MyCRA Specialist Credit Repair Lawyers

Tag: MyCRA Credit Repairs

  • Going guarantor: how to keep your credit rating safe

    It is natural for family and close friends to want to help each other when they need it. For guarantors – they are often near to retirement, with perhaps only a small mortgage on their home. They have no other debts and a good credit rating.
    This gives them the ability to help out often their children or other family members who seem to be struggling to get ahead – possibly unable to buy a home, purchase a car or enter into the business they have been hoping to secure.

    It seems so easy just to sign off on that loan for their family, and see them get ahead in life right? Well this is not always the case.

    In the past there have been clients who have gone guarantor for someone, only to find at some point they have not made repayments on the loan, leaving the guarantor responsible for the debt. Sometimes the guarantor is unaware the repayments are not being made. It is when they are refused credit themselves that they realise payments are late and their credit file has been tarnished.

    – What is a guarantee?

    When people seek approval for a loan, a lender can sometimes require a potential borrower to provide a guarantee if they feel there may be some doubt as to whether the loan will be repaid. This sometimes occurs when the potential borrower has no credit history, or a bad credit rating, or perhaps an inadequate savings record.

    Often it is a family member, and generally a parent who is asked to guarantee the loan. The guarantor agrees to be responsible for repayments on the loan should the borrower fail to make them and this is including all interest, charges and fees that are due to the lender.

    – What can go wrong?

    Well a lot actually. Number one being the borrower fails to keep up with their repayments.

    Repayments which are more than 60 days late are listed as defaults on people’s credit files. The default would be listed on both the borrower’s and the guarantor’s credit file. Once somebody has a bad credit rating, it can be very difficult to obtain further credit. Most of the major banks will reject loan applications when people have defaults on their credit file. It can be difficult to even obtain a mobile phone plan.

    Worst case scenario if repayments are not made, is the bank begins to use the property the guarantor used as collateral, to recover lost debts. There is a danger the guarantor can lose their home. Those people who were so close to financial freedom are now facing debt, and a shaky retirement.

    According to the Consumer Credit Legal Centre NSW, there are many negative aspects to making the decision to go guarantor:

    REMEMBER: You do not get anything out of giving a guarantee!
    You do not get:

    •Any rights to any of the goods or property the borrower is purchasing with the loan;

    •A positive credit record;

    •It will not make it easier for you to get a loan for yourself;

    •It will not necessarily make it easier for the borrower to get a loan in the future.

    They suggest alternative ways to help out your children or family financially without having to guarantee a loan.

    “If your child asks you to guarantee a car loan for example, consider some alternatives. Perhaps you could give them an interest free loan of a few thousand dollars as a deposit, or offer to match their savings if they wait a few months, or just talk them into a cheaper car. If the loan is for a family business, talk to your accountant. Is there another way of obtaining the required funds? If a guarantee is absolutely necessary, is there some way of minimising the amount of the guarantee and/or the risk that it will be called upon?” the Centre says.

    – How to make an informed decision

    In the case of buying property, going guarantor can make a huge difference to the family member’s financial future by allowing them to break into the housing market.

    The most important question to ask is: Could we make the repayments on this loan should our family member be unable to?

    The second step for potential guarantors to make could be to seek third party and or legal advice prior to any agreement being made. This is to be able to make that calculated risk – and yes it is a risk, with the help of someone who doesn’t have a vested interest in the outcome (like the borrower or lender).

    The Sydney Morning Herald’s Personal Loans Smart Guide provides some other points to consider when making this decision:

    •How much is being borrowed?

    •How responsible is the borrower?

    •How stable is their employment?

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

    •Can I afford to repay the total sum of the loan?

    Guarantors can insist borrowers have adequate insurance to cover anything that may go wrong during the term of the loan, such as life insurance and income protection insurance.

    It is also important to be clear about the amount that will be guaranteed, and that there is an ending to the time period of the guarantee.

    They should also ask that a copy of all bank statements be provided to them during the course of the guarantee.

