MyCRA Specialist Credit Repair Lawyers

Tag: MyCRA Credit Rating Repairs

  • More Australians under financial pressure and less to use credit for luxuries says D&B

    Despite a 20-year high in household savings, Dun & Bradstreet’s latest Consumer Credit Expectations Survey reveals more Australians are worried about their financial futures. Those that can are tightening their belts by saving and not spending. But significant portions of the community who are unable to do so, are reaching crisis point. Could we see the rate of defaults rise among these groups as people struggle to keep their heads above water?

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

    Credit reporting agency Dun & Bradstreet’s (D & B) Consumer Credit Expectations Survey September 2012 was released a couple of days ago. D & B conduct a national survey each quarter on expectations for savings, credit usage, spending and debt.

    The latest survey shows a lack of personal savings has six in ten Australians concerned about their current financial situation, with one in three indicating they would be unable to cover basic expenses for longer than a few weeks if faced with a sudden job loss.

    The report seems to show that those that can save are, and those that can’t are reaching crisis point. Likewise with credit – those that are in a stable financial situation are skimping on credit for luxuries, whilst the numbers of low income earners relying on credit just to get by are significant amongst low income households.

    Let’s look at the figures from the survey as they relate to 3 Australian expectations on household savings and stability, credit access and ability to meet credit commitments for this coming September quarter:

    Household Savings and Stability

    The survey found that a third of low-income earners and a quarter of older Australians would only be able to survive for up to one month without a steady income.

    Sixty-nine per cent of those earning less than $50,000 annually and 62 per cent of consumers aged 50-64 are worried about their personal financial health.

    In addition, one in four low-income households and one in five older Australians admit to having no savings, despite a substantial portion (close to one third) indicating that current economic conditions are refocusing their attention towards saving.

    According to Dun & Bradstreet Director, Adam Siddique, some vulnerable demographics are facing significant financial pressures.

    “Our latest research clearly demonstrates that consumers are worried about their financial position.

    “This is partly symptomatic of lingering pessimism from the global financial crisis however, for certain demographics it reflects the reality that households are living hand-to-mouth; with very little savings buffer should unforeseen circumstances occur. So while national household savings levels are at a 20-year high, it is clear that not all consumers are in a position to put money aside,” said Mr Siddique.

    “For the older demographic, concern over finances in part reflects the ongoing fallout from the global financial crisis and its impact on superannuation.”

    Projections for credit access

    More than half of all consumers (53%) will be less likely to spend money on entertainment or other non-essentials this year than 12 months ago.

    Likewise, 40 per cent of consumers are less inclined to use existing credit to buy non-essential items, a figure which rises to 48 per cent for low-income households.

    Expectations for new credit access has also fallen, down five percentage points to just 15 per cent since the March quarter.

    “Ten to 15 years ago consumers were more comfortable living with a lower savings to debt ratio. However, continued global economic uncertainty is weighing on Australian households and dissuading discretionary spending, credit usage and significant investments such as buying a property,” said Mr Siddique.

    Ability to Meet Credit commitments

    40 per cent of low-income households expect to rely on existing credit sources to cover costs – the same demographic also anticipates difficulty meeting current credit commitments.

    Whilst this figure is still too high, the number has actually reduced from expectations in the June quarter, which found nearly half (46%) of all low-income households expect difficulty managing their debt.

    Low-income earners are similarly expecting rising debt levels; 34 per cent compared with 24 per cent of middle-income earners.

    Amongst older Australians, 28 per cent of 50-64 year-olds expect they will need to rely on credit to cover expenses, while 41 per cent anticipate difficulty meeting existing credit obligations.

    Reliance on credit among older Australians comes as one third of consumers aged 50-64 anticipate rising household debt in the coming months, up from 26 per cent during the March quarter.

    The evidence showing older Australians experience difficulty with credit was echoed by Veda Advantage recently. We blogged about seniors (over 65’s) struggling with credit in our post Default rates soar in over 65’s. Veda’s study on generational trends for credit activity showed this age group have become more reliant on credit which has led to the increased level of defaults as some struggle to meet financial obligations.

    Solutions to financial concerns

    If people bury their heads in the sand about their finances, they can invariably end up with debt and with bad credit history.

    This bad credit can send them into a debt spiral for years to come. Bad credit sticks for 5 to 7 years, so people are banned from mainstream credit at normal interest rates and are forced into payday loans, fringe credit and the non-conforming market, all of which charge significantly higher interest rates for the increased ‘risk’ of lending to someone with a history of poor repayment.

    Rather than allow this to happen, people should put their hands up early, as there are many avenues for help out there today.

    ASIC’s Money Smart website is the best place to start to get some FREE tips on how to make the most of money, get out of debt or squirrel away for a rainy day.

    They also link to a list of free or low-cost financial counsellors who can actively help with budgeting, managing debt and financial difficulties.

    For people who are having trouble with repayments, aside from seeking financial counselling, TALK TO THE CREDITOR.

    Creditors are generally willing to assist people experiencing genuine financial hardship, but they need to be specifically informed of the financial hardship prior to bills going overdue or to default stage.

    ASIC has also put together a factsheet titled Can’t Pay Your Debts? which outlines the process of requesting financial hardship from your Creditor, and other financial solutions.

    People should act as early as possible on financial problems, and look for ways of realigning finances so they avoid defaulting on any payments.

    For those people who may not be struggling with their finances, but are in the 6 out of 10 Australians who are concerned about their current financial situation and want to get savvy with their money – Money Smart can also help, or perhaps Australian savings websites such as http://www.savingsguide.com.au or http://www.simplesavings.com.au/ can offer some motivation and encouragement.

    Image: Nutdanai Apikhomboonwaroot: www.FreeDigitalPhotos.net

    Image: digitalart: www.FreeDigitalPhotos.net

    For help with repairing bad credit history that is affecting your financial future, contact MyCRA Credit Rating Repairs for assessment of suitability for credit repair.

  • Beware banks last-ditch attempts to raise credit limits

    As of July 1, the Government has banned unsolicited offers to raise people’s credit limits. So no longer will people receive offers in the mail from their bank or finance company to increase the limit on their credit card or other lines of credit. This change is part of the Government’s move to ‘responsible lending’, which also encompasses a whole host of new credit and credit reporting laws. But reports are out that some lenders are attempting to offset the deadline with a host of offers that people should be wary of. Before July 1, people need to remember their own limits when it comes to finance, to avoid debt and inevitably, bad credit history.

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

    Recently the ABC’s 7:30 Report featured a story titled Credit card changes bring borrower warning. It interviewed industry spokespeople including Australian Securities and Investments Commission’s (ASIC) Peter Kell:

    “Unfortunately ASIC has seen some of the major lenders, some of the major banks, in fact, looking at the opportunity of the introduction of these new laws to push credit onto their customer base in a way that’s inappropriate, and in a way that arguably undermines the intent of the new laws,” Mr Kell says.

    “The Commonwealth Bank recently posted a notice on their website telling customers they would “lose the chance to get credit limit offers under the new laws, and miss out on the opportunity to access extra funds,” ABC’s Stephen Long reports.

    “CBA gave a court-enforceable undertaking to stop the deception, but the damage was done,” Long says. He reports there were around 100,000 responses to the advertisement.

    The Australian Bankers Association’s Steven Munchenberg has defended the actions of the CBA as more a ‘different interpretation’ of new legislation than an attempt to head off the new laws :

    “Look, we are very, very closely regulated industry, and ASIC is doing its job by monitoring very carefully what the banks do. There are times where the banks and ASIC will interpret legislation differently, and these are new laws. What we are learning is the approach that ASIC is going to take, and the banks will be very quick to make sure they’re compliant with ASIC’s approach,” Munchenberg says.

