MyCRA Specialist Credit Repair Lawyers

Tag: MyCRA Credit Rating Repairs

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Image: Victor Habbick/ www.FreeDigitalPhotos.net

  • How an overseas trip can see you with bad credit

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

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

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

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

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

    And watcha gonna do when you get back?

    Get sensible again? Maybe save for a house?

    Or save for another trip?

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

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

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

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

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

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

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

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

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

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

    1. Completely finalise your accounts

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

    2. Cancel direct debits

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

    3. Beware phone charges while overseas

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

    4. Beware splurging on credit cards

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

    5. Beware identity theft

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

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

    Checking your credit file

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

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

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

    Image: kangshutters/ www.FreeDigitalPhotos.net

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

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

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

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

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

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

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

    “The ACMA will very closely monitor its [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][the TCP Code’s] progress and will not hesitate to communicate to industry the need for further change, if that need arises. This is an important point as the code will apply to every service provider in Australia. Compliance with the code is no longer an option. The ACMA obviously stands ready to use its powers of investigation and enforcement if participants choose not to comply with these new code obligations (which include an obligation to report their compliance performance to the industry’s new compliance monitoring body, Communications Compliance),” Mr Chapman says.

    How have telco customers been affected?

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

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

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

    And customer credit files?

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

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

    The problems have also extended to complaints. Many customers can have had great difficulty in cancelling the accounts or coming to a resolution with telcos over these billing issues. Sometimes consumers have reluctantly paid the bill, thought the matter was settled, only to find they were defaulted anyway, and others have just refused to pay the bill until they got some resolution. Either way, customers have been faced with at least 5 years of bad credit from these often unfair credit listings unless they have been able to make a successful complaint.

    What the TCP Code will mean for consumers

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

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

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

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

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

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

    Customers will also benefit from better spend management tools designed to avoid ‘bill shock’. These include improvements in billing processes and credit management, and the introduction of notifications about data usage and expenditure thresholds.
    Some of the changes will be phased in to help providers adjust their systems. From 27 September, customers will be able to more easily compare costs and plans, with telcos required to provide unit pricing for national calls, standard SMS and downloading 1 MB of data in advertisements…

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

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

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

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

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

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

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

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

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

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

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

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

    Don’t buy into it!

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

    Some basic things to look for with default listing rules:

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

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

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

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

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

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

    Dangers In Disputing Your Credit Listings Yourself…

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

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

    Professional Credit Repair Law Firms

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

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

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

    Who Chooses Credit Repair?

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

    Volume of Credit Rating Errors Or Mistakes

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

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

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

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

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

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

    Image: digitalart/ www.FreeDigitalPhotos.net

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  • Veda throws new light on identity theft and credit fraud: 1 in 5 affected

    Identity theft numbers continue to climb. How can this impact your credit file and possibly lead to a wrong default listing? And what action can you take if you are a victim of identity fraud?

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

    Credit reporting agency Veda Advantage has revealed more results of their annual Australian Debt Study, of around 1,000 Australians that one in five have had their identities stolen or had their personal or financial data illegally accessed.

    The results, released on Thursday to the Sydney Morning Herald and published in the story Identity theft hits one in five: study, shows the figures have climbed higher than previous studies on identity theft. This includes the widely attributed study on identity theft commissioned by former Attorney-General Robert McLelland twelve months ago, which revealed one in six Australians had fallen victim to, or knew someone who was a victim of identity theft.

    It was reported that credit card crime such as skimming is one of the major problems plaguing consumers. Here is more from that story:

    Australians aged 35-49 are the most likely group to fall victim to identity fraud while 18-24 year olds are the least likely to report illegal access to their personal or financial data…

    …people earning more than $70,000 are much more likely to be targeted for bank account and credit card crime than those earning $40,000 a year or less and cases of identity theft and financial fraud are highest in Western Australia and NSW.

    Findings also show that almost one in three Australians suffered some form of credit crime and lost their wallet containing credit cards and identification.

    Matthew Strassberg, a Veda senior advisor said: “Identity crime is a thriving industry in Australia, with the Australian Bureau of Statistics estimating the cost of personal fraud to consumers at $1.4 billion dollars a year.

    “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.”

    Credit card fraud is the most common type of identity crime, but it is buffered by substantial bank insurance and good general knowledge of the steps to take should a person’s credit card be stolen – cancel cards, let the bank know etc etc – but the silent ‘killer’ if someone’s wallet is stolen or a home is broken into; or personal information accessed over the internet or through the various sophisticated computer viruses that are out there – could be the personal information that can be accessed and misused.

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

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

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

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

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

    It can often be difficult for Police to track down who was responsible for the fraud, and likewise, it can be difficult to prove to creditors the victim did not instigate the credit in the first place. People can be left not only owing thousands of dollars, but can also be left robbed of the ability to take out new credit. Major fraud such as this can completely debilitate a family for years after the crime took place. Bad credit sticks around for between 5 and 7 years, depending on how the unpaid credit is listed on the victim’s credit file.

    Knowing how to dispute a credit report which is damaged from identity theft is a science, as is all credit listing complaints. The onus is on the credit file holder to prove to the creditor they did not initiate the credit. This requires proof, including Police reports and documentary evidence.

    This is why many identity theft victims – and all victims of credit file mistakes – turn to professional credit repairers to repair their bad credit in these instances. Often there is only one shot at disputing a credit listing with a creditor. Seeing a professional can give people the best chance of correcting bad credit and having those mistakes (including mistakes from fraud) which appear on their credit report removed for good.

    If you are the one in five who has been a victim of identity theft, have you checked your credit file lately? Do you know whether you could be at risk of identity fraud and credit misuse?

    You can get a free copy of your credit file annually from one or more of the credit reporting agencies in Australia and you should do this to make sure your good name hasn’t been compromised.

    If there is something on your credit report that you don’t agree with, or you think you may have fallen victim to identity crime, contact Police and contact a credit repairer – don’t be embarrassed, and don’t put up with bad credit that shouldn’t be there.

