MyCRA Specialist Credit Repair Lawyers

Tag: Graham Doessel

  • Bad Credit Loans In Australia – Are They Right For You?

    After seeing a broker or bank – you find out you’ve got bad credit! After picking yourself up off the floor – you decide to proceed with that home or business loan anyway. But is your only option to seek out one of the many “bad credit” loans in Australia at a much higher interest rate? There could be an alternative for you…determining whether you have grounds to remove the bad credit tarnishing your credit file with the help of a professional credit repair firm. We have provided a basic credit repair suitability test in this post which you can use to find out whether it could be a better option for you than a bad credit loan.

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

    A bad credit report is a big deal. For between 5 and 7 years, you are generally refused mainstream credit with most lenders – especially in the current economic climate. Often people can’t even get a mobile phone plan.

    Despite this, many bad credit loans are available out there for people who are on the outer due to bad credit defaults and other credit listings. But do bear in mind, bad credit (non-conforming) loans generally come at a much higher interest rate, which could cost you tens of thousands more in interest just over the first three years of the loan. For example, on a standard $300,000 loan the difference in 2% from the standard variable rate of say 7% to a bad credit loan rate of say 9% could mean your family is paying as much as $15,046.57 more over those first three years just in interest. Use our credit repair savings calculator to find out what it could cost you.

    Recently savingsguide.com.au published a great article titled A Guide To Loans For People With Bad Credit. It features some pertinent advice about choosing a loan after being refused credit with a mainstream lender. It goes through the steps you may need to take to secure finance in Australia, and includes some final tips for securing a loan. The central tip is, prior to committing to a loan attempt to fix your bad credit issues first.

    “Loans for people with bad credit should really be a last resort, as opposed to the only option. See what you can do to repair your credit rating beforehand and hopefully begin looking for loans just as anyone else would,” savingsguide.com.au’s Alex Wilson says.

    Australians should not put up with bad credit if it shouldn’t be there…contrary to what a Creditor may tell you, bad credit in Australia can be removed from your credit file if it was listed unlawfully.

    If you’re not sure whether you would qualify for credit repair, take a glance at this suitability test. If even one of these 6 questions seems to fit your circumstances, you would be a good candidate for assessment for credit repair by a professional.

     

    Credit Repair Suitability Test

    1. Is the credit listing on your credit file unfair?

    If you believe the Default, Clear-out, Writ or Judgment on your credit file has been unfairly placed then you may have grounds to dispute the credit listing with your Creditor. A professional credit repair firm will build a case for its removal based on credit reporting legislation and also legislation pertaining directly to the Creditor’s industry and your specific circumstances.

    2. Is the credit listing on your credit file a result of identity theft?

    If you have been a victim of identity theft, the onus will still be on you to prove you didn’t initiate the credit. A professional credit repair firm can talk you through the steps to take once you have contacted Police which will help you to recover your good credit rating once again. The process will involve proving to Creditors that you didn’t initiate the credit in your name. It’s not always easy, but it’s a point worth fighting for.

    3. Have you been given the required notification of the credit listing prior to it being placed on your credit file?

    Creditors are bound by strict legislation when it comes to listing defaults, writs and Judgments on credit files. If you suspect you may not have been given the right notice by your Creditor, you may have grounds to dispute the listing and request its removal. It is essential that listings are placed accurately on Australian credit files, and we believe Creditors should adhere to Australian law at all times when placing listings on credit files. If you’re not sure it would be well worth calling a professional credit repair firm to assess your credit file for you.

    4. Does your credit report reflect that the Creditor has the wrong contact information for you despite you notifying them otherwise?

    If you have moved, sometimes bills get sent to your old address. Wrong addresses and phone numbers listed on your credit file can often mean the Creditor has not given you the appropriate notice or warning letters prior to the credit listing. If you think this has happened to you, then this mistake could mean the listing has been placed unlawfully on your credit file.

    5.  Is there an out and out mistake on your credit file?

    Creditors undergo system errors and issues all the time which can sometimes lead to credit listing mistakes. Human error is also a common reason for mistakes on credit files. Sometimes the wrong account can be attributed to you because of a similar name or mistakes with billing amounts or billing addresses can lead to debts you shouldn’t have. If you suspect a creditor may have made a mistake on your credit file, or you’re just not sure, contact a professional credit repair firm who can verify that for you and build a case for the credit listing’s removal from your credit file. It doesn’t have to be a big mistake to constitute an unlawful listing.

    6. Were you undergoing some kind of unusual hardship circumstances which you believe the Creditor has ignored prior to placing the default, writ or Judgment on your credit file?

    If you have told your Creditor you were undergoing financial hardship, then they are generally bound to help you make better payment arrangements as a solution to this hardship rather than immediately placing a credit listing on your credit file. If your credit report reflects this issue, a professional credit repair firm might be able to help you have this unfair listing removed.

     

    There are many more reasons why you might be suitable for credit repair based on your individual circumstances. If you would like an assessment for your suitability for credit repair, talk to a consultant at MyCRA Credit Rating Repairs who can assess how you might fare in removing bad credit before you commit to any bad credit loan in Australia.

    Image 1: Stuart Miles/ www.FreeDigitalPhotos.net

    Image 2: Master isolated images/ www.FreeDigitalPhotos.net

  • How Malware can infect your life and put you and your credit file at risk of fraud

    Think malware is a term used to describe clothes you go shopping in? Then you might have a big problem. Malware is what’s known as a syntactic form of identity crime – where fraudsters attempt to exploit technical vulnerabilities in order to commit fraud. Today the total malware count is just shy of 80 million. That’s scary stuff. We tell you exactly what it is, and what you can do to prevent your personal information from being exploited by fraudsters and prevent debt and bad credit history from credit fraud.

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

    Last week I received a warning from the Stay Smart Online alert service about a new spam email containing a Trojan horse virus as an attachment. This must have caught out enough people for SSO to put out a warning about it. In fact, new forms of malware catch out millions of people every day. It is reported there are 55,000 new unique malware samples per day sent out there. So how can we stay on top of it?

    Stay Smart Online defines malware, and explains how it can infect your life through your computer:

    What is ‘malware’ and how does it affect your computer

    Malware—short for ‘malicious software’—is the term often used to refer to any type of malicious code or program that is used for monitoring and collecting your personal information (spyware) or disrupting or damaging your computer (viruses and worms).

    Spyware

    The term spyware is typically used to refer to programs that collect various types of personal information or that interfere with control of your computer in other ways, such as installing additional software or redirecting web browser activity.

    Examples of spyware include:

    Keyloggers

    A keylogger is a program that logs every keystroke you make and then sends that information, including things like passwords, bank account numbers, and credit card numbers, to whomever is spying on you.

    Trojans

    A Trojan may damage your system and it may also install a ‘backdoor’ through which to send your personal information to another computer.

    Viruses and worms

    Viruses and worms typically self-replicate and can hijack your system. These types of malware can then be used to send out spam or perform other malicious activities and you may not even know it.  Both can use up essential system resources, which may lead to your computer freezing or crashing.  Viruses and worms often use shared files and email address books to spread to other computers.

