MyCRA Specialist Credit Repair Lawyers

Tag: Graham Doessel

  • Housing finance numbers rise: ABS Housing Finance December 2011

    Good news again for the housing market as ABS figures from December show another rise well above that expected by economists. But there is a warning: it could mean more people present with a bad credit report as confidence returns.

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

    ABS Data shows December housing-finance approvals in Australia rose a seasonally adjusted 2.3 per cent in December 2011 from November.  Economists expected a rise of around 1.8 per cent in December.

    DECEMBER KEY POINTS FROM ABS BELOW:

    VALUE OF DWELLING COMMITMENTS

    December 2011 compared with November 2011:

    The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.8%. Investment housing commitments rose 0.9% and owner occupied housing commitments rose 0.7%.
    In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 3.8%.
    NUMBER OF DWELLING COMMITMENTS

    December 2011 compared with November 2011:

    In trend terms, the number of commitments for owner occupied housing finance rose 1.1%.
    In trend terms, the number of commitments for the purchase of established dwellings rose 1.2% and the number of commitments for the purchase of new dwellings rose 0.7%, while the number of commitments for the construction of dwellings fell 0.1%.
    In seasonally adjusted terms, the number of commitments for owner occupied housing finance rose 2.3%.
    In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 20.9% in December 2011 from 20.0% in November 2011.

    Ninemsn reports interest rate cuts in November and December and the widespread expectation of more to come might have contributed to better figures for December. The article says the December figures mark a two-year high for housing finance figures and cast doubt over a March interest rate cut.

    “In any case, lending has picked up.
    And, given that the RBA keeps close tabs on bank activity, it is possible that the strength in lending in December figured in the decision on February 7 to keep the cash rate steady.

    For this indicator, the question now is whether the February decision took some of the heat out of demand for loans.

    The earliest indications of that will not be available until the February housing finance figures are released by the ABS on April 11.

    In the absence of any sign of a subsequent waning in loan demand, the December housing finance numbers constitute an early goal scored by the ‘no rate cut’ team.

    Still, there are plenty of economic data releases between now and the next RBA policy meeting on March 6, so the market is not rushing to make a judgment,” the article says.

    Could this new rise in figures be slowed by the RBA’s decision to leave interest rates in February? Bank lending criteria may still be tight with these questions still looming over the future of housing finance and market confidence, and of course a myriad of global factors.

    In the meantime, it will still be essential for borrowers to present with a clean credit file to ensure finance approval. For those who are living with credit file errors and inconsistencies, there is a solution.

    How many people could be living with credit file defaults that shouldn’t be?

    Recently Channel 7′s Today Tonight interviewed Veda Advantage’s Head of External Relations, Chris Gration on the possible number of errors on credit reports. He admitted errors within their system alone amounted to 1%.

    “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.

    With 14.6 million Australian Veda Advantage credit files alone 1 per cent of errors amounts to 140,000 Australians’ financial lives potentially in ruins through no fault of their own.

    A small scale study conducted in 2004 by the Australian Consumer Association (now Choice Magazine) revealed about 30% of credit files were likely to contain errors.

    Transferring those figures from the Choice study to the number of credit files in Australia today, could take the figures to over 4 million errors, inconsistencies or flaws.

    We feel based on the ACA study and the Choice survey that the real figure across the board is likely to be in the middle somewhere – much higher than 1%.

    Under current credit reporting legislation, it is up to the consumer to check for errors. Credit file holders are able to obtain a copy of their credit report from one or more of Australia’s credit reporting agencies for free every 12 months.

    Unfortunately consumers are often not aware across the board of their responsibility to check the accuracy of their own credit file, so many errors go undetected.

    Errors do occur, but often people aren’t aware of they have an adverse listing on their credit file until they apply for a loan, but by then it is too late to correct errors and they are generally refused credit or forced to take on non-conforming loans at sky-high interest rates to secure the home.

    When disputing any adverse listing, it is up to the credit file holder to provide reason as to why the creditor has not complied with legislation.

    Unfortunately many people find this process difficult at best – negotiating with creditors is not always easy for the individual to undertake.  Our job as credit repairers is to 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, at which time we advise the creditor to remove the default.

    If potential borrowers need help with credit repair, they can contact us at MyCRA Credit Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

    Image: Salvatore Vuono / FreeDigitalPhotos.net

     

  • Keep your head when you follow your heart this Valentine’s Day

    Happy Valentine’s Day for tommorow, 14th February everyone…hoping cupid’s bow meets its target this Valentine’s Day and sends you someone special. If it does – and you are about to take the commitment road, here’s some important points you need to know about joint debt to prevent a bad credit score.

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

    Being in love and in particular new love can be the best feeling in the world. But let’s be honest, it’s not the most practical of states to be in. Sometimes our standards go out the window and we lose ourselves in the process of adding to our ‘relationship’ and creating an ‘us’. In this process it is important to remind ourselves of the important things about ourselves that should not change no matter who we’re with. Now going deep into that is probably another blog altogether. But let’s just concentrate on our finances and how we can maintain our good name and our clear credit file when we take our relationship to the next level of commitment with joint debt.

    Some of us are great with money and some of us aren’t. If one of each type get together – the potential for both to be financially damaged is greatly increased.

    As credit rating repairers, every day we meet people who need help with fixing credit rating issues due to no fault of their own really, but they have fallen under the financial shortcomings of a partner.

    When we take out any credit together, such as loans, utility accounts, homes and rental properties, we become very reliant on our partner to keep up their end of the credit repayments. Very often one partner ends up with a bad credit score, simply because the other person on the account has not made repayments to the account. Often people are unaware their partner is generating defaults on their credit rating until it is too late. They apply for credit in their own right and are unable to proceed due to debts and bad credit their partner has initiated. The relationship may even have ended years ago. A bad credit score due to a default lasts for 5 years, a ‘clearout’ listing is 7 years.

    So many times we hear clients say “I’m not sure how this happened – how can my clear credit file be damaged by something my partner did?” Unfortunately when couples go into joint debt, both credit files are at risk if repayments aren’t made.

    So how do people protect themselves, their assets and their good credit rating, BEFORE they marry or move in together and create joint debt?

    Many people come unstuck by not asking the tough financial questions about their prospective partners early in the relationship:

    1. Ask about your new partner’s financial past. People will do what they have always done. If they have financial skeletons in the closet we should be wary about leaving our credit rating at risk.

    2. Ask what debts they currently have. This will give you an indication of how they feel about money, and how much debt they consider normal to handle. Does this match with yours?

    3. Talk about paying bills. Do they always pay them on time? If not, why not? This will give you a good indication of how this person regards money and credit repayments. Ring any alarm bells yet?

    4. Ask what their financial goals are for the future. Do they match yours? If your new partner wants to blow all of their money on an overseas trip, but you want to save for a home – how will this work long term?

    5. Verify their answers about existing and past debt. Ask them if you can see a copy of their credit file (and versa of course). A copy of your credit report is free every year from one or more of the credit reporting agencies in Australia. It will be sent within 10 working days.

