MyCRA Specialist Credit Repair Lawyers

Tag: MyCRA Credit Repairs

  • Telstra’s at it again. And this time it may affect YOU.

    Your credit file could be affected by errors in the telecommunications industry…here is a media release we sent out last month about a significant data breach which occured with Telstra’s customer files. We are eager to see what the Privacy Commissioner’s findings will be on this incident.

    Media Release

    12 December 2011

    A massive data breach of Telstra’s customer database has potentially put around 800,000 of its customers at grave risk of having their passwords stolen and their personal information pilfered by identity thieves.

    The data breach which occurred last Friday, saw detailed personal information which was supposed to be available to Telstra customer service agents only, exposed and openly accessible on the internet.

    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.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    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.[ii]

    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.

    Mr Doessel recommends anyone who feels they may be at risk by this data breach take a few precautionary steps to ensure their credit file is protected:

    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. Contact creditors and advise them you may be at risk of identity theft. This will allow them to ‘flag’ your accounts and halt any suspicious activity.

    3. Check your credit file. Obtain a free copy of your credit file and check there is nothing suspicious already present on your credit file.

    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.

    The Privacy Commissioner, Timothy Pilgrim made a statement yesterday:

    “I have opened a formal investigation into the Telstra data breach. At a briefing today Telstra has assured our office that the immediate problem has been rectified and that personal data is no longer accessible.

    I have asked that Telstra also provide me with a detailed written report on the incident, including how it occurred, what information, if any, was compromised and what steps they have taken to prevent a reoccurrence. I will consider all the information provided by Telstra and hope to be in a position to issue an investigation report in late January 2012,” Mr Pilgrim says.

    It is uncertain exactly what and or how much the Privacy Commissioner could determine Telstra would be liable for.

    A recent decision handed down by the Privacy Commissioner only last week, saw one individual complainant awarded $7500 in compensation after a Leagues Club was found to have breached their privacy.[iii]

    This is not the first time a major data breach has occurred with Telstra. In October 2010, a mailing error saw around 60,000 letters containing personal customer information sent to other customers.

    The Privacy Commissioner found the privacy of Telstra customers was only breached in 2010 due to human error, and did not occur due to any systemic failure of Telstra’s processes or procedures, therefore they were not required to pay damages in this instance.[iv]

    /ENDS.

    Please contact:

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

    Graham Doessel – Director info@mycra.com.au

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

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

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  • Personal information…the gateway to identity theft

    Hackers access databases searching for personal information that can be extracted and misused or traded to fraudsters for purposes of identity theft. We look at how your identity and ultimately your clean credit file can be put at risk. By GRAHAM DOESSEL.

    It’s Saturday night in Las Vegas. Thousands of pairs of shoes sit neatly in boxes on warehouse shelves in the dark. The store’s customers and staff are at home enjoying their evening. In the credit information office, the lights are off, the filing has been done. But in the dark, thousands of the store’s computers are being remotely accessed by hackers.

    The personal information of the shoe store’s customers is likely being transferred. It is likely this information will now be sold on the black market to fraudsters. This information could now be used to further attack those unsuspecting customers. Those customers could now be a target for identity theft and receive phishing emails in order to get further information from victims, including the credit card number.

    This may have been how the saga transpired for shoe company, Zappo.com on the weekend. In a story from the Sydney Morning Herald this morning it was reported that on Sunday Amazon.com owned shoe retailer Zappos.com announced it was hacked. Hackers broke into the credit card database. Up to 24 million of its customers’ personal information may have been accessed. The company said customers’ credit card information was not stolen, but names, phone numbers, email addresses, billing and shipping addresses, along with the last four digits from credit cards and more may have been accessed in the attack.

    Here is an excerpt from that story, titled ‘Zappo’s customers details walk out the door’:

    It is not yet known how hackers gained access to the database or if a zero day exploit was used, but a security expert said it is likely customer data will now be sold in the cyber underground.

    Robert Siciliano, a McAfee consultant and identity theft expert, told Mashable he expects whoever hacked Zappos’s site to now sell the data to people who run phishing scams.

    “They’ll sell it 10,000 accounts at a time, short money, like $100,” he said adding there is enough information for a hacker to approach affected users as either Zappos or the credit card company and then ask them for more data — the classic phishing scam — which might be supplemented with a voicemail “vishing” attack as well, Mashable reported.

    Zappos said it was contacting customers by email and urging them to change their passwords.

    Las Vegas-based Zappos said the hackers gained access to its internal network and systems through one of the company’s servers in Kentucky.

    And in the news last week, we get an insight in to the type of crime ring that hackers may sell this information to. AFP report titled ’50 held in Puerto-Rico based identity ring’.

    The U.S. Justice Department announced late last week it has charged 50 people with conspiracy in a scheme to acquire personal identification information on US citizens in Puerto Rico and then sell it through fraudulent documents.

    Typically, the documents consisted of forged Social Security cards and birth certificates. They were sold for prices ranging between $700 and $2,500.
    The documents were sold from April 2009 until December 2011 to buyers throughout the United States.

    “The alleged conspiracy stretched across the United States and Puerto Rico, using suppliers, identity brokers and mail and money runners to fill and deliver orders for the personal identifying information and government-issued identity documents of Puerto Rican US citizens,” said Assistant Attorney General Lanny Breuer in a statement.
    The indictment alleges that identity brokers ordered the forged documents for their customers from Puerto Rican suppliers by making coded telephone calls.
    They would refer to “shirts,” “uniforms” or “clothes” as codes for various kinds of identity documents.
    “Skirts” meant female customers and “pants” meant male customers who needed documents in various “sizes,” which referred to the ages of the identities sought by the customers.

    Payment was made through money transfers while the documents were sent by mail.

    Some of the persons receiving the forged documents used them to obtain drivers licenses, US passports and visas, the Justice Department reported. Others are accused of using the documents to commit financial fraud.

    Sure this crime went on in the U.S. but it couldn’t happen here – could it?

    Well, to begin with – how many Australians have credit card details registered with Amazon, for example? We might live on an island, but U.S. crime can always reach our shores via the internet. Just look at the Sony PlayStation saga as a specific incident of how our details are not immune to theft on overseas shores.

    With identity theft being the fastest growing crime in Australia – it seems criminals here will be hot on the heels of the U.S. with newer, better, more sophisticated ways to get something for nothing.

    Interestingly, many hacks are actually not instigated to commit identity theft, but are statements to different industry bodies. For example the recent Robin Hood-style hacking of Texas security analysis company, Stratfor on Christmas Eve. Hackers obtained thousands of credit card numbers and other personal information from the firm’s clients and started making payments to several charities.

    “The assault was believed to have been orchestrated by a branch of the loosely affiliated hacker group called Anti-Sec and appeared to be inspired by anger at the imprisonment of Bradley Manning, the US army private accused of leaking US government files to WikiLeaks. An online statement from the group said the attack would stop if Manning was given ”a holiday feast … at a fancy restaurant of his choosing”,” the Brisbane Times reports.

    MP Malcolm Turnball and billionare businessman David Smorgon were amongst the victims who had relatively small amounts extracted from their credit card and donated to charities such as Save the Children, Red Cross and CARE.

    But for those hackers whose main aim is to extract details from databases and onsell them to fraudsters – we should all be very wary. And unfortunately, there is always that element of doubt about the security of our personal information in company databases.

    A leading fraud expert made this suggestion for online credit card use:

    In a story the Courier Mail featured in October last year, titled ‘Queensland Police Fraud chief Brian Hay calls for banks to bring in credit cards that can only be used in Australia to stop cyber-crime’, Det. Supt. Hay made some valid suggestions about how Australians can protect themselves from this type of fraud. One included for shoppers to have a credit card specifically for online purchases with a small credit limit. This is good advice to follow to prevent having large amounts extracted from credit cards if the companies with those details are ever hacked.