    How does your computer become infected with malware

    Most spyware is installed without your knowledge. It often gets onto your computer through deception or through exploitation of browser vulnerabilities.

    •Spyware can come bundled with other software. When you download a program, the spyware can be downloaded and installed at the same time.
    •Some spyware infect a system through security holes in the Web browser or in other software. When the user navigates to a Web page controlled by the spyware author, the page contains code which attacks the browser and forces the download and installation of spyware.
    •Be wary of USB sticks from unfamiliar or untrustworthy sources, for example those given away at conferences, trade shows, or in promotional packs. These devices may contain malicious software, which could cause severe damage to your computer or compromise your personal information.
    •Some “rogue” spyware programs masquerade as security software.
    •Worms can also be used to install spyware on your computer.

    A recent article published in the Sydney Morning Herald Tech Section has some alarming concerns from some pretty hefty security people about the internet’s battle with malware. Many wonder if we could possibly be losing the fight against it – with updates unable to keep up with new developments, and anti-virus letting some slip through the cracks. If you’re game, you can read this article here: Anti-virus can’t keep up with threat onslaught.

    Concerns aside, far and away the best way we can have any hope of fighting it – is with installing updates on our computers. Here are Stay Smart Online’s best tips for preventing malware:

    How to prevent spyware from getting onto your computer

    •Install anti-spyware and anti-virus software and set it to automatically check the product website for updates. This will ensure that your computer is protected against the latest viruses and spyware.

    •Install a firewall. It will prevent unauthorised access to your computer and the installation of spyware on it. Some firewalls can also prevent information being taken from your computer and sent to someone else.

    •If you must use a USB stick from an unfamiliar source, you should always scan the USB stick for viruses or other malware before accessing any of its content. You should also disable the autorun function, which is commonly enabled on the Microsoft Windows operating system. This will lessen the risk that any malicious software that may be on the USB stick, will automatically start when you connect it to your computer.

    •Keep yourself informed about the latest security threats and solutions. You can sign up for the free Cyber Security Alert Service from this website. Alternatively, your anti-virus software vendor may have an email alert system. Look for a ‘keep informed’ tab or section on the software’s main screen.

    •Be cautious about opening emails from unknown or suspicious sources. Look at the sender of the email as well as the body and the subject of the email. Do not open email attachments or click on hyperlinks in these emails. You should install spam filters to minimise the amount of spam you receive.

    •Set your anti-virus software and anti-spyware software to automatically scan incoming email.

    •Only download files and software from reputable web sites. Read the licence agreement and terms of use before you download software and don’t download it if you don’t understand or trust the terms and conditions.

    •Be wary when exchanging files even with colleagues or friends. Scan the files before you install them or run them on your computer.

    •Never click on an ‘Agree’, ‘Ok’ or ‘No’ button to close a window on a suspicious website or pop-up. This can launch spyware onto your computer. Instead, click the red ‘X’ in the corner of the window to close the window.

    Your credit file at risk

    In SMH’s article, Charles Wale, security and risk consultant at Lee Douglas and Associates, who has consulted for over 50 ASX-listed companies says consumers need to realise their machines are targets.

    “They are after your personal information for identity theft and login details, especially for banking sites so they can remove funds in their favour,” he tells SMH.

    What can fraudsters do if they can get their hands on your personal information?

    They can steal passwords to your bank or credit accounts and they can also create a patchwork quilt of information that can allow them to eventually have enough on you to request duplicate identity documents, and apply for credit in your name.

    Running up credit all over town, perhaps buying and selling goods in your name, or in some cases mortgaging properties – the victim can have a stack of credit defaults against their name by the end of their ordeal – and sometimes no proof it wasn’t them that didn’t initiate the credit in the first place.

    Recovery can be slow, and in some cases victims have had no way to prove they weren’t responsible for the debt – with fraudsters leaving no trail and the actual identity crime happening long before the fraud took place.

    So to prevent devastating identity crime, which leaves you in debt and can leave you without any way of obtaining new credit for years to come, make it your business to educate yourself on internet and or computer risks. And think before you click….it could save your financial future.

    If you need help in recovering your good name following identity theft, you may find a professional credit repairer can give you the best chance at having the defaults removed from your credit file. Contact MyCRA Credit Rating Repairs on 1300 667 218 for more information.

    Image: Idea go/ www.FreeDigitalPhotos.net

     

  • Women and Credit: What You Need to Know

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    Bad credit history plays no favourites, it can basically happen to anyone. Both sexes can be severely disadvantaged when it puts a halt on plans to borrow money. In this post we explore some issues around credit, women in particular may need to be aware of and show how important financial knowledge and independence is to ensuring a good credit history for both women and men.

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

    The title of this post came as inspiration from a blog post concerning women and debt.  The post was titled Build A Clean Credit History and it centred around the issue of women and credit and how women can sometimes let their partners have control of the finances to their own detriment. The blogger “Women In The Black” is a forum for women to discuss personal finance, saving, investing and ‎building wealth. ‎

    Women In The Black implores women to get involved in their own finances rather than leaving it to their partner, in order to build up a good credit history of their own.

    “I’ve heard stories of women in their 50’s, who are either divorced or widowed, and have had to begin managing their finances now, which they previously didn’t have to do. Be assured at some stage in your life, you’ll be the sole manager of your finances,” the post says.

    “No matter what age you are, you need to take an assertive fiscal approach to money. Focus on earning more money as well as managing your debts which will lead to a long clean credit history.”

    Both men and women need to be educated and ultimately responsible for their own finances, and particularly their own credit history.

    Here are some of the issues women may come across when it comes to their credit rating but this can apply to men as well…

    Not knowing about your finances

    Do you know how much your insurance is per year? Do you know when your registration is due, or how the phone bill is paid? Leaving all the repayments up to your partner and never verifying them is a recipe for disaster most of the time when it comes to your credit rating. Women should strive to make joint financial decisions with their partner, regardless of their income level and both women and men should know what is said about them on their credit file by applying for their annual credit file check once per year.

    Financial incompatibility

    Sometimes we can get mixed up with someone who ticks all the boxes on an emotional level, but who has very different ideas about money, or perhaps a debt-ridden past.

    It’s important to ask some tough questions about new partners – including whether they have any current debts, if they always pay their bills on time and generally how they feel about money. You could even go so far as to order a copy of your credit file – to prove to each other that you are both default-free!

    If their answers prove less than ideal – you might want to keep your finances separate especially if you have assets of your own.

    A tangled web of credit history

    At MyCRA we often see people who have been left with bad credit history due to the partner’s financial mistakes.

    You see, when you branch out and make a life with someone, inevitably the lines of whose credit is whose can become blurred. You can have a phone account in one name, electricity in the other, a mortgage in one or both. Often it doesn’t matter whose name is on it, as long as someone is paying it – it’s more a joint effort to get the household where it needs to go and you both figure it’s ‘yours’.

    But where this goes wrong time and again is at the point where couples are trying to divorce or separate.

    Then those blurred lines of credit history can be extremely confusing, and often the divorcees’ credit histories can be mixed up long after they have physically separated. When you separate and there’s joint debt, you can lose control of your finances.