    So in other words, the banks will see what they can get away with, until ASIC raps them over the knuckles for it.

    In the meantime, there are people who as Consumer Action Law Centre’s Catriona Lowe says, assume because the bank has offered them extra credit they must have been assessed as being suitable to make the repayments.

    “We have seen and done research about the way in which these offers have been put together, which really encouraged people to turn off, if you like, that hard-nosed financial part of their brain, and turn on the fuzzy, “Oh yes, I deserve it, I might need it for a rainy day, the bank manager’s telling me it’s OK, I’ll just do it without thinking about it too much,” Ms Lowe says.

    The ABC also reports that both Ms Lowe and Financial Counsellor Gary Rothman have seen a huge surge in offers of additional credit ahead of the start of the new responsible lending laws next month.

    “It’s not uncommon for us to see people with $70,000 to 120,000 in credit card debt,” Mr Rothman says.

    This report took me back to a blog post from a while back, on the notion of Affluenza. The post, titled Caught Affluenza? How it can affect your credit rating health explores the rampant notion of MORE. That we need more money, more things, and often more than we really afford.

    This social disease was coined by Clive Hamilton and Richard Deniss in their book Affluenza: When Too Much Is Never Enough.

    “Affluenza pulls no punches, claiming our whole society is addicted to overconsumption. It tracks how much Australians overwork, the growing mountains of stuff we throw out, the drugs we take to ‘self-medicate’ and the real meaning of ‘choice’. Fortunately there is a cure. More and more Australians are deciding to ignore the advertisers, reduce their consumer spending and recapture their time for the things that really matter.”

    Basically the philosophy is we shouldn’t spend money we don’t have, on things we don’t need, and ultimately find ourselves with what we don’t want – debt, unhappiness and bad credit history.

    Don’t get me wrong – I don’t advocate total credit shut-down. It isn’t very practical. Credit is necessary in today’s society. But people should use it to enhance their lives so that they can spend time with the ones they love, or to really improve their quality of life. Essentially people should make credit work for them.

    I see different types of people seeking credit repair. I see many people who are perfectly capable of repaying credit, but are banned from obtaining it due to errors and inconsistencies from Creditors which lead to negative listings on their credit file. We do our darndest to help remove those from their credit reports and let people have that financial freedom back again.

    But I do see a few people who have caught ‘Affluenza’, who maybe should learn the the doctrine of ‘enough’ through being banned from credit for a while.  In the same token, those people need society’s support. They need laws like the ones coming through on July 1 to curb that susceptibility to offers of more, BEFORE they end up with bad credit history. They need the Creditors – so quick to issue more, and then so quick to issue defaults reined in and checked.

    That consumer shift to spending reduction and savings should be embraced by banks. New laws which seek to follow and help this psychic shift in society should not have been exploited by our banks or other Creditors in the last weeks prior to their introduction.

    A bad credit rating can completely change our financial situation. The black marks like defaults or Clearouts placed there by creditors show up on our credit file for between 5 and 7 years. Bad credit can limit our choices and can perpetuate the debt cycle by leading us to choose loans with higher interest rates and more fees, so the struggle to make repayments can be even harder. People should think hard about their ability to repay any credit, whatever the circumstances to avoid this situation. But if you have bad credit history which for some reason should not be there, which is stopping you from obtaining credit that you can repay, you would be a candidate for credit repair. Contact MyCRA Credit Rating Repairs on 1300 667 218 to talk to us about how we can help you recover your ability to obtain credit and give you back your financial freedom.

    Top Image: adamr/ www.FreeDigitalPhotos.net

  • The Top 7 Credit File Myths Costing Brokers More Than $50,000 Every Year

    Media Release

    The Top 7 Credit File Myths Costing Brokers More Than $50,000 Every Year

    7 June 2012

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

    Credit reporting is governed by mountains of legislation across different industries. Often we can assume that this system is working, but in reality it doesn’t always work effectively.

    The fall-out from this is credit rating errors on consumer and business credit files that affect your brokerage business.

    Here are 7 myths about credit files that could be costing you thousands in lost commission:

    1. Consumers always know they have bad credit before they apply for a loan.

    Many brokers assume if a client’s credit check reveals a negative listing on their credit file that wasn’t disclosed, they must have been trying to hide it. Whilst this is sometimes the case, there can be many reasons for people not to know they have bad credit until they apply for credit.

    If your client has moved addresses they may not have received the appropriate warning notices or notification of the credit listing; or they may have been the victim of identity theft; been hospitalised; been incarcerated ;  been traveling overseas or been a victim of a system error or human error with the creditor.

    All of these instances can see people end up with a bad credit listing without them knowing it. In many instances the listing has been placed on the credit file unlawfully. Rather than turn these clients away, why not refer them for credit repair.

    2. Credit file listings are always correctly placed on credit files.

    Credit reporting mistakes can and do happen – and it is up to the consumer to ensure that their credit file reads accurately. But if many are not aware they even have bad credit, many more are unable to recognise credit file errors.

    Wrong names, wrong addresses, incorrect notification provided, a Creditor not adhering to the letter to credit reporting legislation, and a Creditor entering a listing which the Client believes should not be there can all potentially be grounds for requesting for the removal of the listing. Credit file errors happen every day. So if the client is at all unsure about the validity of the listing, and the method in which it was listed, they are likely candidates for successful credit repair.

    3. Credit file complaints are easily disputed.

    Some brokers assume that if the listing should not have been there, that it should be fairly easy for the client to request its removal. They assume if the listing is still there – the client must be deserving of it.

    In reality, once a listing has been placed on a credit file, it is very difficult to have removed. So even if the listing shouldn’t be there, most often clients are forced to put up with it for 5-7 years, depending on the listing type. Often clients are told the listing can be marked as paid, but will not be removed from the credit file (unless of course they are lucky enough to know about professional credit rating repair).

    4. If a Default or Clearout is on the credit file it can never be removed prior to the end date.

    On the other hand, if brokers are aware how difficult removing adverse listings can be, sometimes when they see the option of credit repair, they assume it must be a ‘con’, as in their experience listings are never removed from a credit file before the drop off date.

    In truth, unless the client can show why the listing was placed unlawfully on the credit file it will not be removed. So in the case of overdue accounts that have been listed as defaults or clearouts on the credit file, it is up to the client (or the credit repairer acting on their behalf) to show reason as to why the listing was placed unlawfully, and negotiate the listing’s removal.

    There is a lot of legislation which clients need to be up to speed with and it is very difficult for them to apply the letter of the law to their own circumstances – which is precisely why people assume it can’t be done.

    The process of credit repair involves the investigation of the credit file, the request for information on the account from the Creditor, and the determination based on legislation as to whether the credit listing was placed unlawfully on the credit file.  If this is determined, the credit repairer will formally negotiate the removal of the listing from the credit file on the client’s behalf.

    Whilst currently there is no legislative obligation for the Creditor to remove the listing, escalation of the complaint to industry Ombudsmen and the Privacy Commissioner can all improve the chances of removal in justified cases. This legislation is also set to change in the coming months to improve credit listing complaints processes.

    5. Bad credit clients aren’t worth the trouble.

    If you have done a lot of work with a client, only to find out they have bad credit it can be tempting to close the door on them and move on to someone who can be helped more easily. It is true bad credit clients will be rejected by mainstream lenders, but in the interests of good customer service, we should look at alternatives before turning them away.

