MyCRA Specialist Credit Repair Lawyers

Tag: MyCRA Credit Rating Repairs

  • How Can You Prevent a Data Breach in Your Small Business?

    If we can learn anything from recent reports of more Australian cyber-crime victims, we must learn that personal information is so important to keep safe. Not only is today’s cyber-crook or scammer after your money – they are after the money you can borrow – through obtaining credit in your name. The recent arrests of seven Romanian people in Australia’s largest credit card data theft investigation in which those criminals had access to 500,000 Australian credit cards is a chilling reminder to all Australians that we are not immune to fraud and identity theft. The fact that these criminals were able to gain this information by hacking the databases of 100 Australian small businesses prompts us to look into what Australians can do to protect their customer information within their business network and keep their customer’s personal information and credit files safe.

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

    On Thursday, the Australian Federal Police announced in a joint release to the media, that they have arrested seven people in Romania in Australia’s largest credit card data theft investigation.

    The criminal syndicate had access to 500 000 Australian credit cards and approximately 30 000 credit cards have been used for fraudulent transactions amounting to more than $30 million…

    Stolen credit card data was being used to create false credit cards, enabling thousands of counterfeit transactions to be carried out in numerous overseas locations including Europe, Hong Kong, Australia and the United States.

    After the AFP identified the cause of the data compromise, the investigation grew to involve numerous international law enforcement partners and the Australian banking and finance sector also provided strong support…

    No Australian credit card holders lost money as a result of these fraudulent transactions. Australian financial institutions reimbursed the financial losses of cardholders…

    Abacus Australian Mutuals CEO Louise Petschler said today’s developments show that cyber crime is a global enterprise.

    “It underlines how a coordinated approach by law enforcement agencies, financial institutions, merchants and consumers can help fight card fraud. We all have a role to play to ensure credit card transactions are safe and secure,” Ms Petschler said.

    “Policing is only one part of the solution to stop data compromises – credit cards should be kept in a secure place, ATMS should be checked for any unusual attachments, personal details including PIN numbers should be protected, financial statements should be checked continuously, mail boxes should be secured and if possible, ‘chip and pin’ security implemented on credit cards,” Commander McEwen said.

    The ABC ran a story the same day on this issue, ‘Australian small businesses targetted by data theft syndicate.’

    It featured IT security expert, Nigel Phair from the Centre for Internet Safety at the University of Canberra. He says it proves that many small businesses are not taking data security seriously enough.

    While he’s surprised at the scale of the operation, Nigel Phair isn’t surprised Australia was a target.

    ”We are susceptible. We are a good economy, we are ripe for the picking for these international criminals,” Nigel Phair says.

    He says the issue for small businesses, is they spend next to no money on any IT security.

    He says it is relatively simple for criminals to get hold of those credit card details if a company doesn’t have any such security.

    “It really is a matter of just hacking into the organisation, finding where their credit card details are stored and then stealing them and then transacting them yourself, you know. And then the next question coming out of that is after you do a transaction with a small to medium enterprise, there’s no reason for them to retain your data,” he says.

    “In the small to medium category I would suggest most [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”][small businesses] aren’t adhering to it [best practice when it comes to credit card data].”

    Preventing Data Breaches in Small Businesses

    Following the introduction of amendments to Australia’s Privacy Laws in the form of the Privacy Amendments (Enhancing Privacy Protection) Bill 2012, there will be more protection for individuals in regards to their personal information.

    How this will flow through to small business procedures is still to be officially outlined, as they will be exempt from some of the new laws.

    Small businesses looking to comply as much as possible with best practice guidelines for personal information security right now, should consult the Privacy Commissioner’s guidelines, found on the OAIC website.

    The Privacy Commissioner, Timothy Pilgrim says appropriate security safeguards for personal information need to be considered across a range of areas. This could include maintaining physical security, computer and network security, communications security and personnel security. To meet their information security obligations, agencies and organisations should consider the following steps:

    • Risk assessment – Identifying the security risks to personal information held by the organisation and the consequences of a breach of security.

    • Privacy impact assessments – Evaluating, in a systemic way, the degree to which proposed or existing information systems align with good privacy practice and legal obligations.

    • Policy development – Developing a policy or range of policies that implement measures, practices and procedures to reduce the identified risks to information security.

    • Staff training – Training staff and managers in security and fraud awareness, practices and procedures and codes of conduct.

    • The appointment of a responsible person or position – Creating a designated position within the agency or organisation to deal with data breaches. This position could have responsibility for establishing policy and procedures, training staff, coordinating reviews and audits and investigating and responding to breaches.

    • Technology – Implementing privacy enhancing technologies to secure personal information held by the agency or organisation, including through such measures as access control, copy protection, intrusion detection, and robust encryption.

    • Monitoring and review – Monitoring compliance with the security policy, periodic assessments of new security risks and the adequacy of existing security measures, and ensuring that effective complaint handling procedures are in place.

    • Standards – Measuring performance against relevant Australian and international standards as a guide.

    • Appropriate contract management – Conducting appropriate due diligence where services (especially data storage services) are contracted, particularly in terms of the IT security policies and practices that the service provider has in place, and then monitoring compliance with these policies through periodic audits.

    He goes on to say that in in seeking to prevent data breaches, agencies and organisations should be considering their other privacy obligations to do with data collection and retention. Some breaches or risks of harm can be avoided or minimised by not collecting particular types of personal information or only keeping it for as long as necessary.

    Consider the following:

    •What personal information is it necessary to collect? – …“Personal information that is never collected, cannot be mishandled,” he says.

    • How long does the personal information need to be kept? –…”destruction or de-identification of information that this no longer required will usually be a reasonable step to prevent the loss or misuse of that information).”

    For a full and complete picture of the OAIC Privacy Guidelines, including the relevant Privacy Principles and obligations you may be subject to, we recommend you read the above information in its full context, in this article: the Office of the Australian Information Commissioner, Data breach notification: a guide to handling personal information security breaches – April 2012.

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

  • More Australians in dispute with their Creditor over financial difficulty

    Latest statistics from the Financial Ombudsman Service (FOS) indicates a rise in credit disputes and the primary driver for the upsurge according to FOS is financial difficulty. They say more people are making complaints to the Ombudsman about credit issues, and a significant portion of those credit complaints are made from people who say they are in financial difficulty. We look at what these statistics might mean, and the best course of action to take if you are having trouble making repayments on your loan.

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

    FOS released its 2011-2012 annual review of the disputes lodged against finance professionals, including mortgage brokers and loan providers recently, and the findings were published in the Australian Broker article ‘Home loan disputes contribute to FOS complaint surge’.

    The report shows that, in total, FOS accepted 25,298 disputes, up 24% on last year’s figures. Credit issues proved to be by far the most common dispute area with exactly half of all complaints (50%) accepted by FOS concerning credit. Of these, 92% related to consumer credit, including home loans.

    FOS says it believes the primary driver of this upsurge in credit disputes is a steep rise in the number of complaints lodged by people and small businesses in financial difficulty, which accounted for 54% of all credit disputes.

    “We received 8,659 financial difficulty disputes in 2011/12, up 42% on 2010/11…The continued rise in disputes about financial difficulty suggests that a growing number of Australians are struggling financially.”

    They also say that there appears to be an increasing awareness of FOS amongst the general public, which may also help to explain the rise.

    Most of the financial difficulty disputes, according to the FOS, related to consumer credit products – particularly home loans, credit cards and personal loans.

    So what could have happened in Australia to push this increase in complaints – and are more people in financial difficulty?

    It is difficult to get any concrete proof that more Australians are on struggle-street with their home loan. There are no statistics kept on the national scale of property repossessions for any given financial year on which to compare FOS’ findings to.

    But the Reserve Bank has seen it fit to make a number of rate cuts this year, which could indicate that property repossessions had been on the increase. This was certainly the case mid-year in the State of Western Australia, where the ABC reported in July, repossessions were at an all-time high. The WA Supreme Court handled 1,500 repossession applications last financial year.

    Likewise, in May this year, it was reported in the Sydney Morning Herald ‘Forced home sales rise as slowdown bites’ that the number of repossessions lodged in Victoria’s Supreme Court rose to 1696 in the 10 months to April this year.

    “If the pace is maintained, the tally will reach about 2035 for the 2011-12 year”, the article surmises.

    Filings with the NSW Supreme Court showed repossessions had risen to 2955 cases in the nine months to March 2012.

    What we know has also changed in the Australian credit landscape, is the emphasis now put on offering help rather than penalising those in financial hardship. The Government has recently legislated for what they see as a moral and legal obligation for the lender to review a request for financial hardship before they issue a default or other proceedings.