    It is true there are many cases of guarantors helping out family members successfully, with the whole event posing no danger to their own homes or to their credit rating. But in this instance, it is a case of, when in doubt – don’t.

    – Does the borrower have a bad credit rating?

    As an alternative to using a guarantor, the borrower could look at repairing their bad credit rating. The problem is, many people who attempt to have defaults removed are told by creditors they can have them marked as ‘paid’ but that listings never get removed.

    But if the borrower has a bad credit rating due to listings which have errors, are unjust or simply should not be there, they do have right to have those inconsistencies removed. It may be worthwhile for people with a damaged credit file to seek the help of a credit repairer who can assess whether they are suitable for credit repair. The borrower could have their credit file defaults completely removed, and negotiate with creditors on their behalf. The success rate is generally higher, and it could mean the borrower is able to apply for a loan on their own terms, without the need for a guarantor.

    For more information on credit repair, contact MyCRA Credit Repairs – www.mycra.com.au or phone toll-free 1300 667 218 to speak to a consultant.

    Image: Ambro / FreeDigitalPhotos.net

    Image: vichie81 / FreeDigitalPhotos.net

  • Online identity fraud numbers doubled in four years

    The Sydney Morning Herald recently reported one in 10 Australians who use the internet have lost money to online identity fraud over the past year, with those losses reported to total $1.286 billion. The story, titled ‘Online ID fraud losses explode to $1.3bn a year’ featured a survey of 2510 Australians conducted in June by Galaxy Research, for Authentification Service company VeriSign.

    Identity crime is getting quite a lot of attention in Australia lately, with Channel 10’s 7pm Project running a story on identity theft this week. The Government also recently reported survey results on identity theft which reveal 1 in 6 Australians may be affected or know someone who has been affected by identity theft or misuse.

    If the VeriSign Online Fraud Barometer figures are an accurate reflection of identity fraud numbers in Australia – the figures have massively jumped from figures reported by the Australian Bureau of Statistics in its Personal Fraud Survey conducted in 2007. This survey (conducted with over 16,000 Australians) found just over 800,000 people have been victims of personal fraud, with combined losses of $977 million. These figures were across the board for fraud, including but not exclusive to internet use.

    The 2007 ABS figures represented 5% of the population. This new survey demonstrates a doubling in identity theft numbers for the internet alone to 10% of the population in just 4 years.

    This escalation in identity fraud numbers would be a direct result of an increase in internet use.

    Figures from 2008-9 from the ABS on the use of internet in Australian households showed 72% of households had access to a computer. It will be interesting to see what statistics on household internet use will arise from the 2011 Australian Census.

    People are increasingly conducting their social lives, their finances and their business on the internet. So, the freeing of information leads to increased opportunity for criminals.

    The government’s scamwatch website has extensive information on current scams that are plaguing the internet. There are so many forms of scams to be wary of out there, it is frightening.

    Cyber security consultant Alastair MacGibbon, former head of the AFP’s High Tech Crimes unit, broke it down into four main ways people could have their credentials compromised online:

    1. Entering details such as credit card and banking information into a website that is run by crooks.

    2. Handing card details over to a legitimate site but they are then stolen from the site itself through a security flaw.

    3. Man in the middle attacks, where a legitimate site is infected by malware and credit card details are stolen from users as the transaction is underway.

    4. Having a virus planted on your own computer which sucks up credit card details and passwords and sends them to criminals.

    What is not known from the recent figures is how many of those identity fraud victims have had the crime impact their credit rating.

    Typically, when fraudsters take out credit in someone else’s name, the victim is not aware of the fraud immediately. Any kind of credit account (from mortgages and credit cards through to mobile phone accounts) which remains unpaid past 60 days can be listed as a default by creditors on the victim’s credit rating.

    So the fraudster could abuse someone’s good name all over town and it is not until the victim applies for credit and is refused, that they learn about the identity theft and subsequent fraud.

