MyCRA Specialist Credit Repair Lawyers

Tag: MyCRA Credit Rating Repairs

  • Mobile bill shock could cost you your home

    Media Release

    Mobile bill shock could cost you your home

    Botched phone plans and lack of data usage monitoring is leaving many Australians stressed over their mobile bills, with bills so large many simply can’t pay up or absolutely refuse to pay up and many more are having their good credit ratings completely destroyed.

    Consumer advocate, Graham Doessel of MyCRA Credit Rating Repairs says there is an alarming number of credit listing complaints from Telco consumers relating to internet data usage on mobile phones.

    He says consumers are confused when it comes to data allowance on their smartphones, and the providers are not helping.

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

    Mr Doessel says 28 per cent of his credit repair clientele in the financial year to date were Telco customers. See Table (A)

    “Sometimes consumers reluctantly pay the bill, think the matter is settled, only to find they are defaulted anyway, and others just refuse to pay the bill until they get some resolution. Either way, they are faced with at least 5 years of bad credit from the episode unless they can make a successful complaint,” he explains.

    This reflects findings from the Telecommunications Industry Ombudsman (TIO) report on its services for the last financial year, which was released today.

    The TIO’s findings show mobile phone users are increasingly unhappy with the service they receive, with a 9 per cent rise in complaints about mobiles last financial year.

    Ombudsman Simon Cohen said two out of three complaints made to the TIO were about mobile phones, with the biggest percentage rise about disputed internet usage charges (150 per cent).

    “Complaints about unexpectedly high bills and unnecessary financial overcommitment point to the urgent need for strong spend management rules, including those that are included in the new ‘Telecommunications Consumer Protection Code’,” Mr Cohen said.

    The ‘Telecommunications Consumer Protection Code’ has recently been pushed through with the guidance of the Australian Communications and Media Authority (ACMA) which will amongst other things, force telcos to provide their customers with notifications when they have used 80% and 100% of their data allowance in the plan.

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

    The TIO’s annual report also shows a rise in complaints about credit default listings. Complaints about consumers being credit default listed while their debt was in dispute increased 18 per cent from 3,700 to 4,370. There was also a 16 per cent increase in complaints about consumers being credit default listed without proper notification, up from 3,220 to 3,730.

    “I am very concerned about the increase in the number of complaints where credit default listings are disputed,” Mr Cohen said “Credit listings can have very significant impacts on people – affecting applications for credit, including for housing and personal loans. Any credit default listing should only occur after the correct procedures have been followed.”

    Mr Doessel says preventing a credit file default on your mobile phone bill often comes down to awareness of legalities.

    “Many people don’t know the rules well enough when dealing with these big companies, so it can be a little like David and Goliath and many times the big guy wins,” he says.

    He gives some ideas on what you can do if you disagree with a mobile phone bill:

    How to Dispute That Shocking Mobile Bill

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

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

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

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

    5. If at any stage you have a credit file listing from a Telco which you believe shouldn’t be there, you can undertake professional credit repair services. The credit repairer works on the consumer’s behalf to champion for the removal of credit file listings which contain errors or inconsistencies or just out and out shouldn’t be there. The credit repairer may escalate the matter to the TIO on the client’s behalf if necessary, but it may not be the only option.

    “A good credit repairer will conduct an audit-like investigation to uncover errors or non-compliance that may still see the default removed, even where an Ombudsman has sided with the Credit Provider,” Mr Doessel explains.

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO MyCRA Ph 3124 7133

    Lisa Brewster – Media Relations MyCRA Ph 3124 7133 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 leader in credit rating repairs. We permanently remove defaults from credit files.

     

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    http://www.tio.com.au/publications/media/mobile-phone-complaints-rise-against-overall-decrease-in-telco-complaints-during-2011-12

    http://www.tio.com.au/publications/media/mobile-phone-complaints-rise-against

    Image: maya picture/ www.FreeDigitalPhotos.net

     

  • Award winning broker turned advocate for credit reporting accuracy reveals the surprise bad credit stopping Aussies refinance.

    Media Release

    Award winning broker turned advocate for credit reporting accuracy reveals the surprise bad credit stopping Aussies refinance.

    Australians are looking to refinance at a rate of knots, but a consumer advocate says some home owners are discovering they have bad credit history when they attempt to refinance, despite believing their repayment record has been impeccable.

    Frugality sparked by the GFC and improved banking competition have pushed the number of refinanced properties to a 20-year high.

    Consumers have been urged to move their mortgage away from the ‘big four’ banks as a response to the raising of home loan rates, but a consumer advocate warns that many home owners may discover they have bad credit history, even if they think their repayment history has been impeccable.

    Former broker turned consumer advocate for credit reporting accuracy, Graham Doessel CEO of MyCRA Credit Rating Repairs, says it is essential that all existing home owners check their credit file is accurate before making an application for finance.

    “For many home owners it may have been years since they applied for major credit so it is important to know if their good name is compromised in any way before they make an application,” Mr Doessel explains.

    He says regardless of whether people have been diligent payers, creditors can and do make mistakes with credit reporting.

    “People can have many errors thrust upon them unknowingly – bill mix-ups, computer errors and human error can all contribute to these surprise black marks. Unfortunately any black mark on your credit rating will be an automatic decline with most lenders,” he warns.

    “Creditors don’t always comply with the law, and sometimes they make mistakes.”

    Approximately 63% of the clients who request credit rating repair through MyCRA Credit Rating Repairs have defaults, writs or Judgments which are listed in error on their credit file.

    “We have clients who are facing identity theft; some are caught in issues over separation from their spouse; some have been disputing the bill which went to default stage and many people are just victims of the fallout from inadequate billing procedures – wrong names, wrong addresses, human and computer errors,” Mr Doessel says.

    Under current credit reporting legislation, consumers are entitled to obtain a copy of their credit report from the credit reporting agencies once a year.

    People need to contact all the credit reporting agencies to request their report – as creditors have access to 3 agencies within mainland Australia and 4 in Tasmania. The report must be provided to them in writing within 10 days of the request.

    He says listings are not removed by creditors unless the file holder can provide adequate reason and lots of evidence as to why the listing should not be there.

    “Credit repair requires knowledge of the legislation, lots of evidence and perseverance. But for those people whose financial freedom is hindered because their credit file contains errors, it is a point worth fighting for,” he says.

    Despite credit file errors – there may be other reasons refinancing is not an option. Currently many home owners are facing falling property prices. Negative equity can halt any refinancing plans.

    Mr Doessel says home owners also need to also calculate the in and out fees that may be present on any new loan to ensure the switch is really saving them money.

    People who want more information on credit repair, or who wish to obtain a free copy of their credit file can contact MyCRA Credit Rating Repairs on 1300 667 218 or visit their website – www.mycra.com.au.

    /ENDS

    Please contact:

    Graham Doessel – CEO Ph 3124 7133

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

    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.

    http://www.news.com.au/money/property/property-price-falls-lock-homeowners-into-loans/story-e6frfmd0-1226305228916#ixzz1qHuXqibk
    http://www.mycra.com.au/media/television.php
    http://www.smh.com.au/articles/2004/02/09/1076175103983.html

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

     

  • What you need to know about the internet to save your teenager’s future credit file

    Media Release

    What you need to know about the internet to save your teenager’s future credit file

    Young Australians are putting their good credit rating at risk every time they post personal information publicly on the internet, even before they are ever credit active, a leading credit repairer warns.

    “The harsh reality is if you’re a teenager in Australia today you are not immune to identity fraud. Even though you are not yet credit active the personal information you make public today could be used against you in the future,” CEO of MyCRA Credit Repairs, Graham Doessel says.