    Unfortuanately, it doesn’t stop identity thieves ‘phishing’ for further information on their victim for purposes of full-blown identity theft.

    If credit is taken out by fraudsters in the victim’s name, they can end up with defaults on their credit file – and this is not easy to recover from. First the victim has to prove they didn’t initiate the credit themselves. This would require documentary evidence and Police reports. But the identity theft victim would be virtually banned from obtaining credit until they are able to wade through the mess that has been created for them on their credit report, and clear their good name.
    For help with credit repair following identity theft, contact MyCRA Credit Repairs on 1300 667 218 or visit our main website www.mycra.com.au.

    Image: Danilo Rizzuti / FreeDigitalphotos.net

     

  • Australian Bureau of Statistics Housing Finance Nov 2011

    The ABS has today released its new figures on Housing finance for November. The number of committments for owner occupied dwellings has risen 1.4% – higher than was expected by economists.

    Positive results for the housing market, but home buyers will still have to work hard to ensure they meet banking criteria, including presenting with a clean credit file.

    By GRAHAM DOESSEL.

    The Herald Sun reported Macquarie senior economist Brian Redican as saying the November  data was encouraging.

    “Definitely, we are seeing a step in the right direction,” he said.

    Mr Redican said the housing sector might receive a boost from the two successive interest rate cuts by the Reserve Bank of Australia (RBA) late last year, and the prospect of more cuts to come in 2012.

    “I think it does have to have a positive impact.

    “These numbers don’t reflect those cuts yet and it will have to take a few more months for that to flow through.

    “What it does do is just make housing more affordable for those people that were thinking of going into the housing market.”

    ABS HOUSING FINANCE NOVEMBER 2011

    NOVEMBER KEY POINTS
    VALUE OF DWELLING COMMITMENTS

    November 2011 compared with October 2011:

    The trend estimate for the total value of dwelling finance commitments excluding alterations and additions was flat (0.0%). Investment housing commitments fell 0.5%, while owner occupied housing commitments rose 0.2%.

    In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 2.1%.
    NUMBER OF DWELLING COMMITMENTS

    November 2011 compared with October 2011:

    In trend terms, the number of commitments for owner occupied housing finance rose 0.6%.

    In trend terms, the number of commitments for the purchase of established dwellings rose 0.8% and the number of commitments for the purchase of new dwellings rose 0.5%, while the number of commitments for the construction of dwellings fell 0.9%.

    In seasonally adjusted terms, the number of commitments for owner occupied housing finance rose 1.4%.

    In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 20.0% in November 2011 from 19.1% in October 2011.

     

    With talks of a weakening economy, we don’t imagine banks will be easing up on their lending criteria. It will still be essential for borrowers to have a squeaky clean credit file, which could involve people checking their credit report for errors if they are unsure why they may be refused finance.

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

    Image: Idea go/FreeDigitalPhotos.net

     

     

     

     

     

  • How to keep your credit rating healthy

    7 ways to keep a squeaky clean credit file and get that home loan or finance….

    By Graham Doessel.

    Many people don’t realise how easy it is to get a bad credit rating, or how difficult credit repair can be.

    A clear credit file is so important because it is the key to your financial freedom. In today’s economic times, it is essential that your credit file be kept clear of any black marks.

    Any defaults (overdue accounts which have lapsed past 60 days), writs, judgements or bankruptcies which are recorded on your credit file will remain there for 5 years.

    A bad credit rating can prevent you from obtaining a mortgage, car or personal loan with banks but many don’t know it can also prevent you from obtaining a simple mobile phone plan.

    So how do you go about avoiding a credit rating default and keep your credit rating looking as healthy as possible? Outlined below are 7 essential tips:

    1. Use credit
    It may be tempting to get rid of all credit. But it is easier to obtain credit for a mortgage or business loan if there is some kind of reference of your credit history on your credit file. Taking out small accounts such as a mobile phone plan may be a good choice as long is each payment is made on time.

    2. Pay bills on time
    If you pay all accounts on time and by the due date, there is less chance you could receive a default listing on your credit file. If you can’t pay your account by the due date don’t bury your head in the sand – call the creditor and try to work out some type of payment plan.
    This contact may be enough to ensure your credit rating is not tarnished. If you receive a bill you don’t agree with, it is still essential to pay the account by the due date to avoid a default listing. Better to make the payment and be reimbursed for the difference than be paying for 5 years for someone else’s mistake.

    3. Be smart with credit
    Credit should be the key to financial freedom, but often it is the source of a great many problems in people’s lives. Yahoo’s Money and Your Life website has help for managing debt and finances. This article has some great tips for keeping credit under control and making it work for you http://au.pfinance.yahoo.com/moneyand yourlife/managing-debt/article/-/8044026/expert-tips-for-cutting-credit-card-debt/.

    4. Be aware of excessive credit enquiries.
    You should only apply for credit if you feel you have a very good chance of being approved. Declined credit applications on your credit file can hinder your chances of obtaining a home loan. Likewise, you should only apply for credit you have full intention of pursuing. Every application is noted on your credit file, but not whether it was approved. If you go ‘credit shopping’ and apply for credit everywhere – the lender may consider you a bad risk due to those excessive credit enquiries showing up on your credit report.

    5. Educate yourself on ways your credit rating can be damaged
    It may not be simple overdue accounts which leave you with a bad credit file. People who have recently divorced or separated are particularly vulnerable to problems due to joint accounts. Also victims of identity theft can have a number of defaults on their credit file they are unaware of. Often times simple errors can occur which you aren’t aware of until you apply for credit and are flatly refused.

    6. Check your credit file regularly
    It’s important to check your credit file and understand what lenders may be seeing on your credit rating. Usually every 12 months should pick up any discrepancies that may need addressing.

    Under current legislation you can obtain your credit report for free from the major credit reporting agencies Veda Advantage, Dun & Bradstreet, and TASCOL (Tasmanian Collection Services). Your credit report will be sent to you within 10 working days.

    7. Fix credit rating
    If you do find credit rating defaults that you believe have errors, are unjust or you feel just shouldn’t be there – there is a good chance they can be removed. Many creditors will tell individuals that a default can never be removed, but can be marked as paid if it has been paid. This may not be enough to ensure credit is obtained with many lenders.

    You may be better off seeking the services of a reputable credit repair company than attempting to negotiate with creditors on your own to fix your credit rating. The credit repairer will negotiate on your behalf, working with creditors and understanding current legislation and how it applies to your credit file.
    Sometimes if individuals are unskilled in the current legislation they can do more harm than good when it comes to credit rating repairs.

    Visit the MyCRA Credit Repairs website www.mycra.com.au to get more information or help with your credit file or contact us tollfree 1300 667 218.

    Image: digitalart/ Freedigitalphotos.net

  • Australia’s Household Wealth revealed: The rich getting richer…through buying property

    Statistics show a significant increase in home equity as a contributor to household wealth. A clear credit file has never been more important.

    The Australian Bureau of Statistics released some interesting statistics yesterday on the components of wealth in Australian households. The major contributor for rising wealth in 2010 is shown to be home equity. With more wealthy Australians owning investment property than ever before, it means they are richer than ever before.

    Statistics show a 14% increase in household wealth from 2006.

    “LEVELS OF HOUSEHOLD WEALTH

    In 2009-10, on average, households in Australia held assets valued at $839,000, partially offset by average household liabilities of $120,000. After adjusting for changes in the CPI, the average household net worth of $720,000 in 2009-10 was 14% higher than in 2005-06, and 30% higher than in 2003-04.

    Net equity in home ownership in 2009-10 averaged $297,000 across all households in Australia, and accounted for 41% of total household wealth. Superannuation was the next largest component of household wealth, averaging $116,000, followed by property other than the family home ($100,000).