    Credit rating defaults remain on credit files in this country for 5 years. The effect of people having a black mark on their credit rating is generally an inability to obtain credit. Most of the major banks refuse credit to people who have defaults, or even too many credit enquiries, so it is really essential to keep a clean credit record.

    It is actually quite difficult to go about removing defaults from credit files, regardless of the source. Most creditors will tell people listings are only marked as paid if they have been paid and remain there for the required 5 years. But by law in Australia, if a listing contains inconsistencies the credit file holder has the right to negotiate their amendment or removal.

    To clear their good name, the identity theft victim needs to prove to creditors they did not initiate the credit – which can be difficult. Not only are victims generally required to produce police reports, but large amounts of documentary evidence to substantiate to creditors the case of identity theft.

    So as they say,prevention is always better than the cure.

    The Government’s Stay Smart Online website recommends Australians follow these 8 top tips for increasing their resistance to identity fraud, and avoiding the loss to their bank balance and potentially their good name:

    1. Install and renew your security software and set it to scan regularly.

    2. Turn on automatic updates on all your software, including your operating system and other applications.

    3. Think carefully before you click on links or attachments, particularly in emails and on social networking sites.

    4. Regularly adjust your privacy settings on social networking sites.

    5. Report or talk to someone about anything online that makes you feel uncomfortable or threatened – download the government’s Cybersafety Help Button.

    6. Stop and think before you post any photos or financial or personal information about yourself, your friends or family.

    7. Use strong passwords and change them at least twice a year.

    8. Talk within your family about good online safety.

    For people who already suspect they have had their good credit rating compromised due to identity theft, MyCRA Credit Repairs can possibly assist in removing defaults from their credit file. Call us on this toll-free number 1300 667 218, or visit our website for more information www.mycra.com.au .

    Image: photostock / FreeDigitalPhotos.net

  • Consumer debt reduction: Watch out for new bank fees

    Our last blog post was about debt struggles and solutions –and how people can protect their credit file. Featured in this post were recent findings from Dun & Bradstreet’s bi-annual debt survey, showing one in three Australians will struggle to repay their debts in the September quarter.

    The Sydney Morning Herald recently published an article featuring this survey, titled ‘Australians still hooked on credit’. It reported that many people are still heavily reliant on credit to purchase something they could otherwise not afford, despite the assessment of their household’s financial outlook now being at a 20-year low. But the article reports some sections of the population are reducing their credit use. It reports Mastercard as saying:

    “The austere mood caused the annual growth in credit card numbers in Australia to slow to 1.76 per cent in the 12 months to May. Purchases made on debit cards jumped 17.3 per cent during that time as consumers sought more control over their finances.”

    If the downward trend to reduce credit continues, people will become more reliant on debit cards and Eftpos to make their purchases.

    But as the Herald Sun reports in its article ‘Banks are busy working on ways to replace income lost from fees‘, people may be penalised for this change. It reports a new Eftpos tax will result in an extra 10c interchange fee and 1c EPAL scheme fee increase on Eftpos transactions starting October 1, 2011. Here is an excerpt from this story:

    The company that runs Eftpos, EPAL, has given banks until
    next month to opt in to its new, higher interchange fee structure.

    “Banks are about to start charging for something they previously provided for free,” said Jost Stollmann, chief executive of a rival player in the debit-card payment industry, Tyro Payments.

    “In fact they supplied this service for less than free: they paid 5c each time someone used Eftpos.”

    “Now EPAL has reversed that subsidy and created a new 5c fee to acquirers, which will flow through to retailers and merchants.”

    The Australian Newsagents’ Federation say the new Eftpos fee
    regime will impose fees of up to 21c for each Eftpos transaction, up 110 per cent on existing fees.

    “No retailer can negotiate the interchange fee with his bank. The new EPAL regime is all about raising bank fees,” the federation says in a new advertising campaign.