    If some of the answers to these 5 questions don’t leave you running out the door, but leave you wondering whether you are on different planets when it comes to money, it could mean you need to keep your finances separate for a significant period of time. For instance, just because you have bought a home together doesn’t mean you can’t keep other bank accounts, credit card and previous homes you own in your name only.

    It might also be a good idea to be the one responsible for all joint debt accounts, and to check those statements regularly for any issues.

    It is also important long term to order a copy of your credit file regularly. This will notify you of any problems before you apply for credit in the future.

    Just remember that as high as emotions can run, they can also get just as low. Your financial generosity now could become the very thing that is used against you if the relationship sours. Before you enter into any financial transaction, consider carefully how secure you would be if things did take a turn for the worse. Then you can relax and enjoy the buzz of falling in love.

    For help with fixing credit rating or listing errors, contact MyCRA Credit Repairs on 1300 667 218 or visit our website www.mycra.com.au.

  • How can I fix my bad credit rating fast?

    “Fix my bad credit” – Sounds good  – so what’s that all about? As credit rating repair specialists, we get asked time and again to rebuild your credit history so you can get that car, that home, that credit card or basically restore your financial future. Here is a look at how we can help you rebuild your credit and rebuild your life.

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

    “Hello MyCRA Credit Repairs. I am going for a home loan, and the broker tells me when they checked my credit report, they found a default against my name. I had no idea! How can I find out what went wrong and how I fix my credit rating? Our family really has its heart set on this house and it looks like we’re going to lose it! Can you fix my credit report so I no longer have a default?”

    This is the story of many of our clients. It is not until they apply for credit that the lender obtains a copy of their credit report.  It can be devastating to find out you have a bad credit rating and even more devastating to know that your dreams of owning that home could be slipping away because of it.

    Let me tell you, it might not be all lost.

    If there are any adverse listings on your credit file which you believe are incorrect, contain errors or just should not be there – then you have the right to have those credit file errors removed.

    The problem with attempting to dispute errors on your credit file with creditors yourself is two-fold. Without knowledge of the legislation, people almost invariably get caught in legal ‘loop-holes’ which see the default, writ or Judgment left on the credit file, or at best see the listing marked as ‘paid’. Both of these results DO NOT give you that home or car loan as lenders still consider even a paid listing as bad credit history.

    Secondly, by talking to creditors themselves about credit file errors, people can accidentally ‘alert’ creditors to any mistakes they may have made in the initial method of credit reporting – allowing them to fix up their mistakes and negate the need to remove the credit file default which was placed in error.

    If you are just starting out and wondering “How can I fix my bad credit?” then the best course of action is to instill the help of a credit repairer before you do anything yourself. Ask them to check if they can rebuild your credit.

    What does a professional credit repairer do?

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

    If they are successful, you not only get help with removing errors, but many times you are able to start off with a completely clean credit rating. They have the ability to completely rebuild your credit rating, allowing you to start off with a clean slate and give you the opportunity to go for any loan you choose at the best interest rates.

    Find out more by going through these 6 simple steps to credit repair:

    Or call MyCRA Credit Repairs tollfree on 1300 667 218.

    Image: m_bartosch / FreeDigitalPhotos.net

  • The dead not protected from identity theft

    Even in grief identity theft can strike us and affect our credit file and the clear credit file of those we leave behind. Grieving relatives may need to protect themselves and their loved one’s good name against this fraud, following a recent spate of identity theft of deceased individuals.

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

    There are so many things to think about when someone dies and it is very unfair that grieving relatives need to think about possible identity fraud on top of everything else, but the fact is it may be necessary to protect not only their memory, but the good credit file of the living.

    Last year a Sydney court sentenced a man and a woman to two years jail for identity theft.

    The Courier Mail ran details of the story in September last year, in which the court heard the couple “spent nine years trawling cemeteries across Australia collecting the details of dead people, with Queensland targets including a disabled man and a baby less than two days old.”

    “The couple created fake “identity kits” using the details of the deceased, including bogus passports, Medicare cards, drivers’ licences and bank accounts, which they sold to criminals for up to $30,000 each”, the story said.

    In October, The Australian ran a story ‘Backlog of births, death records prone to identity theft’, detailing the possible prevalence of these instances of ID Theft. It told of data processing backlogs at some government birth, deaths and marriages registries that have left the door open for fraudsters to assume the identities of dead Australians.

    The fixing of the identity loophole had been delayed by a dispute with developer UXC, whose contract with the NSW Registry was terminated in 2009. The registry said it had received $2.9 million in damages as a result.

    A new contract had now been negotiated with Objective Consulting for $11.4m, with the first release of a new registry due in June next year.

    Queensland too is yet to digitise its birth, death and marriages records to enable automatic cross-checking between births and deaths data.

    “The project is currently in the final stages of contract negotiation with digitisation currently scheduled to run from early 2012 to 2014,” a Queensland Births, Deaths and Marriages Registry spokeswoman said.

    Queensland’s 2009-10 budget had allocated $20.8m for digitisation of records.

    The spokeswoman said when digitised, its operators would be required to complete an electronic search of Queensland death records before releasing a birth certificate.

    Software developer John Doolan, who has worked with birth, deaths and marriages registries across the Australian eastern seaboard for more than 20 years, said the enormous backlog in unmatched birth and death records was a headache.

    “We are aware of cases of false identities that have been created and stolen,” said Mr Doolan, the chief executive of KE Software, which has different versions of its software operating in Queensland, NSW, Victoria and Tasmania.

    The ability of a person involved in immigration fraud, tax evasion, social security rorts and even terrorism to obtain a legitimate birth certificate by using a dead person’s identity is still possible at these registries.

    While states are rushing to digitise this process, relatives should be aware of how a deceased person’s personal information could be compromised, and act quickly to protect their  credit file and good name in death.

    – Relatives can start by obtaining several copies of their loved one’s death certificate, and providing one to each credit reporting agency in Australia. The credit reporting agency can then ‘flag’ the credit file so that no future credit is issued in that name.

    – Also pay particular attention to how much information is given away in the obituary. As in life, in death, personal information is a valuable commodity. Restrict the publication of any details which could allow fraudsters to piece together details to create a false identity.

    – It is also important to provide a death certificate to financial institutions and notify all other credit facilities of the death, particularly where joint accounts may be involved. This could prevent the other person attached to the joint account of the deceased having their clear credit file compromised by possible identity theft.

    If fraudsters gain access to someone’s good name – living or dead they may be able to drain bank accounts, or open new lines of credit in the person’s name.

    Often people don’t find out about the identity fraud until they attempt to take out credit and then find out they have a bad credit score due to a series of defaults they have no knowledge of. It was reported that in the case heard by the Sydney courts, the names of the deceased were used to create false Medicare cards, birth certificates, drivers’ licences, bank accounts and credit cards. Forged documentation and identities were sold to criminals, including members of the Lone Wolf bikie gang, so they could apply for passports.