    In August this year, The Consumer Credit Legislation Amendment (Enhancements) Bill 2012 was passed, to come into effect by 1 March 2013, which will provide a debtor with a statutory right to request a hardship variation where the debtor cannot meet their obligations under a credit contract regardless of the amount of credit that is provided under their contract.

    There will be no obligation on the Credit Provider to comply with this request, but they must have issued written notification of their refusal to comply with a hardship request prior to enforcement proceedings.

    This coming change would have meant in the 2011-12 financial year there may have been a strong push in many sectors for education around financial hardship variations, and in many cases lenders may have had an obligation to provide details of both financial hardship options, and options around dispute resolution to the appropriate Ombudsman for their case. This will certainly be the case from March next year.

    So if you are having real trouble paying your mortgage, or other significant credit, rather than wait until you are defaulted, or at worst the lender forecloses – it is important to take early action to save yourself, your home and your credit file.

    If you are sinking deeper in debt – put your hand up – you might find there is someone there to help you out of it.

    6 Tips for Applying for financial hardship

    1.  If you have a change in your circumstances – like unemployment, illness, injury or other reasonable issue you should ask for a financial hardship variation. This should be requested as soon as possible to avoid going into ‘default’ with your repayments.

    2.  Put your request in writing and keep a copy as a record.

    3. You may need to use the actual words “financial hardship variation” for your lender to officially recognise the request, and to avoid confusion as to what you’re asking for.

    4. Check your loan agreement as to the terms you entered into around financial hardship. Those agreements post-1 July 2010 have a clause which requires the lender to respond to you within 21 days.

    5. Do your homework first. Money Help, a website run by the Victorian State Government offers more help on how to apply for hardship with creditors in the correct way.

    They advise people to work out what they can afford to pay prior to requesting a hardship variation. They explain the benefits in applying for hardship can range from more affordable payments, to putting a stop on action towards defaulting your credit file (as well as preventing you from losing your home).

    6. Creditors are legally required to consider a person’s request for variation on payment arrangements, but are not obliged to agree to any hardship variation proposal put  forward.

    If a lender either refuses your hardship request or fails to respond, you can lodge a complaint with their independent dispute resolution scheme, such as the Ombudsman they are a member of.

    For more advice on debt management, visit ASIC’s Money Smart website www.moneysmart.gov.au.

    NB: This content is for general information only and should not constitute legal advice, nor replace seeking help from a professional financial advisor.

    Image 1: koratmember/ www.FreeDigitalPhotos.net.

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

  • Stay safe this Christmas: Scam victims should be worried about 5 year blacklisting on their credit rating

    Media Release

    Stay safe this Christmas: Scam victims should be worried about 5 year blacklisting on their credit rating

    As more Christmas scams come to the fore, a consumer advocate for accurate credit reporting is warning consumers that scammers are not just after the money in their bank accounts, but are after much more – their financial identity.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says consumers need to be wary of the opportunities fraudsters may take to misuse their personal information.

    “Scams and other fraud attempts are becoming much more sophisticated as profits get more lucrative. Many fraudsters are into building a profile of their victim – extracting layers of information which allows them to access credit in the victim’s name – including loans and even properties.”

    “The difficulty for recovery when someone has tapped in to your credit rating is that generally you have unpaid debts in your name, which are placed in default – which basically means for 5 years your own ability to obtain credit is ruined,” Mr Doessel says.

    This warning comes as the Australian Banker’s Association (ABA) last week announced reports of a telephone scam where fraudsters were impersonating them and offering instructions on how to obtain a ‘refund’ for overcharged bank fees.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    The ABA said criminals asked customers to proceed to a post office to receive the so-called ‘refund’ – ranging from $5 000 – $7 000.

    Victims are then asked to wire money via Western Union for costs associated with the ‘refund’.

    But in addition, scammers also tacked on a request for personal details, which signifies an attempt to misuse those details in the future, possibly for identity theft purposes.

    Fraudsters asked these questions:

    – With whom do you bank?
    – For how long?
    – What is your credit card number?
    – What is your driver’s licence number?

    Mr Doessel says fraudsters are attempting to gather extra information from their victims over and above what they might already have in front of them.

    “If they have your full name plus who you bank with, and your driver’s licence number – they have the basic building blocks for an identity theft attempt. They can call the bank and have some kind of identity information on which to proceed with accessing bank accounts AND accessing further credit in your name,” he says.

    The bank refund phone scam has been added to a long list of scam attempts running over the past few months, and many more could emerge as Christmas approaches.

    Mr Doessel says sometimes people don’t know they have been a victim until after they apply for credit and are refused.

    “By that time, it is such a struggle to recover your good name. For an identity theft victim to have a chance at removing bad credit history, you must prove you didn’t initiate the credit in the first place. This can be difficult if the scam happened months or years before,” he says.

    What to do if you suspect you have fallen for a scam

    1. Contact the Police immediately. Don’t be embarrassed or dismiss it because you don’t think the amount was significant enough. It is only through identity theft being reported that data gets collected and appropriate preventative measures eventually get put in place.

    2. Contact your Bank. They should be able to flag your accounts so that no credit can be obtained in your name.

    3. Contact the credit reporting agencies that hold your credit file. In Australia, this is Veda Advantage, Dun and Bradstreet and TASCOL (if in Tasmania). You should inform them that you may be at risk of identity theft and they may have a plan of action for protecting your credit file.

    4. At this time, you should also order a copy of your credit report. If there are any inconsistencies on your credit report – change of address, strange credit enquiries and instances of credit you don’t believe you’ve access, then you may already be a victim – and should do all that’s possible to follow up on each account so as not to accrue defaults on your credit file that should not be there.

    5. If you find you have defaults that shouldn’t be there, take steps to remove them. Although it seemed so easy for the fraudster to use your good name in the first place, you are now faced with proving the case of identity theft with copious amounts of documentary evidence in order to get the credit listings removed from your credit file.

    If you have neither the time nor the knowledge of Australia’s credit reporting system and credit legislation that you may need to fight your case yourself, you can seek the help of a professional credit repairer.

    Visit www.mycra.com.au for more information on identity theft and bad credit or call MyCRA on 1300 667 218.

    /ENDS.

    Please contact:

    Lisa Brewster – Media Relations media@mycra.com.au

    Graham Doessel – CEO Ph 3124 7133

    Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog 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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    [i] http://www.bankers.asn.au/Media/Media-Releases/Media-Release-2012/Phone-Scam-Alert[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Beware identity theft with latest bank ‘refund’ phone scam

    Identity Theft Warning: Banking phone scammers currently on the prowl in Australia are attempting to not only pilfer easy profits from unsuspecting victims via wire transfer, but it looks like they’re also after crucial identity information which could lead to identity fraud. We look at this scam, and what you should do if you think you’re a victim.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au Visit our Facebook page https://www.facebook.com/#!/FixMyBadCredit.com.au

    Last week Australian Broker online reported on this alarming banking scam ‘Banker phone scam bamboozles customers’ which involves the Australian Bankers Association (ABA). The report says twenty five people had contacted the ABA in the three days prior to report a telephone scam – and at least two had fallen victim to the scam which involved fraudsters calling customers supposedly on behalf of the organisation offering instructions on how to obtain a ‘refund’ for overcharged fees.

    “They then ask the customer to go to a post office to receive a so-called ‘refund’ – ranging from $5 000 – $7 000. Instructions are given to call the criminals on arrival at a post office, where they try to talk the customer into sending money, via the post or Western Union, claiming it’s a fee for the so-called ‘refund service’.”

    And alarmingly:

    “In several cases, customers have been asked to reveal additional information, including whom they bank with, how long they have been a customer of said bank, what their credit card number is and what their driver’s licence number is,” The Australian Broker report says.

    Steven Münchenberg, ABA chief executive, said in a release to the media, that most customers contacting ABA after receiving the phone calls have been suspicious and have not provided any money or information to the con artists.

    “However, members of my staff did speak to two customers who had sent [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”][money] to the criminals – around $300 via Western Union. Unfortunately, there is no hope of retrieving that money and it is lost to fraud,” he says.

    “These criminals are preying on people and we are urging anyone who receives a call with a promise of easy money to hang up.”

    What could fraudsters do with the additional information they are asking for?

    What fraudsters are doing, is attempting to gather extra information from their victim over and above what they might already have in front of them.

    If they have a person’s full name plus who they bank with, and what their driver’s licence number is they have the basic building blocks for an identity theft attempt. They can call the bank and have some kind of identity information on which to proceed with accessing bank accounts AND accessing further credit in the victim’s name.

    What should you do if you suspect too late you’ve fallen for a scam?

