default – should it be there? Is it yours? Is it fair? If a default is deemed unlawful, it may be required to be removed by your Creditor.

    There are a number of reasons why a default could be unlawful – including errors, mistaken identity and incorrect details as well as unfair listings and listings where an incorrect amount of notice has been provided to the client.

    For help with ordering your free credit report, and also repairing bad credit which shouldn’t be there, or if you just want to see whether you qualify for credit repair – contact a MyCRA Credit Advisor on 1300 667 218 or visit our main site www.mycra.com.au for more information.

    7. If you’re throwing out any old papers – make sure you shred them. Your financial security is paramount, and the amount of personal information on many of our financial documents could be enough for a fraudster to go about trying to steal our identity. Unfortunately there have been cases of crooks sifting through rubbish to find this kind of information in order to piece together enough to go about requesting replacement copies of your identification. This gives them a ticket into your life – your bank accounts, your tax and potentially your credit rating. Fraudsters have been known to take out loans in the name of their victims – leaving them with debt and a damaged credit file.

    The process of fixing bad credit after identity theft can be complicated. In some cases it has taken years to put right. So buy a good shredder, and cross-shred every piece of identifiable information before you throw it away.

    Why spring is a good time to take stock of your money…

    • It’s tax time. If you are due a refund – you will then know the way to make the best use of your return. Likewise if you are expecting a tax bill – you will know where you might be able to skimp to come up with the extra money you will need.
    • It’s almost Christmas time. If you want to budget well for Christmas – you can start now.
    • It’s transfer time. If you know you will changing jobs; moving interstate or downsizing jobs you can budget for any extra expenses that will ensue.
    • It’s almost holiday time. If you want a holiday after Christmas, or you want to take time off with the kids in the New Year you can budget this in as well.

    For the same reasons above you may also need to BORROW money and this is why checking your credit file and alleviating any inconsistencies is important well before you may need  to apply for credit.

    Basically it is ‘finance time’ and if you can allocate space in the spring time every year that you can dedicate to making sure your finances are as they should be – then you will be on your way to being savvy with your “everyday money” every day of the year.

    This information is intended for general purposes only and should not constitute financial advice nor replace seeking help from a professional financial adviser.

    Image 2: smokedsalmon/ www.FreeDigitalPhotos.net

    Image 3: David Castillo Dominici/ www.FreeDigitalPhotos.net

  • Lost your job? Three things you need to know to prevent bad credit haunting you long after you get a new one

    unemployedJob hunting and credit files seem unrelated – but they are connected for three reasons. We tell you how when you have lost a job, or when you are in the process of finding a new one, there are some things that impact your credit file that you need to know about. If heeded – they can help you avoid bad credit.

    By Graham Doessel, Founder and Chief Executive Officer of MyCRA Lawyers

    Yesterday, an article from SavingsGuide.com.au What To Do When You Lose Your Job caught my eye. It went through the things you need to do to make sure you remain in the black with your finances after you have lost your job. This article is the inspiration for the first piece of advice:

    1. If You Have Lost Your Job – Sit Down and Work Out What You Owe and What is Owed To You

    Even if you think the situation is very temporary – you don’t have a crystal ball. Put measures in place straight away to protect yourself and your family from debt and bad credit.

    Savings guide recommends taking advantage of any insurance policies of income or mortgage protection that you have in place immediately. It could take a little while to process the claim. If you don’t have insurance, don’t be too proud to apply for assistance with the Department of Human Services. The sooner you do this the better, as it could take up to a few weeks to process the claim.

    You will also need to work out how much disposable income you have now, and tally up all of your bills that you consider will appear in the future.

    ASIC’s MoneySmart Website has some great advice and specific links for further information on what to do if you find yourself unemployed. Here is an excerpt from their web page titled Losing Your Job:

    Knowing where you stand financially

    You will feel able to make clearer decisions once you know how much money you really have. Find out what you have in savings, then list every expense you’ll have to meet for the next 2 months. Use our budget planner and include necessities like mortgage payments, loans, health care, medicines, car and home maintenance, and insurance premiums.

    What you want to do is avoid getting in arrears with your accounts at all costs. It only takes 60 days in arrears on any account to get into ‘default’ with creditors, and this notation on your credit file will mean you will probably be blacklisted from credit for 5 years – even if you find another job and get everything back on track a month or two later.