    He says many teenagers do not know the risks of having a public ‘profile’ on sites like Facebook and Twitter, but fraudsters do.

    “With the volume of personal information that is publicly available about our young people on social network sites, what’s to say fraudsters can’t pull that information and use it to build a profile that could allow them to create a fake identity?” he says.

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

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

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

    Mr Doessel says identity theft is not only about the initial loss of monies, but if the fraud amounts to credit accounts in the young victim’s name going undetected and unpaid past 60 days, creditors will issue defaults.

    “It need not be major fraud to have a detrimental effect. Credit file defaults for as little as $100 can stop someone from being able to obtain credit for 5 years. So any misuse of someone’s credit file can be extremely significant,” he says.

    He says the onus is on the victim to prove to creditors they didn’t initiate the credit.

    “The fact that the perpetrator is long gone and the actual act of identity theft happened years earlier will only add to the difficulty for the young person in recovering their good name,” he says.

    Experts recommend parents and young people continue to update their skills on how to be cyber-smart. The government’s ‘stay smart online’ website offers some top tips about using the internet which can be discussed with young people at home and school.

    Top tips

    Make sure your computer is secure-follow the advice in the Secure your computer section of this [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][stay smart online] website.

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

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

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

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

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

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

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

    /ENDS.

    Please contact:

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

    Graham Doessel: CEO Ph 3124 7133

    246 Stafford Road, STAFFORD QLD.

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

     

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    http://www.cybersmart.gov.au/News%20Article%20List/2012/01/Connecting%20generations%20and%20educating%20each%20other.aspx http://www.smh.com.au/technology/technology-news/police-warn-of-sophisticated-plan-to-steal-identities-20111108-1n5l8.html#ixzz1dB4ctHcT
    http://www.staysmartonline.gov.au/teens

    Image: Just2shutter/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • 7 steps to fix bad credit history: A home buyer’s guide

    Media Release

    7 steps to fix bad credit history: A home buyer’s guide

    Buying a home can be nerve-wracking. There’s the deposit – have I saved enough? There’s your income – do I earn enough? There’s the home – have I paid the right price?

    When all of these factors combine to give you, on the face of it, a good chance of approval for finance then there’s the issue of choosing the right home loan, at the right rate, with the right factors for your future. So you go through all of these sometimes stressful aspects of property buying, and you make the official application for finance with your chosen lender. It all looks good…

    Until you are slapped in the face with an APPLICATION DECLINED. You should qualify for a home loan, but you don’t because your credit report shows up with a default.

    You have no idea what the default is for – you always pay your bills on time – but that little default from what looks like a utility company, is messing with your future. How can they refuse me a home loan based on this, you ask?

    Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs, says this is a scenario which frequently sees many Australians denied a home loan.

    “A default will impact your ability to obtain credit generally for the entire time it is listed on your credit file – which is 5 years. So – for 5 years you will have a hard time getting credit anywhere, from mortgages to car loans to credit cards and even mobile phone plans,” Mr Doessel says.

    He says people who find themselves the bearer of bad credit have two options. They can wait for 5 years, or they can investigate the validity of the listing.

    “Mistakes can and do happen. Mistakes in credit reporting are most times only picked up by the credit file holder, so if you think there is something amiss with your credit file it is up to you to put it right,” he says.

    7 Steps to Fixing Your Bad Credit History

    1. Determine what account the default is for.

    If you don’t have a copy of your credit report, you will need to order one. If you haven’t ordered a copy in the last 12 months, it will be free from the credit reporting agencies in Australia. They are Veda Advantage, Dun & Bradstreet, and Tasmanian Collection Service (if in Tasmania). You may have listings with one or all of these credit reporting agencies. They will take 10 working days to send you a copy of your report. For a fee you can have one sent to you urgently.

    On your credit file, will be the company the default is with, and an account number. This should correspond with an account you have with them. If it doesn’t, or if you don’t have any accounts with the company in question, there is a good chance there may be a mistake on your credit file.

    2. Gather all your information first, and try and determine how the default made its way to your credit file.

    3. Before you call the company in question, sort out what you know about the situation.

    Have they made a mistake? How have they made it?

    4. Write to the Creditor to ask for information on the account.

    You may need to find out more about how the default got there. Every company keeps a record of its customers and you can write to them and request your account records to date.

    5. Decide on how you’re going to tackle them.

    Now you want to try and negotiate for the Creditor to remove your default. Don’t go in guns blazing – bear in mind, there is nothing to say they have to remove the default. What you want to do is encourage them to do the right thing by you.

    6. It is going to be hard going.

    Most people find it really hard to correct their credit listing themselves –especially if it’s complicated. For one, the Creditor has to comply with a whole heap of legislation that crosses different codes, and if you don’t know legally where they may have made errors – it’s pretty hard to persuade them they have done the wrong thing. And also it’s taking the time to get to know it. Secondly, negotiating anything on your own behalf can be tricky – the old foot in the mouth routine can get you into trouble and see you stuck with the listing for the whole term. In reality, many people trying to fix their own credit rating get told they can have the listing marked as paid, but it is never removed. This is not enough to guarantee you the home loan. If you were able to show cause as to why the listing was put on your credit file unlawfully, there is a chance it will actually be removed.

    7. Consider getting a professional on board. For a pain-free approach – at any time, you can hire the services of a credit repair professional. Most of them will look after getting a free copy of your credit file for you, order your documents from the Creditor as well as directly negotiate with them to remove your bad credit, based on the relevant legislation applicable to your case. And most importantly, they will probably think of things you had never thought of to strengthen your case for the default removal. This is your best chance at getting the listing removed completely from your credit file, which will allow you to apply for finance with a mainstream lender again.

    Mr Doessel says credit repair is not suitably for everyone, and sometimes if people have ‘done the crime’, they may need to do the time. He says if you are a serial offender for late payments, or if you are currently struggling to keep your head above water, then new credit- especially major credit such as a mortgage- is NOT going to make it all better.

    “But if you have been unfairly treated, or there has been a mistake on your credit file, then you have a right to insist on that inconsistent listing to be removed or corrected,” he says.

    /ENDS

    Please contact:

    Graham Doessel – Founder and CEO MyCRA Credit Rating Repairs Ph 3124 7133

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

    Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog 246 Stafford Rd, STAFFORD Qld
    MyCRA Credit Rating Repairs is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

    Background

    Some reports suggest there may be 14% of Australians with adverse listings on their credit file. http://www.savingsguide.com.au/how-do-i-check-my-credit-file-for-a-bad-credit-rating/

    It is not known for sure how many of the over 16 million credit files in Australia could contain errors or inconsistencies. [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][i]

    Recently a Veda Advantage spokesperson commented on the possible number of errors on credit reports within Veda. He admitted errors within their system alone amounted to 1%.

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

    I estimate the real figure across the board for credit file errors not detected by agency systems could be much higher.

    The possible volume of errors on Australian credit files was exposed by a small scale study conducted in 2004 by the Australian Consumer Association (now Choice Magazine).

    It revealed 34% of the credit files surveyed contained errors. [1][iii]

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

    Transferring those figures from the Choice study to the number of credit files in Australia today, could balloon the figures to almost 5 million errors, inconsistencies or flaws.

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    [i][i] http://www.mycreditfile.com.au/about/

    [i][ii] http://www.mycra.com.au/media/television.php

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

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Parent equity loans skating on thin ice with credit rating

    Media Release

    Parent equity loans skating on thin ice with credit rating

    Predictions of a rise in parent equity loans following the pulling back of first home buyer’s grants in some states has a leading credit rating repairer worried about the possible impact on parental credit ratings in the crucial pre-retirement years.