    Often we see people at the mercy of their exes’ big ‘post-relationship spendathon’ –  whether that be redrawing on the mortgage, or just taking out credit they don’t pay back – and sometimes both credit histories take the fall.

    Years later, when the woman finally gets back on her feet, she might want to get a house in her own name, or a car or even a credit card, and is refused due to bad credit that she hasn’t had any part of.

    One thing we maintain with everyone who is going through a divorce or a separation is to try to look forward into the future to what you need to do right now to prevent a bad credit score down the track.

    If you have just left your partner or spouse, here are 10 steps to financial separation you should take as early as possible in the break-up to keep your clear credit file. If these steps can be accomplished together, you can both get on with your lives as individuals without a bad credit score:

    10 Steps for financial separation

    1. Cancel joint bank accounts. Don’t hold on to joint accounts and assets ‘just in case’ you reconcile. Even the most amicable of separations can potentially turn sour down the track. The sooner you make the break, the better off your future will be – even if you do decide to get back together in the future.

    As far as creditors are concerned if the debt is in both names, then you are both responsible for it regardless of who accrued it. You could use the money from these accounts to go towards paying off any debts you may have together.

    2. Pay off and cancel joint credit cards. If the debt on the card/s can’t be paid off, inform the creditor that you have separated and ask them to put a stop on the account so there may be no more transactions. They could possibly make arrangements to transfer the repayments to two separate accounts.

    3. Resolve the mortgage debt. Sell the home and divide the proceedings, or sell your share of the home to your ex-spouse or vice-versa. Before this takes place, notify the bank you have separated. Make sure no further amount can be redrawn on the loan and that you receive separate statements whilst you are separated and both still own the property.

    4. Transfer names on other accounts. Phones, electricity accounts, rental properties, rates, car loans and store credit should all be transferred to one name as appropriate.

    5. Pay any unpaid accounts. No matter who has accrued these debts, the creditors will still see you as responsible. Ensure all accounts are paid on time while they are in both names.

    6. Keep a record of all undertakings. Keep good paperwork and notes related to the separation, including cancellation or changes to any accounts for future reference.

    7. Employ a good family solicitor. Legal advice is important as it relates to children, family businesses, and property. Also if anything runs off course with the division of debt, they can give good advice on the next course of action.

    8. Notify credit reporting agencies. Let Equifax (formerly Veda Advantage), Dun & Bradstreet, or Tasmanian Collection Services know of your separation and any steps you have taken to separate accounts to-date.

    9. Check your credit file. Request a copy of your credit report and check each entry.  A free copy of your credit file is available every 12 months from one or more of the credit reporting agencies in Australia. This is essential particularly if the settlement is drawn out over a number of years.

    10. Seek help from a professional credit repairer for any defaults, writs or judgments. Once outstanding accounts accrued by your spouse are paid, there is the issue of the bad credit score which needs to be cleared so you may have the opportunity to borrow again in the future. However, dealing directly with creditors could be problematic, they will tell you that defaults are never removed but can be marked as paid. However, at the moment even ‘paid’ black marks against your name can be enough for credit refusal, particularly if you are trying to buy a new property on one income.

    A professional credit repairer can check the creditor’s process of listing defaults for legislative and or compliance errors, any such errors could deem the credit file default listing unlawful, advising the creditor to remove the default.

    Image 1: twobee/ www.FreeDigitalPhotos.net

    Image 2: graur codrin/ www.FreeDigitalPhotos.net

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  • Identity theft risks high for pre-retirees

    Media Release

    Identity theft risks high for pre-retirees

    27 July 2012

    Baby boomers scrambling to secure their future before retirement are prime targets for fraudsters who are dangling a whole host of carrots to lure their savings and a national credit repairer warns they are also candidates for credit fraud.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says victims of the latest very elaborate investment scams could also be at risk of identity theft and having their good name used to take out credit.

    He says pre-retirees who fall victim to scams lose their nest egg, and could also have their identity hijacked and potentially credit taken out in their name, which can rob them of the ability to obtain credit in the years when they will need it most.

    “Many people in this age group also generally have a good clean credit rating, and if fraudsters are prepared to go to elaborate lengths to get them to part with their cash, what’s to say they haven’t set up fake identities and taken out credit in their name as well?,” he says.

    Investors were earlier this month hit with the news of an elaborate scam involving overseas investments.

    The Australian Crime Commission and Australian Institute of Criminology reported that more than 2600 Australians have lost in excess of $113 million to these investment frauds, but it is believed there is a high level of under-reporting and the extent is far greater.

    They warn that the scam is incredibly sophisticated and has fooled even experienced investors with elaborate back up data, including fake websites and publications and fraudsters even issuing online press releases in the hope of extracting major dollars from their victims.

    Australians have been targets for this fraud because of high levels of superannuation and retirement savings. The Australian economy is also known to have been less affected by the global financial crisis than other nations.

    Mr Doessel says if criminals gain access to information like names, dates of birth and addresses they can build a profile with enough information to request duplicate identity documents – enabling them to take out loans, credit cards, even mortgage properties in their victim’s name.

    “Fraudsters are never so kind as to pay the credit back -meaning the identity theft victim is hit twice – financially ruined and with no ability to borrow for 5 to 7 years,” he says.

    The Australian Bureau of Statistics data shows 514,500 Australians were victims of scams in 2011, with 44,700 people citing actual identity theft in the same year.

    Credit reporting agency Veda Advantage also recently reported in its Australian Debt Study that one in five Australians have had their identities stolen or had their personal or financial data illegally accessed.

    Matthew Strassberg, a Veda senior advisor said: “Whilst credit card fraud is a common form of identity crime, many people do not realise that with only a small amount of personal data, an identify thief could take out a second mortgage on a house, or open up a new line of personal credit and purchase items in their name or under a false identity.”

    Mr Doessel says pinpointing identity and credit fraud early can be difficult.

    “Fraudsters often change contact details, and many victims don’t know they have been scammed until they apply for credit and are refused,” he explains.

    He says sometimes there can be some early warning signs of identity theft, and people should watch out for these occurrences:

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

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

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

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

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

    6. Credit refusal due to a bad credit rating.

    If people feel they may be vulnerable to identity theft, they should alert their creditors, and also alert credit reporting agencies, who may be able to ‘flag’ their accounts to prevent fraudsters accessing credit in their name.

    Mr Doessel says if a credit check reveals any “surprise bad credit” through possible identity theft victims should act immediately to notify Police.

    “This crime is not very widely reported. But it is only through people reporting it that any real statistics get collated. Likewise, if people want to try and repair their credit rating following identity theft, the first thing I tell them is to make sure they have a Police report,” he says.

    For more information on restoring a credit rating following identity theft, contact MyCRA Credit Repairs on 1300 667 218 www.mycra.com.au.

    /ENDS.

    Please contact:

    Lisa Brewster – Media Relations Mob: 0450 554 007 media@mycra.com.au

    Graham Doessel – Director Ph 3124 7133

    Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog 246 Stafford Rd, STAFFORD Qld

    MyCRA Credit Repairs is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

     

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    Image: photostock/ www.FreeDigitalPhotos.net

     

  • Banks, telcos to have access to better id theft prevention through document verification (DVS)

    Identity theft…what can we do to prevent it and in doing so protect our credit rating from misuse? We look at how it occurs, and what the Federal Government is doing to help minimise the instances of identity fraud through implementing a better system of verifying important personal information.