    The story explains how banks have cut out exit fees on home loans, and many of the other fees that consumers have traditionally complained about, but have cleverly sought alternative ways of replacing the lost fees. It reports one way of recovering lost revenue from exit fees is to increase ongoing fees on home loans. The story reports fees in this area have increased on average around $75 a year since 2009. Also some banks have announced increased upfront fees on some of their variable home loans recently. The highest upfront fee increase was $600 on one Commonwealth Bank product.

    So consumers will have to bear the cost of reduced fees in some areas, with increased fees in others. If people want to refinance to a cheaper interest rate to save money, they won’t pay exit fees to leave that home loan – but they could pay higher upfront fees on many of the new loans they may want to switch to. Hmmm….

    Is the process of saving money and reducing debt just getting more difficult to navigate?

    How do we know the best ways to save money?

    For those who, despite all of the obstacles to success are determined to reduce debt – the best place to start is to get interested and updated on ways to save money. We encourage people to get educated about debt, and ways to avoid a bad credit rating, which can ruin people’s ability to obtain good credit for 5-7 years.

    The fact is credit is an essential part of being money smart in today’s society. Unfortunately we need credit. People can’t go back to wacking the money under the mattress. They simply cannot function without savings records and credit history in order to obtain major credit like mortgages and personal loans. So to succeed, it’s a matter of being educated about smart ways to use credit.

    There are a number of great places to start getting educated. We love the advice given on Australian blog Savingsguide. Also extremely informative is ASIC’s Money smart website. Of course, we can’t go past a trusted favourite like MSN Money.

    If people find despite their education on money principles, they still can’t get ahead due to the disadvantage of having credit rating defaults, writs or Judgments – it may be possible to start with a clean slate by having them removed. Not all credit files can be repaired, but those which contain adverse listings with errors, which are unjust or just shouldn’t be there are good candidates. Credit repairers completely remove defaults, writs or Judgments from people’s credit files, allowing people the financial freedom to choose the best interest rates, and financial products which are right for
    them. For example, people who are living with a bad credit rating who invest in credit repair can potentially save thousands on interest by the ability to select a cheaper interest rate. Contact us at MyCRA Credit Repairs for more information.

    Image: Salvatore Vuono / FreeDigitalPhotos.net

    Image: Ambro / FreeDigitalPhotos.net

  • Consumer debt struggles and solutions

    A recent survey revealed that about one in three Australians said they will struggle to repay their debts in the coming September quarter. If this many Australians have money problems, then more should be done to educate people on our credit reporting laws, and what can happen to people’s finances, should they end up with a bad credit rating.

    When things get bad enough that repayments are getting missed, people need to be aware of the cycle they may be getting themselves into.

    Black marks on people’s credit reports remain there for 5 – 7 years, and can severely hinder their chances of getting further credit, from mortgages to mobile phone plans.

    If people are struggling to make repayments, they need to take a pro-active approach to managing the solutions.

    It is human nature for people to not want to admit their failings, but it is important for people to realise that the choices they make with their debts today can affect them as far as seven years down the track.

    All forms of credit, from mortgage repayments through to our utilities bills have the potential to affect our credit rating should they get too far in arrears.

    Debt survey

    Credit reporting agency Dun & Bradstreet released its bi-annual debt survey recently. The survey revealed that almost one third of Australians will struggle to meet their credit commitments in the September quarter. It also revealed that 37 percent intend to use their credit card to purchase something they could otherwise not afford. Twenty-one percent say their household debt will increase over the next three months, and almost half say an interest rate rise in the September quarter would negatively affect their household’s finances.

    “…the reliance on credit for household purchases in spite of apprehension about their ability to meet these commitments is worrying, as an issue that can affect their future credit rating and ability to access credit – often when they need it the most,” Dun & Bradstreet’s CEO Christine Christian says.

    Credit reporting explained

    Current legislation allows creditors of any form to list a default on a person’s credit file when the repayment is more than 60 days late. These default listings remain on a person’s credit file for 5 years. In the current market, most major banks are currently rejecting loan applications because of defaults, and many even for excess credit enquiries. So anyone who wishes to obtain credit should be ensuring they sort out any debt problems before they escalate to default stage.