    Any kind of credit account (from mortgages and credit cards through to mobile phone accounts) which remains unpaid past 60 days can be listed as a default by creditors on the victim’s credit rating, and those defaults remain there for 5 years.

    Relatives left with the task of trying to repair the credit file of their deceased, particularly the credit files of joint account owners can find the task a difficult one. To restore the clear credit file the identity theft victim needs to prove to creditors they did not initiate the credit. Not only are victims generally required to produce police reports, but large amounts of documentary evidence to substantiate to creditors the case of identity theft.

    If people need help credit rebuilding and restoring credit activeness following identity theft, please contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit the main website www.mycra.com.au

    Credit rebuilding is not easy for anyone to undertake themselves, particularly those who are facing grief. Many times when restoring credit individuals will be told that listings can be marked as paid, but this does not give the victim a clear credit file.

    Using a credit repairer skilled in credit reporting legislation will help to enforce rules creditors are bound to comply with, and coupled with negotiations will ensure the best chance at a clear credit file.

    Image: Arvind Balaraman / FreeDigitalPhotos.net

     

     

  • Home owners with credit file defaults forking out $15,000 more in interest

    Australians who are living with defaults on their credit file could potentially be hit with a whopping $15,046.57 or more in additional home loan repayments over the first three years of their loan if they are lucky enough to get one.

    Although this week’s predicted 0.25 per cent interest rate cut did not occur, each previous one had the potential to pass on a saving of around $50 per month to the average householder for a mortgage of $300,000 if the full amount was passed on.

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

    But for those Australians who are living with credit rating defaults, last year’s interest rates cuts, and any which are predicted in the near future will be negligible.

    Our calculations show families with a $300,000 loan who are unlucky to have defaults on their credit file for 5 years, who are able to secure a loan with a non-conforming lender will be paying a staggering $417.96 more per month in interest rates.

    We talk about massive savings for the average Australian with these cuts, we talk about encouraging people to switch lenders, but this is not a reality for people with defaults. Most banks won’t lend them money, forcing them into non-conforming loans and paying top dollar because their credit file shows they are a bad risk – and it may not be true.

    It is a fact in our experience that there are many families living with unfair defaults.

    It is not known for sure how many of the over 14 million credit files in Australia could contain errors or inconsistencies.

    The possible volume of errors on Australian credit files was exposed by a small scale study conducted in 2004 by the Australian Consumer Association (now Choice Magazine). It revealed about 30% of credit files were likely to contain errors.

    “In our view, there are serious, systematic flaws which are leaving an increasing number of Australian consumers vulnerable to defamation, mis-matching and harassment,” the ACA report said.

    Transferring those figures from the Choice study to the number of credit files in Australia today, could take the figures to over 4  million errors, inconsistencies or flaws.

    Recently Channel 7’s Today Tonight interviewed Veda Advantage’s Head of External Relations, Chris Gration on the possible number of errors on credit reports. He admitted errors within their system alone amounted to 1%.

    “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.

    We feel based on the ACA study and the Choice survey that the real figure across the board is likely to be in the middle somewhere – much higher than 1%. With 14.6 million Australian Veda Advantage credit files alone 1 per cent of errors amounts to 140,000 Australians’ financial lives potentially in ruins through no fault of their own.

    Under current credit reporting legislation, it is up to the consumer to check for errors. Credit file holders are able to obtain a copy of their credit report from one or more of Australia’s credit reporting agencies for free every 12 months.

    Unfortunately consumers are often not aware across the board of their responsibility to check the accuracy of their own credit file, so many errors go undetected.

    Errors do occur, but often it is not until people apply for a loan that they learn they have an adverse listing on their credit file, but by then it is too late to correct errors and they are generally refused credit or forced to take on non-conforming loans at sky-high interest rates to secure the home.

    When disputing any adverse listing, it is up to the credit file holder to provide reason as to why the creditor has not complied with legislation.

    Unfortunately many people find this process difficult at best – negotiating with creditors is not always easy for the individual to undertake.  Our job as credit repairers is to 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, at which time we advise the creditor to remove the default.

    If you want a home loan, or to re-finance, but are weighed down by credit rating defaults, contact us to see how we can repair credit fast.

    Image: renjith krishnan / FreeDigitalPhotos.net

    Image: digitalart / FreeDigitalPhotos.net

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • As confidence returns, home buyers need to fix credit problems

    Good news may be on the horizon for the Aussie mortgage market. Mortgage sales for January 2012 have revealed a significant return in confidence for home buyers. But with that renewed confidence should come a forewarning for home buyers about how to make the most of preparations of savings records, wages and stability through matching it with a credit ‘clean up’ for easier finance approval.

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

    According to AFG (Australian Financial Group), mortgage sales for January 2012 have soared above figures for last year. It released its AFG Mortgage Index last week in which it showed national mortgage sales increased by 40% this January compared to last year. AFG says the changes mark a return to more normal trading levels.

    Sales in Queensland were up 80.6% and in South Australia 84.5%, with other states showing significant uplifts compared to January 2010 ? WA (+ 37.4%), Vic (+25%), NSW (+14.5%).

    January also saw WA take over from NSW as the most popular state for First Home Buyers. Almost one in five new mortgages (19.1%) in WA was arranged for First Home Buyers compared to 14.0% in NSW. Through the second half of last year, NSW led the country as the most active First Home Buyers market.

    However NSW retains its position as the most popular state for investment, with 40.2% of loans there arranged for investment purposes, compared to 36.8% in Victoria, 34.9% in Queensland, 32.6% in Western Australia and 32.0% in South Australia.

    Although confidence might have returned, there will still be a significant number of home buyers who fail to realise their home ownership dreams due to a bad credit report. It is estimated there are approximately 3.47 million Australians who have a bad credit rating (negative listings on their credit file). (Veda November 2008).

    As credit repairers, we meet many people who seek help to fix credit problems, and astoundingly, many of those people should qualify for a home loan. It may surprise people to know that many prospective borrowers we see have significant savings records, or even currently own property and have good income. They can be knocked back for finance by a bad credit history that should not be there.

    Do you need a credit clean up?

    Many credit files contain errors or inconsistencies due to simple human error from creditors, or from creditors simply not complying with credit reporting legislation. Often it is not until people apply for a home loan that they find out about them. Even if people already own property, they can be banned from refinancing, investing, or from upgrading their home due to credit rating defaults or other credit file problems.

    Any negative listing – from defaults, to Judgments and even excess credit enquiries will stop most people from getting a home loan in this market, or force them into a high-interest loan, costing them thousands more in interest.

    Negative listings remain on a person’s credit file for 5 -7 years, depending on the listing type. These black marks can show up for outstanding bills as low as $100.

    Credit file errors

    A survey by Choice Magazine as far back as 2004 points to approximately 30% of the credit files in the survey likely to contain errors. That’s a staggering amount of credit file errors potentially out there.