    Once you have worked out how long your current funds are going to last, you will be in a good position to do the next task…

    2. If You Have Lost Your Job – You Need to Put Your Hand Up and Tell Your Creditors

    Don’t wait until you are in arrears (or in debt up to your eyeballs!) to let your Creditors know. As SavingsGuide recommends, negotiating with Creditors early is the smart thing to do:

    “Whether it’s your mortgage or a monthly gym membership fee, you’re going to need to address these payments before they get out of hand,” writer Toria Phillips advises.

    Financial hardship variations are encouraged in many industries, with new regulations having just been brought in for both the finance and telco industries.

    Money Help, a website run by the Victorian State Government offers more help on how to apply for hardship with creditors in the correct way. They advise people to work out what they can afford to pay prior to requesting a hardship variation – so if you have done this you will have a better chance of coming to a more affordable arrangement with your Creditor.

    The Creditor may be able to offer reduced payments and in some cases could stall any movements to default your credit file if you happen to get in arrears.

    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. But there is a trend towards offering help before defaults – so it is crucial to ask.

    Having your current debts at a more manageable level will allow you to concentrate on the actual process of finding a job. But beware (as if you didn’t have enough to worry about) whilst you are looking for a job you also need to look out for fraudsters…

    3. Job Seekers Scam Warning – Be Wary of Giving Away Your Personal Details To Scammers

    Last week the Australian Taxation Office issued a warning to job seekers that they were the target of scams. It reports they have received more than 10,000 reports on a wide range of scams including fake job advertisements, emails and bogus phone calls.

    Tax Commissioner Michael D’Ascenzo explains the job seeker scam – that bogus job ads are being posted on recruitment websites by scammers, and that people are even being asked to provide their tax file numbers.

    “Personal information can be used by scammers to lodge false tax returns in your name, enable the use of your credit cards or even result in people taking out a loan in your name. In some cases, identity crime can take years to resolve,” Mr D’Ascenzo says in a statement to the media.

    Becoming a victim of identity theft is the last thing a person who has lost their job needs. This crime could mean what little money you may have left in your bank accounts is drained by fraudsters; or a much-need tax return is pilfered; or it could even mean you have debts in your name you did not initiate and your ability to obtain credit is compromised for years to come.

    Don’t ever give a potential employer your Tax File Number, banking details or any other crucial personal details until you begin work with them! If you’re not sure – you can always contact the Australian Competition and Consumer Commission (ACCC) to dispel any suspicions before you give away your personal information. You can call them on 1300 795 995 or visit the ACCC’s SCAMWatch website www.scamwatch.gov.au.

    Let’s hope your unemployment is only very temporary and you are able to keep your credit file free from bad credit during the process!

    If you are currently experiencing bad credit due to a temporary financial hardship such as a job loss, it may be worth assessing whether your credit history can be reviewed by a professional credit repairer. Any listings which are deemed unlawfully placed for whatever reason could be required to be removed by your Creditor. Contact a Credit Repair Advisor on 1300 667 218 or visit our main website www.mycralawyers.com.au for more information.

    This week running 2-8 September, is MoneySmart Week – Australia’s first ever national, not-for-profit, financial literacy awareness week. For more details visit the Australian Government Financial Literacy Board initiative www.moneysmartweek.org.au.

    Image: winnond/ FreeDigitalPhotos.net

  • Telco bill shock should in theory now be a thing of the past

    The Telecommunications Consumer Protection (TCP) Code came into effect on September 1. We look at what this means for telco customers and the possibility that less consumers could be subject to bill shock and subsequent credit rating defaults due to sky-high bills they had not budgeted for.

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

    Currently approximately 26% of our credit repair clients have suffered bad credit from telcos (telecommunications providers). Not all of that bad credit should be there. Whilst mistakes and mis-communications are frequent in the industry, as they are in many others – one of the major significant differences we have noticed with the telco industry compared with other industries issuing credit file defaults, is more clients are in dispute over excess charges.

    Excess charges or “bill shock” can occur when the actual bill the customer receives is significantly higher than what they understand it should be. Issues like international roaming charges, excess data charges and customers going over plan allowances (especially when the plan had the term “cap” within it) seems to be a frequent source of dispute amongst customers.

    Unfortunately sometimes the customer is unable to come to an agreement over these charges before they are issued with a credit rating default. These issues can be hard to fight. Often the customer will say what they had first understood the plan to be for, or what they wanted the phone to do, was not what eventuated.