    HOME OWNERSHIP

    The increased value of households’ equity in their own homes accounted for nearly a third of the 30% real increase in average household wealth between 2003-04 and 2009-10. The contribution that rising home equity values made to wealth increases in that six year period were similar for homeowners living in capital cities and homeowners living outside the capital cities, with the net equity in their homes increasing, on average in real terms, by $78,000 and $75,000 respectively.

    Most Australians aspire to own their home, and home ownership rates are relatively high. In 2009-10, one third (33%) of Australian households owned their home without a mortgage, and 36% owned their home with a mortgage. For these home owners, the average value in 2009-10 was $531,000, up 15% on the CPI adjusted average in 2005-06, and up 26% on the value in 2003-04,” the ABS statistics show.

    And it seems the richest were able to accumulate even more of the lion’s share over the past 4 years:

    “DISTRIBUTION OF HOUSEHOLD WEALTH

    Between 2003-04 and 2009-10, the share of total household net worth owned by the poorest 20% of households remained at around 1%. In contrast, the share owned by the wealthiest 20% of households increased from 59% in 2003-04 to 62% in 2009-10.

    For high and middle wealth households, the primary residence was a very valuable and widely held asset. The average value of the family home for high wealth households was $813,000 (a third of their assets). With only $60,000 owing on these homes on average, equity in the family home accounted for 34% of the net worth of high wealth households, 95% of which owned their family home. For middle wealth households, slightly fewer (91%) owned the family home, but it was a more significant component of their wealth. With an average home value of $340,000 (61% of their assets) and $91,000 owing on average, home ownership accounted for 58% of the net worth of middle wealth households.

    After the family home, other property was the next largest contributor (19%) to the net worth of the wealthiest 20% of households. With their net holdings averaging $420,000, these households accounted for 84% of all household wealth held in such assets.

    Superannuation was the third largest component (17%) of the asset portfolio of the richest 20% of households. At $370,000 on average in superannuation, these households held 64% of all superannuation assets.

    Wealth in business assets was highly concentrated in high wealth households. In 2009-10, 93% of the net value of incorporated and unincorporated businesses were held by the richest 20% of households, with $289,000 on average held by these households and accounting for 13% of their wealth.

    In low wealth households, the contents of the dwelling accounted for the largest proportion (34%) of their assets, and for more than half of their net wealth. Vehicles accounted for 15% of all assets in low wealth households, but only 3% of middle wealth and 2% of the assets of high wealth households.”

    What these statistics seem to clarify for us, is the massive difference owning property can make to a person’s future accumulation of household wealth. Simply by the act of buying property, people can benefit from rising equity, and increase their overall household wealth by as statistics show on average 30%.

    So if people are not able to borrow for their own home they are missing the chances of receiving this benefit, and at the same time increasing their overall household liabilities through the payment of rent.

    Approximately 3 million Australians* are blacklisted from getting a home loan due to a bad credit rating, despite some of these people being financially able to repay a mortgage.

    We are not advocating those people who are unable to repay debt effectively go into even more debt, but there are thousands upon thousands of Australians who are banned from home ownership, or forced to pay huge interest rates on their home due to negative credit file listings that just shouldn’t be there.

    It is not always cut and dried when it comes to credit file entries. Creditors continually make mistakes with credit files, and ultimately the potential home owner pays the ultimate price for that through credit refusal from the major banks.

    According to a survey by Choice Magazine in 2004, as much as 30% of the credit files in Australia may contain errors. Adverse listings hinder a person’s credit file for 5-7 years, depending on the type of listing, so accuracy is vital.

    With more than 14 million credit files in Australia (14 million files are held by credit reporting agency, Veda Advantage alone) – transferring those figures from the Choice study could mean possibly as many as 4 million errors currently exist on credit files in Australia.

    Recently Today Tonight interviewed Veda Advantage’s Head of External Relations, Chris Gration on the possible number of errors on 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 in our view, even if as little as 1 per cent of those 14 million credit files contained errors, that would still currently leave 140,000 credit files in Australia containing errors that just shouldn’t be there.

    Many people are often not aware across the board of their responsibility to check the accuracy of their own credit file, so many errors go undetected. Often it is not until people apply for credit that they learn they have an adverse listing on their credit file, but by then it is too late – they are generally refused a home loan.

    To get the black marks removed can be a battle. When disputing any adverse listing, it is up to the credit file holder to provide reason as to why the creditor has not complied with legislation. Unfortunately negotiating with creditors is not always easy for the individual to undertake, hence the need has arisen for credit repairers, to close that gap and enforce the legislation which creditors are bound to comply with.

    If people are eager to own their own home, have the wages and the savings, but are held back by credit file defaults, it would definitely be worth seeking advice from a credit repairer. In many cases, repairing the inconsistencies on a person’s credit file could lead to the removal of all negative listings, and the chance to apply for a home loan with a clean slate.

     

    Image: ddpavumba / FreeDigitalPhotos.net

    * 3.47 million negative listings in Australia, Veda Advantage November 2008

  • First home buyers missing key step to finance approval

    Media Release

    23 November 2011

    First home buyers are dipping their feet into the market again – a drop in interest rates and reduced property prices renewing buyer confidence for the first time in two years, but many are missing one vital check to ensure they are finance-ready, the credit check.

    The Australian Bureau of Statistic’s housing finance figures for September show the number of first home buyers, as a percentage of total owner occupied housing commitments increased to 16.4 per cent compared to 15.4 per cent in August.

    The Real Estate Institute of Australia says although the first home buyer proportion is well below the long-run average of 20.1 per cent, it indicates a modest return of first home buyers to the market.

    “The latest figures show that buyers are gradually returning to the market and we should expect modest increases to continue after the decision on interest rates in November which has made housing more affordable for first home buyers,” concluded REIA Acting President, Pamela Bennett.

    First home buyers wishing to take advantage of more affordable conditions need to know there is more to applying for finance than wages and savings records.

    Director of MyCRA Credit Repairs, Graham Doessel says a borrower’s credit file is one of the key factors to home loan approval, and anyone applying for a home loan should obtain a credit report prior to making a finance application, regardless of whether they think they have a good credit rating or not.

    “There are a great number of credit files which contain errors or which shouldn’t be there, and first home buyers need to know any negative listing will stop them from getting a home loan in this market, or force them into a high-interest loan, potentially costing them a staggering $22,000  more in interest over the first 3 years,” he says.*

    The term of a negative listing is between 5 and 7 years, depending on the type and can include black marks from telecommunications and electricity providers as well as banks and finance companies.

    The most common type of listing is a default, which is recorded if an account is in arrears past 60 days. According to Mr Doessel, defaults from telecommunications providers which are listed in error make up a big part of his clientele.

    “As many as 50 per cent of our clients seek credit repair due to bill disputes and internal errors from Telcos that have seen them black listed from credit and unable to get a home loan,” he says.

    He says it doesn’t need to be a big default to be a big detriment to a person’s loan application.

    “Some defaults for unpaid accounts of $300 can stop borrowers from getting a home loan. Lenders are even rejecting loans for too many credit enquiries, such as two enquiries within thirty days or six within the year,” he says.

    House hunters can obtain a copy of their credit file for free every year from one or more of the credit reporting agencies in Australia, and this file will provide details on any negative listings such as defaults, writs and Judgments which may have been placed against their name by creditors.

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

    “Unfortunately many people find this process difficult – negotiating with creditors is not always easy for the individual to undertake.  Our job as credit repairers is to check the process of listing defaults for legislative and or compliance errors, any such errors could deem the credit file default listing unlawful, at which time we advise the creditor to remove the default,” he says.

    /ENDS.