    Image: scottchan/ www.FreeDigitalPhotos.net

    Image: vichie81/ www.FreeDigitalPhotos.net

  • Bad credit affects refinancing market too

    Refinancing numbers are at a record high. But any home owner looking to refinance needs to consider they could have surprise bad credit history. Before you apply for a new loan, it is important to check your credit history prior to making any finance application, even if you think your repayment history is impeccable.

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

    Australian Broker reported Tuesday on figures coming through from AFG showing figures for refinancing have gone through the roof in the past 12 months, with two in five loans now refinancing:

    Refinancing outweighed all other loans on AFG’s Mortgage Index at 39.1 per cent for June.

    Mark Hewitt, general manager of sales and operations at AFG attributed the growth to a more competitive market.

    “Refinancing is very strong as borrowers take advantage of a more competitive market to secure a better deal,” he said.
    AFG also said fixed rate loans fell to 16.5 per cent – a significant decrease from March’s peak of 25.4 per cent.

    “It’s significant that, as we begin a new financial year, the vast majority of borrowers are opting not to lock in an interest rate. Most see a period of stable or even softer rates for the foreseeable future.”

    Before refinancing

    Prior to making a re-financing application, you should order of free copy of your credit report – in case your credit history contains inconsistencies you aren’t aware of. For some home owners, it can be years since you applied for major credit, who knows what information is present on your credit file?

    Under current credit reporting legislation, you are entitled to obtain a free copy of your credit report from the credit reporting agencies once a year. A person requesting their own credit report does not generate a ‘credit enquiry’ on their credit file so it is important to do this prior to putting in the application. If a credit enquiry from a lender finds a default against your name, warranted or not, you will be refused finance. That lender’s ‘enquiry’ now shows up on the credit file for 5 years along with the default, creating two negative entries instead of one.

    You need to contact all the credit reporting agencies to request your credit report – as creditors have access to 2 main agencies within mainland Australia and 3 if in Tasmania. The report will be sent to you within 10 days of the request.

    Regardless of whether you have been diligent with paying bills, creditors can and do sometimes make mistakes with credit files, which can leave you with black marks against your name that just shouldn’t be there.

    Sometimes you may not know your good name is compromised until you apply for finance or in this case re-finance and are refused.

    What is bad credit?

    A bad credit rating can result often due to unpaid accounts. When a bill or repayment goes unpaid past 60 days, it is listed as a default or a ‘clear-out’ on your credit file. In the current finance market, any black mark generally results in an automatic decline with the major lenders, as does too many credit enquiries.

    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 clients who request credit repair 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 are not removed by creditors unless you 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 your financial freedom is hindered because your credit file contains errors, it is a point worth fighting for.

    Contact MyCRA for help with getting a free copy of your credit file, or for help with credit repair on 1300 667 218 or our main site: www.mycra.com.au.

    Image: Michal Marcol/ www.FreeDigitalPhotos.net

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

  • Help I have applied for my first home, but I have been declined! How do I fix bad credit?

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    Bad credit is common,  affecting millions of Australians and sometimes it goes undetected until your loan is DECLINED.

    This ‘surprise bad credit’ can see you declined on a home loan application. We show how it may have happened, and give you 7 steps to fix a bad credit report.

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

    Applying for finance for 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 and caused the decline.

    How can they refuse me a home loan based on this, you ask? They can, and they do. You see, a default is an account in arrears greater than 60 days.

    If you have a default on your credit file, it tells the lender that you don’t pay your bills on time. They have a responsibility to ensure you can manage the debt you will accrue. This is evidence that you can’t manage your debts, you look like a risk to them, so they refuse you the loan, despite all the other factors being in your favour.

    What Do I Do Now?

    Now you know you have bad credit, you have two options. You can wait for 5 years. A default remains on your credit file for 5 years from the time it was listed, and after this time it ‘drops off’ your credit report. It will impact your ability to obtain credit generally for the entire time it is listed on your credit file. So – for 5 years you will have a hard time getting anything other than a credit decline anywhere, from mortgages to car loans to credit cards and even mobile phone plans.

    If you don’t want to wait, you can investigate whether it should be there at all.

    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.

    Here are the steps you need to take to correct errors on your credit file:

    7 Steps to Fixing Credit Reports

    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 of your credit file in the last 12 months, it will be free from the credit reporting agencies in Australia. They are Equifax (Formerly 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 small 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 got on your credit file.

    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. Want 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 who’s got time to learn all of that?

    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 law firm. 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… Without the DECLINE!

    If you’ve done the crime, you may need to do the time

    If you’re a serial offender for late payments, 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. We don’t advocate wiping the slate clean because of a technicality, and contributing to your fall from grace once again when you default on your home loan. The credit reporting system was designed for you, to stop you from getting in way over your head and maybe 5 years without credit is a good time to learn some financial strategies for the future. This is where a decline can actually be helpful.

    But, if you firmly believe you are capable of making repayments on this home, if you know that the listing was put there unfairly, or perhaps even if the listing was accrued because you had a period of financial stress you have now recovered from and you weren’t helped in the appropriate ways at the time, then you may have a case for removing the default. If you are unsure, you can always talk to MyCRA Lawyers on 1300 667 218, who can make an assessment for you on your suitability for credit repair.

    Image: stockimages/ www.FreeDigitalPhotos.net

    Image: David Castillo/ www.FreeDigitalPhotos.net

     

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  • The TIO just got more muscle to penalise Telcos in small business disputes

    The Telecommunications Industry Ombudsman (TIO) reports in some areas they’ve almost tripled their workload  and it has just been given new powers to handle complaints with a higher total value, which should pave the way for the Ombudsman to deal with more small business issues as they relate to the telecommunications industry. We look at what this will mean for small business, and look at general figures for Telco complaints, and how this may affect consumer credit files and credit file listing complaints.

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

    From 1 July 2012, the TIO will have the power to give legally binding directions to service providers of up to $50,000 in value, and to make recommendations up to $100,000. This is an increase from direction powers of $30,000 and recommendation powers of $85,000. There will also be a change to the way it classifies a small business.