    Resolutions with telcos over these billing issues can be difficult to come to. Sometimes consumers have reluctantly paid the bill, thought the matter was settled, only to find they were defaulted anyway, and others have just refused to pay the bill until they got some resolution. Either way, customers have been faced with at least 5 years of bad credit from the episode unless they have been able to make a successful complaint.

    The telcos – with all the power on their side can often come out on top.

    Escalating levels of telco complaints in Australia, resulted in a major public inquiry by the Australian Communications and Media Authority (ACMA) and the report – Reconnecting the Customer. This examined the root causes of the industry’s poor customer service and complaints-handling performance. The telco industry was asked to regulate or be regulated – and so the Telecommunciations Consumer Protections (TCP) Code was developed by the Communications Alliance (CA), and a final draft was registered in late July.

    That TCP Code came into effect on 1 September 2012. If the code proves to be effective, and if the ACMA does as it says it will and come down heavily on those that don’t comply with the TCP Code, there will be significant positive changes for telco customers.

    What the Code provides for.

    The ACMA outlines the basic benefits for consumers in its article Fair call—new telco code to benefit consumers. Here is a breakdown of consumer benefits of the TCP Code:

    • Telco providers must be clear about what they are offering in their phone plans and stop using confusing terms like ‘cap’ (unless the offer refers to a ‘hard cap’—an amount that cannot be exceeded).

    • Better spend management tools designed to avoid ‘bill shock’.Including improvements in billing processes and credit management, and the introduction of notifications about data usage and expenditure thresholds.

    • From 27 September telcos will be required to provide unit pricing for national calls, standard SMS and downloading 1 MB of data in advertisements.

    • From 1 March2013 customers buying a new service will receive a two-page document called the ‘Critical Information Summary’. This includes essential information about service, pricing and complaints-handling, as well as volumetric information so consumers can easily understand how many two-minute calls or texts they can make under their plan.

    • Faster, better complaints-handling, with urgent complaints resolved within two days. All of these new measures will be monitored and the telcos subject to new benchmarking standards.

    • For customers having difficulty paying their bills or meeting unexpectedly high bills, telcos must advise consumers about spend management tools, hardship advice and options to restrict a service.

    • A new industry compliance body is being formed to ensure all industry participants comply with the new code.

    According to IT Wire in its story New telco code toughens up consumer protections, Optus jumped the gun ahead of the introduction of the Code, and launched its new usage alert service which it says gives its customers greater transparency in managing spending on their mobile accounts. The new Optus service sends text alerts to Optus’ customers on most post-paid mobile plans when they reach 50 per cent, 85 per cent and 100 per cent of their voice, text and data allowance.

    IT Wire also reports ACMA Chairman Chris Chapman as saying the ACMA will put the industry on notice, advising they would take a “far more robust approach” to ensure the industry’s compliance with the new Code and had “resourced up in this space.”

    “We will conduct more audits and investigations dealing with key areas of consumer detriment and expect substantial changes in industry practices,” Mr Chapman says.

    For consumers who consider that their service provider is not complying with the code, Chapman says they “may make a complaint to the provider in the first instance and if they are not satisfied with the resolution, they should contact the Telecommunications Industry Ombudsman.”

    And, if telecommunications service providers do not comply with the code, Chapman says they faced a direction to comply from the ACMA, “while further breaches could lead to Federal Court action where civil penalties of up to $250,000 are possible.”

    We will be following these telco improvements with great interest as they relate to the volume of credit file defaults due to telco customer service issues and bill disputes.

    For those consumers currently facing what they consider to be excessive charges, or other issues with their telco which have resulted in bad credit – it is possible MyCRA Credit Rating Repairs may be able to help.

    If a credit listing has been placed unlawfully, it may be required to be removed from the consumer’s credit file. Consumers can contact a credit repair advisor 1300 667 218 to assess their suitability for credit repair. There are no guarantees of success, but the specialised knowledge of credit reporting and industry law means engaging the services of a professional credit repairer gives the consumer the best chance of having bad credit removed completely and permanently from their credit file. Visit the main website for more information www.mycra.com.au.

  • Carbon price scam warning for Australians. Advice to protect your good credit history

    The ACCC’s SCAMwatch has released a warning for Australian consumers and businesses about carbon price scams. Fraudsters are out there trying to pilfer personal information and banking and credit card details from unsuspecting recipients under the guise of pretending to be helping them recover carbon credits and compensation. We explain what this scam is in detail, and how your credit file could be compromised.