    CEO of MyCRA Credit Repairs, Graham Doessel says a possible rise in parent equity loans is a dangerous trend. If the loan falls into arrears, parents would be liable, forcing them to work much longer than anticipated to pay off the debts that impact their own credit rating.

    “Many people go guarantor for their children, without assessing the risks to their own finances should the repayments not be met. If the child falls into arrears with payments, the parent is liable for any debt, and they are also blacklisted from credit accordingly,” Mr Doessel says.

    1300 Home Loans managing director, John Koldenda recently told Australian Broker he predicts a surge in popularity for the parent equity type of loan following the wind up of first home buyer subsidies in each State.

    “These loans have many benefits including allowing children to avoid expensive Lenders Mortgage Insurance that is paid by borrowers – often young people – with low equity,” he said.[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]

    But Mr Doessel says whilst there are advantages for the child, if repayments are not made, the disadvantages stretch to both parties.

    “If the adult child fails to make repayments the parent is liable for this debt, if that extends past 60 days, the creditor can place a default on both credit files. In some cases parents are not aware repayments have stopped, and it’s not until they attempt to take out credit themselves and are refused that they realise there is a problem,” Mr Doessel says.

    He says a default of this nature on someone’s credit file can severely hinder chances of obtaining credit, and defaults remain on a person’s credit file for 5 years.

    “Worst case scenario, is the bank begins to use the property the guarantor put forward as collateral, to recover lost debts. There is a danger the guarantor can lose their home. Those people who were so close to financial freedom are now facing debt, and a shaky retirement,” he says.

    The Sydney Morning Herald Personal Loans Smart Guide[ii] provides some important questions for people to consider when making the decision whether or not to go guarantee a home loan:

    •How much is being borrowed?

    •How responsible is the borrower?

    •How stable is their employment?

    •Does the borrower have any other means of repaying the loan should he or she fall ill, be injured or become unemployed?

    •Can I afford to repay the total sum of the loan?
    “By far and away the most important question parents need to be asking is ‘could we make the repayments on this loan should our child be unable to?’ If there is any doubt of this, it may be best not to guarantee the loan,” Mr Doessel says.

    If people do decide they want to proceed with a parent equity loan, he recommends taking a few additional things into consideration before signing on the dotted line:

    1. Seek third party and or legal advice prior to any agreement being made.

    2. Insist there is adequate insurance to cover anything that may go wrong during the term of the loan, such as life insurance and income protection insurance.

    3. Set a specific amount that will be guaranteed

    4. Ensure there is an ending to the time period of the guarantee

    5. Request a copy of all bank statements during the course of the guarantee, so that parents are aware of any late payments. This way, payment problems can be addressed prior to any defaults, and while the parent’s good credit rating is still intact.

    /ENDS

    Please contact:

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

    Graham Doessel – Director Ph 3124 7133

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

    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.brokernews.com.au/article/parents-to-step-in-as-fhb-boosts-end-129917.aspx

    [ii] http://www.smh.com.au/money/tools-and-guides/step-4-going-guarantor-20100529-wmcd.html

    Image: jannoon028/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Get organised for Christmas to save your money and your credit rating

    Christmas is coming!!! Less than two months to go – gulp. If you have started to think about buying gifts, but don’t have much cash to do that with – then now is the time to start saving or to think about taking out credit to cover the costs. We look at the best ways to stay smart about credit over the Christmas period – and show you how a budget could save you money and reduce your chances of succumbing to bad credit history by racking up Christmas credit card debt you can’t pay back.

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

    David and Libby Koch recently wrote a great article on saving money over Christmas ‘Budget for the festive financial cliff.’ They advise you to start saving now, and sidestep credit as much as possible to avoid the February blues after the credit card bill comes in.

    “The Christmas, New Year and summer holiday period can leave even the best-run family budget in tatters.

    It can be a huge drain on family finances and cause a lot of undue stress. But by starting to plan early you can make sure that it’s a relaxing and affordable time for everyone, even the organiser.

    We’re not talking about two weeks out, we mean two months out and that’s now,” they write.

    Planning is great advice, and that can include sitting down now and writing your shopping list, whilst you are calm and slightly removed from the Christmas madness which often sees us overspending on everyone.

    The Kochs’ advise setting a budget, “set realistic limits and ensure everything is accounted for.”

    Their top tips include:

    • Suggest a Secret Santa

    A great way to keep the cost of presents under control is through Secret Santa, where everyone draws a name out of a hat and only buys a present for that person. This works best for big extended families and with a pre-agreed limit for everyone to spend on their gift.

    Not only does it put a cap on costs, but also means everyone gets one good present instead of lots less useful gifts. That’s the plan anyway.

    • Write down what you want for Christmas

    Try writing down the things you want to buy for yourself over the next couple of months. Then, next time somebody asks, think back to that list and hopefully you’ll get something you would have spent money on anyway.

    They also suggest:

    • Buy in bulk and give extended family the same item.

    • Give a voucher for your time – to babysit, garden, etc.

    • Make a gift such as craft items or cookies.

    • Regift any of those unwanted presents.

    • Make a tax-deductible donation to charity.

    Want more tips? Earlier in the month savingsguide.com.au posted some tips for getting frugal over Christmas ‘A Frugal Christmas: 5 Things To Do Now’. Here are a couple of great ideas:

    • Tally up what you spent last year

    There’s no way to prepare for the event- a joyous one to be sure, but difficult to fit into already stretched budgets- without knowing exactly what you spent[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”][last year]. My figure always gives me a heart tremour when I see it. You might be resolved to spend less, but it’s crucial to know what you’ve been spending.

    • Budget Cuts

    Shave ten dollars off each present you have to buy, commit to not buying presents for yourself as the season really kicks off (I am deeply guilty of that one, every year) and look at organising three of four major events, as opposed to trying to attend twenty smaller ones. Rewrite your budget to take into account your ideal expenditure.

    Credit can be really handy at Christmas time – but just because you’re putting something on ‘the card’ doesn’t mean you can ignore a budget. At some stage you will pay that credit back. So it is really important to watch out for overspending with credit at Christmas. It’s easy to get caught up in the “Christmas spirit” – but don’t spend what you can’t afford.

    You may, as many do, feel the pressure to “give” so much you do so at the expense of your own budget and ultimately end up with a debt you can’t pay back. The end result of this can be getting into more debt to pay the original debt. It eventually catches up with you, and you end up with loan commitments you can’t meet or other bills get neglected because you just can’t afford to pay it all. Creditors start to default your credit file. Your financial freedom is compromised.

    This is why budgeting is so important.

    There is always something great you can buy that fits in your price range.  It just takes a bit of thinking. Besides – isn’t it the thought that counts? If you take the time to think cleverly now, you won’t be tempted to overspend in a mad panic later. And at the end of the day, your good credit rating won’t be suffering in the New Year, due to credit card debt.

    If you have a default on your credit file, or other bad credit history which you don’t believe should be there, then we may be able to help remove it and give you back your clean credit rating. Contact a MyCRA Credit Rating Repairs to have a no-obligation chat with a Credit Repair Advisor about your situation. If you want to know more about your credit rating, or credit repair – or visit our main site www.mycra.com.au.