    Under current legislation, people can see what is reported about them on their credit file, by obtaining a free copy of their credit report every 12 months. They may contact one or more of the credit reporting agencies, Veda Advantage, Dun & Bradstreet and Tasmanian Collection Services and it will be posted to them within 10 working days.

    If people find defaults, writs or Judgments which they believe are unjust, contain errors or just simply shouldn’t be there, they do have the right to have them removed. Credit rating repairers can assist with this removal by negotiating directly with creditors on a person’s behalf.

    Solutions for debt to avoid a bad credit rating

    1. Contact creditors immediately. People may be able to negotiate either a short-term or long-term change to their repayments. Many creditors, especially the major banks have options available to struggling families to help them keep up with repayments. Many appreciate people keeping in touch and working out solutions everyone can live with.

    2. Put the spotlight on spending. Paul Clitheroe advises those who can’t make repayments to keep a spending diary for a week or two.

    “This will show you exactly where your money is going, and chances are you’ll find plenty of little-but-often outlays that quickly add up to much larger amounts. Cut back on these and you’ll free up money for repayments,” Mr Clitheroe says.

    3. Consider the difference between wants and needs. People
    should consider how many of the items they regularly spend money on are necessities, and how many can be sacrificed for the short term in order to ensure their long term financial future is safe? People could choose to live without life’s little perks – like the Foxtel account, magazine subscriptions, or eating out while they get on top of their credit issues.

    4. Downgrade if necessary. For people in serious financial trouble, it may be a matter of swallowing their pride and downsizing or selling the family home, or moving to cheaper rental accommodation until they get back on top of things.

    For people who have defaults, writs and Judgments which are unfairly disadvantaging them, and they feel they should not be there – they can contact MyCRA Credit Repairs. We permanently remove black marks from credit files.

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  • Is your child’s internet use putting your credit rating at risk?

    Media Release

    18 July 2011

    Parents who allow children and young adults to have free reign of the computer, and who don’t apply meaningful cyber-security measures at home are putting themselves at risk of identity theft, and threatening the family’s good credit rating, a national credit rating repairer warns.

    Director of MyCRA Credit Repairs, Graham Doessel says experience is showing us it is not enough for people to simply download anti-virus software and assume they are protected against identity theft.

    “Every day there’s more and more reported cases of identity theft via the cyber-world, with criminals gaining access to personal information online, in order to commit identity fraud in the victim’s name.”

    “While the internet is an essential tool for children to be competent with, parents have to be realistic about what kind of protection they are affording their family when they allow the control of the family computer to rest solely with their child,” he says.

    Mr Doessel says the dangers of children downloading viruses, participating in scams, releasing credit card details and disclosing personal information and passwords to criminals can all be minimised by parents taking an active role in their child’s internet use, and constantly updating their own cyber-awareness.

    “Gone are the days of people joking about how their children’s knowledge of the internet has surpassed their own – the scary fact  is it’s happened. The threat of criminals taking advantage of a parent’s lack of expertise is real, and people should do all they can to stay ahead of what is becoming the fastest growing crime in the country,” he says.

    A U.S. study released earlier this year, showed that of the 20 million minors who actively used the social networking site ‘Facebook’ in the past year, 7.5 million—or more than one-third—were younger than 13 and not supposed to be able to use the site.

    “Among young users, more than 5 million were 10 and under, and their accounts were largely unsupervised by their parents,” the report revealed.

    It also revealed that one million children were harassed, threatened, or subjected to other forms of cyber-bullying on  Facebook in the past year.

    “Clearly, using Facebook presents children and their friends and families with safety, security, and privacy risks,” the report said.

    Mr Doessel says fraudsters are often extremely good at extracting personal information from adults, so doing the same with children would be a walk in the park.