    Recently Channel 7’s Today Tonight interviewed Veda Advantage’s Head of External Relations, Chris Gration on the possible number of errors on credit reports. He admitted errors within their system alone amounted to 1%.

    “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.

    Even if as little as 1 per cent of those 14 million credit files contained errors, that would still currently leave 140,000 credit files in Australia containing errors that just shouldn’t be there.

    The nature of credit reporting is that there is much opportunity for human error and these errors are usually not uncovered until people go about checking their credit file. Often people are unaware of their responsibility to maintain the accuracy of their own credit file – and so they don’t find out about their credit issues until they apply for a home loan.

    Then, once people find problems with their credit file – they often find the process of removal of errors from their credit report difficult.

    What is the best way to fix credit problems?

    Current legislation does allow people to have inconsistencies removed from their credit file, but in reality many people are not successful when they attempt to fix it themselves.

    Often it is because they are not schooled enough in the legislation or can’t devote the necessary time to it to ensure a successful credit repair. Sometimes people who attempt to fix credit problems themselves can do more harm than good through lack of knowledge, or difficulty in negotiating with creditors or by alerting them too early to mistakes on the credit file.

    A borrower’s credit file is one of the key factors to home loan approval. People should not underestimate this factor.

    Make it right with a credit file check and credit clean up before you apply for a home loan

    It is important to get it right, and the onus is on the credit file holder to maintain its accuracy. House hunters can and should request a free copy of their credit file every year from one or more of the credit reporting agencies such as Veda Advantage, Dun and Bradstreet or Tasmanian Collection Services (TASCOL) if Tasmanian.

    A free copy of their credit report will be mailed to them within 10 working days. A creditor may have place a negative listing with all or one of these credit reporting agencies. If there are any inconsistencies, they should seek a reputable credit repairer for a credit clean up.

    ABS Statistics differ

    AFG statistics are currently projecting significantly more confidence than the latest data from Australian Bureau of Statistics figures shows, particularly in Queensland.

    The November Lending Finance Statistics show the number of owner occupied housing commitments in Queensland stayed flat in October to November, recording a 0.0% change in Queensland.

    We will watch avidly to see if data from AFG matches with the ABS’ review of January housing finance and lending statisitcs due out in March.

    For brokers, agents and property owners – rising mortgage rates in many states and particularly in post-flood ravaged Queensland, would be very good news indeed.

    Image: Danilo Rizzuti/ FreeDigitalPhotos.net

  • Helping clients save money through credit repair

    As brokers we are continually faced with meeting clients whose credit report lets them down. These clients stack up financially on all levels…until that last minute credit check reveals they have an adverse listing on their credit file.

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

    Many brokers who come across clients with a bad credit rating either turn them away or if they are otherwise suitable for finance, guide them into a more flexible non-conforming loan.

    But many brokers may be surprised to know it can be cheaper for the client to undergo credit repair  – and if the client identifies errors or inconsistencies in their credit report – it could ethically be the best option for the client.

    For instance, let’s calculate the figures on an average loan of $400,000 over 30 years, comparing non-conforming loan interest rate of 9.5% with a standard variable rate of 7%. The client would be paying a staggering $702.71 per month with non-conforming loan interest rates. They will be hit with $22,867.15 more in home loan repayments over the first three years of the loan.

    Credit repair would not be suitable for those people who demonstrate an inability to make repayments. But as credit repairers many times we find the client has errors on their credit report, or the listing is unjust – and that we can rectify. Often we can determine that the file can be completely cleared, allowing the client access to a whole range of loans they were previously unsuitable for.

    The popularity of credit repairers is due to a large volume of errors made by creditors on credit files, and a system of redress which is often difficult for the credit file holder to navigate.

    The number of errors on credit files in Australia is astounding. Many of our clients thought they had impeccable repayment histories and would have never dreamed they would end up with a default. Let me tell you mistakes do often happen. Sometimes simple human error by the creditor leads to defaults incorrectly listed.

    Whilst paying bills on time is the best way to ensure a clear credit file, it does not guarantee a clear credit report.

    Statistics released by the Australian Consumer Association (now Choice Magazine) from a study conducted in 2004 showed around 34% of the clients surveyed had credit files which potentially contained errors in some way.

    Recently Channel 7’s Today Tonight interviewed Veda Advantage’s Head of External Relations, Chris Gration on the possible number of errors on credit reports. He admitted errors within their system alone amounted to 1%.

    “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.

    Even if as little as 1 per cent of those 14 million credit files contained errors, that would still currently leave 140,000 credit files in Australia containing errors that just shouldn’t be there.

    The nature of credit reporting is that there is much opportunity for human error and these errors are usually not uncovered until people go about checking their credit file. Often people are unaware of their responsibility to maintain the accuracy of their own credit file – and so they don’t find out about their credit issues until they apply for a home loan.
    Then, once people find problems with their credit file – they often find the process of removal of errors from their credit report difficult.

    Current legislation does allow people to have inconsistencies removed from their credit file, but in reality many people are not successful when they attempt to fix it themselves. Often it is because they are not schooled enough in the legislation or can’t devote the necessary time to it to ensure a successful credit repair. Sometimes people who attempt default removal themselves can do more harm than good through lack of knowledge, or difficulty in negotiating with creditors.

    One thing brokers can do to encourage a better transaction is to refer clients to us to have their credit checked prior to applying for finance. They can take advantage of their yearly free credit file check, which would uncover any problems with the credit file prior to finance application, and ensure the client is in the best possible position for qualifying for a loan. Plus a client does not generate a credit enquiry when they request a copy of their own credit file.

    Brokers can also potentially save thousands in lost commission by helping those that may otherwise be turned away to get a clear credit file.

    Once the credit file is repaired the client is then passed back to the referring broker to be fitted to the loan of their choice.

    For more information for brokers on the benefits of referring clients, contact MyCRA Credit Repairs or call tollfree 1300 667 218.

  • Safer Internet Day February 7 2012: be cyber-smart for a future clear credit file

    How to be cybersmart – that’s an important topic. On February 7, Australians have the opportunity to raise awareness as to how children and parents alike can be smart on the internet. This is essential for many reasons, one of which is to preserve our personal information, our financial identities and our clear credit file. Cyber-smart are hosting ‘Safer Internet Day’ with this year’s theme, ‘connecting generations and educating each other’, focusing on promoting a dialogue on online safety amongst all generations.

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

    Cybersmart’s key messages for schools, libraries and families this Safer Internet Day are:
    •Talk about online safety—with all members of your family and school community
    •Protect Your Privacy—check your privacy settings and update your software
    •Educate yourself about the online world—check out the Cybersmart resources.

    How can a young person’s clear credit file be put at risk from their internet use?

    Our young people need to be cyber-smart and also, young people need to be credit-savvy to get along in this modern world.

    One issue we wish to highlight to help young people stay smart online is for them to be aware of the ways in which they can be putting their clear credit file at risk every time they post information publicly on the internet, even before they are credit-active.