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

    How do identity thieves go about taking credit out in your name? If they have enough personal information about you, such as your full name, date of birth, and heaven forbid your mother’s maiden name – fraudsters can forge identity documents, or request new ones in your name, which then gives them access to funds via your clean credit rating. This credit is left owing and you are stuck with a mountain of debt, and a bad credit rating you probably don’t even know about until you go and apply for credit yourself and are refused because of defaults you didn’t initiate.

    This doesn’t occur as regularly as other types of personal fraud – but it occurs more than you might think. Current statistics from the Australian Bureau of Statistics 2010-11 Personal Fraud Survey estimates that a total of 1.2 million Australians, or 6.7% of the population aged 15 years and over, were a victim of at least one incident of personal fraud in the 12 months prior to interview. Within these figures, 0.3% of the population had been a victim of specific identity theft. This amounts to 44,700 Australians. These were the people who admitted to being duped. Identity theft is one of the most under-reported crimes, due mostly to embarrassment from the victims. It is also extremely difficult to Police, with it often being initiated from overseas crime syndicates. So prevention in this case is often better than the cure.

    For those of you who have been following our updates on identity theft prevention, you may remember the government’s introduction of The Document Verification Service – a national service which allowed government agencies which took it up to verify documents. In May the Attorney-General announced her plans to roll the DVS out into the private sector we blogged about this then in the article Identity theft prevention in budget 2012. She spoke yesterday of the intended service, and said it will be available for the private sector from 2013.

    Yesterday Computerworld published an article Identity crime in sights of Australian Attorney-General detailing the Attorney-General Nicola Roxon’s comments about the DVS during the Security 2012 conference in Sydney.

    She told delegates the move will save businesses money by reducing unnecessary manual processes, data collection and record keeping.

    “It will also help to support law enforcement agencies such as the Australian Federal Police [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”][AFP] in their efforts against identity crime,” she said.

    The DVS was introduced as an electronic online system used by government agencies to check whether a proof-of-identity document that has been presented by a person applying for a benefit or service is authentic. If a document matches information held by the issuing agency, a positive response is returned. The service does not store personal information, but allows verification only.

    “Requests to verify a document are encrypted and sent via a secure communications pathway to the document issuing agency,” Ms Roxon says in a statement on the AG website.

    A spokesperson from the Attorney-General’s Department said that it expects to be able receive applications for private sector access to the DVS from the end of 2012.

    “This would allow the private sector to commence verifications of documents from September 2013, possibly earlier,” the spokesperson told Computerworld.

    The Federal Government set aside $7.5 million in this year’s Budget to extend the DVS to the private sector from 2013-14.

    “The DVS will provide a tool to help reduce the incidence of identity fraud and improve the integrity of consumer identification used by the banking and finance, telecommunications, aviation and maritime security industries,” read the Budget 2012-13 documents.

    Perhaps the introduction of the DVS into the private sector will encourage those government agencies which have failed to take up the service to implement it.

    Last year prior to the private sector introduction, the DVS was criticised for its inadequate take up amongst government identity issuer and user agencies. At the time we blogged about it (Can official documents be forged to commit identity fraud?), agencies such as Centrelink, the Department of Immigration, and state road authorities and birth and death registries, were not connected to DVS.

    Images: photostock/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Consumers face war over credit blacklist errors – whether the bill was big or small.

    Media Release

    Consumers face war over credit blacklist errors – whether the bill was big or small.

    24 July 2012

    Australians are seeking help in droves to fight devastating credit listings which are seeing them blacklisted from credit for up to 7 years and losing dreams of homes, cars and business opportunities often for overdue bills as low as $100.

    A leading national credit repairer says the complexity of disputing credit rating defaults has led many people to seek help from the professional credit repair industry.

    MyCRA Credit Rating Repairs CEO, Graham Doessel says complaints can be just as difficult to dispute whether the bill is for $100 or $10,000 and are very seldom as simple as calling up the Creditor and telling them they got it wrong.

    “There are a host of laws which must be adhered to by Creditors when adding credit listings to consumer credit files, and likewise when disputing potential errors and mistakes – the same laws apply to be able to show cause why a Creditor should remove a default.”

    “Most consumers trying to resolve their own credit issues don’t have the knowledge of legislation or processes to effectively argue their case. They are often brick-walled by their Creditor and forced to put up with the default – banned from affordable mainstream credit for the term of the listing,” he explains.

    He says with tight lending criteria following the Global Financial Crisis, any black mark is generally going to prevent people from obtaining credit in the current market.

    “Some can’t even get a mobile phone on a plan and most that need credit are forced to pay much higher interest rates with non-conforming lenders – potentially costing them tens of thousands more in interest,” he says.

    Mr Doessel is echoing criticism from the Australian and New Zealand Ombudsman Association which yesterday, said too many people are being put on debtor blacklists for owing small energy and phone debts.

    “Often they didn’t even know that they had been credit-listed until they had applied for a mortgage or a credit card or a business loan and then they found they had been credit-listed for small amounts, were denied that credit and lost deposits, were not able to start up their business and so experienced quite severe consequences,” the Association’s Chairwoman Clare Petre told the ABC yesterday.

    Ombudsmen are calling for the threshold for credit listings to be raised to $300.

    Ms Petre also expressed her concern that people are paying private agencies to solve their problem, when public authorities such as the Ombudsman’s office can help.

    “For people who are already often financially vulnerable they’re huge costs, but they’re desperate and they’re prepared to pay that money when they could come to us for free,” she added.

    But Mr Doessel says the services of Professional Credit Repair firms are of assistance to many of the Ombudsmen and most times enhance the likelihood of a successful outcome for the client. He says they have a duty of care to exhaust all avenues of complaint, some of which may not have been within the realm of the Ombudsman to investigate.

    “It’s actually a requirement of the Code of Conduct of the Credit Repair Industry Association of Australasia (CRIAA) that the credit repairer has conducted an exhaustive investigation into the conduct of the Creditor and can provide that investigation to the Ombudsman if the Ombudsman is ever actually required to help at all,” Mr Doessel says.

    He goes on to say “Many of the Ombudsmen Bodies have seen a massive increase in the number of consumer complaints recently and some (Ombudsmen Bodies) have extensive waiting lists that many consumers cannot afford to be on.”

    /ENDS.

    Ref: http://www.abc.net.au/news/2012-07-23/ombudsman-concern-small-debt-credit-ratings/4148476

    Please contact:

    Graham Doessel – Founder and CEO MyCRA Ph 3124 7133

    Lisa Brewster – Media Relations MyCRA Mob: 0450 554 007 media@mycra.com.au

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

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

    Image: nuttakit/ www.FreeDigitalPhotos.net

  • Credit Repair Guide – Consumer Advocate Graham Doessel Answers Your Questions About Fixing Bad Credit

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    Credit Repair is still a relatively unknown profession outside of the finance industry.

    It is often not until a person is refused a loan due to adverse listings on their credit file that they begin to look for avenues to fix what is being said about them on their credit report – especially if they believe they have an incorrect credit report.