    “The amount of personal information that many young people have freely available for viewing on Facebook is frightening. We may say it is harmless, but what’s to say fraudsters can’t sit on that information and wait until their victims come of age to commit fraud in their name?”

    “Other parents alarmingly give over their credit card details to their children to use when downloading music or games, or use the same passwords for ITunes that they may use for their bank accounts. This information in the wrong hands can see someone taking out credit in the victim’s name, and completely destroying their financial future” he says.

    Mr Doessel says a major downfall to being an identity theft victim is not only the initial loss of monies, but if the fraud sees accounts in the victim’s name going undetected and unpaid past 60 days, a person’s credit file can be ruined for 5-7 years due to defaults.

    “It need not be major fraud to be a massive blow to the identity theft victim. Unpaid accounts for as little as $100 can have the same negative impact on someone’s ability to obtain credit as a missed mortgage payment. So any misuse of someone’s credit file can be extremely significant,” he says.

    For parents who want to educate themselves about the risks of cyber-crime, the Government has put together the CyberSmart website, encouraging parents and kids to be aware of the dangers the internet may pose for children.

    The Government recommends the close monitoring of all children’s internet use. Some of the other recommendations it makes include:

    – Be aware of and involved in children’s internet use. Bookmark a list of ‘favourites’ for them. Encourage children to share new websites and explore together. Assist them whenever they need to disclose personal information.

    – Talk to children about personal information and why it is special.

    – Consider creating a family ‘fun’ email account separate from all other accounts for the child’s use. This way it can be deleted if misused.

    – Consider using filters, labels and safe zones to manage children’s

    – Install and update anti-virus and other e-security software to restrict unauthorised access to data on the home computer and protect that data from corruption. Turn firewall on, set computer to automatic scan and update regularly.

    If people suspect identity theft has affected their credit file, they can contact MyCRA Credit Repairs www.mycra.com.au for help with obtaining a copy of their credit report, and removing any discrepancies from their credit file.

    /ENDS

    Please contact:

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

    Graham Doessel  – Director

    Ph: 07 3124 7133

    http://www.mycra.com.au

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

    Links:

    http://www.consumerreports.org/cro/magazinearchive/2011/june/electronics-computers/state-of-the-net/facebook-concerns/index.htm

    http://www.cybersmart.gov.au/

    http://www.cybersmart.gov.au/Parents/Cybersafety%20issues/Protecting%20personal%20information/Identity%20theft.aspx

    Image: Picture Youth / FreeDigitalPhotos.net

  • Australia’s new credit reporting laws: what they mean for home buyers

    MEDIA RELEASE:

    14 July 2011

    Proposed changes to Australia’s credit reporting laws will give those home buyers who would otherwise not have been approved due to minor credit defaults more chances for finance, according to a national credit rating repairer.

    Director of MyCRA Credit Repairs, Graham Doessel says the ‘comprehensive credit reporting’ changes currently under review by the Senate Finance and Public Administration should help lenders gain a clearer picture of a home buyer’s suitability for finance, and should help to alleviate unfair ‘knock-backs.’

    “The problem with the information currently recorded on people’s credit reports, is that only negative data is displayed. There is no data showing any positive repayment history, the type of debt, or the outstanding amount. So utilities bills are treated the same as mortgage defaults. Currently we have hundreds of clients who are unable to secure a home loan due to being in default on phone bills – some for as little as $100,” Mr Doessel says.

    He says the future of credit reporting will allow lenders to make a decision for home loan suitability based on more extensive history of the borrower. The proposed ‘comprehensive reporting’ scheme would include:

    -the type of each current credit account opened (for example, mortgage, personal loan, credit card);

    -the date on which each current credit account was opened;

    -the limit of each current credit account (for example, initial advance, amount of credit approved, approved limit); and

    -the date on which each credit account was closed.

    This follows new legislation released by the Government early this year requiring lenders to prove the suitability of borrowers to make repayments before allowing access to further credit.

    Mr Doessel says on the other hand there will be some buyers who are disadvantaged by the changes, particularly those who have a tendency to over-inflate their suitability.