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

    Carbon price scammers are out in force again. The scam may come in a number of forms, targeting consumers and businesses across the country.

    Here are some examples for you to look out for provided by SCAMwatch:

    • People are telephoned and asked to provide their bank account details to a caller claiming to be from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA). They are offering a grant for mortgage assistance under the Federal Government’s Household Assistance Package of up to $100,000. These offers are false.
    • People have had phone calls seeking their personal banking details to pay carbon ‘tax’ compensation into their bank account – these are likely to be a scam.
    • Scammers may also know people’s names, addresses and phone numbers and may try to make an appointment to visit them in their home.
    • Scammers may set up fake websites which look very similar to official Australian Government websites. The sites may ask people to enter personal or financial details, or offer to sell people fake carbon credits.

    Here is how SCAMwatch recommends consumers and businesses protect themselves from these scams:

    Protect yourself

    The Australian Government will never call you to ask for your bank account details or to receive the Household Assistance Package. Government services are never paid via money transfer services, nor will they ever ask you to send money this way. The Australian Government website www.australia.gov.au is a safe portal for finding government services.

    If you receive a phone call or letter asking for personal information such as your Tax File Number, Veteran’s Affairs client number or banking details, do not answer straight away. Contact the Australian Taxation Office on 13 28 61 or your nearest DVA office on 133 254 (or 1800 555 254 if in regional Australia) to confirm that the source is legitimate.

    Never provide or confirm your personal or business details over the phone (including banking details or identification numbers) unless you made the call using contact details you found yourself and you trust the information.

    If you think that a call might be a scam hang up and check by using official contact details which you have found independently such as through a phone book or online search. Never use phone numbers, email addresses or websites provided by the caller.

    Never enter your credit card or banking details on a website unless you have checked it is authentic and secure. Legitimate websites which ask you to enter sensitive personal or business details are commonly encrypted to protect your details. A secure site is usually identifiable by the use of “https:” rather than “http:” at the start of the internet address, or by a closed or unbroken key or padlock icon at the bottom right corner of your browser window.

    If you are a business, make sure you only deal with people you know and trust. Avoid having a large number of staff authorised to make orders or pay invoices. This will reduce the risk of your business paying for something that it is not required or is not legitimate.

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

    Further to this, if people think they may have provided personal information to scammers then they may be vulnerable to identity theft.

    Apart from contacting their bank, here are three more things which are imperative for people to do if they think they might be vulnerable to identity theft:

    1. Contact Police. They can take some information about what happened and file a report – which you may need later if you do find your accounts and or your credit history compromised.

    2. Request a copy of your credit file. Check that everything is up to date, addresses are correct for you, and that there are no suspicious entries – like strange credit enquiries, or loans you have no knowledge of.

    3. Contact the Credit Reporting Agencies. Contact Veda Advantage, Dun & Bradstreet and Tasmanian Collection Services (if in Tassie). Let them know that you may be vulnerable to identity theft. They should be able to alert you to any new entries if they arose that could point to someone attempting misuse your good credit history.

    You may also wish to contact the ACCC to report the scam.

    If you are having trouble recovering your ability to obtain credit following identity theft, we might be able to help. Contact a Credit Repair Advisor on 1300 667 218 to discuss your circumstances.

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

    Image 2: David Castillo Dominici/ www.FreeDigitalPhotos.net

  • Will the spring boom be mowed down by bad credit?

    Spring has almost sprung – which is evident by the sunny weather spanning much of Australia today. We look at what this might mean for the housing market, and why this is the best time for people to get cracking on making sure their credit file comes up smelling like roses.

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

    Traditionally spring is the season where people dig out the clip-boards and the comfortable buying shoes and go get pre-approval for some serious house-hunting.

    Spring is a great time to buy due to more property on the market – transfers; people planning for moving prior to the new school year; people with pools selling when it’s warmer; and homes generally look prettier in the spring – can contribute to this rise in good stock. And for the same reasons, more buyers can be available at this time, which potentially means more borrowers.

    But RP Data’s Executive General Manager, Craig McKenzie told Australian Broker Online today that the 2012 spring selling season would be largely determined by levels of buyer confidence in the market place. He warned a lack of confidence would hamper activity.