    Research on the subject can produce some contradictory advice, so we thought we would clarify the basics of credit restoration or credit repair as an industry in Australia, and explain the instances in which it will be the best solution for those people who are refused mainstream credit due to defaults, Writs or Judgments on their credit file.

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

    As Credit Repair Lawyers, we find clients are often unaware of just what is involved with repairing their credit rating. Most times they don’t even know what’s on their credit rating until they apply for a loan and are refused – let alone know what to do to fix it. And even those savvy clients who have done a bit of homework and attempted to correct a wrong credit listing by themselves can get brick-walled by their Creditor, told that the listing can only be marked as paid but will not be removed. So often their broker will suggest professional a credit repair law firm to them, or they may have found us on an internet search.

    Here are some of the main questions we get asked by our new credit repair clients – we hope they help you too if you want to know more about what credit repair is all about.

    What is professional credit repair?

    Professional credit repair involves a credit repair law firm working on your behalf to remove inconsistencies or errors which are found on your credit file, in order to give you the best chance of obtaining credit with the lender of your choice.

    How have professional credit repairers come about?

    The Credit Repair Industry in Australia has grown significantly over a short period of a couple of years. There are many reasons for this.

    • One is due to the tightening of bank lending criteria following the Global Financial Crisis (GFC) and then the Banking Royal Commission.
    • The decline in sub-prime lenders has meant that many non-conforming loans that were previously available to many people have since folded.

    Put simply, credit repair has grown from the need for potentially millions of credit file holders with black marks on their credit report to find some way to buy a home, a car, get a credit card and even a mobile phone plan.

    Because of tight lending criteria, the need for greater accuracy in credit reporting has arisen.

    When deciding whether to lend someone money, banks are looking at any reason people may default on a potential loan – which includes any suspect credit history.

    The mistakes creditors make every day in reporting negative listings may have previously gone unnoticed, but since the GFC, the royal commission and now Covid, they can be the very reason many people are refused credit.

    So with many instances of credit reporting ‘inconsistencies’, coupled with very little consumer knowledge on credit reporting law and a great need for a third-party negotiator when dealing with creditors, the credit repair industry has been driven forward.

    What are credit rating errors?

    Credit rating errors are quite common, and the onus of ensuring the accuracy of your credit file rests with you.

    But how do you know if a listing has been placed accurately on your credit file, or if it should be there in the first place?

    A credit repair lawyer with their knowledge of credit reporting legislation will find and address those instances where a credit listing may have been placed unlawfully on your credit file.

    Credit rating errors could be anything from

    • the listing placed on the wrong credit file; to
    • the basis of the credit listing being unfounded; to
    • incorrect notices being provided to the client; right through to
    • system errors and incorrect spelling, to name a few examples.

    Is credit repair legal?

    Yes. Credit repair lawyers work to ensure accurate and legal credit reporting.

    Creditors are bound by a large volume of legislation and codes of conduct to do with placing information on consumer credit files.

    These laws are in place to protect consumers from unfair and damaging credit reporting.

    What a credit repair lawyer does is investigate the procedures taken by the creditor when placing the listing on the credit file, and if necessary, alert creditors and other relevant authorities to the instances where they believe the listing was placed on the credit file unlawfully and for this reason request the listing’s removal from the client’s credit file.

    “If the listing has been placed unlawfully on the credit file, then it should not be there and should be removed.”

    What’s the process to fix my bad credit?

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

    1. Firstly, we order a copy of your credit files on your behalf from one or more of Australia’s credit reporting bodies which tells us exactly who and what we are dealing with in relation to your bad credit.
    2. Then we investigate any avenues for disputing your credit listing or listings with your creditor.
      1. This involves requesting documentation from your creditor about your account, and
      2. cross referencing the procedures taken prior to and during the listing of the default, writ or Judgment with our knowledge of credit reporting legislation.
      3. This can be a lengthy process of review, and likewise, the creditor can at times take a while to provide the information they should.
    3. After we have all of the information, and reviewed it all against the legislation, we have the basis for a case for default, writ or Judgment removal.
    4. Then we formally communicate with your creditor to request the removal of what we would then deem to be a listing placed on your credit file unlawfully.

    This process can be a bit ‘back –and- forth’, as there are procedures that we, and they have to follow in accordance with industry and the law as well as negotiations which take place behind the scenes with creditors.

    The complaint may also need to be escalated to a higher authority such as an industry Ombudsman if there is no satisfaction with the creditor.

    If the creditor agrees to remove the listing, you will need to contact the credit reporting body to confirm it has been removed.

    The reason for this is that you do not create a credit ‘enquiry’ on your credit file by requesting information about your own credit report.

    If you want the best chance of obtaining credit, then you want to reduce the number of credit enquiries as much as possible.

    How long will it take to fix my bad credit?

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

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

    We have had a previous success rate of up to 91.6% of removal on every case we take on, and this is on average taking 45 – 60 days (but as little as a couple of weeks) to achieve once we have deemed you suitable for credit repair.

    If my credit file shows an outstanding amount, should I pay it off?

    It depends on the nature of your credit listing dispute. We have in the past negotiated for the removal of many credit listings which still hold an outstanding amount. Your credit repair lawyer can give you further advice based on your individual case. This is why at MyCRA, the costs involved are not based on the amount owing but are on a per-listing basis. For more information on MyCRA Lawyers costs, visit our main website.

    If you have more questions about credit repair, contact our team on 1300 667 218 or visit the main website www.mycralawyers.com.au.

    Images: Stuart Miles/ www.FreeDigitalPhotos.net

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Accuracy Concerns

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

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

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

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

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

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

    Image: basketman / www.FreeDigitalPhotos.net

  • Businesses on verge of default: Cash flow issues leave more businesses unable to pay bills on time

    According to credit reporting agency Dun & Bradstreet, the June quarter came up grim for Australian businesses and particularly small business repayment terms. The number of businesses paying their bills on time fell considerably. It is predicted this will have a flow on effect to the whole economy.  We look at Dun & Bradstreet’s report, the ramifications for those individual businesses when it comes to commercial and personal credit rating defaults, and offer some simple ideas for managing business cash flow and keeping a clear credit file.

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

    According to the latest Dun & Bradstreet Trade Payments Analysis – examining the ability of firms to pay their bills, and pay them on time – the number of payments falling within the standard 30-day term fell 16.5 per cent quarter-on-quarter.

    Further underscoring the deteriorating conditions faced by businesses is the performance of small businesses, which recorded the biggest deterioration in payment terms of 2.2 days. Businesses with between one and five employees are now operating under an average term closer to that of larger firms, at 53.2 days.

    Dun & Bradstreet attributes simple lack of cash flow as the reason for the decline in businesses meeting the standard 30-day term.

    D & B Director, Adam Siddique, says cash flow issues within the small business sector will have a significant knock-on effect to the rest of the economy.

    “It is particularly concerning that SMEs are waiting longer to be paid, and as a result are taking longer to pay their own bills. Trade credit constitutes a significant and critical portion of non-banking finance.  When this is delayed, it withholds millions of dollars from businesses and the wider economy,” Mr Siddique said in a statement to the media .