    “The adjustment to our monetary limits means that consumers who previously had disputes too large for us to deal with will now have access to our fast, free and independent service,” Ombudsman Simon Cohen said in a statement to the media last week.

    The TIO says the changes will be of particular benefit to small business consumers. At the same time as the constitutional change on monetary limits commence, the TIO will adopt a more flexible approach to defining a small businesses, making TIO services accessible and relevant to these consumers.

    New Small Business Definitions for TIO

    The TIO can assist small businesses with an annual turnover of less than $3 million and up to 20 employees (or up to 100 staff in the case of seasonal operations or manufacturing businesses).

    Even where these conditions might not be met, the TIO will consider other aspects such as the issues in dispute, the nature of the business (for example, whether it is not for profit or it operates from home), and whether the business is independently owned and funded by a small number of individuals who make most of the important business decisions.

    In the past, the TIO would also take into account the amount in dispute and the business’s yearly expenditure on telecommunications. These criteria have now been removed.

    Prior to these new powers, the TIO announced its intention is to expand its role beyond dispute resolution to helping improve telecommunications services. The TIO says it aims to achieve this by contributing to better customer service and complaint handling and working with industry to identify broader issues affecting consumers.

    Consumer Complaint Numbers Through The Roof

    In the magazine TIO Talks, it reported on its most recent survey of TIO services. It counted 52,231 new complaints received between January and March 2012. Almost two-thirds were about mobile phone services – with two significant trends in new mobile phone complaints coming from consumer issues about over-commitment resulting from inadequate spend controls, and complaints about excess internet usage charges. It revealed the staggering figures that numbers for internet data usage complainnts  have jumped 180 per cent in 12 months. The TIO Reports:

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

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

    Credit File Listing Complaints from Telco Industry

    Every day as credit repairers, we forward complaints to the TIO about consumer complaints and bill disputes which have seen them not only having billing issues, but having those issues impact their ability to obtain credit through being defaulted.

    We would agree that internet data usage complaints are rampant. Data usage on mobile phones seems to be one of the biggest sources of confusion for consumers. Some clients have trouble understanding their accounts (and often claim the plan they were put on was not appropriate for what they intended to use their mobile and/or internet for), and when they are hit with massive bills, they struggle to make the repayments; others claim they have great difficulty getting billing issues and disputes sorted out at the time they appear, and end up having defaults put on their credit file because they refuse to pay a bill they disagree with; and then some are simply the victim of internal errors within the telco industry – wrong accounts, wrong names, wrong plans, wrong addresses – and all of these things contribute to negative credit file listings that they often don’t know anything about until they apply for credit and are refused.

    Understanding Bill Disputes with Telcos

    MyCRA’s Legislative Compliance Officer specialising in Telco credit listing complaints has given people a few quick tips to take heed of when disputing Telco bills:

    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).

    2. 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.

    3. If the matter can’t be resolved internally, take your case to the TIO.

    4. If at any stage people have a credit file listing from a Telco which they believe shouldn’t be there, they should contact a credit repairer, and give them all the information so far. They can then work on the person’s behalf. Credit file listings can be difficult for the individual to remove. If people request Creditors remove bad credit history, most people are told listings cannot be removed, but can be marked as ‘paid’ if the account was settled. This may not be enough to obtain credit with most lenders in the future, and these listings will be on a person’s credit file for between 5 and 7 years. With their knowledge of credit reporting law, a credit repairer will negotiate with the creditor as well as escalate the matter to the TIO on the client’s behalf if necessary. This gives people the best chance of actually being able to remove bad credit history which shouldn’t be there.

    A New Consumer Protection Code

    A revised Telecommunications Protection Code is currently being considered by the Australian Communications and Media Authority (ACMA) which, if adopted, will require telcos to provide their customers with notifications when they have used 80% and 100% of their data usage in the plan. After 24 months telcos will be required to extend notifications to voice and SMS usage. These changes come after pressure from ACMA for Telcos to offer better protection for consumers, or face external regulation.

    Image: suphakit73/ www.FreeDigitalPhotos.net

  • Telstra’s security slip-up was a breach of the Privacy Act

    Back in December 2011 a customer discovered the identity details of 734,000 Telstra Australia customers had been exposed to possible identity theft and misuse by being easily accessible through a Google search. The Privacy Commissioner, Timothy Pilgrim immediately stepped in to investigate. After a 6 month-long investigation, Mr Pilgrim and the Australian Communications and Media Authority (ACMA) has found Telstra has breached both the Privacy Act, and the Telecommunications Consumer Protections Code. We look at how this occurred, and what the implications could be for Telstra, and for you and your credit file.

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

    In the New Year, we reported on this massive privacy issue, which affected more than 700,000 customers, including myself in our post Telstra’s at it again. And this time it may affect YOU. Here is an excerpt from the December 12 media release:

    The Sydney Morning Herald reported on Friday a user of the Whirlpool forum stumbled upon the “Telstra bundles request search” page after doing a Google search for a Telstra customer support phone number they were told to contact.

    SMH reported the information of any Telstra customer was searchable even by last name, bringing up the customer’s account number, what broadband plan they were on, what other Telstra services they were signed up to and notes associated with the customers’ accounts including in many cases their usernames and passwords.

    There were also other details about technician visits, SMS messages sent to private mobile numbers and credit check details.
    Telstra has reportedly reset approximately 60,000 customer passwords as a precaution (http://www.theaustralian.com.au/australian-it/telstra-customers-face-password-reset-after-privacy-breach/story-e6frgakx-1226219541766).

    Telstra bundle customer, Graham Doessel is one of those potentially at risk.

    He also happens to be the CEO of a company dealing in credit repair for people who have been unlawfully blacklisted from borrowing facilities. He says as much as 50% of his clientele who present with credit file errors and inconsistencies are Telco customers, and many of those are Telstra customers.

    “This data breach is a crucial example of how errors occur so easily in the Telco industry. Unfortunately they have the potential to severely damage someone’s financial future.”