    You could refer the client for assessment for credit repair as a first option. It saves you time, the credit repairer does all the work from there, and if the client should otherwise qualify for a loan apart from their bad credit, it makes sense to ascertain whether that bad credit history can be removed prior to looking at other options for lenders or simply turning them away.

    6. A bad credit client should be steered to the non-conforming market.

    Instead if you look at your duty of care to your clients, and you believe the client should be able to obtain credit, then the non-conforming market may not be the best option as a first step.

    It would seem fitting that it be ascertained whether or not the bad credit history is valid before providing non-conforming loan options to them.

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

    7. Credit repair is a waste of money.

    Credit repair is not cheap, but it’s not easy either. And it is certainly valuable. You could actually be saving yourself and your clients tens of thousands of dollars.

    Clients

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

    When we look at that in total, the client would be up for a staggering $17,554.34 more just in interest alone over those first three years. It is well worth considering clearing the client’s bad credit and getting them into a standard loan as a first option.

    Brokers

    You can generate goodwill from clients who are saving money and potentially generate great income for yourself.

    Credit rating repair is not suitable for everyone. But for most people who get taken on, the success rate is high. For example, MyCRA have a proven track record of up to 91.7% success rate for every case they take on. This means that whilst not every file can be cleared, there is a good chance.

    If you had only two clients returned to you every month with a cleared credit file it would add $52,120 per year in lost commission to your income. This figure is based on closing two extra deals for mortgages of $355,000 each month, with an upfront commission rate of 0.6%.

    $355,000 x 0.6% comms = $2130 commission

    2 per month is $4260 per month x 12 months (or 24 a year) = $51,120 in comms

    So if you are keen on helping those people you thought were lost, why not go back through your existing databases and restore some hope to those clients that you had previously turned away by referring them for credit repair.

    About Graham Doessel and MyCRA Credit Rating Repairs.

    Graham Doessel is the founder and CEO of MyCRA Credit Rating Repairs – Australia and New Zealand’s leading credit rating repair specialists.

    Graham’s origins are in finance, and he formed/owned the award-winning non-conforming brokerage “Mortgage Now.”
    Graham is a consistent spokesperson in the media for credit reporting issues in Australia and New Zealand.

    MyCRA Credit Rating Repairs, now in its fourth year of operation, has recorded an impressive track record of up to 91.7% rate of removal of inconsistent or inaccurate negative data from the Australian and New Zealand credit reports of both consumers and commercial entities.

    MyCRA Credit Rating Repairs is nominated for the 2012 Telstra Small Business Awards and was placed 24th in the 2012 Start-Up Smart Awards.

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO MyCRA  Ph 3124 7133

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

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

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

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

  • Company obligations on phishing scams

    What is the obligation or responsibility of companies to educate consumers on phishing scams? Yesterday, we blogged about the prevalence of phishing scams. Phishing scams are designed to extract personal details and financial data either directly from the user or by way of a computer virus. We look further into this issue and look at what companies are doing to educate their customers, and whether they should be obliged to do so and go further in preventing financial loss, identity theft and a damaged credit rating. This post was written for National Cyber Security Awareness Week 2012, of which MyCRA is a partner.

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

    After the blog post went up yesterday, a staff member read it and told me he had received such a phishing email just the day before. It was meant to be from one of the major banks, of which he is a customer. The email requested his bank account name, account number and PIN number to verify his online banking – as according to the email, the bank was having security issues.

    Working at MyCRA and dealing with these issues for our clients, my staff member, Luke was pretty hip to the scam. But we got to talking about how many people could potentially fall victim to this kind of email. After all, Luke did actually have an account with the bank, and the email looked quite legitimate.

    Luke called the bank in question and explained the email he had received.

    “Yeah of course that is a dodgy email,” the bank’s worker says, sounding a little surprised that someone would call to verify this.

    The customer service operator’s standard advice was that the bank would never request personal details via email. He said they have the details, but if they did need them, they would be requested during the general banking process, rather than emailing the customer.

    This is a good general rule to remember for most company emails. They will never ask for your details – they already have them.

    But what about the attitude that people need to just assume these days that they will have a phishing scam tried on them? That is dangerous ground for companies.

    I bet if you ask most older Australians if they know about phishing, they will say, “yep – but I don’t get to throw the rod in much these days.” Many people – and not just older Australians are left vulnerable to scams when using internet banking and all the other myriad of things that need to be done online in today’s society.

    When I looked at the bank’s website, there’s a pretty extensive section on banking security, as well as lots of information on scams. This is great stuff. But what could be even better, is some direct warnings to their customers about the prevalence of specific scams when they involve the company, and what to do should they come across them. This would go a long way to preventing their customers from falling for phishing scams in the first place.

    The Computerworld article I featured yesterday PayPal, Amex phishing: What you need to know also talked a bit about company obligations. Here is an excerpt from that story:

    IDC Australia senior market analyst ,Vern Hue, said that companies needed to be extra vigilant with security as the emails could prove to be an opportunity for cyber-criminals to deceive people into believing that emails and other communications came from a legitimate source…

    He recommended that organisations put in place formal business communication policies and guidelines around acceptable use of social media and financial services.

    “The onus is also on the organisation to better secure its perimeters by putting in place network and content management protection technology, such as the next generation intrusion prevention systems [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”][IPS], which offer a better capability in detecting threats from social media.”

    PayPal, American Express lessons

    Credit card and financial institutions need to secure their weakest link–the human–according to Hue. Organisations should also begin to educate their users on the importance of being vigilant on the internet and educate them on the potential damages one could potentially face if they should fall victim to such attacks.

    “Financial institution need to spearhead the move to inform their users on the need of proper patching and upgrades in order to keep them safe from these attacks and to also educate them that if ever in doubt, users should call and notify the financial institution to verify the origin and authenticity of the communication,” Hue said.

    A blog post late last year by Dynamic Business writer Hamish Anderson titled Financial institutions, social responsibility & phishing scams pleads with big business whose identities are borrowed for the purposes of scams to take an active approach to educating consumers. Here is an excerpt:

    “Big organizations all decry their credential about social responsibility, or environmental sustainability, or corporate ethics, but how many of these social stances encompass combating phishing or alerting the public?

    As the saying goes, forewarned is to be forearmed. With the large purses that these companies have, surely there is a strong argument for these companies to inform people when they know there is a scam focusing on them as a brand. I recognize that many of these brands Tweet about scams as they become apparent, but it often appears that accounts from the Government (such as @SCAMWatch) are more aggressive, are dedicated to scams and more responsive.

    There thus exists a gap to for business to be more socially responsible and to help the public not fall prey to the various scams which exist,” Mr Anderson writes.

    Here here! With the former Attorney-General’s statistics of a staggering 1 in 6 Australians falling victim, or knowing someone who is a victim of identity theft – this ‘social responsibility’ towards informing customers of potential scams to befall their computers in the company’s name seems to be well overdue.

    The implications for identity theft and the difficulty a victim may face to not only recover their financial losses, but to remove bad credit history after full-blown identity theft does warrant a very active approach to stamp out the constant attempts fraudsters make to steal money and identities.

    Let’s promote cyber security awareness amongst all sections of the community, and stamp out phishing scams. If no one fell for these scams, they wouldn’t exist.

    Above image: noomhh/ www.FreeDigitalPhotos.net

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  • Experts say getting hooked by Australian Paypal or Amex phishing scams could result in identity theft

    Security experts warn of the potential severity of falling for phishing scams, claiming the data pilfered from these scams can not only result in financial loss, but in stolen personal information. This loss of financial data and or personal information can lead to identity theft and ultimately a whole heap of bad credit history for the victim. We have featured this topic in aid of National Cyber Security Awareness Week 2012.