    Please contact:

    Lisa Brewster – media@mycra.com.au

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

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

    Links:

    http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5609.0Main20Features2Sep%202011 opendocument&tabname=Summary&prodno=5609.0&issue=Sep%202011&num=&view=

    http://www.reia.com.au/userfiles/MEDIARELEASE_1320968493.pdf

    * $22,867.15. Based on average loan of $400,000 over 30 years on non-conforming
    loan interest rate of 95.% vs standard variable rate of 7 %.(http://www.mycra.com.au/calculators/do-i-need-credit-repair.php)

    Image: photostock/ FreeDigitalPhotos.net

  • The Christmas credit risks you need to know about

    5 Reasons why the Christmas season is the time you are most at risk of damaging your credit rating

    As credit repairers, our busiest period is in the first few months after Christmas. Clients come to us desperate for help to remove the negative listings from their credit files that are causing them to be refused home loans, car loans, personal loans and even mobile phone plans. At this time it is heads down and tails up for our team as we plough through the many cases we receive.

    Before this time, we thought we’d review why the post-Christmas credit crunch may occur, and hopefully help some of you stay out of trouble.

    Here are 5 Christmas hazards you should be aware of:

    1. Identity theft.

    With identity theft growing in severity and volume to now be the fastest growing crime in Australia, the perfect time for fraud could be the Christmas period. Scammers are out in full force and people can be lax with their personal information – never an ideal combination. Many news outlets report of fraudsters ramping up tactics – accessing people’s bank accounts and using personal information to steal identities and ruin good credit ratings.

    The Government website SCAMwatch has released the 12 scams of Christmas – a report on what consumers should watch out for. A few of the prominent scams for 2011 include:

    Holiday scams. Consumers are warned to look out for fake accommodation vouchers, scam travel clubs and scammers asking you to pay upfront deposits for properties which aren’t actually available for rent.
    Flight scams. Scammers set up fake websites which look genuine and make you believe you are purchasing an authentic flight ticket. When you arrive at the airport you may find your booking was a fake.
    Charity scams. At Christmas many legitimate charities appeal for donations of money, food, clothing and children’s gifts. Unfortunately scammers also try to get your money by camouflaging themselves as genuine charities.
    Online shopping. Beware, scammers post fake classified ads, auction listings, and run bogus websites. If you get caught by a scammer you will not only lose your money but will also never receive the item you were trying to purchase!

    If fraudsters are able to access your personal details in full to commit identity theft – they have basically the key to your good credit rating. They can run up credit all over town in your name. Often it’s not until you go to apply for credit in your own right and are refused that you realise your credit file has been misused.  With adverse listings difficult for the individual to remove, and with defaults remaining on your credit file for 5 years your life is basically set to be turned upside down without the help of a credit repairer.

    2. Overlooking bill payments.

    There is no doubt the lead up to Christmas is busy. Work is incredibly fast-paced, kids have prizegivings, graduations, Christmas parties and holidays, the Christmas shopping needs to get finished, Christmas food needs to be bought, and holidays need to be booked and planned. The fallout from all of this stress can be the little $180 phone bill that gets shoved in a drawer to think about at a later date, or you can even forget to transfer money for the mortgage payment.

    Then you go away for a few weeks in January to unwind trying to put Christmas, work, and stress behind you while you dip your toes in the water and sip your margarita.

    When you get back, there may be a notice in the mail saying the phone company or the bank has listed your account as unpaid and put a default listing on your credit file. Or it may not be until you apply for credit again that you find out about the bill – but by then it is much too late.

    60 days is all it takes to have an unpaid account listed as a default on your credit file.

    Before you get into the Christmas rush, nominate a place for all of your bills and make a point of actioning them all as soon as you can. Don’t let the New Year go by without clearing your debts – especially if you are going on holiday for a significant period.

    3. Moving and transfers.

    Moving house is a very common reason people have bills and even default notices go undetected which can lead to a bad credit rating. As Christmas and New Year is a very common time for transfers and other work changes to occur that could see you moving interstate it is very important to tie up all loose ends in your current address.

    At least two weeks prior to your move, notify all creditors of your change of address and when that will occur and get confirmation of the receipt of your new address in writing or via email from them. When cancelling utility and phone accounts, give those creditors the date of your move and request to settle the account on that date. Ask for confirmation that the account has been settled sent to you via email or to your new address. Make a diary note to chase this up if it has not been sent within a week of your move.

    The number one rule for moving is get all changes confirmed in writing. Otherwise accounts may not be completely settled, and the creditors may not have your new address to send you any outstanding debts, resulting in a bad credit rating which you would only find out about when you are going for credit in a separate instance.

    4. Over committing and spiralling into debt.

    It may be a simple rule, but one which can be difficult to apply when you get caught up in the “Christmas spirit” – don’t spend what you can’t afford.

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

    Savings guide Australia offers some tips this season on ways to have a great Christmas without blowing the budget. Our best advice is actually to have a budget and stick to it. Reducing spending on each person by even 20% will make a massive difference at the end of your shopping. You should also write a shopping list and stick to it, minimising the likelihood of impulse buying.

    Remember it’s the thought that counts!

    5. Overlooking errors and omissions from Creditors.

    This is the silly season – and everyone is busy and preoccupied. The volume of transactions may increase while staff decrease, putting stress on Creditors’ systems. For this reason it is crucial to keep an eye on your own finances.

    Check your bank statements (it could even help with Christmas budgeting), check your bills as they come in and make sure everything is as it should be. Know which bills are due and when. If you don’t receive a bill for whatever reason, chase it up. The Creditor will more than likely still have a record of the bill – it may have been lost in the mail or sent to the wrong person. But in the end you are the one who will pay for their oversight.

    This is also a good time to request a free copy of your credit file from one or more of the credit reporting agencies if you haven’t already this year. You will receive a copy of your credit report within 10 working days. You should check that all of your details are correct. Check there are no adverse listings on your credit file which could prevent you from accessing credit in the future. If there are negative listings – defaults, writs or Judgments which you believe contain errors, are unfair or just shouldn’t be there, you have the right to have these entries rectified.

    Make your life easier and ensure you get the best chance of getting the listing/s removed by instilling the help of a credit repairer. Visit MyCRA Credit Repairs for more information on how credit repair works, or call tollfree on 1300 667 218.

    Image: Stuart Miles/ FreeDigitalPhotos.net

    1. Image: Chris Sharp / FreeDigitalPhotos.net 3. Image: Digitalart / FreeDigitalPhotos.net 4. Image: worradmu / FreeDigitalPhotos.net 5. Image: nuttakit / FreeDigitalPhotos.net

  • Bill to fight global cybercrime coming in New Year

    The war on global cybercrime and identity theft continues…

    The Government’s Cybercrime Legislation Amendment Bill 2011 is set to be passed through the Senate in the New Year, according to reports from The Australian Newspaper ‘Australia to join global anti-cybercrime fight’ today.

    Attorney-General Robert McClelland told a Council of Europe meeting yesterday in France that the Government’s Cybercrime Bill will have the “endorsement of Parliament in the new year,”

    “For our part, there is no doubt that once Australia has taken the necessary steps to provide for accession to the Convention on Cybercrime, we will be better placed to take on the challenge globally,” he said in a keynote address.

    “Our domestic laws will criminalise more nefarious cyber activity and give our crime fighters the right modern tools.

    “Information required to prosecute cyber criminals will be protected from destruction whilst law enforcement agencies seek warrants for its access,” he says.

    Back in June we blogged about this Bill, ‘Government brings in new laws in war against cyber-crime and identity theft’ following the Government’s signing of the cybercrime treaty in May, and as it made swift changes to some of Australia’s laws to allow the Bill to be passed and implemented with ease. The changes were seen as a necessary response to the growing threat of cybercrime and the global nature of the crime.

    Australia will be joining the Council of Europe Convention on Cybercrime, of which more than 40 nations have already signed or become a party to the Convention, including the USA, UK, Canada, Japan and South Africa.