    “Every day we deal with customers who can’t get a home loan, because their credit rating is damaged by improper execution of policies and procedures in the Telco industry,” Mr Doessel, of MyCRA Credit Repairs says.

    Mr Doessel is concerned he is amongst those Telstra customers whose personally identifiable information may have been viewed, and copied for purposes of fraud during the time the information was readily available on the internet.

    “The issue is about both our possible stolen passwords, and our possible stolen personal details – a huge commodity for fraudsters. What’s to say fraudsters haven’t jumped on the internet while this information has been available and copied it?”

    “Personal details are the building blocks for constructing a fake identity. Once someone has fake ID documents, they can take out significant amounts of credit in the victim’s name. Often people don’t find out about it straight away and that can result in defaults from creditors and massive long term credit issues,” he says.

    Outcome of the investigation

    Mr Pilgrim found in his investigation that a number of internal errors occurred in the lead up to the incident in December 2011.

    “I found the privacy breach occurred because of a series of errors revealing significant weaknesses in Telstra’s reporting, monitoring and accountability systems”, Mr Pilgrim said in a statement to the media.

    “Of particular concern is that a number of Telstra staff knew about the security issues with the database but did not raise them with management. This incident could have been easily avoided if appropriate planning was undertaken”.

    “The failure by Telstra to correctly categorise the database project in its design phase as one involving customer data meant that the database did not receive the appropriate level of protection from the very beginning”.

    The Commissioner found Telstra to be in breach of two National Privacy Principles under the Privacy Act 1988:
    •National Privacy Principle 2.1 (Use and disclosure)
    •National Privacy Principle 4.1 (Data security)

    Mr Pilgrim warned businesses of the importance of conducting a Privacy Impact Assessment (or PIA) when commencing new projects.

    “Build your privacy in at the beginning, don’t bolt it on as an afterthought. All businesses should conduct a PIA to make sure that potential privacy risks are considered at the start of any project and that risk mitigation strategies are put in place”.

    Implications for Telstra

    Telstra has committed to a remediation project to introduce significant measures to protect the security of the personal information it holds and prevent unauthorised access and disclosure in the future. The Commissioner closed the investigation after reviewing the remediation plans Telstra has in place.

    In ceasing his investigation into the matter, the Commissioner asked Telstra to provide him with a report on the progress of the remediation project by October 2012. He also asked Telstra to provide to him with a report on the completion of the remediation project by April 2013.

    No penalties enforced

    Mr Pilgrim said The Privacy Act does not give him the power to impose any penalties or seek enforceable undertakings from organisations he has investigated on his own initiative. However, he did say the privacy law reforms that are currently before Parliament – the Privacy Amendment (Enhancing Privacy Protection) Bill 2012 will provide him with additional powers and remedies when conducting such investigations in the future.

    The Sydney Morning Herald reported in its article Telstra’s 734,000 account privacy blunder breached multiple laws: regulators that Telstra appears to have escaped financial or other penalties for now, which has angered consumer groups.

    “We strongly believe the ACMA needs stronger enforcement powers for the Code to be effective,” said Elise Davidson of the Australian Communications Consumer Action Network.

    “The ACMA is currently considering a new draft of the TCP Code but – regardless of what’s in it – without effective enforcement, telecommunication providers can continue to seriously breach their obligations without fear of any fines or sanctions from the regulator.”

    And Yet Still More Data Exposed

    Even before the deliverance of the Privacy Commissioner’s finding on the account scandal, Telstra has also been embroiled in another data scandal involving the tracking of its customer’s internet data useage. The ABC reports in its article Telstra accused of tracking Next G internet use:

    Telstra has been accused of tracking the internet use of its Next G mobile phone users and sending their internet history to a company in the United States.

    One of the telco’s customers discovered that when he visited a website using his Next G network in Australia, a server in the United States would visit the same address almost instantly.

    Telstra says it is collecting the information for use in a new internet filter product, but internet users are outraged and are demanding the Australian Privacy Commissioner investigate.

    For an update to how this particular breach occurred, and what has been discovered so far, check out the IT News article Telstra: Oh what a tangled web we weave written yesterday.

     

    Perhaps not Telstra’s finest hour on Privacy Issues, nor Australia’s finest hour on Privacy Law.

    How To Protect Your Credit File After a Data Breach

    Whilst there have been no official reports of any identity theft cases from this particular security breach, we look at what you should if you find yourself in this situation in the future, with any company that holds your personal information.

    1. Change passwords. Even if Telstra hasn’t advised you otherwise, go in and change your password. If you have that same password for unrelated accounts, change that as well.
    2. Check your credit file. Obtain a free copy of your credit file and check there is nothing suspicious already present on your credit file.
    If you see suspicious activity on your credit file, or your credit accounts….
    3. Alert your Creditors you may be at risk of identity theft. This will allow them to ‘flag’ your accounts and halt any suspicious activity.
    4. Alert credit reporting agencies. They can put an alert on your credit file which informs you of any changes to contact details, or suspicious credit enquiries you may not have initiated.
    5. Consider making a complaint to the Privacy Commissioner. If you firmly believe you have been a victim of identity theft through a company data breach or breach of personal information, you should visit the Privacy Commissioner’s website to determine if you have a valid complaint to make, and how to go about making it. http://www.privacy.gov.au/complaints.
    6. If your credit file has been damaged, get help to repair it. If you have been exposed to identity theft, and you have credit listings which should not be there, contact a professional credit repairer, who can talk to you about clearing your bad credit and recovering your good name.

    Image: Stuart Miles / www.FreeDigitalPhotos.net

     

     

  • Have you checked your credit rating lately? Why the end of financial year is a good time to do it

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    Your credit file is one of those things that you often neglect until you need it.

    Heck, many people don’t even know they have a credit file, let alone the implications if they should end up with a default listing on their credit file. We explore the importance of knowing what people say about you on your credit file, how to check your credit rating, and why the end of financial year is a great time to make sure your credit file health is a-o-k.

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

    As the saying goes….there are two certainties in this world – death and taxes. But there is another certainty in Australia. If you have ever taken out or applied for credit, you will have a ‘credit file’ in your name. What does your credit file say about you?