    Image: nuttakit/ www.FreeDigitalPhotos.net

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

  • Nobody immune to identity theft as fraudsters turn their focus to investors

    Media Release

    Nobody immune to identity theft as fraudsters turn their focus to investors

    Wealthy, educated Australians looking to invest have become prime targets for the new breed of fraudster who are concocting elaborate scams designed to lure their hard earned savings. A national credit repairer says this demonstrates that the threat of fraud and identity theft is not limited to the naïve, but for all Australians.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says victims of the latest very sophisticated investment scams probably did not think they were in a high risk group, but he warns that all need to be on edge about where we could get caught out.

    “We need to get away from this idea that somehow those people that fall for scams are gullible. This is simply not true in all cases. Identity theft is the new black in criminal circles, and some of those criminals are willing to go to great lengths to fool their victims – particularly if the profits are lucrative,” Mr Doessel says.

    The Australian Crime Commission and Australian Institute of Criminology reported this year that more than 2600 Australians have lost in excess of $113 million to this type of investment fraud, but it is believed there is a high level of under-reporting and the extent is far greater. (1)

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

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

    Mr Doessel says victims can lose their nest egg, and can also have their identity hijacked and potentially credit taken out in their name, which can rob them of the ability to obtain credit in the years when they will need it most.

    “Many people in this age group will generally have a good clean credit rating, and fraudsters can use the personal information they become privy to in order to set up a fake identity. This gives them access to huge amounts of credit in their victim’s name as well,” he says.

    He goes on to say “Fraudsters are never so kind as to pay the credit back -meaning the identity theft victim is hit twice – financially ruined and with no ability to borrow for 5 to 7 years due to bad credit history.”

    The Australian Bureau of Statistics data shows 514,500 Australians were victims of scams in 2011, with 44,700 people citing actual identity theft in the same year. (2)

    Credit reporting agency Veda Advantage also recently reported in its Australian Debt Study that one in five Australians have had their identities stolen or had their personal or financial data illegally accessed. (3)

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

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

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

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

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

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

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

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

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

    6. Credit refusal due to a bad credit rating.

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

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

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

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

    /ENDS.

    Please contact:

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

    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.

    (1) http://www.ministerhomeaffairs.gov.au/Mediareleases/Pages/2012/Third%20Quarter/9July2012-Newwarning-seriousinvestmentfraud.aspx
    (2) http://www.abs.gov.au/ausstats/abs@.nsf/mediareleasesbytitle/B634CE9C7619C801CA25747400263E7E?OpenDocument
    (3) http://m.smh.com.au/nsw/identity-theft-hits-one-in-five-study-20120705-21j37.html

     

    Image: worradmu/ www.FreeDigitalPhotos.net

     

  • Mobile Phone Bill shock – Have YOU been a victim?

    Botched phone plans and lack of data usage monitoring is leaving many Australians shell shocked over their mobile bills, with bills so large many can’t pay up or refuse to pay up, and more are copping defaults on their credit file. There is an increasing number of credit listing complaints from Telco consumers relating to internet data usage on mobile phones. We have seen it here, and the Telecommunications Ombudsman has also released similar findings in its annual report today. We look at the finding in this report, and the plight of telco customers with bad credit history.

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

    Consumers are confused when it comes to data allowance on their smartphones, and the providers are not helping.

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

    Almost 26 per cent of our credit repair clientele in the 12 months to July were Telco customers.

    Sometimes consumers reluctantly pay the bill, think the matter is settled, only to find they are defaulted anyway, and others just refuse to pay the bill until they get some resolution. Either way, they are faced with at least 5 years of bad credit from the episode unless they can make a successful complaint.

    This reflects findings from the Telecommunications Industry Ombudsman (TIO) report on its services for the last financial year, which was released today.

    The TIO’s findings show mobile phone users are increasingly unhappy with the service they receive, with a 9 per cent rise in complaints last financial year.

    Ombudsman Simon Cohen said two out of three complaints made to the TIO were about mobile phones, with the biggest percentage rise about disputed internet usage charges (150 per cent).

    “Complaints about unexpectedly high bills and unnecessary financial overcommitment point to the urgent need for strong spend management rules, including those that are included in the new Telecommunications Consumer Protection Code,” Mr Cohen said.

    A Telecommunications Protection Code has recently been pushed through with the guidance of the Australian Communications and Media Authority (ACMA) which will amongst other things require telcos to provide their customers with notifications when they have used 80% and 100% of their data usage in the plan.

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

    The TIO’s annual report also shows a rise in complaints about credit default listings. Complaints about consumers being credit default listed while their debt was in dispute increased 18 per cent from 3,700 to 4,370. There was also a 16 per cent increase in complaints about consumers being credit default listed without proper notification, up from 3,220 to 3,730.

    “I am very concerned about the increase in the number of complaints where credit default listings are disputed,” Mr Cohen said “Credit listings can have very significant impacts on people – affecting applications for credit, including for housing and personal loans. Any credit default listing should only occur after the correct procedures have been followed.”

    Preventing a credit file default on your mobile phone bill often comes down to awareness of legalities.

    Many people don’t know the rules well enough when dealing with these big companies, so it can be a little like David and Goliath and many times the big guy wins.

    Here’s some ideas on what you can do if you disagree with a mobile phone bill:

    How to Dispute That Shocking Mobile Bill

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

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

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

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

    5. If at any stage you have a credit file listing from a Telco which you believe shouldn’t be there, you can undertake professional credit repair services. The credit repairer works on the consumer’s behalf to champion for the removal of credit file listings which contain errors or inconsistencies or just out and out shouldn’t be there. The credit repairer may escalate the matter to the TIO on the client’s behalf if necessary, but it may not be the only option.

    A good credit repairer will conduct an audit-like investigation to uncover errors or non-compliance that may still see the default removed, even where an Ombudsman has sided with the Credit Provider.

    Image: posterize/ www.

  • Fraudsters pinch Australian Crime Commission logo to scam consumers

    Don’t be fooled with unsolicited emails, no matter how ‘official’ they look. The Australian Crime Commission (ACC) announced last week it has been made aware of a number of scams using the ACC name and logo to lure consumers into paying thousands of dollars into fraudulent bank accounts. We describe the details of this scam, and look at what you could be giving away that could lead to bad credit history.

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

    The ACC was last week alerted to a fraudulent email pretending to be from ACC Chief Executive Officer John Lawler, which asks the consumer to pay $900 into a Nigerian bank account in order to receive US$5 million.

    The email is sent from a non ACC email address. The ACC says all legitimate ACC emails contain @crimecommission.gov.au.

    They say the ACC will never request money from individuals in this way.

    Identifying characteristics of these emails may include:

    • Reference to the Department of Homeland Security
    • Reference to the Chief Executive Office of the Australian Crime Commission
    • Reference to Nigerian based banks
    • Requests for recipients to send amounts of money,” the ACC media release explains.

    This comes hot on the heels of another scam using the ACC name to rip off Australians.

    In late September the ACC became aware of a scam that falsely used the ACC, Australian Federal Police (AFP) and Australian Security Intelligence Organisation (ASIO) logo in an attempt to lure consumers into paying large sums of money for fake criminal background checks.

    The fraudulent criminal background checks were being initiated by criminals using dating websites.

    The ACC says the scams highlight the prevalence and scope of frauds being initiated by criminals operating in the cyber environment.

    Criminals are prepared to go to great lengths to pilfer the money or personal details of their victims. To target Australian victims, the average cyber-criminal or scammer needs to be pretty savvy. Most Australians are aware of the obvious scams (although they still do catch out some), but elaborate ones such as the recent investment super scam has meant many well-educated and intelligent people become victims.

    It’s do with the logos, the proof, the fake websites, and the fake statistics. You just don’t assume that people would go to those lengths to steal your money –right? Wrong! The more elaborate the scam, the more likely it will catch out those with serious money. If the prototype works – fraudsters can use it again and again to catch out thousands before they are shut down.