    If you have just found out you are a victim, we recommend you contact the Police – as well as your bank – especially if you have given over personal information to fraudsters. Don’t be embarrassed – it is only through identity theft being reported that data gets collected and appropriate preventative measures eventually get put in place.

    Telling your bank also means they can flag your accounts and upgrade security on your account/s.

    You should also contact the credit reporting agencies that hold your credit file and inform them that you may be at risk of identity theft.

    At this time, you should also order a copy of your credit report. If there are any inconsistencies on your credit report – change of address, strange credit enquiries and instances of credit you don’t believe you’ve accessed yourself, then you may already be a victim – and should do all that’s possible to follow up on each account so as not to accrue defaults on your credit file that should not be there.

    Credit file defaults are difficult for the individual to remove and generally people are told by creditors they remain on our file for 5 years, regardless of how they got there. Any negative listing will prevent you from obtaining credit, so it is vitally important that your credit file is clear.

    Although it seemed so easy for the fraudster to use your good name in the first place, you are now faced with proving the case of identity theft with copious amounts of documentary evidence.

    If you have neither the time nor the knowledge of our credit reporting system that you may need to fight your case yourself, you can seek the help of a credit repairer. A credit repairer can help you to clear your credit file and restore the financial freedom you rightly deserve.

    The reason a credit repairer is usually so successful in removing your credit file defaults, is their relationships with creditors, and their knowledge of current legislation.

    Visit www.mycra.com.au for more information on identity theft or how to repair bad credit.

    Image: imagerymajestic/ www.FreeDigitalPhotos.net

    Image 2: nuttakit/ www.FreeDigitalPhotos.net

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  • A schoolie’s guide to the financial future: 5 important credit lessons.

    Media Release

    A schoolie’s guide to the financial future: 5 important credit lessons.

    While schoolies across Australia are celebrating finishing twelve years of education and looking forward to a bright future of bigger and better things, a consumer advocate for accurate credit reporting says when the good times are over, school leavers should prepare themselves for their new financial life as young adults.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says many young people amble through their early years with credit, making mistake after mistake that can cost them dearly down the track.

    “Young people can often get into a really bad pattern with credit, taking out credit cards, putting cars and electrical goods on credit and getting behind in repayments which sees them taking out new credit just to pay off the old credit.”

    “Before they know it, they’re 20 years old and facing bankruptcy or Court Action and years of being locked out of the finance market coming into the crucial years when they need it most,” Mr Doessel says.

    He says young people have got to be wise and ensure they are making credit work for them.

    He provides some advice for those young people coming of financial age:

    5 Important Credit Lessons For School Leavers

    1. Your credit file follows you…everywhere in Australia.

    Once you turn 18, you can become credit active, and can take out credit in your name. The history of your credit activity, good and bad is detailed on your credit file, which can be accessed by those thinking of lending you money.

    Your credit file lists personal details like name and address, but also any times you have applied for credit, any defaults (overdue accounts), court judgements, writs and bankruptcies.

    This credit file stays with you for life, and is added to by Creditors over your life.

    2. Overdue accounts are considered bad credit history.

    Many young people don’t realise how easy it can be to end up with a bad credit rating. Any account which is 60 days overdue (this ranges from mobile phones to credit and store cards, car loans to mortgages), is then considered in default. The Creditor then has the right to list this default on your credit file.

    “Even too many credit enquiries can show negatively on your credit report – so don’t apply with too many lenders – by all means do your homework but don’t sign up or give over your details until you’re sure you want the credit,” he says.

    3. Bad credit history matters.

    A single default for as little as $100 can stop you from getting mainstream credit in the current market for the term of the listing – which is five years.

    You may be forced to pay a whole lot more in interest to secure credit because of the risk of lending to someone with a bad credit rating.

    “Endeavour to pay all of your accounts on time. If you can’t pay, then contact your Creditor to work something out. You have to think ahead about what you want to achieve in another five years and whether the choices you make now could hinder those future plans,” Mr Doessel says.

    4. With all financial dealings, and especially credit – cover yourself at all times

    If you’re dealing with a Creditor in a tough situation, get the name of the person you’re dealing with, write down what is said and if a resolution is reached – get it confirmed in writing.

    If you need to cancel an account, don’t assume its cancelled until you receive written confirmation. If you are moving, provide a forwarding address.

    “This can be a common reason people get bad credit when they move – they may cancel a phone or electricity account and be left with a bill they weren’t aware of,” he says.

    Protect your credit file from misuse by keeping your personal information closely guarded. Your personal information is the key to your financial identity.

    “At all times – online, while making purchases, while banking, you need to be aware of the ways your identity could be compromised. You may not have a lot of money in your accounts – but you may have access to credit – and crooks can open accounts in your name and leave you with debts you can’t afford and your financial future ruined,” Mr Doessel says.

    5. You are responsible for the accuracy of your credit file

    Creditors can and do make mistakes with credit files all the time, but the responsibility to ensure your credit file reads accurately rests with you. Make it a habit to check your credit file once every year. This is free to do annually. All you do is contact the credit reporting agencies Veda Advantage (www.vedaadvantage.com.au), Dun & Bradstreet (ww.dnb.com.au) and Tasmania’s TASCOL (www.tascol.com.au).

    They will mail you a report within 10 working days.

    If you believe there has been a mistake on your credit file, then you have the right to have the mistake rectified. This may not be easy, but it is a point worth fighting for.

    For more information on your credit rating, see the MyCRA Credit Rating Repairs website www.mycra.com.au.

    /ENDS.

    Please contact:

    Graham Doessel – Director Ph 3124 7133

    Lisa Brewster – Media Relations media@mycra.com.au

    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.

    Image: photostock/ www.FreeDigitalPhotos.net

  • Protecting Mr and Mrs Average from Identity Fraud

    Media Release

    Protecting Mr and Mrs Average from ID Fraud

    Every Australian is at risk of identity theft, and the government’s expansion of laws may help to put a price on what has been up to now a lucrative, faceless crime resulting in innocent people ripped off, and left with an uncertain financial future, a credit rating repairer says.

    MyCRA Credit Repairs CEO, Graham Doessel says improvements to identity fraud laws through the Crime Bill, passed by the Government on Wednesday are long overdue to increase protection to Australians for what is now termed “the fastest growing crime in Australia.”[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    “This is more than just basic credit card skimming or accessing bank accounts. Identity fraud comes about when a person’s good name has been misused, and that generally means fraudsters have been able to open credit accounts in their victim’s names – leaving the victim in debt and usually with a string of defaults against their name,” Mr Doessel says.

    The Australian Crime Commission’s CEO, John Lawler revealed at a national conference for credit professionals in September that identity crime is a “key facilitator” for organised crime groups because it is an anonymous crime which can facilitate significant fraud.

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

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

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

    Mr Lawler says the amount of personal information requested, stored and shared online provides organised crime with a larger pool of victims and data to harvest.

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

    Mr Doessel says this means when fraudsters ‘get someone’ with identity fraud the victim can have their life turned upside down.

    “Recovering from identity fraud is never an easy task. Creditors need proof the victim didn’t initiate the credit. But many people don’t know how the fraud eventuated, and even if they do there’s no guarantee they can recover their good credit rating,” he says.

    He welcomes increases to penalty units within the Crimes Act from $110 to $170, their first increase in 15 years.

    Attorney-General Nicola Roxon said the change would mean a person dealing in the proceeds of crime would see their fine rise from $165,000 to $255,000.[iii]

    The Age reported yesterday that the changes could see those people who use a carriage service like the internet or a mobile phone to obtain identity information with the intention of committing another offence could be sentenced to five years in jail.[iv]

    The crime of identity fraud has also expanded to include a number of activities such as flying interstate or booking domestic flights online using a fake identity.

    Mr Doessel says prevention is always better than the cure when it comes to identity fraud.

    “Australians need to understand that their personal information is a valuable commodity and should look at where it might be at risk of misuse. Keep your computer protected, don’t give your personal information to anyone who doesn’t need it and cross-shred all personally identifiable documents at home rather than throwing them straight in the rubbish,” he says.

    “Fraudsters are even going through rubbish bins to find what they need. So last month’s bank statement could be the missing link fraudsters needed to set up new accounts in your name.”

    He says if people worry they may be vulnerable to identity theft they should check their bank and credit card statements thoroughly and should also order a copy of their credit report – which would indicate if their credit file had been misused.

    “Contact Police immediately and also alert your Creditors and the Credit Reporting Agencies which hold your credit file if you are at all suspicious of identity theft before it leads to fraud,” he says.

    Victims can also use the services of a credit rating repairer to recover their good name following identity theft.