    Your credit file contains a history of your credit applications, default listings and other information from the last (up to) 7 years, and is collated by the major credit reporting agencies if you have been credit-active in the past 5 to 7 years.  If you’ve applied for finance, or an account for services you are considered credit active and Creditors will have created or added to an existing file with one or more of the credit reporting bodies. Account types include mobile phone plans, accounts with utility companies, credit cards and finance or loans of any kind.

    Why should I know what’s on my credit file?

    Every creditor collects information about your credit activity and that information is supplied to one or more of the credit reporting agencies in Australia when required. When a lender is considering your credit application they will check your credit file to assess your suitability to service a loan or credit account.

    Your credit file contains information about credit and repayment of credit history, including any applications for credit and various details relating to your repayment history, for instance mortgages, personal loans and credit cards – and the way you conducted those accounts. It also contains any overdue credit accounts – these may be reported as a ‘payment default’, ‘clear-out’, an overdue account, late payment or in some cases may have gone all the way to a court Writ or court Judgment.

    Whilst there are legislative processes which must be followed when Creditors enter items on your credit file, it is up to us as the consumer to check that this has been done accurately. You may not know about a listing on your credit file, particularly if you have moved. In addition to this, mistakes can and do happen – even if you believe you have always made payments on time.

    A default or Clear-out will generally see you refused most types of mainstream credit for the term of the listing which can be 5-7 years – so it is important to know you have the all clear on your credit file, and if you don’t, you have time to fix any issues prior to applying for credit of any kind.

    How do I check my credit rating?

    If you are like many Australians you may be unaware of how the system works, and what your rights are in credit reporting so you probably haven’t checked your credit file before now.

    You can apply for a copy of your credit file for free every year from Australia’s credit reporting agencies, Equifax (Formerly Veda Advantage), Dun & Bradstreet, and Tasmanian Collection Services (if in Tasmania). A copy will be sent within 10 working days. Or you can pay a little extra for an urgent report.

    If your report comes back with errors, or you feel a listing is unjust or shouldn’t be there, you do have the right to have incorrect information rectified.

    Why is the end of financial year the best time to check my credit rating?

    End of financial year is a great time to order a copy of your credit file because after you have sat down to do your tax each year your records tend to be in order. This way, if there are any items you wish to cross-check on your credit file, you will have all the necessary information at your fingertips.

    What happens if my credit rating is not correct?

    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. Secondly, negotiating anything on your own behalf can be tricky.

    You may have a better chance of bad credit removal if you hire the services of a credit repair lawyer. 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.

    To find out more about repairing bad credit, contact MyCRA Lawyers & Credit Rating Repairs on 1300 667 218 or visit the main website www.mycralawyers.com.au.

    Image: nuchylee/ www.FreeDigitalPhotos.net

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  • Future thinking…building your brokerage business through relationships

    Building a great brokerage business, or any business for that matter starts one client at a time. We look at how client relationships can help drive your business into the future, whatever the market conditions are.

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

    For those of you who keep up to date with my blogs, you will know I read Australian Broker regularly.  An article struck a chord with me the other day, but it wasn’t until this morning that I realised why. I read Ben Abbott’s story Commissions to shrink as clients buy and hold on Friday, and my initial thought was “Oh no, not more reasons why brokers will lose clients.”

    The story features figures from RP Data showing housing hold periods have stretched out to 9 years for homes, 7.7 years for unit, and that the figures will still increase in 2012.

    Here is a short excerpt from that story:

    RP Data said that this inclination from buyers [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”][to hold onto property] would only increase over time, and this would impact mortgage brokers who relied on transactional commission income to make a living.

    “The average hold period is likely to continue to increase over the coming years as private sector demand for credit growth remains below historic levels and sales volumes remain below their peaks,” research analyst Cameron Kusher said…

    “It appears that home owners are increasingly likely to keep their current properties rather than upgrade due to the significant cost,” Kusher said.

    RP Data suggested that increases in median home values over the period, leading to declines in affordability, were having a marked impact on the period clients held on to their assets.

    What interested me as much as the article, were the comments from brokers about it. Most were surprised that some brokers would rely on refinancing for income.

    Rather than see home owners holding onto property as a negative, those that commented saw it as a positive. Here was one such comment:

    “So what is the problem – your trail just keeps on growing! this will not mean a reduced focus on your clients. It gives you greater opportunity to build a lasting relationship with them…”

    It got me to thinking that there must be two different types of brokers in this market – those that are lucky enough to have built relationships with their clients over time and that will stand the test of time whatever regulations, whatever market conditions are put upon them, and those that are forced to live “hand to mouth” putting deal after deal together the best way they can and just crossing fingers that some of them fall the right way whilst every outside force seems to be trying to shut them down.

    So how do you revamp your business attitude to adopt the first policy in order to weather the storm? It starts with doing the right thing for each client. Then it means actually pointing out what you are doing so they are aware of it. Showing them where they are saving money, where they could go wrong, so they appreciate the extra effort you have gone to, to fit them into the deal that’s right for them.

    I made the connection to credit repair today, thinking about all of those brokers who don’t consider it a valuable resource for bad credit clients.

    I realised why – that some brokers can be stuck in that ‘now’ thinking – just concentrating on getting the deals over the line, compared with those who are willing to try every avenue to make clients for life.

    The fact is, many clients have bad credit history, but are entirely suitable to service a loan. So they are put into a non-conforming loan, which they can refinance on at a later date. But is this long term the best decision for every client?

    Many would benefit from at least assessing whether they would be suitable to repair their bad credit rating, prior to going into a non-conforming loan. Admittedly, credit repair is not suitable for every client. But the number of rampant mistakes and errors in credit reporting in Australia* would mean it warrants an initial assessment of their suitability. And so does the average saving you could make your clients.

    Here’s how you can show the client their saving…

    On an average $300,000 loan, at an interest rate of say 9% compared with a standard variable rate of say 7% they will pay $15,046.57 more in interest just over the first three years of the loan by entering into a non-conforming loan at this interest rate. If you jump on our website to the MyCRA Credit Repair Calculator, you can punch in the real interest variables and actual figures you have for their circumstances and show them how much they can actually save based on the cost of credit repair.