    It’s unfortunate that teenagers in Australia today are not immune to identity fraud. Even though they are not yet 18, the personal information that is made public today could be used against them in the future.

    Many teenagers do not know the risks of having a public ‘profile’ on sites like Facebook and Twitter, but fraudsters do. With the volume of personal information that is publicly available about our young people on social network sites, what’s to say fraudsters can’t pull that information and use it to build a profile that could allow them to create a fake identity?

    A young person who becomes the vicitm of identity theft could have their clear credit file ruined for five years. They may not even get a chance to get a mobile phone or take out a credit card themselves.

    Late last year, the Australian Federal Police’s national co-ordinator of identity security strike team, Ben McQuillan spoke about the dangers of identity crime at a forum on money laundering and terrorism.

    He warned forum listeners about the new trend of ‘data warehousing’ which involves storing data for a time, making it harder for a victim or bank to trace where and when the data was stolen.

    ”If people know your full name, your date of birth, where you went to school and other lifestyle issues, and they were to warehouse that data, there is a prospect that could then be used to take out loans or credit cards or to create a bank account that could then be used to launder money,” Mr McQuillan told the Sydney Morning Herald.

    Identity theft  is not only about the initial loss of monies, but if the fraud amounts to credit accounts in the young victim’s name going undetected and unpaid past 60 days, creditors will issue defaults. It need not be major fraud to have a detrimental effect to the young person’s clear credit file. Credit file defaults for as little as $100 can stop someone from being able to obtain credit. So any misuse of someone’s credit file can be extremely significant.

    Repairing bad credit, even following identity theft is not easy. The onus is on the victim to prove to creditors they didn’t initiate the credit. The fact that the perpetrator is long gone and the actual act of identity theft happened years earlier will only add to the difficulty for the young person in recovering their clear credit file.

    Experts recommend parents and young people continue to update their skills on how to be cyber-smart.

    The government’s ‘stay smart online’ website offers some top tips about using the internet which can be discussed with young people at home and school:

    Top tips

    Make sure your computer is secure—follow the advice in the Secure your computer section of this [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”][stay smart online] website.

    Set strong passwords, particularly for important online accounts and change them regularly—consider making a diary entry to remind yourself.

    Stop and think before you share any personal or financial information—about you, your friends or family. Don’t disclose identity information (drivers licence, Medicare No, birth date, address) through email or online unless you have initiated the contact and you know the other person involved.

    Don’t give your email address out without needing to. Think about why you are providing it, what the benefit is for you and whether it will mean you are sent emails you don’t want.

    Be very suspicious of emails from people you don’t know, particularly if they promise you money, good health or a solution to all your problems. The same applies for websites. Remember, anything that looks too good to be true usually is.

    Limit the amount and type of identity information you post on social networking sites. Don’t put sensitive, private or confidential information on your public profile.

    When shopping online use a secure payment method such as PayPal, BPay, or your credit card. Avoid money transfers and direct debit, as these can be open to abuse. Never send your bank or credit card details via email.

    When using a public computer, don’t submit or access any sensitive information online. Public computers may have a keystroke logger installed which can capture your password, credit card number and bank details.

    We encourage anyone who is interested in protecting their identity and their clear credit file whilst online to visit the stay smart online website regularly, and if people have children, the Cybersmart website is essential reading for both the young person and parent.

    Get involved in the Safer Internet Day, and help educate someone you know about online safety.

    If you require further information about maintaining a clear credit file or repairing bad credit, visit our main site www.mycra.com.au or call us tollfree on 1300 667 218.

    Image: imagerymajestic/ FreeDigitalphotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • MyCRA clients tell their stories: Telco mistakes threatening home ownership

    Two of our credit repair clients share their stories on how their good credit rating suffered at the hands of Telco mix-ups. Their stories demonstrate how bill and service disputes can be difficult for customers to resolve, and can ultimately lead to a bad credit rating.

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

    DANIEL

    A NSW client, Daniel and his young family were shocked when they applied for a home loan last year to find they were refused due to a whopping $8,000 debt and five years of bad credit when a botched phone plan with Telstra in 2006 came back to haunt them.

    Daniel was told by the lender there was no way he would be given a home loan with a black mark against his name – a mark Daniel says was a huge mistake.

    “I was on a 10MB plan initially, but wanted to start using the internet from my phone. I contacted Telstra to get upgraded to 1GB, which the operator agreed to. It wasn’t until I got the bill for $4,000 that I saw the operator hadn’t changed the data allowance and I was still on 10MB,” he explains.

    Daniel says he spent more than 3 months in contact with Telstra attempting to resolve the problem, and was passed on from one person to another.

    “All the operators said they didn’t have the authority to remove this bill or change it. No one was willing to help they all just kept passing me around operators which lead to hours on end being caught up on the phone without getting answers,” he says.

    “After a few months they disconnected my phone, but I had no idea they had referred the debt to a collection agency, and banned me from credit for 5 years.”

    Thousands of Telco customers are living with negative listings on their credit file that just shouldn’t be there, and this should serve as a warning to all credit active individuals to check the accuracy of their own credit rating.

    Consumers need to know that mistakes do happen for a variety of reasons, and often it is not until people apply for credit in a separate instance that they find out – by then it is too late.

    An annual report released November last year by the Telecommunications Industry Ombudsman (TIO) reporting on the number and nature of consumer complaints in the 2010-11 year, revealed a staggering 18 per cent increase in complaints from the previous year.

    The TIO report attributes the rise in complaints to them to mobile phone service faults and increased smart phones use.

    “The record number of complaints made to the TIO is disappointing. Customers who have complained to us have been frustrated not only by mobile telephone problems, but also by deficient customer service and complaint handling,” Ombudsman Simon Cohen said.

    Daniel says trying to get the mistake fixed up and rebuild his credit file himself, was problematic.

    “I tried to clear it with Baycorp, they told me if I paid the debt they would reduce it to $6,000 – which I did. Unfortunately that didn’t clear my credit file, it was only marked as ‘paid’ and was no use to me getting a home loan,” he says.

    Many people have trouble resolving errors themselves, because they aren’t familiar with the legislation and find it difficult to negotiate with creditors.

    Customers can often be given the run-around by creditors, and can find it difficult to apply the letter of the law to their own circumstances when they have no knowledge of what the rules are. Sometimes that can do their case more harm than good.

    Daniel’s case has since been resolved, and MyCRA Credit Repairs have been successful in recovering the $6,000 he paid out to Baycorp.

    “We’re relieved to be finally getting a home, but the whole thing has left us very disappointed in big corporations – you really don’t get looked after,” he says.

    BRENT

    Another client, Brent from Western Australia had a contract with provider, ‘3’ in 2009 that went badly.

    About 3 months into his phone contract, Brent experienced numerous problems with his phone, sending it to be repaired 3 times before requesting a replacement. He posted the phone back to Sydney and received a new phone.