    The Convention allows countries to co-operate in investigations to deal with international crimes committed on computer networks, such as online fraud.

    The Bill will also give Australian police greater powers to force internet service providers to retain data of customers who are suspected to have committed a cybercrime while the matter is being investigated.

    The convention has been criticised by some such as Kapersky Lab’s CEO Eugene Kapersky, who says if non-European, non-English speaking countries will not “join the club” there will be failure.

    “Do you think it’s real that if a government computer in Russia is infected, that they will let the US in? Or that the White House will let Russia in? And then China or Latin America? Forget about it,” Kaspersky told SC Magazine.
    “It hasn’t worked in 10 years.”

    Instead, Mr Kaspersky advocates the need for an “internet Interpol” to manage international crime investigations and liaise with national police forces.

    Currently there appears to be great difficulty in investigating and prosecuting international cybercrime rings –especially in respect to online fraud cases. Much of the internet-generated identity theft is not initiated on Australian shores. The worldwide web provides easy international access, meaning elaborate schemes intended to commit identity fraud can be generated from any country and impact ordinary Australians.

    In fact, current advice about overseas scams on the government’s SCAMWatch website is almost a disclaimer for failure to prosecute perpetrators of overseas scams:

    “due to the ‘fly by night’ nature of many scammers, it is extremely difficult to track them down and take action against them. Though it depends on the circumstances of each case, the ACCC may not be able to take action or enforce Australian Court orders against the many scammers that are based outside of Australia.” the SCAMWatch website explains.

    Anything which increases the likelihood of accountability for identity theft and fraud as it relates to the global market should be seen as a positive step, as would the implementation of some of Kapersky’s ideas.

    One thing which is certain is we can never rest on our laurels. Constant monitoring and improvement needs to continue and be pushed for to keep up with the vast array of changes technology and the crime that ultimately follows it.

    For more information on identity theft related to credit files, contact MyCRA Credit Repairs tollfree on 1300 776 218 or visit the main website www.mycra.com.au.

    Image: digitalart/ FreeDigitalPhotos.net

  • The identity theft victim’s guide to recovery

    Have you been locked out of your Facebook account? Fallen for a request to give over personal details to a fraudster? Or had that horrible sinking feeling when you realise someone has been taking money out of your bank accounts? Or perhaps as was recently the case in W.A., you may have had a property sold from underneath you while overseas?

    These are all forms of identity theft in varying degrees. Someone steals your personal information in order to set up a fake identity for the purposes of using your good name, your financial identity, and possibly your credit rating for their own purposes.

    You are not alone, and you should not be too embarrassed to take action against this crime, however sheepish you may feel. It is an ever-growing problem – the fastest growing crime in Australia. A recent survey commissioned by the Attorney-General’s office shows 1 in 6 people in this country currently have been victims of identity theft, or know someone who has had their identity misused.

    Some instances of identity theft are relatively easy to recover from, others are a major source of heartache and disruption to people’s lives.

    The Attorney-General has produced an Identity Theft booklet which includes the steps you need to take as soon as you discover you may be an identity theft victim:

    •Immediately inform the police. All incidents of identity theft should be reported to your local police even if only small sums are involved. Ask for a copy of the police report—most banks or other financial institutions will ask you for a copy.

    •Close all unauthorised accounts. Contact the credit providers and businesses with whom any unauthorised accounts have been opened in your name. Remember this includes phone and other utility providers, department stores and financial institutions. Inform them that you have been a victim of identity theft and ask them to close the fraudulent accounts.

    •Alert your bank or financial institution. Contact your bank or financial institution immediately and cancel all cards and accounts that may have been breached. Ask for new cards and accounts with new Personal  Numbers (PINs).

    •Get a copy of your credit report. Inform the credit reporting agencies that you are a victim of identity theft. Ask that an alert be placed on your file that advises this. This should stop additional fraudulent accounts being opened in your name.

    •Review your credit report carefully. Ensure you can authenticate all ‘inquiries’ made into your credit history. Contact all companies and organisations that have made inquiries under your name that you did not authorise.

    •Keep all documentation. Take notes that include dates, names, contact details and what was said during your contact with those agencies. Follow up all conversations and requests in writing, and send these by certified mail if you need to post them. Keep copies of all forms and correspondence.

    •Report loss or theft of documents to the relevant government or private sector agencies. Contact the relevant government and private sector agencies if you have lost specific documents or items, or had them stolen.

    •Contact the Office of the Privacy Commissioner if you feel your privacy has been breached. If you feel that your privacy has been breached because of identity theft, or an agency or organisation is being difficult about rectifying privacy matters, then you can contact the Office of the Privacy Commissioner. Their Enquiries Line is available to help you work out if a privacy breach may have occurred. However, it is important that if you intend to lodge a complaint, that you first try and resolve matters with the agency or organisation concerned.

    Government-assisted Recovery

    Recovery from identity theft can be assisted in some instances if you are eligible to apply for a Victims of Commonwealth Identity Crime Certificate. Generally Police will advise you if the crime against you falls under this jurisdiction. It can improve the chances of recover greatly by having this certificate to provide to Government agencies, and financial institutions in which a Commonwealth indictable offence was committed against you.

    The Attorney General’s website says a Commonwealth identity crime occurs where a person makes, supplies or uses identification information (yours, or a third party’s). They do this intending that either they or someone else will pretend to be you or another person (who is living, dead, real or fictitious), and the act of pretending would be done to commit or help commit a Commonwealth indictable offence.

    But the instances in which an actual Commonwealth indictable offence is committed may be less common.

    Examples of victims of Commonwealth identity crime are:

    ■your birth certificate was used by someone else to falsely claim a payment from Centrelink in your name
    ■a person pretended to be you by using your identification details to have your Medicare rebates redirected to their bank account
    ■a person used your credit card without your permission to purchase and import illegal substances
    ■a person established a false business in your name to fraudulently claim GST, and
    ■a person used your passport or citizenship details to pass themselves off as you and travel overseas.

    The common identity theft victim who has had their personal details stolen and fraudsters have taken out credit cards in their name, it seems would not be eligible for the Commonwealth Victims of Crime certificate.

    For other very common type of identity theft through scams that were initiated outside Australia where victims have provided personal details and money – the Government’s SCAMwatch website warns victims recovery and restitution may also be difficult for victims:

    “due to the ‘fly by night’ nature of many scammers, it is extremely difficult to track them down and take action against them. Though it depends on the circumstances of each case, the ACCC may not be able to take action or enforce Australian Court orders against the many scammers that are based outside of
    Australia.” the SCAMWatch website explains.

    Identity theft and credit ratings

    If your bank accounts have been skimmed, the bank may have insurance to cover your loss due to this fraud. But if your credit rating has been damaged, and there are defaults, writs and Judgments on your credit file that should not be there, recovery can be a complicated matter. Basically your credit reports show you as owing debts and you are considered unsuitable to lend money to.

    Some identity theft victims find they hit a wall when attempting to recover their credit rating as the laws which govern credit reporting and the listing of negative data on people’s credit files are difficult for them to navigate. Victims say it is up to them to prove the case of identity theft, to prove to creditors they did not initiate the credit and some say this is confusing and frustrating for them.

    Instilling the services of a credit repairer may be helpful to your case, as the credit rating recovery can be enhanced by having a person better skilled at dealing with creditors and with complete knowledge of relevant laws and regulations which would apply to your circumstances.

    The way lending works in Australia, one default makes it just as difficult to get credit as does 3. So even if people can strike a helpful creditor in one or two instances, they may be unsuccessful in removing all negative listings by themselves. Each default remains on a person’s credit file for 5 years, so if you want the best chance of getting a home loan, a car loan or even credit cards and mobile phones over the next 5 years, it could be best to leave it to the professionals.

    For more help with clearing a credit rating following identity theft, contact MyCRA Credit Repairs Tollfree 1300 667 218 or visit our main website www.mycra.com.au.