    The other danger with receiving unsolicited emails, is that you can unknowingly download a virus by clicking on a link or attachment. This virus can cause your computer to be part of a botnet, or it can use keyloggers to record your keystrokes and take your passwords and usernames for important sites you use online. So even if you don’t fall for the scam, you can still fall victim to scammers.

    Scams can bring profits in a myriad of ways. Fraudsters can swipe small amounts over a widespread group – or they can concentrate on draining the bank accounts of a few. What they can also do, is misuse or even on-sell the personal details of the victim for purposes of constructing a fake identity to steal credit.

    If successful, crooks can access credit cards, goods or even larger items like houses and cars. This leaves the victim in debt, and it will also leave the victim with a series of credit defaults attached to their name. It is just debilitating for the victim, who then has to go and try to prove to creditors they didn’t initiate the credit in order to clear the bad credit history.

    To prevent this from happening to you, we have compiled a quick list of some ways you can prevent becoming a scam or identity theft victim:

    1. Keep virus software up to date on your computers. Install automatic updates and perform regular virus scans.
    2. Be careful with unsolicited emails. Check the email address before you click on links and attachments.
    3. Keep your privacy settings secure on all social networking sites.
    4. Keep your passwords and PIN numbers secure. Don’t carry PIN numbers with your credit/debit cards, change passwords regularly and use a variety of passwords for different purposes.
    5. Check all your credit card and bank statements each time they come in.
    6. Cross-shred all personally identifiable information which you no longer need, rather than throwing it straight in the bin.
    7. Buy a safe for your personal information at home.
    8. Do not give any personal information or credit card details to anyone via phone, online or email unless you are sure the site is secure, and or you can verify the company details.
    9. Be aware of who gets your personal information and for what purposes. What can these people do with the information they are gathering? For instance, is it really necessary for the site you are registering on to have your date of birth?
    10. Keep up to date with the latest scams by subscribing to the government’s ‘SCAM watch’ website.
    11. Check your credit file for free every 12 months. By requesting a copy of your credit file from one or more of the major credit reporting agencies, Veda Advantage, Dun & Bradstreet and Tasmanian Collection Service (TASCOL) you can be aware of any discrepancies which may need to investigated. Often it is only through a credit check which comes back with defaults on your credit file that  you may realise you have been a victim of identity theft.
    12. Report any incident of identity theft, no matter how small, or even if you have been reimbursed for the damage – to the Police. The more of us that report identity theft, the more effective will be our Government and Police response to it.

    For further information, visit these helpful links:

    ACCC’S SCAMwatch www.scamwatch.com.au for help with how to spot a scam and how to keep personal details safe.

    To report a scam, telephone them on 1300 795 995

    Stay Smart Online www.staysmartonline.gov.au for help with how to secure your computer, and how to keep abreast of cyber-related crime.

    MyCRA Credit Rating Repairs www.mycra.com.au for help with recovering your credit file following credit defaults from identity theft. Call 1300 667 218 to speak with a Credit Repair Advisor.

    Image: fotographic1980/ www.FreeDigitalPhotos.net

  • VISA says ‘pens down’ to prevent credit card fraud

    Plastic fantastic transactions will no longer be signed off on as a proof of identity, but will require a PIN number to authorise. In the news today, VISA has announced it will phase out signature payments by April 1, 2013. We look at this decision, and address credit card fraud, and the ways in which your credit rating can be compromised because of it.

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

    It was reported by the Sydney Morning Herald today ‘Signing off: credit card giant ditches pens for PINS’, the movement to PIN and card-chip only transactions has been prompted by the need for increased security on credit cards.

    The move is expected to reduce signature-based credit card fraud which has been on the rise over the last two years – from 38 out of 100,000 transactions in 2010 to 52 out of 100,000 transactions in 2011.

    Visa spokeswoman Judy Shaw said the change was part of a comprehensive security plan to phase out the use of signatures in favour of PIN and card chips, which are already widely used by customers in stores and ATMs.

    “At the moment we’re working with financial institutions and other card schemes to discuss a uniform approach to chip and PIN use across the industry,” she told the Sydney Morning Herald.

    “It will include a communication program so that cardholders are aware of their PINs and know how to use them,” she said.

    But rival American Express will still allow customers to confirm purchases with signatures although cards are issued with chips.

    Garry Duursma, Vice President at eftpos services company Tyro, told SMH abandoning signatures will reduce the incidence of card-based fraud, but warned it could potentially open a new risk if the restaurant’s eftpos system isn’t properly integrated with the restaurant’s bank account system.

    This demonstrates that credit cards are not always the safest way to pay.

    In instances of credit card fraud, it is not always as simple as reimbursing the victim for unauthorised transactions.

    Whenever a criminal is able to access a person’s credit card details, or any of their personal information – there is a chance the victim can have not only unauthorised transactions issued in their name, but possibly new credit taken out as well.

    Credit card fraud can take on a myriad of forms – but it can be quite sophisticated, and in those instances criminals may gain access to additional forms of credit – new cards, loans even mortgages.

    If the victim is unaware of the fraud right away and their credit file ends up with defaults – they can be blacklisted from obtaining credit for 5 years. That one instance of credit card fraud can end up financially crippling the victim. They can’t borrow for anything – they can’t even take out a mobile phone plan.

    Here is one way someone may be a victim of identity theft through their credit card:

    In October last year, New York Police made major arrests of 111 people involved in five separate identity theft rings involving counterparts in China, Europe and the Middle East.

    The victims had credit cards skimmed at many New York shops, restaurants and even banks dating back to 2010.

    Then details on the credit cards where on-sold and duplicate cards were made that were then used to purchase and re-sell high-end goods such as electrical items.

    The Herald Sun reported at the time that authorities had calculated more than $US13 million ($13.4 million) was spent by the fraudsters on iPads, iPhones, computers, watches and fancy handbags from Gucci and Louis Vuitton.

    The ACCC’s SCAMWatch says a credit card scam can come in many forms. For example, scammers may use spyware or some other scam to obtain their victim’s credit card details. A scammer might steal or trick someone into telling them their security code (the three or four digit code on the card) and then make purchases over the internet or the telephone. If they know their PIN, they could also get cash advances from an ATM using a ‘cloned’ credit card (where the victim’s details have been copied onto the magnetic strip of another card).

    Of course, there is also a danger of someone using a credit card if it has been physically lost or stolen.

    Many types of fraud can also directly threaten the victim’s credit rating – such as account takeovers by fraudsters, and instances where criminals take out new credit in the victim’s name. It doesn’t even have to be for a large sum in some cases to be a massive blow to the victim’s ability to obtain credit. I have seen people get refused a home loan due to a default for as little as $100.

    Here are the ACCC’s signs to be aware of in relation to credit card fraud:

    Warning signs

    There are transactions listed in your credit card statement that you don’t understand.
    You have given your credit card details to someone you now suspect may not be trustworthy (perhaps over the internet).
    You have lost your card.
    You have kept your security information (eg your PIN or the access code on your card) written down somewhere near your card and you find that it is missing

    Some preventative steps against credit card fraud

    – Always check the ATM or EFTPOS terminal before using it. Look out for any suspicious boxes that could be skimming devices. If in doubt – don’t use it.
    – Always cover your PIN when making transactions.
    – Never let anyone walk out of sight with your credit card.
    – Consider paying cash on nights out and leave the cards where they are safe.
    – Always check your card statements and report any unauthorised transactions – however small – to the bank immediately. Sometimes ‘test’ withdrawals are made by criminals to see if the unauthorised transaction goes undetected, before more significant amounts are stolen.
    – Regularly keep up to date with what is on your credit file – which would reveal if defaults have been issued without your knowledge. People can check their credit file by obtaining a written report for free every 12 months, from each of Australia’s credit reporting agencies. But if they are suspicious of or vulnerable to fraud they can also for a fee obtain a credit report more often.
    – If there are any discrepancies of credit or adverse listings that should not be there they should act immediately to notify Police. This crime is not very widely reported. But it is only through people reporting it that any real statistics get collated. Likewise, if people want to try and repair their credit rating, the first thing I tell them is to make sure they have a Police report.