    A month later Brent’s phone was barred, and he received a phone call from 3 stating that he owed $1200 for the phone which 3 said was never returned.

    Brent spent a few months dealing with 3 trying to track down the phone in their warehouse and the postal system, before they eventually located it.

    It wasn’t until he applied for a loan and was turned away that he found out 3 had placed a default on his credit file anyway, despite an agreement to put a note on the account so that the outstanding amount for the missing phone did not get referred to a debt collector.

    MyCRA Credit Repairs fought for Brent to have the default removed from his credit file.

    It is so important for people to cover themselves when resolving bill and service disputes with Telcos or any creditor for that matter.

    People should never assume mistakes are rectified until they have confirmation in writing from the company. If you have a problem with a bill or service, take extensive notes and names and request confirmation of all decisions and outcomes in writing.

    If people are worried about what may have been reported about them on their credit report, they are entitled to obtain a copy of their credit file for free from the credit reporting agencies in Australia once every 12 months.

    The report is mailed to the credit file holder within 10 working days. If consumers find errors, or listings which they believe are inaccurate or unjust they have the right to have them removed.

    For help with rebuilding a credit history and repairing your bad credit rating contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit the main website, www.mycra.com.au.

    Image: Stuart Miles / FreeDigitalPhotos.net

     

     

  • 5 things every young person needs to know about credit

    It’s back to school for most teenagers in Australia. Here is a lesson you might not learn there…Just because you currently aren’t credit active, does not mean you can’t learn about how to make credit work best for you when you are. We show you how the actions you take NOW could lead to being unable to get a phone, a home, a car in the future because of a surprise bad credit rating.

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

    We believe this important financial information should be taught in high schools across the country. So if you know a student or young adult, flick them this link or print this page. We want all young Australians to have the luxury of a clear credit rating when they turn 18 and beyond.

    1. What is a credit rating?

    Once you turn 18, and become ‘credit active’, a credit file is initiated in your name. This contains all financial information on you, including any credit you have taken out, the amount of credit, and any negative listings – like court Judgments, writs, bankruptcies, clear outs, and defaults. A default occurs when an account has not been paid more than 60 days, and the creditor (bank, telephone company, electricity company etc) places a record of this ‘default’ on your credit file to alert future creditors. A clear out is when the creditors are unable to get hold of you over late payments, agents have been sent to your house and they record this as a ‘clear out’. By accessing your credit file, a potential creditor can assess your credit rating, based on any negative listings which are present there.

    2. What happens to me if my credit file has negative listings on it?

    Generally, a negative listing on your credit file tells banks or other people you might want to borrow money or services from, that you have had problems repaying credit in the past. They will most often decide that you are a bad ‘risk’ to lend money to, and will refuse you the car, money, credit card, electricity account or mobile phone plan.

    A negative listing stays on your credit file for 5-7 years, depending on the listing and ‘drops off’ after this time. A negative listing will affect you for the entire time it is present on your credit file. You need to ask yourself: what do I want to be doing in 5 years????

    3. How do I end up with a negative listing on my credit file?

    It is estimated there are approximately 3.47 million Australians with negative entries on their credit file. (Veda Advantage 2008).
    The most common negative listing is a default. This is put there when you don’t pay your bills on time.
    But there are other reasons why you could have a negative listing, which are not always completely your fault.

    Change of address. Sometimes people move and their mail continues to be sent to the old address. This is a really common scenario, particularly for young people who tend to move around a lot, or go overseas. The problem is – you don’t know your bills are late and don’t know you are being defaulted. It is important to update contact information regularly with anyone you have taken credit out with. No news is not good news!!!

    Identity theft. Sometimes people’s personal information can be used for purposes of fraud – for crooks to construct a fake identity, and use it to take out credit. The thing is, they are using your name so you are the one that ends up with the bad credit rating, and it can be a nightmare to recover the good credit rating you once had.

    It is important to keep all your personal information as secure as possible. One important change you can make right now, is to change the way you use the internet.

    Keep your passwords and social networking settings as strong as possible.

    The information you post today, could come back to haunt you in a big way.

    There are reports from Australian Federal Police of the likelihood of crooks scrolling through thousands of social networking pages looking for personal information from young people – who usually have the most lax privacy settings. That information is not used right away, but the data is ‘warehoused’ until the young people turn 18. They can then use that information to construct a fake identity (identity theft) and go on a ‘spending spree’ with the young person’s clean credit file. You could be ruined by identity theft before you even take out your first piece of credit yourself.

    Share accommodation. Any accounts which have your name on them, regardless of who intends to pay them are your responsibility – this includes rent. Sometimes people get caught out sharing houses, and someone leaves bills unpaid which then have dire consequences for your future.

    Mistakes. Sometimes mistakes happen. The wrong person gets the bad credit rating. The wrong details get put in the computer. Creditors are human. Don’t let a mistake affect your credit file.

    Too many credit enquiries. Only apply for credit you feel you have a very good chance of being approved for, and only apply for credit you have full intention of pursuing. Sometimes too many credit queries are enough to get you declined for credit.

    4. How do I know what is said about me on my credit file?

    Many people don’t know this, but it is so important for everyone to keep track of the accuracy of your own credit file. To avoid the disappointment and embarrassment of finding out about your bad credit rating only after being declined credit, we recommend you check your credit file every 12 months to ensure there are no black marks against your name, just as you would check your bank statements or your super account.

    You can request a copy of your credit file for free from the major credit reporting agencies – Veda Advantage, Dun & Bradstreet, or Tasmanian Collection Services (if you are Tasmanian). Your credit report will be provided within 10 working days – or for a fee it can be provided urgently.

    5. What do I do if something is not right – there are errors on my credit report?

    Don’t put up with any errors or inconsistencies on your credit report – a clear credit rating is your ticket to financial freedom.

    Most times a credit reporting agency will tell you that defaults are never removed, but can be marked as paid. You are then stuck with a dodgy credit rating for 5 years. But you shouldn’t have to put up with it, as it is possible to have many defaults removed.

    If there are errors, inconsistencies, or the listing should not be there, you do have the right to have it removed. The best course of action is to ask for help from a credit rating repairer. They can then use their knowledge of credit reporting legislation to see where any errors in credit reporting were made, and help to enforce the legislation that creditors are bound to comply with. If they are successful, you not only get help with removing credit file errors, but many times you are able to start off with a completely clean credit rating. You have a clean slate and can go for any credit you need.

    For more information contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit the main website.

    Image: imagerymajestic / Freedigitalphotos.net

    Image: David Castillo Dominici / Freedigitalphotos.net

  • Gamers need to know identity theft risks

    The massive increase in gaming popularity comes with a price, as gamers unknowingly expose themselves more and more to identity theft. The cyber-crime world is alert to any potential places where personal information can be extracted easily and used to steal money, identities, and ultimately take advantage of good credit ratings.