    Image: graur razvan ionut/FreeDigitalPhotos.net

  • Top 25 worst internet passwords 2011 – is yours on the list?

    Here is the list you need to read – the top 25 worst internet passwords for 2011. That’s the 25 most frequently used passwords which are most commonly successful in gaining entry into other people’s internet accounts.

    If you would like to prevent identity theft and credit file misuse, scan this list, and if your password is on it, please invent a stronger one.

    ‘Splashdata’, a Californian company which sells security services and password software has created these rankings based on millions of stolen passwords posted online by hackers.

    1. password
    2. 123456
    3.12345678
    4. qwerty
    5. abc123
    6. monkey
    7. 1234567
    8. letmein
    9. trustno1
    10. dragon
    11. baseball
    12. 111111
    13. iloveyou
    14. master
    15. sunshine
    16. ashley
    17. bailey
    18. passw0rd
    19. shadow
    20. 123123
    21. 654321
    22. superman
    23. qazwsx
    24. michael
    25. football

    The Brisbane Times reported today SplashData CEO Morgan Slain urges businesses and consumers using any password on the list to change them immediately.

    “Hackers can easily break into many accounts just by repeatedly trying common passwords,” Slain says. “Even though people are encouraged to select secure, strong passwords, many people continue to choose weak, easy-to-guess ones, placing themselves at risk from fraud and identity theft,” he says.

    There are a number of ways hacking internet passwords can be lucrative for identity thieves beyond simply gaining access to bank accounts:

    1. Scammers who hack in to your Facebook or Twitter accounts can send messages to your friends pretending to be you, and ask for money from them. Recently a Gold Coast woman had her Facebook and Hotmail accounts hacked, and her friends were continually asked for money in her name. She is still attempting to recover her accounts.

    2. Fraudsters can also be after personal information from your online accounts, with the view to setting up fake identities. The personal information posted in Facebook could be enough to request replacement copies of identification, and then take out credit in your name, which can easily lead to a damaged credit rating, often without your knowledge.

    3. Passwords for one account may be the same passwords used for other accounts and services. What would happen if the fraudster could gain access to your ebay account or your gmail?

    4. Gaining access to a person’s personal hotmal or gmail account could certainly give the hackers enough information over time to commit identity fraud or at the very least a chance to send fake emails to contacts in your address book.

    5. Weak staff passwords can put businesses at risk of fraud and also credit file misuse.

    The Government’s Stay Smart Online website says attacks using stolen passwords occur more than people realise.

    “A password on your computer is like a lock on your front door—it prevents strangers walking into your house and stealing your possessions,” the website says.

    Stay Smart Online’s Top tips for passwords:

    • Set strong passwords, particularly for important online accounts and change them regularly—consider making a diary entry to remind yourself.
    • Never share your password with anyone. A password is meant to be a secret known only to you.
    • Memorise your password if you can. To make a password easy to remember, think of a phrase and then change some of the characters to make it a strong password. If you need to write it down in order to remember it, hide it somewhere safe.
    • Use different passwords for different accounts—otherwise if one is compromised it may give an attacker access to your other online accounts. For example, use a password for online banking that is different to the ones you would use for email or social networking.
    • Don’t save passwords for important accounts in your web browser—otherwise anyone using your computer could access these accounts.
    • Be careful using your password on a public internet terminal (such as an airport or internet cafe).
    • Never send your password via email or store your passwords in plain text on your computer.

    If you suspect your password has been stolen, you may be extremely vulnerable to identity theft. You should contact Police immediately, even if nothing appears to have been tampered with yet. You should also get a copy of your credit file and check for any suspicious new enquiries or changes in contact details. If there seems to be any discrepancies notify creditors straight away to prevent fraudsters ruining your credit rating. If there are defaults or other negative listings on your account that you didn’t initiate, you would find it helpful to use a credit repairer to help recover your good name. Contact MyCRA Credit Repairs tollfree on 1300 667 218 or visit our main website www.mycra.com.au.

    Image: Salvatore Vuono/ FreeDigitalPhotos.net

  • Can official Australian documents be forged to commit identity fraud?

    It is estimated identity theft costs Australia $1 billion per year.* When identity theft damages the victim’s credit rating – it is because the fraudster has been able to overtake credit accounts, or has gained access to enough personally identifiable information from 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 from the victim without them realising it straight away.

    If credit accounts are not repaid – after 60 days the credit file holder is issued with written notification of non-payment and the intention for the creditor to list a default on the person’s 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.

    Over the past year there have been reports in Western Australia of an elaborate property scam, in which overseas-based owners had their homes sold from under them by identity thieves. One property had been sold and settled months before the owner had any knowledge.

    “It is clear it was a sophisticated outfit that scammed the owner, the real estate agent, the settlement agent, the banks, and more importantly and critically, the Department of Land Administration (DOLA),” Real Estate Institute of Western Australia (REIWA) spokesperson Brian Greig told ZD Net when the story broke in September 2010.

    For identity theft victims who have had their credit rating affected, loss of money is just the beginning of their trouble. They lose the ability to borrow money. Dreams can be put on hold. Families and businesses can be put under immense stress. They can’t even get a mobile phone plan – and they are looking at a 5 year term for a default.

    Recovery is difficult. It is up to the identity theft victim to prove to creditors they did not initiate the credit in the first place. The victim is required to produce Police reports, bank statements and other documentation to prove their case. Their whole life is turned upside down in a desperate attempt to recover their good name. They often need professional help from a credit rating repairer as well as Police and Courts.

    The production and verification of key identification documents in Australia plays a crucial role in ensuring better security for individuals against this type of identity crime.

    Clearly the Government agrees there is a great need for a strong, unified identification system, but have they been effective in making this happen?

    In 2005 the Attorney-General’s department began plans to launch a Documentation Verification Service (DVS) as part of its National Identification Security Strategy (NISS). The DVS is intended to provide an electronic validation platform that allows authorised government agencies to cross-check identity documents to identify their clients and prevent identity theft or fraud.

    “It helps protect people’s identity and their privacy by allowing documents commonly used as evidence of identity to be checked electronically, quickly and directly by the document’s issuing authority,” Attorney-General Robert McClelland said recently in a media release.

    “Through the DVS it is possible to verify the validity of Australian-issued passports, visas, as well as birth, marriage and change-of-name certificates and driver licenses from States and Territories.”

    But the road to implementation of this system has been neither cheap (costing $25 million by 2010), or easy, with many reports of agencies failing to implement the system.

    Technology and security publication, CSO criticised the slow take-up of the service in its article ‘Australia crawls towards its answer to identity fraud’.

    The story features the Australian National Audit Office’s report on the program’s implementation. The Report slammed the program’s sluggish roll out last April, noting that the “rarely used” system was unlikely to strengthen Australia’s personal identification process in the near future.

    It says the main problem was that many of the identity issuer and user agencies, such as Centrelink, the Department of Immigration, and state road authorities and birth and death registries, were not connected to DVS. Verification using the system also took longer than 20 seconds in a quarter of transactions, eroding its promised efficiency gains and convenience.

    This week the Attorney-General’s department announced 200,000 documents had been verified using the system. It says with the full commitment of state and territory governments now in place the value of the system is being demonstrated, with a number of Commonwealth and state agencies using it for processes that require identity verification.

    It is not clear on the volume of agencies who have committed to adopting the DVS as part of their client registration process. The AG says there are a “wide range” of agencies, which include revenue, superannuation, electoral, land title and service delivery agencies.

    Australians are facing an ever increasing number of threats against their identity. According to an identity theft survey commissioned by the Attorney-General himself, 1 in 6 people in Australia have been or know someone who has had their identity misused in some way in the past 6 months.