    “Small business payment terms now more closely resemble those of a large corporation, however small operations are less equipped to manage for cash flow issues, particularly if they are waiting more than two months to be paid for goods and services.”

    In addition, two-thirds (62%) of all trade payments were late during the second quarter.

    The number of severely delinquent payments (90+ days overdue) also rose noticeably during the last 12 months – up 13 per cent since the June quarter last year.

    Mr Siddique predicts economic uncertainty and conservative consumers will continue to impede cash flow for businesses through the rest of 2012.

    He warns businesses to remain focused on the ‘fundamentals’ such as cash flow.

    “A proactive approach to risk and receivables management can often prevent a situation where businesses wait months to be paid,” he says.

    With the threat of delinquency facing many more commercial credit ratings in the small business sector, it is important to realise the connection to personal credit ratings that can often follow the small business default.

    Small business owners who allow overdue accounts to become the norm during the course of business could be unaware of the ramifications for not only the future of their commercial credit rating, but their personal credit rating as well.

    People should not take trade credit lightly, as it can impact both credit files. This applies to both outgoing and incoming accounts. Dropping the ball on either is not the best way to ensure repayments continue to be made within standard terms of trade. If repayments are delinquent, creditors can place defaults on the business credit rating.  But often the owner finds out as Director this is tied in to their personal credit rating as well.

    Long after the business problems are over, the owner can be haunted by this bad credit and denied the basics for their family – mortgages, car loans, credit cards, even mobile phones for 5 years. For someone recovering from a business failure, this can be completely debilitating, particularly if savings have previously been thrown at the business to try to keep it afloat.

    Here’s some ideas for the best ways a business can keep track of its cash flow and stay in the clear with their credit rating:

    1. Pay all accounts on time. Have systems in place whereby credit cards and all bills are paid on schedule if not by the Director 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.

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

    3. Consider credit checks for all potential account holders. As suggested by Sue Hirst in her article ‘Why You Need Good Terms of Trade’ (My Business Magazine August 2010) business owners should consider implementing a system of credit applications for potential clients who request a major account. This involves the business requiring a credit check on the prospective account holder with one or more of the major credit reporting agencies prior to undertaking a credit account with them.

    4. Regularly obtain a copy of both credit files –it is free for both consumer and commercial credit files once every year from one or more of the Australian credit reporting agencies. This will alert the owner early to any inconsistencies or errors on either business or personal credit files which could see their ability to obtain credit in jeopardy. If there are wrong defaults or mistakes on either the commercial or consumer credit file, it is important to address those inconsistencies immediately – and before it is a matter of urgency.

    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 business credit cards as it may encourage needless spending and blow out the business budget.

    6. Be wary of excessive credit enquiries. People should get their credit health checked before applying for new credit, and only apply for credit they have full intention of pursuing.  Some lenders are rejecting loans for as little as two enquiries in 30 days, or six enquiries within the year.

    7. Most importantly, monitor accounts regularly.  Business owners still need hands on knowledge of the business’ expenses.  Check accounts are being paid and check receipts and credit card statements regularly.

    Bad credit attached to your business?

    If you are suffering with a bad credit rating, or have errors or mistakes on your credit file impacting your ability to get business credit, it would be well worth investigating whether you are suitable for credit repair.

    The criteria for credit repair success is generally people who have a credit listing that contains an error or errors, or people who believe their listing is unjust or incorrect.

    By engaging the services of a professional credit repairer, you are giving yourself and your business the best possible chance of being credit active again.

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

    Image: sscreations/ www.FreeDigitalPhotos.net

  • CRIAA Code of Conduct seeks to stamp out dishonest credit repair practice

    Media Release

    CRIAA Code of Conduct seeks to stamp out dishonest credit repair practice.

    17 July 2012

    The credit rating repair industry now has an official Code of Conduct, with the newly formed Credit Repair Industry Association of Australasia (CRIAA) publishing its ASIC-inspired code yesterday.

    Spokesperson for the CRIAA, interim board member Graham Doessel says the Code takes into account comment from ASIC within its framework and aims to promote credibility and transparency within the credit repair industry.

    “The credit repair industry has gone largely unregulated up till now, and this has led to dodgy practices from some credit repairers, and to broad criticism of the industry from outsiders.”

    “This Code of Conduct will give a strong framework for what is acceptable practice for credit repair, in so doing raising the service level for consumers who choose a CRIAA member credit repairer,” Mr Doessel says.

    The CRIAA Code of Conduct is a comprehensive 15-point document which outlines the rudimentary requirements for membership to the CRIAA, including education standards, and specific requirements for behaviour, including the ramifications for non-compliance which may include sanctions and fines for its members.

    “The Code insists on transparency of advertising and fees as basic requirements of CRIAA Members, and specifically insists on conduct which does not mislead the consumer at any stage – we see this as paramount to bringing the industry forward with credibility,” Mr Doessel says.

    The Code of Conduct also outlines internal and external dispute resolution parameters for the credit repair industry.

    “It is important for an emerging industry to have some avenue for consumers to make complaint and resolve disputes, from both within the industry and to external dispute resolution services,” he explains.

    Mr Doessel says the CRIAA and its Code of Conduct will assist in bringing validity to the industry of credit repair as part of the credit reporting landscape.

    “Credit repairers have been highly sought out by more and more consumers because they have had difficulty in correcting credit rating inconsistencies themselves. So credit repairers continue to play a crucial role in maintaining accuracy in credit reporting, he says.

    The CRIAA interim board currently includes 6 credit repair industry members, and two finance industry members, including President of the Finance Brokers’ Association of Australia, Peter White.

    The CRIAA has had interest from a variety of stakeholders both inside and outside the industry and intends to allow different categories of membership to accommodate this diversity.

    “The CRIAA will be the genuine representative body of the credit repair industry and all its stakeholders, so we’re not going to be exclusive – it will incorporate brokers, credit reporting agencies, Ombudsmen and any other stakeholders which impact the industry within its membership categories,” Mr Doessel says.

    CRIAA INTERIM BOARD

    Colleen Halls – Chairperson

    Peter White

    Graham Doessel

    Alicia Candido

    Ilias Bafas

    Gavin Symes

    Andrew Bell

    Darren Brits
    For a full copy of the CRIAA Code of Conduct, visit the CRIAA website: http://www.criaa.org.au/code/

    /ENDS.

    Please Contact:

    Spokesperson – Graham Doessel – CRIAA Interim Board

    The Credit Repair Industry Association of Australasia Pty Ltd (CRIAA)
    C/- 246 Stafford Road, Stafford, QLD 4053
    alerts@CRIAA.org.au | www.criaa.org.au

     

  • FOS explains nature of systemic errors by FSP’s which lead to mistakes on credit ratings.

    We examine a recent Financial Ombudsman Service (FOS) article which reports on instances of errors on consumer credit files in the finance industry. This type of systemic error can and does occur in every industry. This is why the presence of Industry Ombudsmen is vitally important to assist the resolution of disputes. A report like this also serves to illustrate the prevalence of credit rating errors across not only the finance industry but the credit industry entirely, and should serve to demonstrate the great need for assistance with credit rating inconsistencies in the form of credit rating repairers – who are helping clients to both recognise and make successful complaints about their credit file errors.