    /ENDS.

    Please contact:

    Graham Doessel – Director Ph 07 3124 7133

    Lisa Brewster – Media Relations media@mycra.com.au

    Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog

    246 Stafford Rd, STAFFORD Qld

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

     

    ——————————————————————————–

    [i] http://www.attorneygeneral.gov.au/Media–

    [ii] http://www.crimecommission.gov.au/media/presentation-to-dun-bradstreet-consumer-credit-conference-2012

    [iii] http://www.attorneygeneral.gov.au/Media-releases/Pages/2012/Fourth%20Quarter/21November2012Makingcriminalspay.aspx

    [iv] http://www.theage.com.au/national/government-cracks-down-on-identity-fraud-20121121-29qnf.html#ixzz2CuXawkmr

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

  • Brokers and clients disadvantaged by clients navigating the ‘minefield’ of credit reporting

    Media Release

    Brokers and clients disadvantaged by clients navigating the ‘minefield’ of credit reporting alone

    Brokers who don’t have contact with a reputable credit rating repairer to refer bad credit clients to, may be missing out on valuable commission through lost deals, and in some cases may also be doing their clients a disservice, says a leading credit rating repairer and advocate for credit reporting accuracy.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says whilst many people whose credit history shows up with defaults have obtained that default justly, there are also many whose credit file contains errors and omissions and he says those people should be given the chance to clear their name.

    “I would like to say it is as easy as calling the Creditor to sort out the mix-up, but in reality clearing bad credit is a minefield, and a credit rating repairer can be invaluable,” Mr Doessel says.

    Generally when a client presents to a broker with bad credit they have two options:

    (1) Send them packing to resolve the mix-up or to wait until the credit listing “falls off” their credit file in 5 or 7 years before they apply again.

    (2) Organise a non-conforming loan at a higher interest rate to absorb the risk associated with lending to those with bad credit.

    When faced with a credit rating error, Mr Doessel says the clients who are sent away may not always be able to resolve their credit reporting dispute themselves.

    “Credit reporting is governed by mountains of legislation across different industries, so it is not always about right or wrong, but how the letter of the law applies in each case. We have seen many clients who are defaulted despite doing the right thing and despite working actively to try and resolve the situation themselves,” he says.

    He says many brokers put credit repair in the “too hard” basket and prefer to steer their clients to the non-conforming market – at least for the first few years of the loan when they can then refinance.

    “There are a couple of reasons why a non-conforming loan will not always be the best choice for the client. Firstly, they can lose thousands on interest even over the first three years, and secondly with the market the way it’s been more home owners are stuck, finding they can’t refinance due to lack of equity in the home,” he explains.

    Mr Doessel wants to help educate brokers and consumers alike on some of the myths surrounding credit files:

    1. Consumers always know they have bad credit before they apply for a loan.
    There can be many reasons for people not to know they have bad credit until they apply for a loan. They may have moved, been hospitalised, been an identity theft victim or even been a victim of error with their creditor. If the client was not notified prior to the default, in many instances the listing has been placed on the credit file unlawfully, and should be disputed.

    2. Credit file listings are always correctly placed on credit files.
    Credit reporting mistakes can and do happen –but most consumers are unable to recognise credit file errors. Some estimates point to as many as 34% of credit files containing errors or omissions. [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    Credit reporting agency Veda Advantage recently admitted about 1% of material errors detected by their system alone.[ii] But many more may go undetected by credit reporting agencies, creditors and consumers until it’s too late and the consumer is refused a home loan.

    3. Credit file complaints are easily disputed.
    Some brokers assume if the listing is there – the client must be deserving of it. But in reality, once a listing has been placed on a credit file, it is very difficult for individuals to have removed. So even if the listing shouldn’t be there, most often people are forced to put up with it. Often they are told the listing can be marked as paid, but will not be removed from the credit file.

    4. If a Default or Clear-out is on the credit file it can never be removed prior to the end date.
    Some brokers assume credit repair must be a ‘con’, as in their experience listings are never removed. In truth, unless the client can show why the listing was placed unlawfully on the credit file it will not be removed. It is up to the client (or the credit repairer acting on their behalf) to show reason as to why the listing was placed unlawfully, and negotiate its removal.

    The process of credit repair involves an audit-like investigation of the entire case to determine, based on legislation whether the credit listing was placed unlawfully on the credit file. If this is determined, the credit repairer will formally negotiate the removal of the listing from the credit file on the client’s behalf.

    5. A bad credit client should be steered to the non-conforming market.
    If a broker considers duty of care to their client, and they believe the client should be able to obtain mainstream credit, except for bad credit history – then another step must be inserted in the process – deciding on the possible validity of the bad credit before providing non-conforming finance options to them.

    “As a successful broker in the non-conforming market for many years, with many cases I was left scratching my head as to why these perfectly suitable clients who had nothing wrong bar their credit rating errors did not have other options than to enter a loan at sky-high interest rates just to break in to the property market. That is precisely why I founded a credit repair business in the first place,” Mr Doessel says.

    6. Credit repair is a waste of money.
    If a potential borrower is able to have their unfair credit listing removed, they can reduce their interest charges by thousands just by entering a loan with a mainstream lender.

    On a loan amount of $350,000, a borrower would pay $487.62 more in interest each month over the first three years in a non-conforming loan at 9% interest vs the standard variable rate of say 7%.

    When we look at that in total, the borrower would be up for a staggering $17,554.34 more just in interest alone over those first three years.

    7. All credit repairers are the same
    Consumers do need to be aware there are some agencies out there who are happy to take money, but don’t add enough benefit to be of value over what an individual could do themselves. People looking for a reputable credit repairer should ask plenty of questions, do their homework on the company, and request some testimonials from past clients before they commit.

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO MyCRA PH 3124 7133

    Lisa Brewster – Media Relations MyCRA media@mycra.com.au

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

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

    ——————————————————————————–

    [i] http://www.smh.com.au/articles/2004/02/09/1076175103983.html

    (2) http://au.news.yahoo.com/today-tonight/latest/article/-/10670080/credit-ratings-check/

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

  • Christmas shoppers a target for fraudsters: the 12 scams of Christmas

    This Christmas, you may unknowingly put your credit rating at risk. We look at how ‘safe’ Australians really are online, and discover the ways you might wind up an identity theft victim and with a whole lot of bad credit history for Christmas.

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

    We are connected to the world via the web at a rate like never seen before. And because of this, more people than ever will be shopping online for Christmas presents this year.

    Here’s why:

    A. It’s easy…think parking, think crowds and think traipsing through shop after shop which for many people looks like too much effort.

    B. It saves time…the Christmas period is shocking for stretching time to the limit -work’s busy, your social life’s busy and the last thing many have time to do is any of A!

    C. It’s convenient…you can shop when you feel like it, at a time that works for you.

    D. It’s more relaxed…you can do it in your pyjamas, and you can do it with a glass of scotch.

    E. In some cases it may be cheaper…you can find cheap deals on goods, and you can also shop at different stores to get one-off items.

    BUT a word of warning people….

    If you’re not careful, it can be the most costly way to shop.

    Some alarming statistics about Australian online shoppers have just come to light from security company McAfee. Their new Holiday Shopping Study has found that out of 1,005 Australian adults, one in 10 believe there is no risk in connecting to free Wi-Fi, and nearly one in three don’t know how to identify a secure shopping site.

    If this is true – shoppers – get to know very quickly – or put down that ipad and get back to the shops otherwise you can not only risk losing money by paying through illegitimate websites but you could also download a virus or at worst be at risk of ruining your credit rating.

    There are scammers out everywhere willing to take your money – and they love Christmas time. You’re feeling generous and you’re a bit distracted. From a fraudster’s point of view, that’s perfect!

    McAfee’s study was featured in online business publication Smart Company’s article late last week titled ‘Virus experts warn: beware of the 12 online scams of Christmas’:

    “What makes the finding worse is that a third of Australians have either personally fallen victim to an online scam, or know someone who has.

    This is an extremely important finding, McAfee points out, as Australia has the highest rate of smartphone and tablet ownership out of all the countries surveyed including the United States and Canada.

    An impressive 69% of Aussies use a smartphone, tablet, or both – so it makes all the more sense they need to stay safe online.

    Yet we seem more willing than ever to disregard online safety. Over half of Australians say they’ll provide their name and age, and 38% say they’d give their phone number.
    But 25% don’t even pay attention to permissions when downloading apps,” the article says.

    Online fraud can be a basic scam to lure funds, but it is also becoming more and more sophisticated, and cyber-criminals are not only looking to steal credit card details, but are targeting your personal information.