    “It will require home buyers to be truthful about the current credit they have taken out, and the limits on each account. The new system may reveal some people are considered to be over-extending themselves and are rejected where they normally would have been approved. But in my line of work, many buyers are absolutely suitable to service a home loan, but have small-time defaults which hold them back.”

    “The other group that will be disadvantaged are those who are late with their payments for major credit. Under the new laws, late payments to a regulated NCCP credit provider such as a bank can be recorded as such, regardless of whether the late payment gets to default stage. Utility providers are not regulated in the same way, so normal rules for defaults will apply,” Mr Doessel says.

    He says the new laws will mean it is more important than ever for people to request regular updates on their credit report.

    “With all the new data available, there will be more opportunity for errors to occur. People should obtain a free copy of their credit report every 12 months from one or more of the credit reporting agencies in Australia, to ensure their file does not contain any inconsistencies,” he says.

    Mr Doessel says if people find information listed on their credit file which they believe is in error, is unjust or just shouldn’t be there, they do have the right to have that information rectified. He does say however, that it that can be a difficult process for the individual.

    “Navigating credit reporting legislation and negotiating with creditors is not easy. Unfortunately in most cases, if people attempt to remove the default themselves they can do more harm than good by not understanding the process fully, almost like trying to defend themselves in court. They might do OK, but they only get one shot at it and if they don’t get it 100% right, they will be unsuccessful. There is no appeal in most cases,” he says.

    Contact www.mycra.com.au for more help with obtaining a credit report and credit repair.

    /ENDS.

    Please contact:

    Lisa Brewster – Media Relations

    0450 554 007  media@mycra.com.au

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

    Link:

    http://www.alrc.gov.au/publications/55.%20More 20Comprehensive%20Credit%20Reporting/models-more comprehensive-credit-reporting

    Image: Danilo Rizzuiti/ FreeDigitalPhotos.net

  • Australia’s identity theft prevention improving

    It seems the nation has ramped up its focus on identity theft. We are more fearful of this crime than we are of a terrorist attack, and this is due in part to recent global data breaches which have directly affected the security of Australians. It is also due to the long lasting effects of identity theft and the difficulties that can ensue with our credit rating.

    Improvements occurred to our national strategy on identity theft this week, with the Attorney-General, Robert McLelland announcing two more states have signed on to the Government’s national Document Verification Service (DVS). This service allows authorised government agencies to cross-check identity documents to prevent identity theft or fraud.

    Identity theft occurs when someone uses our personal details without our knowledge for the purposes of fraud. It is occurring more readily than ever with the mass use of technologies such as the internet, social networking, i-phones and credit cards.

    Nowadays we conduct so much of our financial and personal business online and via our phones. When we shop online – we give over passwords, personal details and credit card details. When we want to catch up with someone, we do it via Facebook or Twitter – giving over details like where we are, who we’re with, when we are away from home.

    The reason we do all of this is because it is so darn convenient and fun. Our relationships can change, improve. Sometimes jumping online to pay our bills or pick up some birthday presents can be the only way we have time to get those things done nowadays.

    Unfortunately, it is also a convenient way fraudsters can extract details which may be used in order to set up fake identification in our name. Criminals may only need a small amount of very precise information about us to go about requesting ‘replacement’ copies of our documentation, or to create a fake document that can all be used to obtain credit in our name.

    Apart from the initial monies which may be lost due to fraud, the major consequence of identity theft is the destruction of our credit rating. A bad credit rating means most people are black listed from obtaining mortgages, personal loans, credit cards and even mobile phone plans for the term of the listing which is 5-7 years. Any way the Government can improve its system to protect people from this kind of fraud should be well received.

    This week, Victoria and Western Australia joined the rest of Australia in using the DVS, which Mr McLelland says will allow documents commonly used as proof of identity to be quickly checked electronically by the issuing agency.