    With this knowledge, it would seem all agencies should be implored to take up this service or perhaps we should look again at why some agencies are failing to use it. Surely a streamlined approach to document verification is essential protection for Australians.

    One thing is certain, if identity theft really is the emerging crime with the magnitude and scope that is reported, people need to know the fundamentals that make up their identity – their passports, their licences and their birth certificates are bullet-proof from attack.

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

    Contact MyCRA Credit Repairs for further help with identity theft, or to repair a credit rating on 1300 667 218.

    Image: Photostock/ FreeDigitalPhotos.net

  • September Lending Finance Statistics, ABS

     

    The Australian Bureau of Statistics released its September Lending Finance figures today – showing a continued small percentage rise in finance numbers.

     

    SEPTEMBER KEY POINTS

     

    SEPTEMBER 2011 COMPARED WITH AUGUST 2011:

    HOUSING FINANCE FOR OWNER OCCUPATION

     The total value of owner occupied housing commitments excluding alterations and additions rose 0.8% in trend terms and the seasonally adjusted series rose 0.7%.

    PERSONAL FINANCE

     The trend series for the value of total personal finance commitments rose 0.2%. Fixed lending commitments rose 0.6%, while revolving credit commitments fell 0.3%.
     The seasonally adjusted series for the value of total personal finance commitments fell 2.5%. Revolving credit commitments fell 7.3%, while fixed lending commitments rose 1.7%.

    COMMERCIAL FINANCE

     The trend series for the value of total commercial finance commitments rose 0.3%. Revolving credit commitments rose 0.6% and fixed lending commitments rose 0.1%.
     The seasonally adjusted series for the value of total commercial finance commitments fell 10.0% in September 2011, after a 7.7% rise in August 2011. Revolving credit commitments fell 15.3%, after a 6.2% rise in the previous month. Fixed lending commitments fell 7.3%, after an 8.5% rise in the previous month.

    LEASE FINANCE

     The trend series for the value of total lease finance commitments rose 0.6% and the seasonally adjusted series rose 1.3%.

     
    FIRST HOME BUYERS RE-ENTER MARKET

    The Real Institute of Australian announced last week that housing first home buyers are dipping their feet into the market again – a drop in interest rates and reduced property prices renewing buyer confidence for the first time in two years.

    REIA housing figures for September show the number of first home buyers, as a percentage of total owner occupied housing commitments increased to 16.4 per cent compared to 15.4 per cent in August.

    The REIA says although this proportion is well below the long-run average of 20.1 per cent, it indicates a modest return of first home buyers to the market.

    “The latest figures show that buyers are gradually returning to the market and we should expect modest increases to continue after the decision on interest rates in November which has made housing more affordable for first home buyers,” concluded REIA Acting President, Pamela Bennett.

    First home buyers wishing to take advantage of more affordable conditions need to know there is more to applying for finance than wages and savings records. Many will neglect one vital check which may mean their finance application is rejected.

    Anyone applying for a home loan should obtain a credit report prior to making a finance application, regardless of whether they think they have a good credit rating or not.

    The last survey on errors within credit files was conducted by the Australian Consumer Association (now Choice magazine) in 2004. The study found that 34% of the credit files of those surveyed potentially contained errors of some kind.

    “In our view, there are serious, systemic flaws which are leaving an increasing number of Australian consumers vulnerable to defamation, mis-matching and harassment,” the report said.
    The possible volume of errors on credit files means every buyer should make obtaining a credit report one of the first steps to securing a home loan.

    Buyers can obtain a credit report for free every year, but most don’t know it.

    They are also seldom aware that if they find defaults, writs or Judgments which they believe have errors, are unjust or are completely innacurate, they have the right to have them removed. This is possible in a number of ways, but for most people who are time poor or not familiar with credit reporting legislation, they can contact a credit rating repairer to do the job for them.

    To request a credit file check or have existing errors repaired, contact MyCRA Credit Repairs on 1300 667 218 or visit our website www.mycra.com.au for more information.

    Image: Idea go/FreeDigitalPhotos.net

     

  • Interest rate cuts no help for millions of Aussies living with credit file defaults

    Home loan rates were reduced on 1st November, but for millions of Australians who are living with defaults on their credit file, they will be hit with $22,867.15 (1) more in home loan repayments over the first three years of the loan.

    The Reserve Bank of Australia has cut interest rates for the first time in more than 2½ years, lowering its key cash rate by 25 basis points to 4.5 per cent.

    Many big banks have already passed on the reduction, potentially saving the average householder about $49 per month. We talk about massive savings for the average Australian with these cuts, we talk about encouraging people to switch lenders to increase competitive rates, but this is not a reality for people with credit rating defaults.

    For those approximately 3 million or more* Australians who are living with defaults on their credit file, the interest rates cuts will be negligible. Most banks won’t lend them money, forcing them into non-conforming loans and paying top dollar because their credit file shows they are a bad risk – and it may not be true. *(3.47 million – Source Veda Advantage Nov 2008).

    For the five year term of the default they will be paying a staggering $702.21 (1) more per month if they enter a non-conforming loan at higher than standard interest rates.

    (1) Based on average loan of $400,000 over 30 years on non-conforming loan interest rate of 9.5% vs standard variable rate of 7%.

    And the alarming part of this is that many of the defaults sitting on Australian credit files today simply should not be there.

    There are more than 14 million credit files in Australia (14.7 million files are held by credit reporting agency, Veda Advantage alone), and approximately 3.47 million negative listings, but the number of possible errors which exist is not certain.

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

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

    Transferring those figures from the Choice study to the number of credit files in Australia today, could mean potentially 4 million errors currently exist on credit files in Australia.

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

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

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

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

    But consumers are often not aware across the board of their responsibility to check the accuracy of their own credit file so many errors go undetected until such time as people apply for credit such as a home loan.

    But by then the matter is urgent, and they are generally forced to take on non-conforming loans at sky-high interest rates to secure the home. Or give up on their dreams of home ownership altogether, at least until the default listing runs its term. (Unless of course they or their broker are familiar with how credit repairers work).

    Many people don’t realise that any person who finds inconsistencies on their credit file has the right to have the discrepancy rectified. As many people find out – that is easier said than done.

    When disputing any adverse listing, it is up to the credit file holder to provide reason as to why the creditor has not complied with legislation. Unfortunately many people find this process difficult – negotiating with creditors is not always easy for the individual to undertake.

    That’s where credit rating repairers come in to close that gap.

    Credit repairers check the process of listing defaults for legislative and or compliance errors, any such errors could deem the credit file default listing unlawful, at which time the creditor is advised by the credit repairer to remove the default. This usually results in a clean credit record allowing people to borrow with the lender of their choice.

    So if people are forced to pay thousands more in interest due to credit rating defaults, which leaves them struggling to get ahead on their mortgage OR if a new loan applicant finds they are surprised with a bad credit report which could see them entering into a high interest loan, it may be worth contacting MyCRA Credit Repairs tollfree on 1300 667 218 to find out whether they may be a suitable candidate for credit repair.

    Image: Salvatore Vuono/ FreeDigitalPhotos.net

    Image: photostock/ FreeDigitalPhotos.net

  • Thousands of Christmas flights won’t be honoured

    Media Release
    4th November 2011

    Australian travellers may be left stranded at the airport holding bogus airline tickets at Christmas time after suffering at the hands of scammers.

    A government agency has warned Australians about cheap flight deals through fake travel websites which have travellers believing they have purchased legitimate airline tickets, but all they have done is been skimmed of their money and left vulnerable to identity theft.

    With a current warning issued by the Australian Competition and Consumer Commission’s SCAMwatch website (www.scamwatch.gov.au ) for flight booking scams, a national credit repairer, MyCRA’s, Graham Doessel says people could find it is more than just Christmas that is ruined.