    By GRAHAM DOESSEL Founder and CEO of MyCRA Credit Repairs and www.fixmybadcredit.com.au.

    We like to alert readers to any places where their personal information may be at risk.

    Recently, a security expert, Michael Sentonas warned ABC’s gaming readers of the need to keep their personal information safe. In the article ‘Cyber threats a reality in online gaming.’ One area of threat he identifies is data breach. He says the Sony Playstation data breach was a major example of how gamer’s personal information can easily be compromised.

    Sony Australia confirmed in April last year that the personal information of all PlayStation Network account holders worldwide had fallen into the wrong hands. All users were at grave risk of identity theft with the hackers having access to all names, addresses, email addresses, birthdates, usernames, passwords, logins, security questions and more. The NSW Police fraud squad said it was enough information for the hackers to even take out loans on the vicitms’ behalf. Luckily, there were no Australian cases of credit card or identity fraud eventuating from the attack.

    Aside from data breaches, Sentonas pinpoints some of the ways individual gamers can be put at risk:

    “Gamers who mainly engage in massively multiplayer online role-playing games (MMORPG) such as World of Warcraft, Guild Wars 2 and Final Fantasy XIV and social networking games via Facebook have several common threats to watch out for including gold keylogging, phishing and gaming bots.

    Gold keylogging aims to steal “gold” (the currency and valuables a gamer accumulates within a game) and often manifests itself as a Trojan disguising itself as a normal application. A keylogging Trojan tracks the keys typed on a keyboard while the person using the keyboard is unaware. This allows the hacker to obtain your login and password information. A keylogging virus fulfils the same aim however it is designed to replicate itself and spread from computer to computer.

    Phishing on the other hand is a much more direct form of cybercrime that occurs via email or instant messaging. The email or instant message looks identical to the game’s official service and will pop up during a game or appear in your email inbox for example. Phishers attempt to acquire people’s personal information, such as banking details or logins and passwords. They pretend to be an honest business distributing an apparently official electronic communication. A typical phishing email asks you to ‘renew your registration / account’. Reputable businesses will not send you random emails or pop ups asking for your personal or financial information.

    While gaming bots may not be a direct cyber threat in terms of stealing personal information or attacking bank accounts, they have a clear advantage over real life players in online gaming. Most bots usually play with far higher accuracy than most real life players which essentially constitutes cheating. Players also use gaming bots to control their character while they are away from their computer or console. This allows them to keep the account running to enable the player to accumulate money, objects and experience without having to be in front of the screen,” Sentonas says.

    He also warns about the security threats ensuing from mobile devices, which are virtual portable PC’s, at risk of the same if not more security threats than people’s actual computer. Sentonas explains how gamers can be at risk from their smartphone:

    “Users should mainly be looking out for malicious mobile apps and games. Some apps are specifically designed with malicious components to secretly track users’ phone calls, text messages and emails to gather potentially sensitive data. Dangerous apps are usually offered for free and masquerade as fun applications. For example, last year 4.6 million Android smartphone users downloaded a suspicious wallpaper app that collected and transmitted user data to a site in China,” he says.

    He recommends a couple of vital ways gamers can protect themselves against these threats. Gamers should only install apps and games from official stores from their platforms of choice. He also says a little research such as reading user reviews and checking into the developer would go a long way in protecting against identity theft.

    “To help protect your disc-based games, we recommend making reliable backup copies of your saved games (using a USB flash drive) to protect your investment. Avoid storing personal information on the gaming device and consider using security software that protects PCs, tablets and smartphones as well. If children play online games, we recommend parents educate their children to not play with strangers over the internet. Parents should also consider activity-monitoring tools and utilising built-in parental controls,” Sentonas says.

    The threats and ramifications of identity theft are real and debilitating. Currently it is the fastest growing crime in Australia, with 1 in 6 people reporting being affected by it. If credit is taken out by fraudsters in the victim’s name, they can end up with their bank accounts emptied or at worse, defaults on their credit file – and this is not easy to recover from. First the victim has to prove they didn’t initiate the credit themselves. This would require documentary evidence and Police reports. But the identity theft victim would be virtually banned from obtaining credit until they are able to wade through the mess that has been created for them on their credit report, and clear their good name.

    For help with credit repair following identity theft, contact MyCRA Credit Repairs on 1300 667 218 or visit our main website www.mycra.com.au.

    Image: David Castillo Dominici/ Freedigitalphotos.net

  • How to prevent identity theft and keep your clean credit rating

    Identity theft is an ever-increasing cause of a bad credit rating. We answer some of the most common questions people have about identity crime and explain how it can affect your credit file. By GRAHAM DOESSEL CEO of MyCRA Credit Repairs and www.fixmybadcredit.com.au.

    8 Most Common Questions about Identity Crime Answered

    1. Who is affected by identity crime?

    It is reported that 1 in 6 people in Australia is a victim or knows someone who has been a victim of identity theft or fraud in the past 6 months.

    Victims are not always ‘gullible’ as may be the impression in the wider community. Many experts say it is not a matter of if you experience an identity theft attempt, but when.

    2. Who commits identity theft or fraud?

    It can originate from someone you know – for example an acquaintance obtains identity documents or credit card details to impersonate you. Or more increasingly it comes from professional fraudsters whose main occupation is to steal personal information and financial details in order to commit fraud.

    3. Where does identity theft originate?

    Fraudsters are after your personal information. The internet is a big source of personal information and its ever increasing use makes you more vulnerable to identity crime than ever. This means identity crime can have very long arms – often it originates from overseas crime syndicates. Social networking, online banking, company databases and email scams can all be havens for today’s cyber- criminal.

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

    4. Why is identity theft increasing?

    The pay-offs are huge for criminals. It is estimated identity crime costs Australians $1 billion a year.* In cyber circles alone, world estimated costs for cybercrime are staggering.

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

    “Traditional bank robbers must be absolutely gobsmacked when they hear sums like this being hoovered up by cyber-criminals week in, week out,” he says.

    5. How can I be affected by identity crime?

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

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

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

    If credit accounts are not repaid – after 60 days you may be issued with written notification of non-payment and the intention for the creditor to list a default on your credit file. It is at this moment that some people who were previously unaware of any problems find out they have been victims of this more sophisticated type of identity theft.

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

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

    Some signs to watch out for include:

    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.

    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.

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

    Credit refusal

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

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

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

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

    Notify creditors. You may need to cancel credit accounts.

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

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

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

    8. What steps can I take to prevent identity theft?

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

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

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

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

    – Cross-shred all personally identifiable information which you no longer need.

    – Buy a safe for your personal information at home.

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

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

    – Keep up to date with the latest scams by subscribing to the government’s ‘SCAM watch’ website. For a list of ways your computer can put you at risk, visit the governments Stay Smart Online website www.staysmartonline.gov.au.

    – Check your credit file regularly.

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

    * OECD Committee on Consumer Policy, Online Identity Theft, February 2009, p. 37

    Image: Salvatore Vuono / FreeDigitalPhotos.net

  • Australia still one of most unaffordable places to live?