    “Until such time as there is a sustained recovery in the consumer mindset it seems unlikely there will be a vast improvement in sales activity,” he said.

    The Housing Industry Association’s chief economist Harley Dale also echoed this belief.

    “The consistently weak consumer confidence is weighing very heavily on new housing investment, far more so than is the case for retail expenditure,” he said.

    “Combine that low confidence with very tight credit conditions and excessive taxation, and you have the unpalatable recipe for the recessionary conditions facing new housing.”

    I would argue nothing exudes buying confidence like pre-approval for a home loan. But this thinking can sometimes see people come unstuck if they’re not careful. If people don’t know what is said about them on their credit report before they apply for finance – they will find out after. If the news is bad – if they have a bad credit listing there – this would mean they are refused credit, and would also have created a credit enquiry on their credit report. “Tight credit conditions” mean any blemish on the credit report – including too many credit enquiries – can see a person refused credit.

    Most people think if they had any kind of black mark on their credit report they would know about it. But unfortunately “surprise” bad credit is pretty common. Bills and notices get sent to the wrong address; mistakes happen; listings are put there unfairly; or in some cases the wrong person cops the bad credit of someone else entirely. But if people apply for finance and their credit report comes back with nasties – the banks probably won’t be very understanding – they consider these blemishes require them to undertake too much ‘risk’ on the loan.

    In most cases the best way to alleviate bad credit history bringing undone all the hard work and savings that have gone into getting a person ready to buy is by using the free yearly credit report to check that everything on their credit file is as it should be before applying for finance.

    The very people who should be ordering a copy of their free credit report are the people who think their credit file should be returned clear. It only takes 10 days to receive it in the mail, but its piece of mind and ‘confidence’ to know that everything is as it should be.

    No amount of “fast talking” or explaining will take back that credit refusal if it occurs. The only thing that will fix a bad credit listing is to address the credit listing at its source – with the Creditor and if it shouldn’t be there – request its removal.

    But why should people use a credit repairer?

    For people who have ever tried to call up and fix their phone troubles, they can be on hold for hours; they can be passed from one person to another; and in the end, still hang up dissatisfied. Clients say it is a similar situation when trying to dispute a credit listing.

    Most times they are told (eventually) that listings can only be marked paid and cannot be removed. But this is not true. If a listing has been placed unlawfully on a person’s credit file, then it should be removed.

    What it takes to negotiate the removal of a credit listing

    • Ability to review pages and pages of documentation
    • Ability to be patient and go through the proper channels to request documents and information
    • Ability to build a strong case as to why a listing has been placed unlawfully based on client information crossed with relevant legislation
    • Ability to negotiate directly with the people that matter within the company in question
    • Knowledge of how to escalate a complaint when necessary, for the best outcome of the client

    Working within the law, a professional credit repair firm gives people the best chance of completely removing bad credit which should not be there. This way, they can apply for finance with a clean slate – achieving the interest rate of their choice, and saving themselves thousands.

    If someone is dreaming of white picket fences, the best way for them to confidently take charge of their “approvability” is to take charge of their credit file and what is says about them. With a clear credit file, they will be able to confidently apply for pre-approval, without stress, negotiating that best price on the house of their dreams.

    To order a free copy of your credit file, or for more information about professional credit repair contact MyCRA Credit Rating Repairs on 1300 667 218 or visit our main site www.mycra.com.au.

    Image 2: dan/ www.FreeDigitalPhotos.net

    Image 3: anankkml// www.FreeDigitalPhotos.net

  • 5 Loan Solutions For Bad Credit

    [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”]

    MyCRA Expert Credit Repair Lawyers Can Fix Your Bad Credit So You Can Be Approved!
    MyCRA Expert Credit Repair Lawyers Can Fix Your Bad Credit So You Can Be Approved!

    If you have a default, Clear-Out, Judgment, or Writ noted on your credit file – then you have one of the 4 common types of ‘bad credit’ which show up on Australian credit reports every day. It may be something you have been aware of since your Creditor put it there, or it could be something that slaps you in the face right when you are applying for a loan for a house, car or credit card. But if the question you really want answered is…’How can I get a loan with bad credit?’ we show you 5 ways you might still qualify for a loan while you have a black mark on your credit report.

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

    1. Apply with a lender who does not use credit scoring

    Recently Your Mortgage magazine published the Six ways to get a loan with bad credit, written by Smartline Mortgage Adviser, Kim Wight. Here is her first piece of advice on applying for credit:

    Most lenders use a computer-based system called credit scoring to assess your home loan application, says Ms Wight.