    And remember, creditors make mistakes all the time, and the onus is on the consumer to correct those errors – but most people don’t know how and when they attempt it, they get nowhere. The next time you hear a story about someone’s Telco issues or mix-ups, or any kind of error that finds your client locked out of credit – don’t tune out and send them on their way, or label them a non-conforming loan candidate straight away. Before you do that, do them a favour and send them to us to find out whether we can fix their bad credit for good. We have a previous track record of up to 91.7% success for every case we take on.

    Once we’ve cleared their bad credit we can send them back to you to get into a home loan they will likely stick with for 9 years. You pick up the trail, and your future is looking more secure every day.

    * The volume of credit file errors on Australian credit files is uncertain. A Veda Advantage spokesperson 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.

    Image: chanpipat/ www.FreeDigitalPhotos.net

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

  • Veda warns small businesses not to overcommit in lieu of Federal Budget

    Credit reporting agency, Veda Advantage is warning small businesses in the lead up to the end of the financial year that the Federal Government’s asset write-off scheme could leave them exposed to higher credit risk.

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

    In Veda’s media release today, the company warns small businesses risk over-commitment acquiring additional credit to purchase new assets with the asset write-off scheme, saying it will not be robust enough to assist all small businesses in the coming financial year.

    The new small business instant asset write-off scheme introduced in the 2012/13 budget allows businesses with a turnover of less than A$2 million to write off each eligible business asset costing under A$6,500.  The purpose of the scheme is to provide an injection of funds for businesses to invest in new ideas.

    “It’s obviously very important to closely manage the credit you take on as a small business and there are simple steps you can take to manage risk. First and foremost you need to work out if you can afford to borrow in the first place, plan your budget appropriately to see when you spend your money and how much you can afford in repayments,” says  Veda’s Head of Commercial Credit & Procurement Risk, Moses Samaha.

    “Allow for interest rate rises and anything that might affect your future income, ensure you make regular and sufficient repayments to keep the credit debt below the agreed limit and be aware of penalties if you miss a payment.

    “It’s crucial to keep your cash flow coming in greater than cash flow going out – staying  on top of this is a key success factor to keeping your business running and driving revenue. These are all simple tips but they seem to be the same traps that SMBs continue to fall for – and they can be easily avoided.”

    A recent report from the RBA showed that small businesses were hit harder by the global financial crisis and have found it more difficult to recover than larger businesses in Australia which could drive SME’s to overcommit when trying to benefit from the new scheme.

    Here is an excerpt from that report:

    “According to business surveys and the Bank’s liaison program, conditions have been weaker for small businesses than their larger counterparts over the past two years. Following the 2008 downturn, there was a less durable recovery for small businesses than for large businesses; small business conditions only briefly returned to average levels in early 2010 before being below average for most of the following two years.

    The weak conditions are apparent in small businesses’ main concerns. In the mid 2000s, these entities were becoming increasingly concerned about attracting and retaining quality staff. Following the 2008 downturn, however, this was replaced by concerns about demand for their business’ goods and services, their cash flow/ profitability and broader concerns about the economic climate,” the RBA reports in its Small Business Finance Roundtable Report.

    This comes on top of the report’s findings that more small businesses are likely to load the family up with business debt due to a lack of access to credit in many circumstances.

    “Households owning businesses are more likely to have debt (including their business debt) than other households, with around 80 per cent of business-owning households having debt in 2010, compared to 66 per cent of other households, and they tend to have higher household debt relative to income,” the report says.

    “When the balance sheets of unincorporated small businesses are compared with those of the households that own those businesses, the households are much more likely to have debt than the businesses. This suggests that many small businesses may be financed indirectly by household borrowing rather than through explicit business borrowing.”

    The RBA also reports that tighter lending standards have a greater impact on small businesses and the reassessment of risk more generally by banks has also disproportionately affected small companies.

    See full post, Small business credit lock down pushes families into more debt.

    Small businesses struggling with debt need to know both their consumer and commercial credit files are put at risk if payments go into arrears past 60 days. To find out about repairing a commercial and or consumer credit file, contact our credit repair team at MyCRA Credit Rating Repairs on 1300 667 218.

    Image: Arvind Balaraman/ www.FreeDigitalPhotos.net

  • How You Can Give Yourself the Best Chance of Being Approved For Your First Home

    A great deposit and a great income is not enough to ensure you get the home loan that’s right for you. We show you how your credit rating can have just as much impact as your savings record and show you the steps you can take to ensure your credit file accurately reflects your ability to repay a home loan.

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

    There is more to applying for finance than wages and savings records. One of the key factors to home loan approval is your credit report.

    What is a credit report?

    A credit report is a report on your credit file status (or credit rating), held by one or more of Australia’s credit reporting agencies.  Your credit file is checked by the lender when you apply for a home loan. It contains all of your personally identifiable information as well as your repayment history, and is used to assess both the amount you are able to borrow and your ability to repay the loan.

    Anyone who has borrowed money, or has established an account for services is credit active and will have a file in their name. This includes mobile phone plans, accounts with utility companies, rates accounts and of course loans of any kind.

    What is defined as a ‘bad’ credit rating?

    In broad terms, any credit defaults, court actions or writs, external administrations and bankruptcy are all recorded on your credit file and would be considered ‘bad’ credit history by most credit providers.

    In this current economic climate defaults and even too many credit enquiries or applications for credit may be considered to be tarnishes on your credit rating.

    How do I know if I have a bad credit rating?

    If you are unsure what is on your credit file, it would be worth taking the time to find out.

    There are three major credit reporting agencies in Australia: Veda Advantage – which holds the credit file of over 16 million Australians, Dun and Bradstreet and Tasmanian Collection Service.

    You can write to or email one of these agencies and request a copy of your file.  If you are not in a hurry there is no charge to you but it will take 10 working days from application to receive this information.