    Identity theft is getting much more sophisticated as profits get more lucrative. Many fraudsters are into building a profile of their victim – obtaining layers of information which allows them to access large amounts of credit in the victim’s name.

    Some victims have had credit cards and loans taken out, even properties mortgaged in their names.

    The difficulty for recovery when someone has tapped in to your credit rating is that generally you have defaults listed in your name, which basically means for 5 years your ability to obtain credit is ruined.

    McAfee warns consumers in its blog ‘The top 12 scams of Christmas to watch out for’ – 2012. Take a look at make sure you don’t get caught out.

    1) Social media scams—Many of us use social media sites to connect with family, friends, and co-workers over the holidays, and the cybercriminals know that this is a good place to catch you off guard because we’re all “friends,” right? Here are some ways that criminals will use these channels to obtain shopper’s gift money, identity or other personal information:

    • Scammers use channels, like Facebook and Twitter, just like email and websites to scam consumers during the holidays. Be careful when liking Fan Pages, clicking on fake alerts from friends’ accounts that have been hacked, taking advantage of raffle’s, ads and deals that you get from “friends,” or installing suspicious “holiday deal” apps that give your private data away.

    • Twitter ads and special discounts for popular gifts are especially popular, and utilize blind, shortened links, many of which could easily be malicious. Criminals are getting savvier with authentic-looking social ads and deals that take consumers to legitimate looking websites. In order to take advantage of the deals or contests, they ask them for personal information that can obtain a shopper’s credit card number, email address, phone number or home address.

    2) Malicious Mobile Apps—As smartphone users we are app crazy, downloading over 25 billion apps[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”][1] for Android devices alone! But as the popularity of applications have grown, so have the chances that you could download a malicious application designed to steal your information or even send out premium-rate text messages without your knowledge. Consider this: A recent study found that 33%[2] of apps ask for more information than they need, such as access to your contacts or location.

    •TIP: So, if you unwrap a new smartphone this holiday season, make sure that you only download applications from official app stores and check other users’ reviews, as well as the app’s permission policies, before downloading. Software, such as McAfee Mobile Security, can also help protect you against dangerous apps.

    3) Travel Scams—Many of us travel to visit family and friends over the holidays and begin our journey online looking for deals on airfare, hotels, and rental cars. But before you book, keep in mind that the scammers are looking to hook you with too-good-to-be-true deals. Phony travel webpages with beautiful pictures and rock-bottom prices are used to get you to hand over your financial details.

    • Even when you’re already on the road you need to be careful. For example, the FBI recently warned travelers of a hotel Wi-Fi scam in which a malicious pop-up ad prompts computer users to install a popular software product before connecting to their hotel Wi-Fi.[3] If you agree to the installation, it downloads malware onto your machine.

    • TIP: Remember to perform a security software update before traveling, to guard you against the latest scams.

    4) Holiday Spam/Phishing— If you’re like most people, you’re probably familiar with spam emails containing questionable offers. But get ready, because soon many of these spam emails will take on holiday themes. Cheap Rolex watches and pharmaceuticals may be advertised as the “perfect gift” for that special someone. McAfee also expects to see an increase is holiday-themed phishing emails that try to trick you into revealing financial or personal details by posing as an offer from a legitimate business.
    TIP: Remember never to respond to a spam email, or click on an included link.

    5) The new iPad, iPhone 5, and other hot holiday gift scams—The kind of excitement and buzz surrounding Apple’s new iPad and iPhone 5 is just what cybercrooks dream of when they plot their scams. They will mention must-have holiday gifts in dangerous links, phony contests and phishing emails as a way to grab computer users’ attention. Once they’ve caught your eye, they can try to get you to reveal personal information or click on a dangerous link that could download malware onto your machine.

    TIP: Be suspicious of any deal mentioning hot holiday gift items—especially at extremely low prices—and try to verify the offer with the retailer involved.

    6) Skype Message Scare—People around the world will use Skype to connect with loved ones this holiday season, but they should be aware of a new Skype message scam that attempts to infect their machine, and even hold their files for ransom.

    The threat appears as a Skype instant message with the scam line “Lol is this your new profile pic?”. If you click on the included link, a Trojan downloads onto your hard drive, blasts the dangerous link to all of your contacts, and can even try to extort money from some PC users to regain access to their files.
    TIP: Never click on a suspicious link, even if it appears to come on from someone you know.

    7) Bogus gift cards—Gift cards are probably the perfect choice for a lot of people on your holiday list, and given their popularity, cybercriminals can’t help but want to get in on the action by offering bogus gift cards online.

    TIP: Be wary of buying gift cards from third parties; it’s best to buy from the official retailer. Just imagine how embarrassing it would be to find out that the gift card you gave your mother-in-law was fraudulent!

    8) Holiday SMiShing — “SMiSishing” is phishing via text message. Just like with email phishing, the scammer tries to lure you into revealing information or performing an action you normally wouldn’t do by pretending to be a legitimate organization. Since many of us like to keep a close eye on our bank accounts during the holidays, be wary of SMiShing messages that appear to come from your bank, asking you to verify information or visit a phony webpage.

    TIP: Remember that real banks won’t ask you to divulge personal information via text message. If you have any questions about your accounts, you should contact your bank directly.

    9) Phony E-tailers–No matter what gift you’re looking for, chances are you can find it quickly and easily online, but you still want to be careful in selecting which site to shop. Phony e-commerce sites, that appear real, try to lure you into typing in your credit card number and other personal details, often by promoting great deals. But, after obtaining your money and information, you never receive the merchandise, and your personal information is put at risk.

    • This is exactly what happened to customers of harbourelectronics.com, a copycat site of electronics repair store harborelectronics.net. It turns out that harbourelectronics.com was one of a host of the bogus e-commerce sites coming from the same IP address.

    • TIP: That’s why it’s important to shop at trusted and well-known e-commerce sites. If you’re shopping on a site for the first time, check other users’ reviews and verify that the phone number listed on the site is legitimate.

    10) Fake charities—This is one of the biggest scams of every holiday season. As we open up our hearts and wallets, the bad guys hope to get in on the giving by sending spam emails advertising fake charities. They may try to fool you into thinking that they are a real charity, such as the Red Cross, with a stolen logo and copycat text, or the charity may be entirely invented. For example, one man ran a bogus charity for the “U.S. Navy Veterans Association” and gathered $2 million from donors over five years![4]

    • TIP: If you want to give, it’s always safer to visit the charity’s legitimate website, and do a little research about the charity before you donate.

    11) Dangerous e-cards—E-Cards a popular way to send a quick “thank you” or holiday greeting, and there are plenty of free and paid e-card sites out there. And while most e-cards are safe, some are malicious and may contain spyware or viruses that download onto your computer once you click on the link to view the greeting.

    • Others ask you to click on an attachment to view the card, and then download a Trojan onto your machine. That’s why you should look for clues that the e-card is legitimate.

    • TIP: Make sure that the card comes from a well-known e-card site by checking the domain name of the included link. Also check to see that the sender is someone you actually know, and that there are no misspellings or other clues that the card is a fake.

    12) Phony classifieds—Online classified sites may be a great place to look for holiday gifts and part-time jobs, but beware of phony offers that asked for too much personal information or ask you to wire funds via Western Union, since these are most likely scams. If you’re going to purchase an item or apply for a job, try to do it in person in a public place.

    TIP: When purchasing an item, pay in cash and never agree to pay for an item before receiving it.

    If you do get caught out falling for a scam this Christmas, or clicking on a dodgy link – it is best to take steps to secure your computer (change passwords, run virus scans) your bank accounts, and also your credit file. Alert your Creditors to a possible identity theft issue and also contact the credit reporting agencies which hold information about your credit file. It is a good idea to check your credit file – and you can do this for free once per year. A credit report will be mailed to you within 10 working days.

    If you find anything on your credit file that doesn’t look right, or points to possible identity theft, let Police know immediately. If you need help recovering your good name so that you can take out credit in the next five years, you may need to call a professional credit repairer to help. Contact us on 1300 667 218 for more information on credit repair following identity theft or when any credit listing should not be on your credit file.

    Image: photostock/ www.FreeDigitalPhotos.net

    Image 2: Salvatore Vuono/ www.FreeDigitalPhotos.net

    Image 3: Stuart Miles/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • The risks you’re taking with credit this Christmas that could see you left without a home

    Media Release

    The risks you’re taking with credit this Christmas that could see you left without a home

    A consumer advocate for accurate credit reporting warns Australians who use credit over the Christmas period they should be cautious about the ways their credit rating can be put at risk, which could see them refused finance in the New Year.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says after the highs of Christmas, the New Year can see people weighed down by credit stress, and the reason is not always due to overspending.