    “It’s all bad for these poor scam victims. At best they can be left with no holiday – but at worst fraudsters can take their personal details and use them to construct a fake identity which would allow them to borrow in their name – the ramifications of that can last for years,” Mr Doessel says.

    SCAMwatch says it has received a number of reports of fraudulent traders who have copied the ABN and look of legitimate travel websites.

    “Some victims have lost in excess of $1000 for fake international flight bookings, while others report instances of identity theft after interactions with the fake trader,” the SCAMwatch website warns.

    Currently the Australian Crime Commission sites identity theft as the fastest growing crime in Australia, and a recent study presented by the Attorney-General’s office revealed 1 in 6 people have had their identity stolen or misused in some way.

    Identity theft occurs when criminals use a person’s personal details, usually to obtain credit in their name. The benefits can be lucrative, gaining access to large amounts of credit – enough even to mortgage a property in the victim’s name. It is often not until the victim goes to apply for credit in their own right and are refused because of credit rating defaults they didn’t initiate, that they realise they have had their credit file misused.

    “Unfortunately identity theft can turn the victim’s life upside down. Adverse listings can be difficult to have removed, simply because it is up to the victim to prove to creditors they didn’t initiate the credit,” Mr Doessel says.

    MyCRA advises people to take these precautions when booking travel:

    – Be wary of any offer that comes via an unsolicited email.

    – For legitimate-looking websites, check the URL is correct for that company. If it looks suspicious – it may be a fake. Do the research on the airline or travel agency’s own website or contact the company directly to verify details in the offer.

    – Never make the purchase through a link in an email.

    – Take five minutes extra to research the company that is offering the deal to ensure they are genuine.

    – If the flight seems too cheap – it may be a fake.

    – For people who think they may have fallen prey to a scam, they should  contact Police, and if they think their personal details may have been compromised – obtain a copy of their credit file.

    Australians are able to obtain a free copy of their credit report every 12 months from one or more of the credit reporting agencies.

    “If someone suspects fraud, their credit file could show changes, which if detected early, would prevent their good name from being ruined. If there are any unusual credit enquiries, or some attempt to alter personal contact details this should be a red flag. People should alert creditors to prevent their credit rating from being ruined and protect their ability to obtain credit in the future,” he says.

    For more information on identity theft, people can visit the MyCRA Credit Repairs website www.mycra.com.au.

    /ENDS.

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

    Graham Doessel  – Director  Ph 07 3124 7133

    www.mycra.com.au www.mycra.com.au/blog 246 Stafford Rd, STAFFORD Qld

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

    Image: Free DigitalPhotos.net

  • Bad credit ratings forcing people out on the fringe

    If people need access to money – and quickly – there are a number of options. Whilst many people may not be able to walk in to a bank and withdraw from their savings, they could use their credit card, extend their mortgage or take out a personal loan to cover that unexpected expense. But what about the over 3.47 million Australians (Veda Advantage – 2009) who are living with a negative listing on their credit file – also known as a ‘bad credit rating’?

    When times get tough, many of these people are left with very few choices. Negative listings are recorded on a person’s credit file for between 5 and 7 years, depending on the type of listing. How many people would NOT have surprise expenses during that period? Not many.

    People with adverse listings can be the lepers of the finance world. Particularly those people with a significant number of negative listings on their credit file. No one wants to touch them. No one that is, except for those ‘informal’ finance companies such as pay-day lenders and pawnbrokers.

    Last Friday, the Sydney Morning Herald ran a story titled ‘Finding favour on the fringes’ in which Bina Brown writes of the fine line between meeting a legitimate market demand and preying on desperate people. The SMH reports that 500,000 people a year access $800 million in short-term credit facilities. Pay-day loans are typically considered to be loans taken for less than $500 for two to four weeks.

    The article quotes a report ‘Measuring Financial Exclusion in Australia’ prepared by the Centre for Social Impact (sponsored by NAB). The Centre looked in to the growing demand for this ‘fringe’ credit market, and the rapidly expanding network of companies willing to supply it.

    The report says “Financial exclusion exists where individuals lack access to appropriate and affordable financial services and products – the key services and products are a transaction account, general insurance and a moderate amount of credit.”

    How the fringe credit market works

    “Lender fees vary, but $25 to $30 per $100 advanced would be typical. A loan of $1000 for three months might attract a fee of about $450, or ultimately $111 a week for 13 weeks in scheduled repayments.

    While many consumer groups are against this type of lending since it is often vulnerable people who access the loans, industry proponents argue anyone can find themselves short of cash and short-term credit can make a considerable difference to people’s lives.

    Both sides admit there are rogue players in the industry, such as those who charge an upfront fee of $30 on a $100 loan plus the interest rate which is capped at 48 per cent a year.

    They then set a two-week period to repay the loan (which the broader industry believes to be too short a time period).

    If the loan can’t be repaid after two weeks or the next pay date, they charge another $30 and give them another two weeks and so on. If the client defaults on the loan they charge $75.” SMH reports.

    Reforms to legislation

    Under the Consumer Credit and Corporations Legislation Amendment (Enhancements) Bill 2011 before Federal Parliament the most a person borrowing $100 can be charged is $100, although this would exclude any default fees.

    The proposed reforms have also included a cap on the upfront fee that can be charged on small amount loans (loans for $2000 or less for less than two years) of 10 per cent of the loan amount, plus an interest rate of 2 per cent a month. A parliamentary committee reviewing the legislation is due to report by November 14.

    These reforms would be welcomed, to ensure that those people who don’t have access to standard credit are not digging an even bigger hole for themselves by being forced to pay exorbitant fees and interest charges when they are obviously in desperate need of a break.

    If not fringe credit, then what are the options for those who are financially excluded due to a bad credit rating?

    Well, it depends on what a person’s credit file reads like.  If the person has entered into a debt agreement or bankruptcy – the options are unfortunately limited, access to these types of loans may be necessary. An alternative could also be found in Government assistance.

    In many other cases, there may be no need for people to be disadvantaged in this way by a bad credit rating. Particularly if their credit file shows defaults, writs or Judgments which they believe are inaccurate, unjust or just should not be there.

    Credit repair allows the consumer to have the black mark/s completely removed from their credit rating. This gives them the lending options that they would have had prior to the blemishes on their credit file.

    So, they can borrow at a lower interest rate with the lender of their choice (provided they meet all other criteria of course). This can potentially save them thousands of dollars in interest alone.

    Credit repair is the best solution for those potentially hundreds of thousands of Australians who may be living with a bad credit rating and who are completely capable of repaying a loan. It was bad luck or creditor error that instigated the adverse listing in the first place.

    Many people are victims of simple and sometimes complicated errors with billing procedures from creditors, are victims of identity theft, have had joint lending situations go wrong (such as divorce, guarantors etc) or have had the default listed incorrectly. Despite all of these very fair complaints many consumers have been unable to settle the account themselves with the creditor and unable to remove the offending default, writ or Judgment from their credit file.

    How likely would it be that a credit file would contain errors?

    It is astounding how common credit file errors may be, considering the debilitating effects for the credit file holder once they have a negative listing on their file.

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

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

    Transferring those figures from the Choice study to the number of credit files in Australia today, could mean potentially 4 million errors currently exist on credit files in Australia.

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

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

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

    So rather than allowing their credit file to continue to plague them, navigating the world of ‘bad credit history’ finance, or the ‘fringe credit market’ which can sometimes leave them with more problems than when they started, people should be educated on the possibility that their good name can be restored.

    So if people know anyone, or are in the situation themselves where they do have a bad credit rating which shouldn’t be there – it could be good advice to get them to seek out a reputable credit repairer to review their credit file and help them back to financial freedom.

    Contact MyCRA Credit Repairs tollfree on 1300 667 218 or click here to find out the 6 simple steps to credit repair.

    Image: Nutdanai Apikhomboonwaroot/ FreeDigitalPhotos.net