    What many people do not realise, is how easy it is to have a default slapped on their credit file.  If you fall into arrears on your account for more than 60 days (including rates, power and mobile phones) then the credit provider has the right to notify you of their intention to record this default against you on your credit file. Even if this bill is later paid, this ‘paid’ default still remains on your record for 5 years.

    Will I always know I have bad credit?

    NO! This is one of the key things we want all home buyers to know. Mistakes can and do happen, and it may not be until you are sitting in front of the bank getting rejected for a home loan that you find out you have bad credit history.

    There are a great number of credit files which contain errors or listings on credit files which shouldn’t be there, so even if you think you have never paid a bill late, you may still have a bad credit rating. It is always worth taking the time to find out before you apply for a home loan.

    I have found defaults on my credit rating, what are the consequences of this?

    If you discover you have an adverse listing or ‘bad credit rating’, you will find it very difficult to find a home loan with a mainstream lender. Generally this problem will keep occurring for the 5 years the default is on your credit file. If you decide to enter a non-conforming loan, you may be up for tens of thousands more in interest repayments just over the first three years of the loan.

    What can I do to fix my bad credit rating?

    Once you have obtained a report there are three things to consider:

    1. Check the accuracy of the report. If there are errors, be aware you do have the right to have errors rectified.  Likewise, if there are numerous strange defaults and or applications for credit that you don’t recognise – you would need to immediately investigate these and notify Police in case of identity fraud.

    2. Check you were informed of any intention to list. Current legislation requires you to have been informed in writing of any intention from creditors to list you as a defaulting on credit.

    3. Check the fairness of the listing. Only serious credit infringements should be recorded, or overdue bills in which 60 days have elapsed since payment was due.

    How does a credit repairer work to repair my credit rating?

    In many cases where people have attempted to dispute or remove the default themselves, they have come across difficulties and defaults have not been cleared. Most times the creditor will explain to the client that defaults DONT EVER get removed. The best they can do is mark the listing as paid (if it’s been paid).  This may not be sufficient to ensure credit is obtained with most lenders.

    If you have a default, writ or Judgment that has errors or just shouldn’t be there – there is a good chance that My CRA can actually remove it – meaning your financial future is looking a whole lot brighter.

    The credit repairer works with creditors to negotiate on your behalf and work for your best outcome based on the creditor’s compliancy with the current legislation. We will also look at any other extenuating circumstances to determine if there is an avenue we can investigate which results in having the listing removed.

    Should I try to cut out all credit from now on?

    Credit is not all bad.  In fact, not having ever taken out credit can harm your chances of obtaining a home loan just as much as having a bad credit rating.

    However, we do advise you to be cautious with credit. Start small, for instance a mobile phone plan or store credit card and repay the account on time, every time.

    What can I do to maintain a good credit rating?

    1. Make all payments on time. This is the easiest way to ensure there are no discrepancies or defaults on your credit file.
    If you are unable to make a payment on time, contact the creditor. They may be able to set up a payment plan for you until you get back on your feet. Soon overdue accounts that are as little as one day late will be recorded on your credit file as ‘overdue payments’ and will stay there for 2 years, so it is important to repay on time, every time to avoid bad credit.

    2. Regularly obtain a copy of your credit file – once a year is recommended and this is free in Australia annually.

    3. Keep credit card limits within a set budget. Don’t be tempted to accept the sky high limits some banks offer as it could encourage you to spend needlessly and blow out your budget. A lower credit limit is also better when lenders are assessing your ability to repay a loan.

    5. Be aware of excessive credit enquiries. If you are not sure about your credit health, get it checked before applying for new credit so as not to rack up unnecessary credit enquiries. You do not record a credit enquiry when you enquire about your own credit file. Also, ensure you do not apply for credit all over town – and beware of filling any forms out online.  You should only apply for credit you have full intention of pursuing. Every application for credit will be noted on your file, but it does not say whether the application was approved or declined. It could look to creditors like you have been declined multiple times.Too many credit applications on a person’s file can hinder their chances of obtaining a loan. Some lenders are rejecting loans for as little as two enquiries in 30 days, or six enquiries within the year.

    For help repairing your bad credit, contact MyCRA Credit Rating Repairs today 1300 667 218 or see more information here:

     

    Image: annakml/ www.FreeDigitalPhotos.net

  • Credit file education could help consumers save money and reduce default numbers

    Media Release

    Credit file education could help consumers save money and reduce default numbers

    19 June 2012

    Brokers who provide extra education to their clients to ensure full comprehension of mortgage and loan products, could start with education on the fundamentals of obtaining credit, and particularly how to address credit listing complaints, a consumer advocate for credit reporting accuracy says.

    Founder and CEO of MyCRA Credit Rating Repairs, Graham Doessel says potential obligations to educate clients under NCCP as part of the move towards responsible lending could include education on basic credit rights and responsibilities of credit reporting, as well as the ins and outs of the specific finance products offered.

    “Too many people are just not savvy enough about their credit file, and the impact it has on their financial future. Too many people are forced to learn the hard way through being lumbered with bad credit just how the system works,” Mr Doessel says.

    This recommendation comes as industry commentator Kym Dalton claims many borrowers have limited knowledge of the meaning of mortgage products and terms, and that merely satisfying NCCP disclosure requirements may not be enough to keep brokers safe.

    “Disclosure and comprehension are not the same,” he said. “Borrowers are frequently nervous about asking questions when applying for a loan, in case it jeopardises their application,” he told Australian Broker yesterday.

    Mr Doessel suggests further credit education from a broker perspective could begin with some core topics which frequently see consumers come unstuck:

    ·         What a credit file is and what can be reported on it;

    ·         How consumers get ‘bad credit history’;

    ·         The potential impact adverse listings have on a consumers ability to  borrow further;

    ·         The importance of regular credit file checks; and most importantly

    ·         What to do in instances of credit file inconsistencies.

    “Addressing credit file errors and inconsistencies is a big issue. Since an adverse credit listing disadvantages the consumer’s borrowing ability for between 5 and 7 years, there needs to be more education from the finance community as to what consumers can do if they want to dispute something on their credit file.