    “Many people throw things on credit at Christmas and think nothing of it, but we should be on guard for the ways this can potentially lead to credit stress and bad credit history in the following months.”

    “If you’re lumbered with a bad credit rating, you’re generally locked out of mainstream credit for a significant time – between 5 and 7 years. You can be refused a home loan, and most other credit for that matter – even mobile phone plans.” Mr Doessel says.

    He says people have an increased risk of damaging their credit rating during Christmas and covers 5 major ways this can occur:

    1. Identity theft.

    Identity theft and fraud has grown in severity and volume to now be the fastest growing crime in Australia.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    Scammers are out in full force at Christmas, people can be lax with their personal information and credit cards are used more frequently and at a variety of locations.

    Security company, McAfee’s recently released their warning ’12 scams of Christmas’ hoping to warn consumers about where cybercriminals may be looking to take advantage of consumers over the festive months. Scams warnings are given for fake vacations, fake gifts and e-cards, malicious mobile apps and a multitude of online dangers including bogus websites and phishing scams.[ii]

    “If fraudsters are able to get hold of your personal details they have the key to your good credit rating. They can run up credit all over town in your name. Often it’s not until you apply for credit in your own right and are refused that you realise your credit file has been misused – but by then it’s too late. Your life is basically set to be turned upside down,” Mr Doessel says.

    2. Overlooking bill payments.

    With the busy lead up to Christmas, some people can find they overlook repayment of basic accounts. Then if they go on vacation, it can easily escalate the overdue account into default status.

    “Overdue bills for as little as $100 can be just as damaging to your credit file as missing a mortgage repayment. Any credit account which is more than 60 days overdue can be listed by the Creditor and will show on your credit rating. Basically any negative listing will hinder your chances of getting credit in the future,” Mr Doessel says.

    3. Moving and transfers.

    “A change of address is a very common reason bills and warning notices go unnoticed and unpaid – and you can have a bad credit rating attached to you that you have no idea about until you apply for a home loan,” he says.

    As Christmas and New Year is a very common time for transfers and other work changes to occur that could see people moving interstate, people should tie up all loose ends at their current address, ensuring all changes of address and accounts are settled and confirmed in writing to avoid being blacklisted for credit.

    4. Over committing and spiralling into debt.

    Some people feel the pressure to give so much they do so at the expense of their own budget and ultimately end up with a debt they cannot pay back.

    The consequence of this can be getting into more debt to pay the original debt. People then end up with loan commitments they can’t meet or other bills get neglected because they just can’t afford to pay it all. Creditors start to close in and their credit file is damaged.

    5. Overlooking errors and omissions from Creditors.

    Creditors may also be affected by Christmas. The volume of transactions may increase while staff decrease, putting pressure on some Creditors’ systems.

    For this reason it is crucial for people to keep watch on their own finances.

    “Despite being a busy period for all families, it is important to check your bank statements and bills at this time. Creditors can and do make mistakes with billing. Also keep abreast of which bills are due and when. If you notice you haven’t received a bill and you believe it’s due, you should chase it up. No news is in this case not good news, and could mean you have an overdue account noted on your file,” he says.

    Christmas is also a good time for people to check their credit file. They can request a free copy of their credit file from one or more of the credit reporting agencies and a credit report will be sent within 10 working days.

    “If there are errors on your credit report, or it contains negative listings – defaults, writs or Judgments which are unfair or shouldn’t be there, then it is important to know you have the right to have them rectified or removed,” Mr Doessel says.

    Contact MyCRA Credit Rating Repairs for more information on credit rating repair on 1300 667 218.

    /ENDS.

    Please contact:

    Graham Doessel – Director Ph 3124 7133

    Lisa Brewster – Media Relations  media@mycra.com.au

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

    MyCRA Credit Repairs is Australia’s leading credit rating repairer. We permanently remove defaults from credit files.

    Image: sixninepixels/ www.FreeDigitalPhotos.net

     

     

    ——————————————————————————–

    [i] http://www.crimecommission.gov.au/publications/crime-profile-series-fact-sheet/identity-crime

    (2) https://blogs.mcafee.com/consumer/12-scams-of-christmas-2012[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • More buyers apply for home loans, but dreams could be shattered by credit rating blunders.

    Media Release

    More buyers apply for home loans, but dreams could be shattered by credit rating blunders.

    A consumer advocate for accuracy in credit reporting says the finance sector should focus on educating prospective home buyers about their credit file in the wake of signs more Australians are capitalising on interest rate cuts and applying for home loans.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel, says many buyers will be caught out with a bad credit rating at the time of finance application, because they simply don’t know the importance of checking their credit file for inconsistencies beforehand.

    “We find many people do not know what a credit file is – many more don’t know the process for being listed with bad credit, and more again assume that if there was something amiss with their credit file, that they would somehow be informed.”

    ”They don’t realise that the onus is on them to check their credit history on a regular basis – at least once per year – just to make sure that errors have not been made on the credit file,” Mr Doessel says.

    The warning comes as new housing figures from the Australian Bureau of Statistics released on Monday point to a continued rise in the number of home loans.

    September’s key figures reveal owner occupied housing commitments rose 0.9% to 46,395, up from an upwardly revised 45,983 in August.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    With a possible new influx of buyers to the finance market, Mr Doessel says it is vital that people know about credit reporting and how it can impact their ability to get a home loan.

    He says many people may believe their credit history is clean, but creditors can and do make mistakes with credit reports, and often it is not until people apply for finance and are refused, that they find out they have bad credit.

    “This surprise bad credit is happening to many people, from all walks of life – businessmen, families – we have even had a millionaire require our services to remove an error on his credit file so he could purchase a home for his wife,” he says.

    Bad credit is shown on the credit file for between 5 and 7 years, and most often impacts the credit file holder’s ability to get mainstream credit.

    “Most are forced into three scenarios – 1) ride out the 5 or so years until the listing falls off their credit rating; 2) get a home loan at a much higher interest rate with a non-conforming lender; or 3) dispute the credit listing which they believe shouldn’t be there,” Mr Doessel says.

    But he says at the time of finance application the process of investigation and complaint can be stressful and can sometimes mean the prospective borrower misses out on the home loan while the credit rating discrepancy is addressed.

    “Disputing and removing an unfair credit listing can be a difficult and time consuming process, made more stressful if the credit file holder has pressures from finance deadlines,” he says.

    People can check their credit file has the “all clear” before they apply for finance, by contacting Australia’s credit reporting agencies Veda Advantage, Dun and Bradstreet and TASCOL (if in Tasmania) and requesting a copy of their credit report – which is free once a year. This report is mailed within 10 working days, or for a fee to the credit reporting agency, it can be sent urgently.

    “If there are any inconsistencies or out and out errors on the credit file, generally thousands and thousands of dollars in interest is saved by having them removed, as the credit file holder can then take advantage of those interest rate cuts by applying for a home loan with a mainstream lender at competitive rates,” Mr Doessel says.

    For more information on removing or disputing credit rating errors, contact MyCRA Credit Rating Repairs on 1300 667 218.

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO Ph 3124 7133

    Lisa Brewster – Media Relations MyCRA media@mycra.com.au

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

    246 Stafford Rd, STAFFORD Qld

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

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    [i] http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5609.0Main%20Features1Sep%202012?opendocument&tabname=Summary&prodno=5609.0&issue=Sep%202012&num=&view=

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

  • Beware Christmas ‘spamvertising’ could threaten your credit file

    Fraudsters are out in full force this festive season and are planting cyber-bombs for you to unknowingly let off in your computer. We look at some of the things to watch out for, and what falling for a scam or downloading a virus could do to your credit file.

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

    According to an article ‘Cybercriminals start spamvertising Xmas themed scams and malware campaigns’ in online tech magazine ZD Net, security researchers from Symantec are warning about a recently intercepted flood of Xmas themed malicious and fraudulent campaigns.

    “Over the past year, we’ve seen numerous attempts to entice users into clicking on these links, by impersonating a legitimate message or notification from a respected, trusted and well known brands. These are prone to intensify over the next two months,” ZD Net’s Dancho Danchev writes.

    In an example of spamvertising, recently cybercriminals spamvertised millions of emails impersonating the popular e-card service 123greetings.com in an attempt to trick end and corporate users into clicking on client-side exploits and malware serving links, courtesy of the Black Hole web malware exploitation kit.

    According to Security experts Sophos, Black Hole malware is marketed and sold to cybercriminals in a typical professional crimeware kit that provides web administration capabilities. But it offers sophisticated techniques to generate malicious code. And it’s very aggressive in its use of server-side polymorphism and heavily obfuscated scripts to evade antivirus detection. The end result is that Blackhole is particularly insidious.