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

    Tech publication, Computerworld warned readers this week of the growing threat of very clever phishing scams currently out there, threatening the personal information of PayPal Australia and American Express Australia customers. The four-month email phishing campaign has been targeting those customers with legitimate looking emails and one click could leave them vulnerable to identity theft. The article, PayPal, Amex phishing: What you need to know reveals some advice from top security experts on what this could mean for consumers. But before we delve into what the experts say, let’s look clarify how phishing scams work.

    The ins and outs of phishing scams

    Phishing scams are generally emails or text messages which impersonate genuine companies in the hope of tricking victims into giving out their personal and financial information. They can appear to come from banks, big companies and in the most recent cases, PayPal and Amex.

    The aim of phishing is to steal information like bank and credit account numbers, passwords, and other crucial personal data.

    The ACCC’s Scamwatch website warns that phishing emails are not easily distinguishable from genuine corporate communication:

    “Phishing emails often look genuine and use what look to be genuine internet addresses—in fact, they often copy an institution’s logo and message format, which is very easy to do. It is also common for phishing messages to contain links to websites that are convincing fakes of real companies’ home pages.

    The website that the scammer’s email links to will have an address (URL) that is similar to but not the same as a real bank’s or financial institution’s site. For example, if the genuine site is at ‘www.realbank.com.au’, the scammer may use an address like ‘www.realbank.com.au.log107.biz’ or ‘www.phoneybank.com/realbank.com.au/login’.”

    What happens if people fall for a phishing scam?

    In the Computerworld article, Doctor Jon Oliver, Trend Micro Australia global threat researcher warns that phishing scams were designed to infect computers through virus-containing links in the emails.

    “If a user gets infected then they may suffer direct economic loss because the malicious payload of these phishing-like schemes is to infect the user with financial Trojans and information stealers,”…

    Aside from potentially gaining access to credit card details, Oliver said the BlackHole exploit kit spam runs were infecting users with malware, leaving the users and companies open to ongoing damage until the systems were cleaned or re-imaged…

    “The types of damage can include stolen usernames / passwords, fake anti-virus attacks or data theft,” Mr Oliver said.

    The article also features warnings from IDC Australia senior market analyst , Vern Hue. He said that companies needed to be extra vigilant with security as the emails could prove to be an opportunity for cyber-criminals to deceive people into believing that emails and other communications came from a legitimate source.

    “However, once they click on a link, users will then be transported into a link that is hosted by malicious actors for the purpose of either stealing information, installing malware or duping users to part with their money,” Hue said.

    “We need to be cognisant of the fact that cyber-criminal are crafting very authentic looking email communications.”

    He recommended that organisations put in place formal business communication policies and guidelines around acceptable use of social media and financial services.

    So aside from potentially having credit card details stolen, these scams can invade all the personal data on a person’s computer. What would such a virus find on most computers? Probably a whole lot of personal and financial information – enough for a clever and determined cybercrook to go about stealing the victim’s identity. A fake identity means fraudsters have access to their victim’s good name through their credit rating, and it means the victim has a whole host of difficulties in recovering their ability to obtain credit.

    Vigilance against phishing scams

    The Scamwatch website provides these tips for steering clear of phishing scams:

    • NEVER send money or give credit card or online account details to anyone you do not know and trust.
    • Do not give out your personal, credit card or online account details over the phone unless you made the call and  know that the phone number came from a trusted source.
    • Do not open suspicious or unsolicited emails (spam)—ignore them. You can report spam to Australian  Communications and Media Authority. If you do not wish to report the message, delete it.
    • Do not click on any links in a spam email or open any files attached to them.
    • Never call a telephone number that you see in a spam email or SMS.
    • If you want to access an internet account website, use a bookmarked link or type the address in yourself—NEVER  follow a link in an email.
    • Check the website address carefully. Scammers often set up fake websites with very similar addresses.
    • Never enter your personal, credit card or online account information on a website if you are not certain it is genuine.
    • Never send your personal, credit card or online account details through an email

    For help with recovering a damaged credit rating following identity theft, contact MyCRA Credit Rating Repairs directly on 1300 667 218 or visit the main website www.mycra.com.au.

    Image above: David Castillo Dominici/ www.FreeDigitalPhotos.net

     

     

  • Smartphone users still not smartening up about cyber security

    MyCRA is a partner in Cyber Security Awareness Week 2012 running 12-15 June. The issue of smartphone security was put forward as a growing area of concern amongst information security experts. We look at the dangers of lax smartphone security – since reports show about 4000 smartphones are lost or stolen in Australia every week.

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

    Yesterday Inside Retail published research from PayPal Australia showing that smartphone users did not afford the same type of security for their smartphones that they may afford for their home computers. The article, titled Security fears over m-commerce reveals some worrying statistic on smartphone security, considering the increasing use of smartphones to perform functions normally reserved for personal computers.

    PayPal Australia’s research shows:

    One in six (16 per cent) of Australian smartphone users have lost, misplaced or had their phone stolen in the last year

    BUT only 30 per cent remotely wiped their data after losing their smartphone and less than half (43 per cent) changed their online passwords.

    AND half (49 per cent) of Australian smartphone users don’t use a passcode on their mobile device.

    Here is an excerpt from that article:

    In support of National Cyber Security Awareness Week (NCSAW), PayPal and the Centre for Internet Safety at the University of Canberra (CIS) have called for Australians to stay vigilant with their smartphones as they would their personal computers and wallets. Australians increasingly use smartphones to store a substantial amount of personal data, from bank statements to calendars to social networking profiles….

    Prashanth Ranganathan, director of mobile security and risk at PayPal is in Sydney this week in support of NCSAW, speaking to industry stakeholders about the need for consumer education as mobile payments becomes increasingly prevalent.

    “Australia is among one of the largest mobile markets in terms of smartphone penetration[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”][3]. Australian consumers are increasingly using their smartphones to shop and pay while on the go but are unaware of the size of the digital footprint stored in their smartphones. By transacting through PayPal, consumers are provisioned with an additional layer of protection by ensuring their personal financial information is never stored on the physical device and never shared with businesses they are transacting with,” Ranganathan said.

    Australians are keen to take advantage of the mobile convenience of smartphone technology, but according to PayPal’s research are not protecting themselves beyond the home. Smartphone owners were three times more likely to be more mindful of the security of their wallets than of their smartphones and one in three (36 per cent) stay logged into mobile applications.

    Alastair MacGibbon, director at CIS said: “With over 12 million Australian smartphone users expected in 2012, criminals are now making moves to target mobile users. Australians must stay alert and ensure they protect themselves across all their devices. As the technology evolves and more Australians use their smartphone devices to fulfill a wider range of functions, consumers need to keep an eye out for fraudulent encounters and be educated about ways to safeguard their smartphones from cybercrime.”…

    PayPal and CIS have listed key tips to help consumers better protect themselves while transacting on their smartphones:

    • Set up your first line of defense – Enable a unique passcode so that your smartphone automatically locks when you’re not using it.
    • Know who you’re transacting with – Use reputable mobile sites and applications. Look out for trust cues like the padlock symbol before entering your financial information.
    • Watch out for duplicate applications – Cyber criminals take advantage of trusted brands by creating free applications that mimic the company’s official application. If you’re unsure, always download the application directly from the company’s website.
    • Know how you’re connected – Use a secure network to transact online and watch out for people looking over your shoulder while using free Wi-Fi networks.
    • Keep track of what you’re sharing – Be aware of the permissions your applications request from you. Review permission requests carefully and only share information that you are comfortable sharing.
    • Don’t store sensitive data on your device – never store sensitive financial data on your smartphone.
    If your smartphone is lost, stolen or misplaced, remember to:
    •Remotely wipe your data – Enable this feature at purchase so that you can use it to your benefit if you lose your device.
    • Immediately change your passwords – Change your online passwords for the mobile apps and websites that you automatically sign into, such as email, calendars, social networking sites, app stores, messengers, video sites.
    • Get help – Contact your provider or manufacturer and enquire about mobile tracking or whether they can disable your phone on your behalf.