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

    The Financial Ombudsman Service (FOS) received a number of complaints in the first quarter of this year relating to serious credit infringements being listed by a financial services provider (FSP) on clients’ personal credit files.

    In the winter edition of its quarterly Circular publication, the Financial Ombudsman Service (FOS) reported (Systemic issues update – January-March 2012) on a number of complaints received in the first quarter of 2012 relating to serious credit infringements being listed by a financial services provider (FSP) on consumer credit files.

    Here is an excerpt from an article by Money Management on the FOS findings, titled FOS concerned over credit infringement listings:

    “FOS said it had contacted the FSP to advise that serious infringements had been listed even though the FSP had not sufficiently determined that applicants no longer intended to comply with their credit obligations.

    FOS also advised the FSP it would review whether serious credit infringement listings had been made against other customers without a reasonable basis to believe they would no longer comply with credit obligations.

    The FSP advised FOS that all the relevant disputes had involved third party tracing agents, but following a review of some of those listings FOS determined a high proportion had been made incorrectly and that the issue was systemic.

    In addition to asking the FSP to advise of the removal of incorrect listings, FOS asked the FSP to formally consider, case by case, any claims for non-financial loss from customers whose listing was made in error.

    In a separate but similar case, a complainant said his FSP had not correctly assessed his application for hardship assistance regarding a hire purchase agreement for which he had acted as guarantor.

    FOS found the FSP had listed a commercial debt on the applicant’s personal credit file that could not be considered credit under the relevant legislation and was therefore an inappropriate listing.

    Again, after a review FOS found a number of incorrect default listings and determined that the issue was systemic. FOS asked the FSP to correct the incorrect listings and to provide copies of its policies and procedures relating to default listing business guarantors on their personal credit files.”

    This report demonstrates it is important to champion for accuracy in credit reporting. A listing which has been placed incorrectly or unlawfully on a consumer or business credit file – or one that simply should not be there should be challenged. The consequences are generally bad credit for at least 5 years – so it is always a point worth fighting for.

    Most people put up with bad credit, even when it shouldn’t be there, because they find it too difficult to negotiate with their creditor. But having the correct information, going through the correct channels, with the right knowledge of legislation can make all the difference to a person’s chances of success at removing an incorrect listing.

    What a credit repairer will do for a client who wishes to repair bad credit, is look at their credit file and determine through investigation whether there is an avenue for removal of the credit listing based on legislation, and negotiate in the right way, with the right people and through the correct procedures for the listing’s removal.

    If you want to know more about credit repair – .visit the MyCRA main website www.mycra.com.au.

    Image: 89studio/ www.FreeDigitalPhotos.net

  • AFP and FBI sign agreement to pool resources on identity crime

    Police from Australia and the United States have joined forces to pool their resources to fight a number of crimes which cross international borders, including identity crime and cyber-crime. We watch these changes with interest as they apply to fighting the increasing instances of identity crime which can result in victims being stung with bad credit and being banned from borrowing for 5 to 7 years when frausters use their good name to take out credit.

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

    The Australian Federal Police (AFP) and the Federal Bureau of Investigation (FBI) signed a memorandum of understanding (MoU) in Washington on Friday to share intelligence in order to fight many types of crime, including identity crime and cyber crime, ninemsn reports in its story AFP, FBI pool resources against crime.

    The MoU, called Combatting Transnational Crime, Combatting Terrorism and Developing Law Enforcement Cooperation focused on collaboration between agencies in terrorism, illicit drugs, money laundering, illegal firearms trafficking, identity crime, cyber crime and transnational economic crime.

    It also consolidated AFP and FBI cooperation in the exchange of information, resources and technical and forensic capabilities.

    The Australian Government made changes to Australia’s laws in June last year, to allow for the international collaboration of information on cybercrime. The Cybercrime Legislation Amendment Bill 2011, amended several laws in order to comply with the only international treaty on cyber-crime.

    This was done in the hope of coming up to speed with other countries in the fight to tackle an international wave of cyber-attacks.

    Cyber-crime and identity crime are a global phenomenon, and potentially this relationship between Police forces could improve the chances of tracking fraudsters, and potentially lead to more arrests.

    Currently, identity crime and cyber- identity crime is often one of those largely ‘untrackable’ crimes  – especially if it originates overseas. It can lead to the victim having any number of credit accounts taken out in their name, which can result in the victim being stuck with wrong defaults on their credit rating, or a bad credit rating they didn’t initiate, and a whole heap of trouble recovering their good name. Often Police are unable to prosecute anyone, and it is up to the identity theft victim to go about proving they didn’t initiate the bad credit.

    It will be interesting to see whether more arrests can be made or whether the sharing of information could deter cyber-criminals in the future.

    If you have been a vicitm of identity crime or cyber-crime, we would be interested to hear from you, and the process you went through. Did you let Police know of the attack?

    If you need help with a bad credit rating you didn’t inititate which would point to identity theft, whether inititated on our shores or overseas, you may be able to get assistance in recovering your good name. You may be eligible for a Victims of Commonwealth Identity Crime Certificate, and/or you may be able to get help from a professional credit repairer to help with getting those wrong defaults removed from your credit file.

    Contact our credit repair team on 1300 667 218 to get advice.

    Image: Victor Habbick/ www.FreeDigitalPhotos.net

  • How an overseas trip can see you with bad credit

    Going overseas? We tell you why this makes you vulnerable to being lumbered with bad credit, and tell you 5 things you should know to protect your credit rating when going overseas.

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

    You’re on that plane – drink in one hand, a copy of Lonely Planet in the other. It’s the trip of a lifetime, you’ve scrimped and saved for ages to get to this point – so excited to be heading off on your round-the-world-trip – with an extended stopover in the U.K. for some work. So long suckers!!!!

    You’ll miss your family and friends, but it’s your right of passage to do what millions of young Australians do every day, jump on a plane and see the other side of the world.

    But you are planning on coming back some time, right?

    And watcha gonna do when you get back?

    Get sensible again? Maybe save for a house?

    Or save for another trip?

    But thousands of young people find that one little thing can stop them taking out a mortgage, buying a car, or buying another plane ticket after they have been o/s – BAD CREDIT! And this is often why…

    You come back home a little paler, a little chubbier, a bit wiser, but a hell of a lot poorer. You apply for a credit card – but you nearly fall off your chair – the application is declined. For some reason – you have a Telstra default on your credit rating.

    “This has got to be a mistake!” You say, “I’m good for it – I always make my payments on time.”

    But there it is – bad credit – and there’s nothing you can do about it.

    After contacting Telstra, you find out it was the mobile phone account you had before you went overseas. There was this one last bill that you didn’t know about. And that bill was sent to your old address – again, and again, and then they put a default on your credit file when you didn’t pay it after 60 days.

    You thought you had fixed everything up, but it seems you hadn’t.

    Now the bill has tripled in size, and when you complain about the mistake on your credit file, Telstra tell you all they can do is mark it as paid if you pay it. It will be on your credit file for 5 years.

    This is the scenario of many of our clients who contact us to help dispute their credit report. Time and time again we see people who have gone overseas or even just gone to the next suburb and think they have settled accounts prior to leaving, only to find those ‘final accounts’ haunting them in a big way for years to come.