    Users are advised to avoid clicking on links found in such messages, and to report them as spam immediately.

    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). Some programs (spyware) collect various types of personal information or interfere with control of your computer in other ways, such as installing additional software or redirecting web browser activity.

    The purpose of malware can be to obtain personal information for identity theft and login details – especially for banking sites.

    If fraudsters 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 theft happening long before the fraud took place.

    So to prevent devastating identity theft, which leaves you in debt and can leave your credit file tarnished and 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 this Christmas….it could save your financial future.

    If you need help to recover your credit file after identity theft – you may be suitable for credit repair. Contact a Credit Repair Advisor at MyCRA Credit Rating Repairs for help 1300 667 218 or visit the main website for more information www.mycra.com.au.

    Image: digitalart/ www.FreeDigitalPhotos.net

  • ASIC finds widespread and systemic misleading and deceptive conduct by debt collector

    A Federal Court has heard that one of Australia’s largest debt collection agencies was found to be harassing and misleading debtors in an attempt to recover outstanding debts. Accounts Control Management Services (ACM), which was under investigation by the Australian Securities and Investment Commission (ASIC) was found to have engaged in harassment and widespread and systematic misleading and deceptive conduct in chasing debts, including “rude, condescending and vicious” calls and threats of imprisonment. if you have an outstanding account  the Creditor may have on-sold the debt to a debt collector– and it is this company which places a default on your credit rating. In dealing with a debt collection agency, it’s important to know your rights, and just what is appropriate behaviour from debt collectors when they are attempting to recover debts from you.

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

    ASIC presented to the court 96 phone calls and the ACM debt collector training manual, which the court found and ruled in its October 26 2012 decision “made it very plain that debtors should be threatened with litigation”. ACM’s clients include Telstra, the National Australia Bank and the Commonwealth Bank.

    Yesterday Smart Company featured the story ‘Why you need to be careful about outsourcing debt collection: Court finds agency harassed and misled debtors’ by Cara Waters. Here is an excerpt from this story:

    The court found ACM had engaged in repeated threats to inform a debtor’s husband about her debt in circumstances where her husband did not know about it and ACM knew that she did not want him to know about her debt.

    The debt collection agency also made threats to call a debtor’s friends and employer until the debt was repaid, made threats to have Sheriff’s officers attend a debtor’s home or place of employment in a marked car and made telephone calls to neighbours and friends of a debtor.

    ACM made a threat to issue a warrant for a debtor’s arrest and a threat to take action that would result in a debtor being unable to travel overseas.

    The court was scathing in its description of the tone of one of ACM’s supervisors as “rude, condescending and vicious, no description of this call (and some of her later efforts) can adequately capture the offensiveness involved”.

    It found ACM persistently misled debtors by implying that it was a firm which specialised in commencing legal proceedings for the recovery of debts and that it frequently commenced legal proceedings.

    “The constant references to litigation were not an accident. They were the intended outcome of a house manual which promoted threatening litigation as a means to achieving recoveries,” the court found.

    “The operators were told to make references to legal proceedings and lawyers and it is only natural that this is what they did.”

    The court awarded declarations of misconduct and injunctive relief which restrain ACM from future similar conduct.

    ASIC Commissioner Peter Kell said ASIC will not tolerate behaviour designed to intimidate and mislead debtors.

    “This includes cases where the debtor’s family, friends and associates are also threatened with unreasonable behaviour,” Kell said.

    …SmartCompany contacted ACM but did not receive a response before publication.

    What are the rules for debt collection agencies?

    If you are unsure whether the debt collector you are dealing with is behaving according to the law, you can download ASIC’s brochure (PDF) ‘Debt Collection: Your Rights’ which outlines the general rules debt collectors need to follow when attempting to recover a debt. In this document ASIC has been specific as to what is not acceptable behaviour by a debt collector – so if you are not sure if a debt collector has been behaving fairly, you can check this list or contact ASIC or the Australian Competition and Consumer Commission (ACCC).

    Remember, at no time is extreme conduct such as force, trespass, or intimidation acceptable behaviour, and ASIC also considers harassment, verbal abuse, and an overbearing manner to be unreasonable contact.

    ASIC’s key points for dealing with debt collectors are:

    1. A debt may be collected by a creditor themselves or by someone acting on their behalf, like a debt collector.

    2. If you are contacted by a debt collector, be polite and cooperative. In turn, you should expect to be treated in a professional and courteous manner.

    3. When, where and how a debt collector can contact you is regulated by guidelines designed to ensure you are not harassed.

    4. As a guide, a debt collector should only contact you when it is necessary to do so and for a reasonable purpose.

    5. If you feel a debt collector has breached the guidelines, and the debt is in relation to a financial service, contact ASIC to make a complaint.

    It is important to know that debt collectors should not make false or misleading statements to you about your debts and the ramifications of it:

    Debt collectors must not:

    • make false statements about the amount you owe, or the status of your debt, for example:

    – say you owe a debt when you do not
    – say the amount you owe is greater than it is
    – say that you have no choice but to pay a debt if you have a valid defence against payment, unless there has been a court judgment (if you are disputing a debt, a debt collector should stop collection activity until any reasonable request for information—such as giving you copies of accounts and contracts – has been met, and the debt has been confirmed)
    – say that your spouse or partner must pay your debt when they have no legal liability to do so
    – say that there has been a court judgment if this is not true

    • make false statements about what will happen if the debt is not paid, or what the debt collector intends to do, for example:

    – say that unpaid debts are a criminal offence involving the police or possibly jail (being in debt is not a crime!)
    – say that your children can be taken away from you (this is completely false)
    – say that you will be made bankrupt immediately, even though there has been no court judgment or bankruptcy proceedings started
    – say that your goods (for example, your car) will be seized and sold immediately, even though there is no mortgage over the goods and no court judgment (if there is a mortgage over the goods, generally you must be given notice and 30 days to pay first)
    – say that your wages will be garnished (taken), even though a court order to allow this has not been obtained
    – say that your credit rating will be damaged, if that is not true (privacy laws limit the type of information that a credit reporting agency can hold on file, how long it can be listed on file, and who can access the information)

    • use other misleading appearances or actions, for example:

    – send letters demanding payment that are designed to look like court documents
    – pretend to be (or pretend to act for) a solicitor, court or government body.

    If you think that a debt collector has breached the ASIC/ACCC Debt Collection Guidelines, call ASIC’s Infoline on 1300 300 630 or email Infoline@asic.gov.au, or visit www.asic.gov.au/complain to make a complaint online.

    If you need help with disputing a credit listing, either from a debt collection agency or Creditor then contact you should consider credit repair. A credit repairer can conduct an audit-like investigation on your case. MyCRA Credit Rating Repairs can give you the best chance of having the disputed credit listing removed by fighting your case on your behalf and requesting that if a credit listing has been proven to be listed unlawfully, it should be removed from your credit rating.

    Contact a Credit Repair Advisor for more information call tollfree 1300 667 218 or visit the MyCRA Credit Rating Repairs website for more information www.mycra.com.au.

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

  • When love goes bad…Graham the ‘Credit Corrector’ shows how to prevent relationship debt.

    Media Release

    When love goes bad…Graham the ‘Credit Corrector‘ shows how to prevent relationship debt.

    Being ‘in love’ is one of the best feelings in the world, but not one of the most practical states to be in. Sometimes personal financial values go out the window and people lose themselves in the process of adding to the ‘relationship’ and creation of ‘us’.

    But a leading consumer credit advocate, Graham Doessel warns it is important to think practically about joint finances for people to maintain their good name and their clear credit file when they take their relationship to the next level of commitment.

    The former award winning broker and now CEO of MyCRA Credit Rating Repairs says when two different money ‘personalities’ combine, the potential for both to be financially damaged is greatly increased.

    “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,” Mr Doessel explains.

    When people take out any credit together, such as loans, utility accounts, homes and rental properties, they become very reliant on the partner to keep up their end of the credit repayments.

    Sometimes one partner ends up with a bad credit score, simply because the other person on the account has not kept up with repayments. People can be unaware their partner is generating defaults on their credit rating until it is too late.

    “In many instances it’s not until people apply for credit in their own right that they find out about the credit problems their partner has initiated. The relationship may even have ended years ago and the partner is still paying for it,” Mr Doessel says.

    Bad credit history can last for 5-7 years, depending on the listing. The most common type of negative listing is a default, and is placed by the creditor when an account holder fails to make payments past 60 days.