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

    Image: adamr/ www.FreeDigitalPhotos.net

  • Save your pennies for a good cause…Buy Nothing New Month

    Wants and needs are two different things. But in the throes of spending – whether it be purchasing that new TV, or replacing your house with the latest furniture, the two concepts can be pretty difficult to separate. This thinking causes many of us to buy more than we can afford, and we find ourselves struggling to pay back credit. Too many runs of this, and we end up defaulting on our repayments and a Credit Provider somewhere penalises us with bad credit that takes 5 years to shake off. Education and awareness is the key to changing this kind of behaviour – which is natural in all of us. That’s why when we came across October’s “Buy Nothing New Month” – we thought it was a great idea. We hope it helps you.

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

    Could you last the rest of the month without buying anything new? That’s the concept for “Buy Nothing New Month” which runs until the end of October. The idea is to only buy necessities, and say a big NO to every other shopping expedition which could see you parting with your hard earned money during October.

    Savingsguide.com.au ran a post on Tuesday on this topic ‘Buy Nothing New Month’ and we think it’s a terrific concept.

    Buy Nothing New Month (BNNM) was created by the Sacred Heart Mission in a bid to encourage mindfulness about spending habits. The official BNNM website for has a real edge to it – it seems aimed at changing the minds of young people and building a better future. Savingsguide.com.au’s Toria Phillips writes “isn’t it nice to see more people getting on board as it become more socially acceptable, heck maybe even cool, to be a saver?”

    Here’s more from BNNM about what the month is all about:

    Buy Nothing New Month is the global movement for collective, conscientious consumption.

    It’s a little idea, that started in Melbourne and is spreading to the Netherlands and USA.

    In 2011, Sydney Morning Herald ran a poll asking “is Buy Nothing New Month a good idea?” Over 10,000 voted. 82% said “yes”

    It’s a one month challenge to buy nothing new (with the exception of essentials like food, hygiene and medicines)

    Buy Nothing New Month isn’t Buy Nothing New Never. Nor is it about going without.

    It’s literally about taking one month off to really think, “Do I really need it?” If I do, “can I get it second-hand, borrow it or rent it? What are my alternatives? Can I borrow from a friend? Can I swap with my neighbor?”

    It’s about thinking where our stuff comes from (finite resources) and where it goes when we’re done (often landfill) and what are the fantastic alternatives out there to extend the life of our ‘stuff’.

    It’s easy. It’s fun. It’s moving from consumption-driven to community-driven.

    It’s good for us, our wallets and our planet.

    Hop on board!

    Don’t worry that the month is almost out – take the last week or two to give it a go – or maybe run it into November if you can. For tips on how to do it – visit the BNNM website’s How to Page.

    Back in September we wrote an article involving data from the Australian Bureau of Statistics which showed one in seven Australians spend more than they earn – ‘Are you spending more than you earn? You’re not alone.’ These are alarming figures and it makes me realise that not enough Australians understand the power of credit. It is a great concept, but as long as we make it work for us. We should use it to enhance our lives so that we can spend time with the ones we love, or to really improve our quality of life. Not make ourselves slaves to it. All it does is end up becoming a monkey on our back when we are living with bad credit history.

    This disease of consumerism also known as ‘Affluenza’ (when too much is never enough) is mentioned on the BNNM website, and it is an idea that some Australians have taken on board, and it has enabled them to change their ‘stinkin- thinkin’ about money.

    Is this you?

    “We all know this stuff but we forget. Or, more accurately, we choose to forget. We want what we want and we want it now. So, we cram that whining voice inside our head telling us to be frugal deep into our subconscious, buy the thing we like, and only release him later. Of course, by this stage it is invariably too late to undo the damage so we shrug our shoulders, say “oh well” and convince the whiny voice that we “forgot” and that it was really all beyond our control,” Savingsguide.com.au’s Toria Phillips muses.

    If so, put that little voice on loudspeaker! Change your stinkin thinkin – and take the ideas of Buy Nothing New This Month and apply them in your life. This won’t guarantee that you do not make the occasional bad choice, and it won’t guarantee that you aren’t a victim of credit rating errors which lead to bad credit history. But it gives you a good sporting chance of keeping a clear credit file and having the real financial independence that everyone deserves.

    For advice on how to restore your good name and have a clear credit file or help to dispute unfair credit listings, contact a Credit Repair Advisor on 1300 667 218 or visit our main site MyCRA Credit Rating Repairs for more information on what we do www.mycra.com.au.

    Image: Pixomar/ www.FreeDigitalPhotos.net

  • First home owners trapped in their current home loan and locked out of refinancing

    Despite massive interest rate cuts, and the positive jump in the number of first home buyers entering the market, those that are looking to refinance are getting rejected at a rate of knots due to reduced equity in their homes, according to JP Morgan. Banks are being choosy about who they lend to, and those that are trying to refinance their first home are doing it tough. They say this will dampen our housing market for some time. We look at this issue, and other issues around credit history which may impact on a successful refinance.

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

    The ‘JP Morgan Mortgage Industry Report Vol 16′ focuses on recent mortgage approvals data. It paints a rather gloomy view of our housing market in Australia.

    The executive summary of the report details that although lower mortgage rates have meant borrowers have been able to reduce debt, the cuts are not spurring on mortgage approvals.

    “Interestingly, not only are the volume of approvals weak, but the average value of approvals is declining. While this may simplistically be dismissed as a broader indication of stalled house prices, we conclude that a degree of tightness for refinancings is evident – particularly for First Time Buyers,” it is reported…

    “Growth in the average value of each form of owner occupied approval is now in negative territory. This is the first time this has occurred since data became available in the early 1990’s! One key reason we offer is a significant reduction in the LVR at which refinancings are taking place.”

    Housing credit growth is at its lowest level since the mid-1970s, and JP Morgan is expecting low rates of credit growth to continue or to at worst decline rather than do a “quick rebound off the back of lower interest rates.”

    They say first home owners are facing the bulk of the rejections. They are increasingly finding themselves trapped in their current home loan as banks refuse their applications for new ones.

    “Specifically they haven’t absorbed enough loan devaluation ratio in terms of the house prices being flat and they haven’t had sufficient time to actually make a dent in the mortgage through repayments,” Scott Manning, Banking Analyst with JP Morgan told ABC’s The Business last week.

    This report is in keeping with RP Data information released in July that showed more home owners were slipping into negative equity. The Sydney Morning Herald reported in it’s story ‘More homes slipping into negative equity as prices fall’ that in the three months to December last year,  6.4 per cent of homes were valued at less than their purchase price, a rise of 1.5 percentage points.

    “Within the 6.4 per cent, 27 per cent of people who owned a home for one to two years had properties worth less than their purchase price.

    By contrast, only about 1 per cent of owners holding their property for between nine and 10 years were in the same situation, according to property analysts RP Data.