    Other people have gone overseas, taken their mobile with them, only to find they are hundreds of dollars in debt with no way to pay due to their phone bill.

    Well, before you take off – here are 5 things you should know to protect your credit rating before going overseas:

    1. Completely finalise your accounts

    Contact every creditor to let them know you are going overseas, and provide them with new contact details for you if you are moving out of your home. If you are going for an extended period of time – rather than just paying your last bill, make sure you have finalised your account and requested a closing balance. Once you have paid the final amount, get it in writing to ensure it is the final bill for that account.

    2. Cancel direct debits

    If you have a direct debit set up, this can sometimes be with a separate company to the actual Creditor – particularly with things like gym memberships, so make sure you cancel any direct debits coming out of your account – finalise any outstanding amounts – and get the notification of the cancellation in writing.

    3. Beware phone charges while overseas

    Many phone companies charge you extra for calls you make and receive while you are o/s. Call your telco provider and make sure you know all the facts before you take your phone on a holiday with you. It might be better to get an overseas phone or SIM for your trip instead.

    4. Beware splurging on credit cards

    It can be hard to keep a tally on what you’re spending while you’re overseas. But do check your balance regularly to make sure you’re not blowing out your budget and sending yourself into debt when you get back. And while you’re there, you might want to check for this….

    5. Beware identity theft

    Just because you’re in holiday mode, doesn’t mean your privacy should be as well. Your personal information is a goldmine for fraudsters, and while you’re in transit, you can be vulnerable to identity theft. If identity theft leads to fraud, you can even have credit taken out in your name, and land in all sorts of trouble with your credit file with incorrect defaults and late payments against your name.

    Keep belongings and personal information (especially Facebook logins) secure, and check all ATM’s and credit card machines for skimmers. Check your credit card online when you can regularly and watch you are logging in through a secure site. When you get home, grab a free copy of your credit file straight away. If there are any suspicious entries you may have been a victim of identity theft.

    Checking your credit file

    If you have come home from an overseas trip, and want to check what your credit file says about you, you should know you are entitled to a free copy of your credit report once a year from Australia’s credit reporting agencies.

    It might be a good idea to order this copy of your credit report prior to applying for any new credit and it will be sent within 10 working days. It will tell you whether you have any bad credit, or whether there are any mistakes on your credit report.

    If you think a default on your credit file is wrong, or you want to dispute your credit report, contact a professional credit repairer to discuss your suitability for credit repair. If the listing is incorrect, contains errors or just shouldn’t be there, a credit repairer can help prepare your case and give you the best chance of having the default or other mistake on your credit file completely removed so you can apply for credit with a clean slate.

    Image: kangshutters/ www.FreeDigitalPhotos.net

  • Bill shock and telco complaints finally actioned: New Telco Consumer Protection Code approved by ACMA

    It has finally come to pass – telcos have a compulsory and enforceable code to govern their behaviour towards consumers. This new code is aimed at giving consumers the transparency and clarity with their telco use that has been severely lacking in the industry and which has led to bill shock, debt issues and more unfair credit listings such as credit rating defaults.  We report on the new code governing telcos, the possible benefits for the future, and explain how the previous code has impacted telco customer credit files.

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

    Telcos have by the skin of their teeth missed government regulation. The final draft of a new Telecommunications Consumer Protection Code (TCP) submitted by telco industry body the Communciations Allicance has been approved by the Australian Communications and Media Authority (ACMA) it was announced yesterday.

    A couple of weeks ago we reported telcos had submitted their last version of the Code to the ACMA in the post Telco consumer code on third rewrite for June deadline.

    The ACMA announced in a release to the media yesterday A Better Deal For Australian Telco Customers, that it had agreed to register the telco’s version of the Code, which is aimed at giving “long-suffering telco customers materially greater protection on the big telco issues such as bill shock, confusing mobile plans and poor complaints-handling,” the ACMA says.

    A public inquiry conducted by the ACMA estimated that the annual recurring costs associated with the industry’s unsatisfactory performance under the previous code included $1.5 billion associated with consumers choosing the wrong plan, $108 million for the costs of telephone complaints and $113 million for the costs of writing off bad debts.

    “The ACMA will very closely monitor its [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”][the TCP Code’s] progress and will not hesitate to communicate to industry the need for further change, if that need arises. This is an important point as the code will apply to every service provider in Australia. Compliance with the code is no longer an option. The ACMA obviously stands ready to use its powers of investigation and enforcement if participants choose not to comply with these new code obligations (which include an obligation to report their compliance performance to the industry’s new compliance monitoring body, Communications Compliance),” Mr Chapman says.

    How have telco customers been affected?

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

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

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

    And customer credit files?

    Almost 26% of MyCRA’s credit repair clientele in the past 12 months were Telco customers.

    Often this was due to botched phone plans and lack of data usage monitoring. Consumers have been confused when it comes to data allowance on their smartphones, and the providers have not been helping. Often clients have claimed they have gone over their data limit really quickly, or the plan they were put on was not appropriate for what they intended to use their mobile internet for.

    The problems have also extended to complaints. Many customers can have had great difficulty in cancelling the accounts or coming to a resolution with telcos over these billing issues. 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 these often unfair credit listings unless they have been able to make a successful complaint.

    What the TCP Code will mean for consumers

    The Sydney Morning Herald yesterday reported in the story ‘Bill shock’ code set to save $1.5b on phone bills that the new 102 –page code will be enforced from September 1, and progressively phased in over the next two years.:

    “[We] are hopeful that its adoption will result in clearer advertising, easier comparison of products, better information about contracts and better tools to help consumers avoid bill shock,” Teresa Corbin, CEO of the Australian Communications Consumer Action Network (ACCAN), which proposed the code told SMH.

    It also reported on a significant change to data usage notification rules:

    “…customers will receive warning messages when they have reached 50 per cent, 85 per cent and 100 per cent of their monthly allowance for calls, messages and data,” SMH reports.

    The basic benefits are explained in more detail in the ACMA article Fair call—new telco code to benefit consumers:

    Under the new 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).

    Customers will also benefit from better spend management tools designed to avoid ‘bill shock’. These include improvements in billing processes and credit management, and the introduction of notifications about data usage and expenditure thresholds.
    Some of the changes will be phased in to help providers adjust their systems. From 27 September, customers will be able to more easily compare costs and plans, with telcos 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.

    The new code will mean 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.

    We eagerly await the September implementation of the TCP Code, and the positive impact this will have on our customer’s credit files and hopeful reduction in the number of unfair credit listings originating from telco customers.

    Image 1: Danilo Rizzuti/ www.FreeDigitalPhotos.net.

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

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

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

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

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

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

    Don’t buy into it!

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

    Some basic things to look for with default listing rules:

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

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

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

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

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

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

    Dangers In Disputing Your Credit Listings Yourself…

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

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

    Professional Credit Repair Law Firms

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

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

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

    Who Chooses Credit Repair?

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

    Volume of Credit Rating Errors Or Mistakes

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

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

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

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

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

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

    Image: digitalart/ www.FreeDigitalPhotos.net

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