    Many consumers are really left in the dark about the process and are often told by Creditors that listings cannot be removed from their credit file, and this is unfair,” he explains.

    Mr Doessel says the crucial area of credit listing complaint education could mean brokers help save consumers thousands.

    “Families who are funnelled into a non-conforming loan due to a bad credit rating will be paying a staggering $15,046.57 more just over the first three years of the loan on an average loan amount of $300,000. This is based on a standard variable rate of 7% versus a non-conforming interest rate of 9%,” he says.

    Due to the increase in people saving rather than spending in Australia, many of his credit repair clients are in a better financial position than they have been in years for loan qualification, but are held back from taking advantage of competitive interest rates and stable house prices by black marks on their credit rating.

    “Many clients tick all the boxes for loan approval, until they are knocked back due to credit rating defaults they were previously unaware of – and often those defaults should not be there,” he says.

    He says the best way brokers can prevent this scenario is to help consumers to get savvy with their credit file and the ways their good name can be compromised.

    “People also need to know that clearing credit ratings of errors is neither easy nor quick. They can get the run around from Creditors, but if they believe the listing should not be there, it is a point worth fighting for.

    He says if people have neither the time, nor knowledge of legislation that is required to deal with Creditors, over their credit reporting inaccuracies, a credit repairer can do the work for them.

    “A credit repairer uses their knowledge of credit reporting law to make a more effective case based on the appropriate legislation and also negotiates with the Creditor on the consumer’s behalf for the removal of those inconsistencies from their credit file,” Mr Doessel says.

    /ENDS

    Please contact:

    Graham Doessel – CEO  MyCRA Credit Rating Repairs       Ph 3124 7133

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

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

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

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    http://www.brokernews.com.au/article/borrower-education-fundamental-for-brokers-140921.aspx

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  • Telco consumer code on third rewrite for June deadline

    A third shot at a telecommunications consumer code has recently been submitted by Telcos to the Australian Communications and Media Authority (ACMA). The Code submission is an attempt to self-regulate a heavily criticised industry and prevent Government intervention by the end of June deadline.  The Code is intended as a resolution to an 18-month investigation by the ACMA into telco customer complaints. As Telco disputes make up a heavy part of credit rating errors to date, we have been watching the outcome of this situation and how it could impact the consumer’s ability to resolve disputes, and prevent credit file errors and default listings which should not be there.

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

    IT News recently reported on developments of the Telecommunications Consumer Protection (TCP) Code in its article ACMA Sets June Deadline for Consumer Code.

    It reports that the ACMA has committed to deciding on whether to accept or reject a revised telco industry code on customer service and advertising by the end of the month, in preparation for registration and implementation by August 1.

    “We indicated that the previous ones that they had lodged with us wouldn’t secure registration,” ACMA chairman Chris Chapman told iTnews.

    Here is an excerpt from that story:

    It is understood the watchdog has already held meetings to discuss the May revision of the code, the largest revision of which included the concession for telcos to print unit pricing for SMS messages, phone calls and data blocks on outdoor advertising and flyers.

    It has previously opposed the move as unnecessary, despite attacks by consumer representative group ACCAN.

    Chapman threatened in April to directly regulate the industry if it ultimately declined to register the code, even on minor grounds.

    At the time, Chapman said the March revision of the code would be the final one for consideration. But ongoing discussions with industry led to one more version of the document ultimately being considered…

    It was initially submitted to the ACMA for registration in February but has since undergone two revisions as the ACMA declined to register the revised code over concerns it did not meet all recommendations laid out by the inquiry.

    “We absolutely believe that this code is complete, that it meets not just the requirements of the [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”][Reconnecting the Customer] enquiry, it also meets the test of being the best and most sensible code we can put in place to enhance consumer protections and provide a win-win for consumers and the industry,” Communications Alliance chief executive John Stanton told iTnews.

     

    The ACMA  formally invited the industry to incorporate the following changes to its Telecommunications Consumer Protection (TCP) Code in its report Reconnecting the Customer:

    1.Clearer pricing information in advertisements allowing consumers to more easily compare services.
    2.Improved and more consistent pre-sale information about plans.
    3.Developing meaningful performance metrics which allow consumers to compare providers.
    4.Tools for consumers to monitor usage and expenditure.
    5.Better complaints-handling by providers.

    A shake up in the Telco industry is long overdue. Australians have been caught out time and again with botched bills and unresolved disputes with their Telco providers and their credit files have been damaged as a result.

    The Telecommunications Industry Ombudsman (TIO) revealed its findings on the extent of discontent within the industry in a survey of more than 500 Telco customers who had lodged complaints between July and August 2010.

    The TIO survey revealed more than half of consumers reported contact with their service providers five or more times before ringing the TIO. It also revealed most consumers reported spending three hours or more unsuccessfully trying to solve their complaint, with one in 5 saying they spent more than nine hours.

    “Consumers who come to the TIO report spending substantial time and effort solving their complaints,” said Ombudsman Simon Cohen.

    “They report being transferred from department to department, not being transferred to supervisors and, perhaps most frustratingly, getting no solution or a broken promise for their efforts. They are – by any measure – resilient consumers.”

    When disputing bills with the Telco industry, many people are unfairly penalised with a bad credit rating when the matter could have been dealt with better by the Telco in the first place. There is a great number of Telco credit file listings which contain errors, or have been put there unjustly or unfairly. Under current legislation, people do have the right to have credit file discrepancies resolved. But unfortunately it can be difficult for customers if they are not aware of the appropriate legislation and don’t have time to negotiate with creditors.

    MyCRA sends out complaints regularly to the TIO requesting investigations into errors that have found their way onto customer credit files.

    Hopefully these changes will result in less confusion and complaints in general amongst Telco customers and fewer people who have their good name destroyed unnecessarily due to credit file defaults which should not be there.

    For help with removing credit rating errors from credit files, contact MyCRA Credit Rating Repairs on 1300 667 218 or visit the main website www.mycra.com.au.

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