    So with many consumers experiencing reduced equity which is leading to more rejections by lenders, the other factor that comes in to play is rejection for refinancing because of bad credit history.

    Surprise bad credit that prevents refinancing

    Many times people don’t know they have bad credit history until they apply for finance.

    Bad credit history can ruin plans to refinance even if people think they have been up to date with all of their repayments – due to errors or inconsistencies on the credit file.

    Phone companies, utility companies and stores can all default consumers for late payments. The consumer may or may not be aware this has occurred (although they should be) and it may or may not be a legitimate listing (but it should be). Yet once that default, or other credit listing is placed on the consumer’s credit file, they are locked out of credit for the term of the listing – between 5 and 7 years – even if they have plenty of equity in their home.

    This can be a valid reason why people can apply to refinance and be declined, despite being able to demonstrate consistent repayments on their current home loan.

    If banks continue to err on the side of caution with their lending criteria – then a clean credit file will remain essential to meeting any risk assessment a bank can put up.

    So how many credit files contain errors? The volume of credit file errors on Australian credit files is uncertain.

    A spokesperson from credit reporting agency, Veda Advantage estimated 1% of the 250,000 credit reports they give out as a credit reporting agency to Australians every year contain a material error on the credit file.

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

    And the real numbers? They may be somewhere in between.

    Approximately 63% of the incoming clients with MyCRA Credit Rating Repairs have defaults, writs or Judgments which are listed in error on their credit file.

    We have clients who are facing identity theft; some are caught in issues over separation from their spouse; some have been disputing the bill which went to default stage and many people are just victims of the fallout from inadequate billing procedures – wrong names, wrong addresses, human and computer errors.

    Listings such as defaults, writs, Judgments and clearouts are not removed by creditors unless the credit file holder can provide adequate reason and lots of evidence as to why the listing should not be there.

    Credit repair requires knowledge of the legislation, lots of evidence and perseverance. But if the consumer’s financial freedom is hindered because their credit file contains errors, it is a point worth fighting for.

    If you need help with credit repair call us on 1300 667 218 or visit our main site: www.mycra.com.au.

    Image: YaiSirichai/ www.FreeDigitalPhotos.net

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

  • They’re ba-ack again! Fraudsters change tactics on Microsoft virus scam

    If you own a computer – or a telephone for that matter – you may be vulnerable to computer-related scam attempts. The old Microsoft virus scam may have been shut down, but a new one has popped up in its place. We look at the current computer cold call scam warning, what you should do if you are called by these scammers, and what the ramifications of falling for this scam could be for your financial identity and credit file.

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

    Remember the scam going around where fraudsters were claiming to be from Microsoft and were cold calling in Australia to offer “technical support” to remotely assist in clearing viruses off home computers?

    First detected in 2010, the ‘Microsoft Phone Scam’ was clever, and caught out thousands. Callers knew the victim’s name and address. These fake security engineers were claiming to see problems with the victim’s computer and asking whether the victim had noticed their computer becoming slower recently.

    They went on to offer to take over the machine and fix the problems. The scammers were using legitimate remote access software, such as LogMeIn, TeamView and Ammyy.

    Scammers then requested money for this ‘service.’ On top of that, it put the victim’s personal and banking details at risk. It also gave the scammers remote access to their computer, which can potentially lead to infected computers and pilfering of personal information via keyloggers.

    Gizmodo’s recent article ‘Global Operation Sees Infamous ‘Microsoft’ Scammers Finally Taken Down [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”][Updated]’ explained the extent of the success of the scam prior to its takedown:

    Three years on from the first report into the ACMA about the Microsoft scammers, over 10,000 complaints have been recorded. The ACMA says that the worst point came two years ago, when every second complaint to the agency was about the Microsoft scammers. This was in 2011 — a year when scam activity had doubled on the previous period. 52 per cent of the 83,000 scam complaints the ACMA received in 2011 presented as phone scams. All in all, in that 12 months, Australians lost a total of $85.6 million to various scammers.

    Gizmodo reported international efforts from Australia, Canada and the United States brought down U.S. based scammers only a couple of weeks ago. The scammers became the first individuals to be caught in connection with the scam. They’ve had their assets frozen and they are presumably now awaiting a hearing over fraud charges.

    Not to be dismayed, scammers have obviously thought the gig was too lucrative to dismantle yet – and they have changed tactics – hitting those original victims with yet another scam. As if they hadn’t suffered enough!

    On Friday Stay Smart Online issued a warning that computer-related scams were doing the rounds again. It may be important for those who may have been targeted last time.

    “Following international efforts by agencies to close down the infamous ‘Microsoft imposter scam’, reported earlier this month, examples of scammers responding with new approaches have been noted.

    This includes scammers making follow up calls to previous targets of the original scam, offering apologies and refunds in response to the closing down of (fake) support they provided previously.

    Scammers may also claim to be from a foreign government, foreign law enforcement agency or bank, and offer to recover the money you initially lost, in return for a fee,” SSO notes in its warning.

    Your personal information in the wrong hands can lead to identity theft which threatens the health of your credit rating. Fraudsters can duplicate your identity and take out credit in your name – leaving you with debts you didn’t initiate and bad credit from outstanding accounts in your name.

    Think recovery would be easy? Think again!

    Clearing bad credit history is always difficult for individuals to undertake. Most enquiries will result in Creditors telling you that bad credit is there to stay for the term of the listing (usually 5 years). The only thing you can do to change that is to prove there is an inconsistency by demonstrating that the listing was put there unlawfully. An identity theft victim’s task is then to prove that they did not initiate the credit in the first place, but proof is not always easy to obtain – especially when you have no idea of exactly how the fraud occurred. Many people don’t know they are victims until they go to obtain credit and are refused because their credit file is riddled with defaults.

    So what should you do if you get a phone call from one of these guys? SSO gives this advice:

    Suspect: Don’t accept anything at face value. Don’t make a payment over the phone or online without first checking the details.

    Think: Recognise the signs. If you’re being pressured to act, disclose personal details or send money to a stranger, it’s almost certainly a scam. (Microsoft never makes unsolicited phone calls about its products.)

    Report: Act to report the scam. Tell SCAMwatch and help stop scammers in their tracks.

    Ignore: Never respond. Hang up or delete the SMS or email after reporting.

    If you have had your credit file destroyed by identity theft, and need help recovering your good name – contact a professional Credit Repair Advisor on 1300 667 218 or visit the MyCRA Credit Rating Repairs website www.mycra.com.au. Professional credit repair can offer you the best chance of being able to clear bad history from identity theft for good.[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • It’s not credit for Christmas, says DnB

    Christmas credit may not be ‘on the cards’ for shoppers this year. Due to concern about financial security in Australia, it is predicted shoppers will continue to tighten their purse strings over the Christmas period, with less predicted to spend money on non-essential items and credit usage predicted to drop, according to credit reporting agency Dun & Bradstreet.

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

    Findings from Dun & Bradstreet’s latest Consumer Credit Expectations Survey, which measures expectations for savings, credit usage, spending and debt performance during the December quarter 2012, show half of Australia’s households are less likely to spend on non-essentials in the coming months.

    The survey showed:

    • One in three (29%) are more inclined to save than they were 12 months ago.
    • 56 per cent of Australians are concerned about their personal financial situation.
    • 37 per cent of households less likely to use a credit card to pay for non-essential items over Christmas compared to the same period last year, while just 16 per cent plan to apply for a new credit product or limit increase.

    Dun & Bradstreet notes that the Reserve Bank’s decision to lower interest rates due to slower economic growth comes as households reduce debt and increase savings as a buffer against economic instability, including the risk of rising unemployment. The bank is now predicting more moderate and sustainable credit growth off the back of this trend in consumer behaviour.