    “Time and again we see people who have ended relationships but still have joint commitments together. These people find themselves in financial strife, unable to get home loans, credit cards or phones because they didn’t continue to take responsibility for the joint credit until such time are their names were removed from the account,” he says.

    Mr Doessel says many people come unstuck by not asking the tough financial questions about their prospective partners early in the relationship.

    How to Prevent Relationship Debt

    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 it is possible they will continue this behaviour in the future.

    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.

    Mr Doessel suggests if people are unsure of their new partner’s financial compatibility, it could mean finances need to be fairly separate for a significant period of time.

    “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,” he says.

    /ENDS.

    Please contact:

    Graham Doessel – Director Ph 3124 7133

    Lisa Brewster – Media Relations Ph 3124 7133 media@mycra.com.au

    http://www.mycra.com.au/ 246 Stafford Road, STAFFORD QLD. Ph: 07 3124 7133

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

    Image: Idea go/ www.FreeDigitalPhotos.net

  • More positivity for housing: ABS Housing Finance figures continue to climb for September

    Good news again for the property market, with data from the Australian Bureau of Statistics recording another increase in Housing Finance figures. Some economists say Australians are starting to make the most of interest rate cuts. We look at the ABS Statistics, and look at the importance of credit file education to a possible new buyer’s market.

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

    Figures released today by the Australian Bureau of Statistics on September 2012 Housing Finance figures show owner occupied housing commitments rose 0.9% from August to 46,395, up from an upwardly revised 45,983 in August.

    An increase of 1.0% was predicted by economists.

    CommSec chief economist Craig James (featured in The Australian today) says the ABS data suggests home loan value could be on the rise.

    “The data shows that loan value is rising at a faster rate than the actual number of loans,” he said.

    “That suggests that there’s increased confidence by borrowers, or that home prices are edging a little higher.”

    Here is an excerpt from the ABS release:

    SEPTEMBER KEY POINTS

    VALUE OF DWELLING COMMITMENTS

    September 2012 compared with August 2012:

     The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.7%. Investment housing commitments rose 1.1% and owner occupied housing commitments rose 0.5%.
     In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 3.8%, with investment housing commitments rising 8.6%.

    NUMBER OF DWELLING COMMITMENTS

    September 2012 compared with August 2012:

     In trend terms, the number of commitments for owner occupied housing finance rose 0.5%.
     In trend terms, the number of commitments for the purchase of new dwellings rose 3.0%, the number of commitments for the purchase of established dwellings rose 0.5%, while the number of commitments for the construction of dwellings fell 0.3%.
     In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 19.3% in September 2012 from 18.6% in August 2012.

    Over the past six months, the Reserve Bank of Australia has shaved a full percentage point from the key interest rate. As a result, standard variable mortgage rates have on average come down by 55 basis points to 6.85 per cent.

    This seems to finally be making an impact on Housing Finance, with both August and September data showing a recorded increase in commitment numbers.

    The ABS reports that in original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 19.3% in September 2012 from 18.6% in August 2012. Between September 2012 and August 2012, the average loan size for first home buyers rose $400 to $289,300.

    As more buyers enter the market, we feel it is worthwhile to ramp up our education efforts around credit history. Many people do not know what a credit file is – many more don’t know the process for being listed with bad credit, and more again assume that if there was something amiss with their credit file, that they would somehow be informed. They don’t realise that the onus is on them to check their credit history on a regular basis (at least once per year) just to make sure that errors have not been made on the credit file. Errors can happen to anyone – from all walks of life.

    People may believe their credit history is clean, but creditors can and do make mistakes with credit reports, and often it is not until people apply for finance that they have any idea they have bad credit. At this time the process of investigation and complaint can be stressful and can sometimes mean the prospective borrower misses out on the home loan while the discrepancy is addressed.

    The process of clearing an unfair credit listing can sometimes be very time consuming – especially if the creditor has not cooperated with requests to supply documentation in a timely fashion, or the matter has to be referred to a third party for investigation.

    So the message is, if people are thinking about buying a home in the near future – they should grab a copy of their credit file, and make sure it has the “all clear” before they apply for finance, and before they get their hearts set on any particular home. This is free for all credit active Australians once every year and we encourage any home buyer to request a copy of their credit report. It takes 10 working days or for a fee to the credit reporting agency, it can be sent urgently. But what it does is give peace of mind – not only to the Purchaser, but to the Broker or Bank Manager, and in some cases a clear credit file can help get the deal over the line with the Agent and Seller.

    If there are any inconsistencies or out and out errors on the credit file, the advantage to getting those removed is generally thousands and thousands of dollars in interest saved. A clear credit file allows purchasers to capitalise on those interest rate cuts with the mainstream lender of their choice rather than being forced into the non-conforming sector at much higher interest rates.

    To find out more about the benefits of using a credit rating repairer to dispute credit listings, see our recent post How Do I Fix My Bad Credit? Or contact a Credit Repair Advisor at MyCRA Credit Rating Repairs on 1300 667 218 or visit the main site for more information www.mycra.com.au.

    Image: Idea go/ www.FreeDigitalPhotos.net

  • Aussies squirreling away savings with credit cards falling out of favour

    Has job uncertainty, slow wage rises and the mounting cost of living got you focused on saving and paying down your debts? This is a trend seen amongst more and more Aussies this year. We’re cutting up our credit cards and replacing them with debit cards. We’re choosing personal loans over chunks of credit card debt and we’re choosing to put our plans for a home loan on ice. These are the latest findings from Veda’s Consumer Credit Demand Index for the September quarter. We look at this report, and the projections for credit use and the Australian economy in the future.

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

    Veda’s Consumer Credit Demand Index shows a shocking 10 per cent drop in credit card applications in the September quarter – reaching their lowest level in 9 years.

    Overall consumer credit demand contracted by 1.4% for the September quarter, continuing Australian consumers’ trend of cautious spending and debt reduction.

    Veda’s general manager of consumer risk, Angus Luffman, told the Herald Sun this week there are several reasons why people have moved away from unsecured debt such as credit cards.

    “Unsecured credit demand is all about the intention to spend,” he says. “Clearly we’ve had an environment over that period where we’ve seen consumers far more circumspect about spending.

    “Also, there is more information now required for a credit card application.”

    In their release to the media, Mr Luffman also blames the increasing use of debit cards for the reduction in credit card applications.

    “There’s been a 3 per cent growth for the year up to August in debit cards and when you think about the numbers of payments in a year, that means a lot of payments,” he says.

    Personal loan applications picked up notably in the September quarter, helped by a notable rise in auto loans which has coincided with a 9% increase in new car sales for the month of September.  The continued growth follows the June quarter which recorded the highest number of auto loan applications since 2007.

    Mortgage applications have flat-lined over the past year, despite RBA rate cuts this year.

    “We have now seen three quarters of relatively flat mortgage enquiries after two years of decline.   As foreshadowed by the stabilisation in Veda mortgage enquiries in recent quarters, the pace of year-on-year decline in Australian house prices is now easing.  This is expected to continue, but the flat level of mortgage enquiries suggest house price growth will be kept in check over the coming months,” Mr Luffman says.

    He says the impact of the Federal Government’s cash handouts has now faded with consumer credit demand decreasing relatively quickly in the September quarter.

    “The latest data suggests that lower interest rates are not having an effect on demand for consumer credit.  In the current environment, the short term outlook for consumer spending and credit growth is modest.   As households face increased expenditure, uncertainty around wage growth and levels of unemployment they will continue to be cautious, save and pay down debt.  This trend is likely to continue given the Federal Government’s pull-back on welfare benefits such as the baby bonus and health insurance rebates.”

    Whilst we are continuing to save and not spend, banks will continue to hold the reigns tight on lending criteria. It is important for anyone who is focused on saving (whether that be for a home or for the future) to know that a good clean credit history is essential to approval for any credit. If you are not applying for credit as regularly as you were, you should request a free annual copy of your credit report. This will allow you to stay on top of your credit history and ensure that no mistakes have been made with your credit rating which could see you refused credit for a five year period.

    If an account has shown to be more than 60 day in arrears, the Credit Provider can list your credit file with a default. Sometimes this occurs by mistake. Sometimes the Credit Provider defaults the wrong credit file, or they don’t notify you before they list the default, or it out and out shouldn’t be on your credit file.

    It is up to you to detect these errors – but many people don’t know about them until they apply for credit and are refused.

    The benefit of checking your credit report when you don’t need credit is if there are any mistakes or errors on your credit file you have plenty of time to get it corrected.

    If you want to know what is being said about you on your credit report, or if you have detected a credit file error that you need to dispute, you can contact MyCRA Credit Rating Repairs on 1300 667 218 or visit our main site for more information www.mycra.com.au.