    The rise in the use of smartphones, and mobile digital devices in general points to a need for users to be more cautious about the security of those devices, and aware of the potential for identity theft should they fall into the wrong hands.

    Smartphones, tablets and laptops give people their lives at the touch of a button – allowing access to email, bank accounts and social networking, but he says this access would be a goldmine for fraudsters.

    Research put out by AVG Security last year shows the number of mobile phones reported lost or stolen in Australia has doubled in the past five years to 200,000 annually — that’s 4000 a week, or one every three minutes.

    If people have their laptop or I-phone stolen, these days it can be the same as someone breaking into their home or stealing their PC. If the device is not secure, often there is enough information on there for a criminal to go about hacking into their bank accounts, or stealing someone’s identity and taking credit out in their name.

    Identity theft can hit twice, often with victims facing an uphill battle with their credit rating following it. Many times the identity theft victim is unaware their good name has been used until they apply for credit somewhere and are flatly refused. People may have credit applications as a minimum and possibly defaults, mortgages and mobile phones attributed to them incorrectly.

    Once an account remains unpaid past 60 days, the debt may be listed by the creditor as a default on a person’s credit file. Under current Australian legislation, defaults have to remain listed on the victim’s credit file for a 5 year period.

    What is not widely known is how difficult recovery from identity theft can be, due to defaults remaining on credit files for 5 years. Unfortunately there is no guarantee they can be removed from a person’s credit file. The onus is on the identity theft victim to prove their case to creditors.

    Security companies like AVG also have software such as ‘AVG Mobilisation’, which can help users track and locate a lost or stolen smartphone or tablet on Google Maps. They can also enable remote locking, and remote wiping allowing personal information to be removed if the device is lost or stolen. There are similar products with other security companies.

    People who suspect identity theft should report the matter immediately to Police, no matter how insignificant they think the fraud is.

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

    For more information on identity theft risks and how people can repair their credit rating following identity theft, visit the MyCRA Credit Rating Repairs website www.mycra.com.au.

    Image above: Ambro/ www.FreeDigitalPhotos.net

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  • Cyber security is about protecting your credit rating.

    MyCRA is proud to be a partner for Cyber Security Awareness Week 2012, running this week from 12 to 15 June.  Awareness Week helps Australians understand cyber security risks as well as educating home and small business users on the simple steps they can take to protect their personal and financial information online. Today, we address the importance of cyber security for preventing bad credit history.

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

    Cyber Security Awareness Week 2012 is an Australian Government initiative, held annually in partnership with industry, community and consumer groups and state and territory governments. According to the Stay Smart Online website, cybersecurity awareness is more important than ever.

    “Australians are increasingly relying on the internet in their everyday lives for banking, shopping, education and communication. It is, therefore, important that they are able to use the internet in a secure and confident manner. The government has established a range of initiatives to raise the awareness of Australian internet users about the importance of cybersecurity and the simple steps they can take to protect their personal and financial information online.”

    One of the big risks for Australians is that their internet use will lead to fraudsters stealing their personal information for purposes of identity theft (now the fastest growing crime in Australia) and potentially fraud. The good credit rating of the victim could then be damaged.

    If cyber-crooks are able to get their hands on enough personal information they may be able to construct a fake identity, which can lead to some serious credit fraud. Fraudsters have been known to go so far as to take out personal loans, credit cards and even mortgage homes in their victim’s name.

    When the identity theft goes so far as to affect the credit file of the victim, the issues can be huge. Unfortunately fraudsters are never so kind as to pay this credit back, so the victim is often unaware of a stream of defaults run up against their name, until the apply for credit in their own right and are flat out refused.

    For between 5 and 7 years identity theft victims can be locked out of credit while their credit rating shows up someone else’s defaults.

    Unfortunately in the past it has not been easy for identity theft victims to prove they did not initiate the credit, particularly if they have no idea how they were duped in the first place.  Often this sophisticated type of fraud is instigated by overseas crime syndicates who don’t leave much of a trail, or even if they do, can’t be prosecuted easily.

    But the ability to obtain credit is so crucial to functioning well in today’s society, that if the identity theft victim has also been a victim of credit fraud, they should make their clear credit rating a point worth fighting for.

    Firstly, the victim should contact Police as soon as they are made aware of possible identity theft, they may even be able to prevent the credit fraud occurring. If it has already happened, a Police investigation and report will be a good starting point for proving the person did not initiate the credit in the first place.

    Credit file repair can be difficult for the individual, but if there is an error on a person’s credit file it is worth pursuing. It can be made easier with the help of a credit repairer. A credit repairer has extensive knowledge of credit reporting legislation and how to apply the letter of the law to the credit file holder’s circumstances to ensure the best chance of having the listing or listings completely removed from the credit file if it has been placed unlawfully, for instance if the listing contains an error, is unjust or just shouldn’t be there.

    The best thing people can do for themselves is to prevent that crime from happening in the first place. People can provide a safety buffer for themselves and their family around one of the main channels for fraudsters to enter our lives – the internet.

    To start, people can follow these top tips provided by Cyber Security Awareness Week 2012 on how to stay safe online:

    • Install and update your security software; set it to scan regularly.
    • Turn on automatic updates on all your software, particularly your operating system and applications.
    • Use strong passwords and different passwords for different uses.
    • Stop and think before you click on links and attachments.
    • Take care when transacting online – research the supplier and use a safe payment method.
    • Only download “apps” from reputable publishers and read all permission requests.
    • Regularly check your privacy settings on social networking sites.
    • Stop and think before you post any photos or financial information online.
    • Talk with your child about staying safe online, including on their smartphone or mobile device.
    • Report or talk to someone if you feel uncomfortable or threatened online – download the Government’s Cybersafety  Help Button.

    In addition, people can and should subscribe to the email notifications from Stay Smart Online Alert Service. The Stay Smart Online Alert Service is a free subscription based service that provides home users and small to medium enterprises with information on the latest computer network threats and vulnerabilities in simple, non-technical, easy to understand language. It also provides solutions to help manage these risks.

    Also, people can look at securing different sections of their internet use in more depth with the help of Stay Smart Online’s key factsheets for online security.

    They can also help raise awareness of the issue amongst their own group of family and friends and insist that anyone who has their personal information has a responsibility to keep it safe.

    People should also check their credit file regularly, and act quickly on any discrepancies there – which can often be the first sign of identity theft. Copies of consumer and business credit files can be ordered from one or more of Australia’s credit reporting agencies, and are free for the credit file holder once per year.

    Stay tuned for more information updates as Cyber Security Awareness Week unfolds.

    Image above: Victor Habbick: www.FreeDigitalPhotos.net.

     

     

     

  • More Aussies struggling with less people candidates for mainstream credit

    A recent survey shows the number of Aussies struggling to meet their credit commitments is increasing. Will late payment notations to be included on credit files as part of the new credit laws prevent this figure from continuing to increase in the future?