    “This means that the data collected in your application is given a rating or score and if the computer scores you as a bad risk, the application is declined before a real person has a chance to look at the application or hear your story as to why you have had credit problems in the past. In other words, ‘computer says no’,” she explains.

    “By applying with a lender who does not use credit scoring, your application – and the reason for your past credit problems – will be assessed by a real person, who can evaluate your personal situation past and present and use this information to make their decision on your application; it can be a case of, ‘human says yes’.”

    2. Apply with a non-conforming lender

    A non-conforming lender specialises in loan products for higher risk clients. These lenders are an alternative for those people who do not meet the lending criteria of traditional institutions for a variety of reasons, which includes bad credit clients, limited documentation, and low or no deposit clients. With the higher risk also comes a higher interest rate – usually 1% to 3% more than the standard interest rate.

    On the downside, this may add thousands of dollars over the life of the loan. Also non-conforming home loans lenders will require stricter repayment conditions and may penalise late or irregular payments. On the other hand if the payments are consistent and on time for a period of 1 or 2 years some may reward borrowers with interest rate cuts.

    If non-conforming home loans borrowers make regular repayments over 3 years they may be able to refinance their home loan with a standard variable interest rate home loan.

    But this type of loan should really be a last resort for borrowers – and we show you why.

    Norm is looking at a $300,000 loan. The interest rate with the non-conforming lender is 9%. There is a difference of 2% from the standard variable rate of 7% on the loan he was applying for before he found out he had bad credit.

    Norm and his family will pay $15,046.57 more in interest alone with the non-conforming loan just over those first three years prior to refinancing. Use our credit repair savings calculator to find out what it could cost you.

    But how do you apply with a mainstream lender if you have bad credit?

    3. Save more deposit and avoid mortgage insurance

    If you save over 20% deposit, plus your stamp duty and legal costs, you may be exempt from mortgage insurance. The mortgage insurance covers the lender in case you don’t repay the loan. If you can provide the bank with an ample deposit, their approval may be all that is necessary to secure the loan. If your financials stack up, and you have a great deposit, the bank may decide to approve you despite that black mark on your credit file.

    4. Prove to the bank that you can repay the debt

    Your Mortgage also says it is necessary to show a good repayment history if you wish to be considered for a loan while you have bad credit. And this makes sense. If you can’t demonstrate you have moved past those previous problems, by paying your accounts on time – the bank will probably wish to decline your application – whether that be with a mainstream lender or an alternative lender.

    “If you have had problems in the past, you need to show that you are now back on track by ensuring all current financial commitments are being paid on time,” Wight says.

    “This includes not only your loans and credit cards but your rent and utilities as well. Evidence of regular savings will also strengthen your application.”

    The other very essential thing to remember is that honesty is always the best policy when applying for credit. The worst thing you can do when you attempt to look into a loan with bad credit is pretend you don’t have it and hope that mainstream lenders don’t notice. Ah…they will – and this indiscretion will severely hurt your chances of obtaining credit.

    5. Determine whether the bad credit should really be on your credit file

    Sometimes bad credit history is legitimate. It is put there because we haven’t paid our bills on time, and the creditor, having done all the right things, has been left with no choice but to note it on our credit file.

    But in other cases our credit listing shouldn’t be there – because it was issued to our credit file unlawfully. Here are a few quick examples of how bad credit history may be unlawful:

    The listing is unfair (you don’t deserve to have the default in the first place); the creditor has defaulted the wrong credit file (eg system mistake or identity theft); the creditor has not given correct notification prior to the default – just to name a few.

    In these cases and many more, it is in your best interests to check whether you might be able to have the bad credit listing removed from your credit file, so that you can apply with a mainstream lender. If in doubt – get it checked out.

    You should repair your bad credit through a professional for a number of reasons…

    1. Most creditors will tell you they can’t remove the listing.

    2. You need to provide legislative evidence in order to prove the listing was placed unlawfully.

    3. Negotiating with creditors in the wrong way could lead to a fight on your hands and/or documents and client notes ‘disappearing’.

    The best way to see if you may be suitable for credit repair is by contacting a specialist credit repair company or a lawyer.

    You can contact a MyCRA Expert Credit Repair Lawyers Credit Repair Advisor on 1300 667 218 or visit our main site for more information www.mycralawyers.com.au.