    A housing survey reveals Australia as completely unaffordable…so how come so many people are so eager to fix their bad credit report and get in to the property market in Australia?

    By GRAHAM DOESSEL CEO of MyCRA Credit Repairs and www.fixmybadcredit.com.au.

    The Demographia International Housing Affordability Survey has continued to place Australia amongst its most unaffordable places to live, with our country held as the second most unaffordable housing market.

    325 urban markets were featured in the survey, from the United States, UK, Canada, Australia, Ireland, New Zealand and Hong Kong. It rates housing affordability, based on the Median Multiple – that is, the median house price divided by the gross annual median household income of specific urban markets, for the 3rd Quarter of the previous year.

    Featured in Broker News, the survey pinpointed Sydney as the third costliest city in the world – dropping it one spot from last year.

    But overall affordability is still looking grim for Australia on a world scale, according to Demographia.

    “While Hong Kong is the most severely unaffordable housing at a staggering 12.6 Median Multiple (the highest ever recorded within the history of the Surveys) – Australia with its abundant land supply has the most pervasive housing affordability problem (5.6 MM); followed by New Zealand with a small population of just 4.4 million (5.2 MM); the United Kingdom (5.1 MM); Canada (3.5 MM); Ireland with its housing bubble collapsing (3.4 MM) while the United States overall is affordable (3.0 MM),” Demographia says.

    Australia’s national unaffordability ratio came down from 6.1 times in 2010 to the still ”severely unaffordable” ratio of 5.6 times. They claim reduced house prices helped slightly improve the rating.

    So are we struggling to keep our heads above water in this country? That point is interesting.

    Certainly our homes are expensive, and it is a struggle for many people to break in to the housing market. Coupled with the tight lending criteria of banks, including requiring a squeaky clean credit rating, who could be blamed for thinking we live in a very unaffordable country?

    The Australian Property Forum argues differently. It says the Demographia survey should be ‘debunked’ and is not an accurate reflection of Australia’s affordability scale:

    “But almost half a million families and individuals bought homes in Australia last year. So while housing may be unaffordable to some (has it ever been otherwise?) plenty of people do seem to be able to afford to buy houses. So how come so many people are buying houses in a country that Demographia claims to be completely unaffordable? APF says.

    APF says there are substantially different factors impacting the housing markets in each country:

    * Differences in tax rates and cost of living pressures across various countries make a comparison of spending power based on gross income meaningless.

    * A better measure of a household’s ability to afford property would be to consider household discretionary income and total wealth. This would include non-wage income (such as income from interest, shares or other investments), and wealth stored in other assets (such as shares or equity in existing property) that may be liquidated or borrowed against in order to fund a new property purchase

    * Rental income (and real income from any other investments including savings interest) should be included, along with any liquid assets or easily leveraged assets such as equity in existing property. The reality is that people can and do use those forms of wealth to buy property.

    * The official median house price figures that Demographia use for Australia are sourced from the Australian Bureau of Statistics. However these ABS figures only include freestanding houses. They don’t include units or townhouses, meaning that Demographia are overstating median house prices in Australia compared to the other countries assessed in their survey (countries where units and townhouses are included when calculating the median house price).

    So what is the real measure of affordability?

    I am sure millions would suggest housing is unaffordable for them, particularly in our capital cities where the dream of home ownership has become a distant memory for many first home buyers.

    But in reality, people are still managing to purchase.

    Every day, we see hundreds of people desperate to buy homes. Who CAN afford to buy, but who are held back not by affordability but by their bad credit history.

    I guess the truth lies somewhere in the middle.

    For more information on credit repair before buying a home, contact us on 1300 667 218 or visit the main site www.mycra.com.au.

    Image: vichie81 / FreeDigitalPhotos.net

     

  • Australia Day – New Australians left in the dark over credit system

    Media Release

    New Australians left in the dark over credit system

    24 January 2012
    Australia Day is the time when thousands of new Australians are welcomed into the country’s dynamic multi-cultural society, but a national credit repairer says the road to financial success in Australia can be a harsh one for new migrants.
    He says new Australians don’t get enough help to make the most of their finances, and to ensure they are never blacklisted once they become credit-active.
    MyCRA’s CEO, Graham Doessel says he deals first-hand with many new migrants who have struggled to come to terms with a credit system which is far different to the one they are used to, and ultimately their Australian credit rating can suffer.
    “I am seeing more new Australians caught out with the system here, being banned from new credit – can’t get a home or car loan and often from fairly small amounts in arrears on their credit accounts,” Mr Doessel says.
    Australia’s credit reporting system is fairly unique in the fact that it is currently a negative reporting system. There is no way of balancing out a bad credit report with good repayments, and any negative listing remains on a person’s credit file for 5-7 years.
    Once an individual is 18 and is credit-active, they have a credit file issued in their name. It is even at this early stage where some new migrants come unstuck. Sometimes in those early stages the credit file can be issued under the wrong name.
    “Creditors have been known to mix up names or put someone’s last name as their first name. This could potentially open up a can of worms in terms of correct listing,” he says.
    Creditors can also place a default on the wrong person’s file.
    “We have a case at the moment where a lady had a default listing placed on her file which was for a male with a similar name. It wasn’t until our client applied for a loan that she found out about the default placed on her file from someone else’s account,” he says.
    It is suggested that new Australians make a point of ensuring continuity with their name on any credit they take out and requesting changes to any bills or documentation which come back incorrect.
    They should also check their credit file to make sure everything reads correctly.
    “It’s actually not just new Aussies who are kept in the dark. Many Australian-born Aussies are unaware they should be checking their credit file regularly and that they can obtain a credit report for free every 12 months,” Mr Doessel says.
    Many people are unaware that once an account goes past 60 days in arrears, it will be listed as a default on the person’s credit file for 5 years.
    A common reason people can have defaults go unnoticed is after they move house or when they go overseas for extended holidays. They fail to divert their mail, and do not receive the written notification of either the late account, or the creditor’s intention to list the late payment as a default on the person’s credit file.
    “Identity theft is a major problem in this country, and many new migrants are not aware of the frequency of attacks, or the need to safeguard their personal information. They end up with their identities stolen, and credit taken out in their name,” Mr Doessel says.
    Sometimes migrants can become victims of identity theft before they even get on the plane. In December, 2010 Immigration Minister, Chris Bowen warned new migrants of online scams that often leave them without a visa and at a loss for the money they have spent. (2)
    “It is vital that people are aware of fraudsters’ tricks before handing over money for immigration assistance which is never provided,” Mr Bowen said.
    Mr Doessel is offering new migrants free information on using credit in Australia, and how they can best keep their credit file clean. Contact info@mycra.com.au or call tollfree 1300 667 218 for more information.
    “We should use Australia Day to help our fellow Aussies, and raise awareness of the problems our new migrants face, so we can all experience financial success,” he says.
    /ENDS.
    Please contact:

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