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

    Results from Veda Advantage’s bi-annual Australian debt study late last month showed more and more Australians are at risk of falling into a debt spiral during an economic downturn.

    Findings show that 21% of Australians are struggling to pay their current credit commitments. Despite this, a quarter also admitted they will apply for yet more credit to help them cope with an economic downturn.

    Veda’s analysis of consumer behaviours if there is a period of economic stress shows:

    • Most (66%) Australians would draw on household savings;
    • One in four (25%) would increase their credit card limit, mortgage or loan;
    • One in three, or almost 5.5 million, would borrow from family;
    • Over 3.6 million (21%) would draw on their superannuation.

    Veda claims the introduction of late payment notations to credit files as part of comprehensive credit reporting should prevent more people from falling into a debt spiral.

    Veda’s Matthew Strassburg says “…the changes to credit reporting will make credit reports fairer and more accurate for consumers looking to borrow. The new information will include a person’s current credit limit, number of credit cards and if someone has failed to make the minimum payment on a credit card or loan on time.”

    I agree, accuracy in credit reporting in Australia is paramount. Late payment notations would certainly see less people given access to mainstream credit. But the question is – how fair will this system be?

    25% of people surveyed by Veda said they would increase their credit card limit, mortgage or loan if they fell into ‘economic stress.’ But Veda fails to mention the definition of ‘economic stress.’ Possibly if the stress was certain to be temporary – some people would nominate increasing their credit limit or redrawing on their mortgage as a possible short term solution to ride out the bad period. It is not certain from the results published how many people surveyed would actually choose more credit – especially new loans as a solution to a long term financial problem.

    If some of those 25% who nominated ‘more credit’ as a solution intended to use credit for an extended period of economic stress, then certainly the introduction of late payments as part of comprehensive credit reporting would stop some in their tracks from gaining more credit – and rightly so, there are better solutions to debt stress than more debt.

    But what if the issue is a temporary one? How can mainstream lenders truly tell if someone is a bad credit risk if they have been late making one payment? At least with a default recorded – it shows the credit file holder had been at least 60 days in arrears with their repayments.

    There are so many grey areas with the introduction of these new laws, and I am nervous that more consumers than necessary could suffer a reduction in access to mainstream credit. Could more be forced to access the non-conforming market at high interest rates as an alternative? Doesn’t this further perpetuate the debt cycle and lead even more people to experience financial stress?

    One important point the Veda survey highlighted was the lack of impetus to seek help if people did fall under economic stress. It is important that people know that they can seek help if they are falling into difficulty making repayments – or they feel they may in the future.

    Veda’s analysis indicates that despite 21% of the population saying they are having difficulty coping or are unsure how they will make the next payment, only one in five had sought professional financial counselling.

    Mr Strassberg added: “People having trouble repaying should seek help from a financial professional before it’s too late, particularly lower income earners with competing debt repayments.”

    Certainly financial counselling, possibly seeking a financial hardship variation, and generally contacting a creditor prior to letting a repayment fall into arrears or into default is always the better option to avoid debt stress and bad credit history.

    If you or someone you know has bad credit history which shouldn’t be there – contacting a professional credit rating repairer can help you get your life back on track and potentially remove credit rating errors permanently.

    Image: Stuart Miles FreeDigitalPhotos.net

  • Small business credit lock down pushes families into more debt

    Media Release

    Small business credit lock down pushes families into more debt

    Small businesses have been forced to rely on personal credit due to what a former broker turned credit reporting accuracy advocate says are difficult times for access to credit for SME’s, with the family credit rating copping the fall out.

    A recent Reserve Bank of Australia report reveals that small businesses are more likely to have household debt due probably to a reduced access to business credit.

    The RBA’s Small Business Finance Roundtable report shows that for unincorporated business, the overall financial position of the business is tied up with the household.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][1]

    “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.

    This sentiment is echoed by former broker Graham Doessel, now owner of credit repair business MyCRA and board member of newly formed Credit Repair Industry Association of Australasia. He says lending criteria since the Global Financial Crisis has tightened considerably, with many small businesses finding it near to impossible to qualify for credit.

    “The loops and hoops businesses need to jump through to secure funds for expansion is unnecessary and shuts many small businesses out. The process could be better streamlined to accommodate this huge market, meaning less would need to rely on their personal credit rating,” Mr Doessel says.

    Mr Doessel says the danger with small business owners involving personal credit in their small business borrowing is the chance of business debt and bad credit history spilling over to the personal credit rating.

    “Small businesses are on a very slippery slope when they use their access to consumer credit to fund business debt on a regular basis. If they happen to run into trouble with repayments these people are copping defaults on both their consumer and commercial credit files, effectively ruining not only their credit rating but potentially that of their spouse as well,” he warns.

    This comes as Smart Company reports today on new research by software firm MYOB showing 28% of small businesses use their home loan to finance their business in some way.[2]

    The survey of over 1,000 SMEs, shows how tightly linked mortgage rates and business finance really are.

    Just under 15% of SMEs utilise a line of credit through their home loan to help fund their business, 5% have funded their business by increasing the value of their home loan and 5% funded their business by redrawing against equity in their mortgage.

    A further 4% have used cash sitting in their mortgage offset account to pump into their business.

    “For many business owners, even those without commercial finance, an interest rate move doesn’t just affect their ability to repay the family home loan. For too many, home loan interest rate moves also affect their ability to keep their livelihood on an even keel,” MYOB chief Tim Reed says.

    /ENDS.
    Please contact:

    Graham Doessel – Founder and CEO MyCRA  Ph: 3124 7133
    Lisa Brewster – Media Relations  MyCRA   Mob: 0450 554 007  media@mycra.com.au

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

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

    [1] http://www.rba.gov.au/publications/workshops/other/small-bus-fin-roundtable-2012/pdf/small-bus-fin-roundtable.pdf

    [2] http://www.startupsmart.com.au/funding/one-in-four-australian-small-businesses-use-mortgages-for-finance-survey/201206046502.html

    Image: Pixomar: www.FreeDigitalPhotos.net

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  • Mortgage stress eased by RBA cuts to interest rates…if passed on

    The Reserve Bank of Australia has cut the cash rate by 25bps today – which should ease mortgage stress and the rate of credit rating defaults, provided banks pass on the reduction.

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

    Today Australian Broker reported the cut in its story RBA maintains cutting course and says weak retail figures and low inflation has contributed to the cut.

    “It is a relief to see that the RBA finally seems to have grasped the severity of the situation facing our main employment industries like construction and retail,” 1300 Home Loans’ John Kolenda said.

    While Kolenda conceded that the rate cut would not be a panacaea for consumer sentiment, he said it would provide a much-needed boost.

    “This rate cut is not the end of the road by any means but it does mean that homebuyers and consumers will be a little less cash-strapped and might step back a bit from their siege mentality,” he said.

    It seems from experts we can determine that all but those related to mining and other resource sectors are struggling or slowing, so a drop in interest rates will be welcome, particularly for those teetering on the realm of defaults. A cut like this can represent a significant saving for consumers, provided that banks mirror the RBA cut, which in the recent past has not readily been the case.

    Unfortunately, for those living with bad credit history, these cuts will be negligible and they will still be paying a significant amount more in interest through the non-conforming sector.

    So any actions to prevent the number of likely defaults is extremely heartening if mirrored in interest rate cuts by banks.