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

     [/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • W.A Government to toughen up on identity checks to combat identity fraud

    Western Australia’s Births Deaths and Marriages just got that little bit harder to swindle with the introduction of tighter identity controls to prevent identity theft and fraud. The changes come into effect next week and will mean anyone who applies for a birth, death or marriage certificate or a name change will have to provide at least three forms of current identification. We look at what these changes will mean in preventing fraud and subsequent bad credit history that shouldn’t be there, and why the positives of increased security outweigh any ‘inconvenience’.

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

    Attorney General Michael Mischin told Perth Now yesterday these tighter measures are designed to ensure those who are entitled to access personal information can do so easily, while deterring those who are not.

    “In the past few years thousands of West Australians have been affected by identity crime with millions of dollars stolen from innocent people,” Mr Mischin said.

    Under WA law people can face up to seven years jail if they produce, use or supply another person’s identification when there is intent to use that information to commit a crime, or facilitate someone else to commit a crime.

    The nature of this form of identity crime is pretty complicated, but the payoffs for the criminals would be huge. This type of identity fraud involves the use and misuse of someone’s personal information. Fraudsters may have one piece of the identity puzzle that they may have obtained from somewhere – say a credit application dumped un-shredded in a rubbish bin, personal details from social networking, or perhaps a stolen wallet containing a licence or bank account. What the fraudsters then do is look at piecing together different bits of information – requesting replacement copies of basic identity documents, even changing addresses until they have enough information to commit fraud. The icing on the cake for this type of identity fraud – would be obtaining a replacement copy of an actual birth, death or marriage certificate.

    If fraudsters had this type of document, they could easily apply for new credit in their victim’s name – even going so far as to mortgage a property in their victim’s name.

    The ramifications of this crime would be absolutely devastating for the victim. They would not only be in debt thousands and thousands of dollars, but also facing a series of defaults against their name which would stop them getting credit in their own right for a very long time (up to 7 years).

    Western Australia has not been without its share of well-publicised fraud cases. One such bout late last year involved the mortgaging of properties owned by overseas investors.

    In 2010 Wembley Downs retiree Roger Mildenhall had his Karrinyup investment property sold without knowing anything about it. And in 2011 Nigerian-based scammers sold a Ballajura property without the owners’ knowledge.

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

    The real estate agent involved has told investigators that he received a phone call from a man claiming to be the owner in February of 2011 inquiring about the property. Shortly after, the agent received an urgent request to sell the property as funds were needed for a business investment, later revealed to be a supposed petro-chemical project –  Landgate announced in a statement in September last year.

    Following this, the WA Government was prompted to upgrade its security measures for overseas-based property owners.

    “WA property owners living abroad who are concerned about identity theft can now lodge a caveat over their property to reduce the risk of being targeted by scammers, under a raft of anti-fraud measures introduced by Landgate,”Lands Minister Brendon Grylls said at the time.

    “They could remove the caveat only by attending Landgate’s Midland office in person and completing a 100-point identity check”, Mr Grylls said.

    Under the range of increased security measures, all transfers of land executed overseas now requires a 100-point identity check, signatures to be witnessed by an Australian Consular officer and the sales will need to be independently checked by at least two senior Landgate officers.

    The introduction of new security at the Births, Deaths and Marriages Departments seems a no-brainer, and a change which should be going across the board in every Australian State.  A person’s identity and their credit file are the flag for their financial life, and to allow any fraudster opportunity to mess with that through less than bullet-proof security of their personal information is to do them a great disservice.

    If you have been a victim of identity theft – whether you have lost money or not – don’t forget three important rules…

    1. Tell Police and/or the ACCC. We must report these crimes – however “embarrassing” it may be.

    2. Tell your Creditors. Just because nothing has happened yet, doesn’t mean it won’t in the future. Alert them to your identity theft vulnerability before you become a victim and your bank accounts or credit rating suffers.

    3. Check your Credit File. Make sure you have not had credit taken out in your name. If you haven’t – warn the credit reporting agencies that you may be vulnerable to identity theft.

    If you find defaults on your credit file which should not be there, you may require help to recover your good name. Contact a Credit Repair Advisor on 1300 667 218 to discuss your suitability for credit repair or visit our main site for more information www.mycra.com.au.

    Image: photostock/ www.FreeDigitalPhotos.net