    Dun & Bradstreet General Manager, Danielle Woods, says the conservative consumer outlook could have a significant negative impact on businesses reliant on the Christmas rush.

    “An increasing number of Australians are concerned about their financial security and this is weighing heavily on their plans for the Christmas period,” Ms Woods said.

    “Prioritising saving over non-essential spending is a positive for the balance sheets of Australian households and the Reserve Bank is certainly encouraging this behaviour, in light of uncertain employment conditions. However, it could have detrimental flow on effects for businesses that are looking to Christmas to drive an uplift in sales.”

    However DnB also says, while consumers are planning to avoid non-essential spending and non-essential credit usage during the Christmas period, a significant proportion will need to rely on existing lines of credit to cover the cost of living.

    Forty per cent of 35-49 year olds will use credit to cover expenses they couldn’t otherwise afford, up from 35 per cent during the December quarter 2011. In addition, 60 per cent of this demographic are expressing concern over their financial situation and one in three (35%) would last no longer than one month on their current savings without full-time employment.

    This survey reveals a similar sentiment from Australian Bureau of Statistics figures released in September this year, showing one in seven Australian households is spending more than it earns, as the working poor struggle with monster mortgages and surging power bills.

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

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

    Of the poorest 20 per cent of households, one in five could not pay their bills on time and one in four spent more than they earned”, it was revealed in news.com.au ‘Aussie strugglers living beyond means’.

    So it seems the trend is continuing that most people are batting down the hatches and reducing their spending in order to pay down debts – but there are sections of the community who are still struggling due to rising costs of living and over-commitment. This seems apparent regardless of income. So for those people, credit for Christmas may be a reality.

    Causes for over-commitment can be a simple inability to manage money – wanting more than they can afford. Or in some cases, over-commitment can be a gradual thing – sometimes caused by expensive credit as a result of bad credit history. There have been reports that possibly as many as 3,000,000 Australians are impacted by bad credit history.

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

    If the person with bad credit history wants to try and start again with credit, it may be possible to wipe the slate clean  and remove bad credit history, particularly if it should not be there, or was incorrect in the first place.  If the credit file contains inconsistencies, that person may be a good candidate for credit repair.

    A credit repairer can work with creditors on behalf of the client to identify inconsistencies and negotiate to clear the credit file of those defaults, clear-outs, writs and Judgments which contain errors, are unjust or just should not be there. A clear credit rating would give them the financial freedom to use credit whenever they need to at competitive rates.

    For advice about credit repair contact a  Credit Repair Advisor on 1300 667 218 or visit MyCRA Credit Rating Repairs website www.mycra.com.au.

     

  • Has your tax file number been given out to debt collectors?

    If you have a tax bill you haven’t paid – be aware your tax file number may have been given out to debt collectors contracted by the Australian Tax Office. This is despite the recent warnings from the ATO that compromised tax file numbers are leading to identity theft. We look at the story behind this recent revelation and report on the prevalence of tax file number – related identity crime. Identity theft can lead to credit fraud which can leave you in debt and with bad credit history.

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

    The Herald Sun reported yesterday in their story ‘Debt collection agents given tax file numbers’ that the ATO gives out the tax file numbers of consumers whose debt they are referring to debt collection agencies. The numbers are used for identification purposes.

    “THE tax file numbers of Australians are being passed on to contracted third-party debt collection agencies by the Australian Tax Office, despite the ATO claiming compromised tax file numbers are leading to identity theft,” the lead in states.

    This surprising revelation comes after the Herald Sun revealed this month there had been a surge in compromised tax file numbers. See last week’s post ‘Over 23,000 accounts of tax file number identity theft last year.’

    The newspaper published data from the Australian Taxation Office showing over 23,300 Australians had their tax file number compromised in the 2012 financial year. This was up from 22,000 last year.

    Likewise, ATO’s August campaign involved urging consumers to keep their tax file numbers safe to avoid identity theft. They revealed that scams such as fake job ads and bogus ATO emails were leading to compromised tax file numbers and identity theft. Here is an excerpt from their media release ‘Scammers target job seekers’ with comment from Tax Commissioner Michael D’Ascenzo:

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

    This year there have been over 6,000 reports from the community about bogus e-mails using the ATO brand, and over 4,000 reports of attempted phone scams.

    At this time of year when many people expect refunds, scammers use the opportunity to pretend to be from the ATO.”
    Only certain people and organisations can ask for your TFN, the most common being:

    • the ATO, when discussing your tax records
    • your employer, but only after you start work
    • your bank or other financial institutions
    • Centrelink, and
    • your superannuation fund.

    It was not mentioned which people and organisations are commonly recipients of Australian tax file numbers.

    ATO response on tax file number referral

    The ATO told the Herald Sun that contractors use the numbers for identification purposes only and said there is no risk because strict security requirements are placed on them.

    Here is an excerpt from the Herald Sun story:

    Four companies are contracted to do debt collection for the ATO and only two responded to queries from the Herald Sun asking about security arrangements or how many staff would have access to public tax file numbers.

    The ATO stated: “The four debt collection agencies we use are subject to strict security and privacy provisions as part of their contract. Any breach could nullify the contract and result in prosecution.

    “No taxpayer information, including tax file numbers, is to be sent overseas.”

    The ATO added that every two years it checked the premises and IT systems of third-party debt collection companies, and the last checks were done between July and October this year with no major risks or breaches identified.

    But the country’s biggest accountancy body has expressed concerns about the use of tax file numbers when not necessary.

    “If the tax office is sharing TFNs with third parties, regardless of the contractual arrangement, then there is a concern and a great risk … that the information is distributed, that the information could be misused somewhere along the line,” CPA Australia head of tax Paul Drum said.

    “In that regard, it seems unusual that the Tax Office would need to provide a TFN when the information provided to the debt collectors includes a claims reference number anyway.”

    Whilst the security checks employed by the ATO seem acceptable, I too question the requirement for sharing of this crucial financial information to outside bodies if not absolutely necessary.

    In this day and age when instances of identity fraud are reportedly on the rise, and becoming more sophisticated by the day; when we are urged by Government, by law enforcement, by banks, even by the ATO to regard our personal information as a valuable commodity – it seems unusual that the policy for sharing this crucial financial information still remains in place.

    Identity crime and your credit file

    Compromised personal information in any form is a big threat to our credit file health.

    If fraudsters get hold of your identity information they can duplicate it, and attempt to take credit out in your name. If successful, they can borrow anything from credit cards, mobile phones, cars, even mortgage properties. They are never so kind as to pay that debt back – so your credit file, your good name is left compromised and you are left with debt you didn’t initiate.

    It can be difficult to correct any credit file discrepancy – but identity crime can be even more difficult to remove from your credit history – because you have to prove – somehow – that you didn’t initiate the credit in the first place. This can involve evidence that you may or may not have. You may not be able to get any documentation, and also the identity theft could have occurred long before you find out about it.

    If you find out any personal information is compromised, or you know you are the victim of identity theft, the best place to go first if the Police.

    Once you are in a position to try to recover your good credit history, a Police report will go a long way to proving your innocence.

    Police may also advise you of other avenues open to you as well as an identity theft victim, such as requesting a Victims of Commonwealth Identity Crime Certificate.

    If you need help recovering your credit file health for whatever reason, contact a Credit Repair Advisor on 1300 667 218 or for more information visit the MyCRA Credit Rating Repairs website www.mycra.com.au.

    Image: Arvind Balaraman/ www.FreeDigitalPhotos.net