    Image: jscreationzs/ www.FreeDigitalPhotos.net

  • Default rates soar amongst over 65’s

    A study on generational trends in credit activity over the past ten years put out by credit reporting agency Veda Advantage reveals that the rate of default amongst the older generation (65 years and above) has increased a staggering 200% over the past ten years. We look at why this could be occurring and the possible ramifications of bad credit history for this age group.

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

    Veda’s study results, released on June 1 in a report titled: New data from Veda shows surprising differences in credit activity between generations reveals this age group have become more reliant on credit which has led to the increased level of defaults as some struggle to meet financial obligations.

    This topic was explored further by the Herald Sun in its article Bad debt increases among over-65s. It reports Veda general manager of consumer risk Angus Luffman saying 6 per cent of over-65s had more debt this year than last year. He said most debts related to living costs such as utility and telecommunications accounts.

    Here is an excerpt from that story:

    Financial counsellors said yesterday people could find it difficult to reduce their spending when they reached retirement and the supply of easy credit was a major problem.

    “After retirement, some people find that their incomes have decreased but their credit card limits can be quite high,” Financial Counselling Australia chief executive Fiona Guthrie said.

    “The adjustment can be hard (and) many older Australian are simply poor.

    “They may be using credit to simply make ends meet.

    “It is also frustrating to hear that industry still tries to sheet the blame home to consumers for what in fact has been the irresponsible marketing.”

    It is a worrying trend that older Australians are having to rely on credit to simply make ends meet. The reasons for the increase in the rate of defaults could be simply these age groups not having the necessary funds to meet their repayments, or as speculated by Angus Luffman, it could also be due to a lack of education around credit.

    In Veda’s report, Mr Luffman said that education is needed within all age groups on the risks of being enticed into credit as a result of factors like low introductory interest rates.

    “The fact is that consumers of all ages still fail to realise that missed monthly mobile phone, utilities, and credit card or loan repayments can all affect their credit rating.   It is vitally important that consumers consider and understand the difficulties they could face when they take on credit commitments that they can’t meet,” said Luffman.

    We assume that the over 65’s have it all worked out financially. This report debunks that and shows that bad credit history can occur at any age group, and can be as much a result of a lack of education about credit obligations as it can be about not having the necessary funds to meet those obligations.

    I always maintain that there is a lack of education about consumer rights and responsibilities around accessing and repaying credit and likewise in addressing credit listing complaints. Credit reporting law is hugely legislated and Privacy Principles cross a number of different codes of conduct for different industries. The difficulty for ordinary consumers in understanding these laws is reflected in a) the number of consumer defaults and b) the volume of consumers seeking credit rating repair services to fix their bad credit.

    More education would go a long way in preventing the rate of default in the first place. It would also allow consumers to understand their rights within credit reporting law. Many are unsure what to do if they find themselves with a credit listing which they believe should not be there, and when they try to address the issue with the Creditor, they can be left no better off.

    Perhaps older Australians are the most uneducated generation on their rights and responsibilities around credit. This generation is traditionally the ‘saving’ generation – most would have used very little credit in their younger years and the trend towards credit in society today has possibly pushed them into a realm they may be ill-equipped for. A meagre pension propped up by small levels of Superannuation for this generation can also be a contributing factor.

    Direct debit problems, bill disputes, divorce or separation issues, even identity theft can all lead to an unncecessary bad credit rating and can be a problem for any generation. And what about those grey nomads tripping around Australia – what if people have failed to tie up all loose ends and have left a bill unpaid or unsettled? In reality, an overdue account will lead to bad credit. They could be listed with a Default and have 5 years of bad credit. If the Creditor can’t get hold of them – they will have a Clearout listing against their name – that’s 7 years of bad credit.

    So what can people do if they find this happens to them?

    Consumers should address credit listing complaints straight away. What they shouldn’t do is wait 5 or 7 years if the listing should not be there. The best chance of getting that bad credit history removed is for people to contact a credit rating repairer and put their circumstances to them, so it can be established whether they are a suitable candidate. There are some cases of bad credit which cannot be removed. But if there are inconsistencies, there is a good chance that a credit repairer can help them with their case for removal of the credit listing.

    And for older generations who want or need to use credit, there is no time to waste on bad credit history that shouldn’t be there.

    Image: www.FreeDigitalPhotos.net

     

  • A wait and see approach to logistics of new credit laws

    Most people are very positive about changes to Australia’s Privacy Laws which are coming through Parliament, effectively bringing Australia out of the 1980’s and closer to other countries in our treatment of Privacy and personal information. But others are a little unsure they go far enough in many areas. We look at one opinion of how the new credit laws apply to credit reporting .

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

    An interesting post came through from ‘The Conversation’ yesterday written by Bruce Arnold, Lecturer of Law at University of Canberra. The post Two cheers for privacy law reform? Let’s wait and see looks at the potential benefits of these new Privacy Laws, and where perhaps the laws may be lacking:

    “For many people the bleeding edge of privacy law has been their credit records. The Bill rationalises the current credit reporting regime, which has featured strong disagreement between competing industry bodies and examples of bad practice by particular enterprises. That rationalisation is to be strongly welcomed by consumers and business as providing greater transparency and certainty. Its success however will be dependent on action by the national Privacy Commissioner, an entity within the national Office of the Information Commissioner. Under the proposed law, credit providers will have access to additional personal information with the expectation that more data will facilitate “a more robust assessment” of credit risk and “responsible lending” that may also “result in reductions to the cost of credit for individuals”. As with much finance, we will trust that lenders will pass on their savings to consumers.

    The Bill aims to give the Commissioner greater powers, for example scope for “own motion” investigations rather than in response to complaints by individuals who claim that there privacy has been disrespected. It is unclear whether the Commissioner will make effective use of those powers, given difficulties with resourcing and perceptions – fair or otherwise – that the office lacks both the will and expertise to take on particular interests. Historically it has endorsed industry practice that although commonplace, is below overseas benchmarks and is less than desired by many Australians.

    The Commissioner will be able to recognise external dispute resolution mechanisms, something that is consistent with the trend to outsourcing and administration and presumably welcomed by business.

    The Bill does not provide for a tort of serious invasion of privacy – that is, scope for an individual to seek compensation over an invasion of their privacy by an individual or an organisation. That tort has been recommended by the ALRC and by the law reform commissions of New South Wales and Victoria. It is thus hardly a radical or alarming notion, although it has been strongly opposed by the major media groups and some legal practitioners. The Government’s willingness to proceed with suggestions for establishment of the tort as we head towards an election is unclear.

    Enactment of the Australian Privacy Principles is a step forward, deserving of two cheers even if we ask why has it taken so long and wonder how the APP will be interpreted by the Privacy Commissioner. Rationalisation of credit reporting law, in conjunction with the National Consumer Credit Protection Act 2009 (NCCPA) is also meritorious, although in one of the most messy areas of privacy practice we will need to see how business implements the revised arrangements and whether there is meaningful enforcement by the Privacy Commissioner,” Mr Arnold says.

    It will be interesting to see how the actual application of dispute resolution pans out in the credit reporting landscape including how the changes will alter the Credit Reporting Code of Conduct. We will certainly adopt the ‘wait and see’ approach as to whether the changes will indeed make it ‘easier’ to dispute credit listings and fix unnecessary bad credit as claimed by Attorney-General Nicola Roxon.

    Image: Stuart Miles/ Free Digital Photos.net

     

  • Gillard Government finally recognises the prevalence of credit rating errors, says Graham the ‘Credit Corrector’

    Media Release

    Gillard Government finally recognises the prevalence of credit rating errors, says Graham the ‘Credit Corrector.’

    29 May 2012

    An advocate for accuracy in credit reporting says Australia’s new Privacy Laws finally recognise the prevalence of credit rating errors, and the damage that can be wreaked on the consumer’s reputation and life if they are incorrectly listed with bad credit.

    Graham Doessel – CEO of MyCRA Credit Rating Repairs, and Board Member of the Credit Repair Industry Association of Australasia (CRIAA), says new Privacy Laws which are set to make some massive improvements in the area of correction of inconsistent data on Australian credit files, are long overdue.

    “Someone who presents with bad credit is going to be refused mainstream credit for between 5 and 7 years – depending on the listing type. It’s serious stuff, and if the listing shouldn’t be there, it’s very unfair,” he says.

    Mr Doessel says it is timely that the Government address the difficulties consumers face when they are incorrectly listed with bad credit.

    “Creditors can and do make mistakes when placing listings on credit files, and the onus is on the consumer to identify and address those inconsistencies. But it has very much been a case of David and Goliath – with some consumers finding they are lumbered with listings that just shouldn’t be there due to not having the extensive skills and knowledge required to address their complaints in the appropriate way,” he explains.

    The Privacy Amendment (Enhancing Privacy Protection) Bill 2012, which had its second reading in Parliament last week, is part of the Gillard Government’s ‘modernisation’ of credit reporting, which they say will make the credit reporting regime more flexible and less prescriptive by emphasising industry-led complaint resolution.

    The new laws around complaints correction will:

    • Streamline the correction and complaints process for credit reporting; and

    • Force the Creditor to justify credit listings and actually substantiate the information it reports on credit files; and

    • Allow consumers to complain directly to the appropriate Ombudsman rather than having to go through the organisation’s complaints process first; and

    •  Provide for remedies such as compensation for consumers who are negatively impacted by a Creditor who has failed to comply with credit reporting law (penalties for breaches of the Privacy Act could be up to $220,000 for an individual and $1.1 million for an organisation).

    The introduction of the new laws are too late for Brent Uchtman, who sought MyCRA’s credit repair services last year to fight a disputed credit listing which saw him refused finance.

    Brent applied for a loan after purchasing some land last year, only to be told by his bank that he had a bad credit rating from a phone company that out and out shouldn’t have been there.

    His credit file was finally cleared in November last year, but not before he lost the land contract.

    “I ended up losing the land because someone it got from under me while I struggled with this bad credit,” Brent explains.

    He says his case was slow because the company took so long to provide documentation.

    Mr Doessel says the speed of Brent’s case could have been improved if the Creditor would have had some obligation to substantiate the credit listing, or if the complaint could have been taken directly to the Creditor’s Ombudsman.

    “Finally there is some real incentive for Creditors to take due care with adding listings to credit files and to justify their actions, and we as credit repairers ultimately have a better avenue to help our clients remedy their credit rating errors,” he says.

    /ENDS.

    Graham Doessel – Founder and CEO MyCRA  Board Member CRIAA    Ph: 07 3124 7133

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

    Client details available on request.

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

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

  • Report shows more Australians are forced into accessing fringe credit

    If anyone thought having bad credit meant people were merely unable to purchase big ticket items such as a home or a business – they are sorely mistaken. As our credit repair clients would surely testify, bad credit history permeates through every area of a person’s life, to the point where they can’t even get a mobile phone on a plan. These people, through denial of mainstream credit are forced to seek alternative credit often at higher interest rates – perpetuating the debt cycle even further. This has parallels with a recent study which reports that the high cost of access to basic financial services particularly in remote areas are forcing more and more towards fringe credit as well.

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

    An article published in the Sydney Morning Herald today, titled More of us lacking access to banks revealed the study results – more than 2.9 million adults do not have adequate access to day-to-day financial products such as a basic banking account, car insurance or even a credit card.

    Here is an excerpt from the same story featured in WA Today, Titled More Australians can’t access money: report :

    The research by the Centre for Social Impact – backed by the University of Western Australia – shows the ability to secure as much as $3000 in funds for an emergency through the mainstream financial system is becoming increasingly out-of-reach for Australians.

    Instead, more people are relying on family or friends or turning to fringe credit products, such as payday lenders, who regularly charge substantially higher interest rates than banks.

    Such products have seen a surge in uptake in recent years….

    NAB chief executive Cameron Clyne accepted the banking industry was partly to blame, conceding it needed to lift its game by providing affordable products to more people.

    ”The absence of access to mainstream financial services does preclude people from advancing socially and economically,” he said.

    ”Often it’s the unexpected expenses [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”][such as] if the car breaks down or someone needs to get to a job interview.
    “There’s an obligation for the banking system to improve financial inclusion.”

    Financial inclusion is a big issue. Many people need a fair go – and the chance to borrow small amounts of money at reasonable rates which they might have a chance at paying back, allowing them to actually move forward in life.

    Parallels for bad credit clients

    In our race to ensure we are not throwing money at people when they already can’t handle the credit they have – we have adopted a policy of excluding people who present with bad credit from mainstream lenders. This is responsible lending, but where do those people turn to in emergency situations? The very same places the people surveyed in the WA report do – family, friends or fringe credit.

    It seems a shame to throw people who are already struggling with debt into a ‘debt trap’ of borrowing from pay-day lenders and the like.

    One terrific favour we can do for people we meet who are ‘on the fringe’, struggling with bad credit, is point them in the direction of financial counselling – so that when they are turned away from mainstream credit, they can be given something positive to pull them out of the ‘debt trap’ and deliver them back on the road to financial security.

    And of course, if there is any doubt about whether they should have the bad credit in the first place – then referring them for assessment for credit repair would be the ultimate gift. If they are able to remove the negative history from their credit file which shouldn’t be there, then they have the best chance at a fresh start with credit, and a normal life.[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Credit repair industry body the Credit Repair Industry Association of Australasia to hold first Board Meeting Thursday.

    Media Release

    Credit repair industry body the Credit Repair Industry Association of Australasia to hold first Board Meeting Thursday.

    28 May 2012

    New industry body for credit rating repair, the Credit Repair Industry Association of Australasia (CRIAA) has scheduled its first Board Meeting this Thursday.

    The nine board members – who were ratified last Tuesday, will meet Thursday 31 May at 9:30am EST to discuss a range of topics which will move towards solidifying the CRIAA as an entity designed to deliver both credibility and voice to the credit repair industry and those promoting credit reporting accuracy in Australia.

    The board includes 6 credit repair industry members, and three finance industry members, including President of the Finance Brokers’ Association of Australia, Peter White. The meeting will comprise establishing formal positions on the board, and reviewing the ASIC-inspired draft Code of Conduct for the CRIAA.

    Board Member Graham Doessel – CEO of MyCRA Credit Rating Repairs says the drive of the Code of Conduct will be to develop a framework to ensure that members conduct themselves with high standards and ethics.

    “Credit rating repair is largely unregulated and some dodgy practices have caused the overall impression of the industry to at times be less than savoury,” Mr Doessel says.

    He says this impression overshadows the crucial role credit rating repairers play in correcting credit rating inconsistencies for consumers and the real place credit repair has in the credit reporting landscape.

    “The CRIAA Code of Conduct is a vital step to move the industry forward with credibility. It will provide some formal standards and minimum qualifications for members and cement a set of ethics that members can uphold,” Mr Doessel says.

    /ENDS.

    Please contact:

    Graham Doessel – Founder and CEO MyCRA Board CRIAA         Ph 07 3124 7133

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

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

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