    “For example, if you are using your Australian Passport as proof of identity to apply for a copy of a NSW Driver License, the NSW Roads and Traffic Authority will now be able to instantly verify the authenticity of the passport with the Australian Passport Office.  This ensures that documents haven’t been cancelled or personal information falsified.” Mr McLelland says.

    He says the purpose of the DVS is purely to allow authorities to verify document authenticity, and no information will be retained on any central database.

    “A number of State and Territory and Commonwealth Government agencies are already using the system. It’s already possible to verify the validity of Australian-issued passports, visas, and birth certificates and driver licenses from other States and Territories through the DVS,” he says.

    However, according to a recent article by CRN Magazine’s Liz Tay, an audit conducted last year by the Australian National Audit Office found the $28.3 million service had “significant problems” and was rarely used.

    “Auditors reported that the DVS performed less than ten transactions a day – well under initially expectations of one million a day – and was weighed down by issues with timeliness and accuracy,” the article says.

    This comes as the Government released results from an identity theft survey last week which showed 1 in 6 Australians have been or know someone who has been a victim of identity theft or misuse in the past 6 months.

    Let’s hope the government takes the necessary steps to improve its system to ensure it is genuinely going to make progress in the fight against this ever-growing war on identity crime.

    Suspect identity theft? Visit the MyCRA Credit Repairs website for help with what to do and how to repair your credit rating following identity theft.

    Image: Salvatore Vuono / FreeDigitalPhotos.net

  • Australia part of ‘Quintet’ of nations meeting to discuss cyber-crime

    Identity theft is proving to be the new wave of crime, and the worst part of it is – it hits twice, once when the initial fraud takes place, and secondly when the victim’s credit rating – their good name, is tarnished, leaving them unable to take out credit for up to 5 years.

    Cyber-crime is now such a serious global threat – to individuals, businesses and governments that nations will continue to join together in its fight.

    Discussions on cyber-crime are being held in Sydney later this week with Attorneys-General from Australia, the U.S. and their counterparts in the U.K., Canada and New Zealand attending.

    The ‘Quintet’ as it is termed, will meet 14-15 July, and will focus on joint and cooperative actions that can be taken to address the growth of international cyber threats. This is the first time the U.S. Attorney General has been to Australia in several decades.

    Australian Attorney-General, Robert McLelland says fighting cyber-crime is a global task.

    “It is a complex policy and law enforcement challenge because of its transnational nature and use of rapidly evolving technology.

    “The global nature of cyber crime is such that no nation alone can effectively combat the problem, making international cooperation and engagement essential components of an effective response.”

    “That’s why renewed international vigilance is such a priority for all five countries,” he says.

    This meeting also follows the recent introduction into Australian parliament of the Cyber-crime Legislation Amendment Bill 2011. Swift changes to Australia’s laws were made late last month, in order to bring them in to line with the other 40 countries which have joined the European Convention on Cybercrime.

    Increased episodes of cyber-attacks and cyber espionage have sparked these changes, and have prompted many countries to increase their vigilance in what has now been termed a ‘war’ against cyber-crime.

    “In the last six months alone, Australia’s Computer Emergency Response Team has alerted Australian business to more than a quarter of a million pieces of stolen information such as passwords and account details, allowing them to rectify and protect against potential attacks,” Mr McLelland said when announcing the new legislation in June.

    Identity theft is the fastest growing crime in the country, according to the Australian Crime Commission. In addition, an identity theft survey released by the Government last week showed that 1 in 6 people have been a victim, or know somebody who has been a victim of identity theft or misuse in the past six months. The majority of identity theft or misuse
    occurred over the Internet (58 per cent), or through the loss of a credit or debit card (30 per cent).  Stolen identify information was primarily used to purchase goods or services (55 per cent) or to obtain finance, credit or a loan (26 per cent).

    Those are frightening statistics for ordinary individuals who are trying to navigate the cyber-world. To know governments are running up hill trying to catch these crooks and prevent cyber-attacks in their own offices – leaves little hope for those who may not be so computer savvy in trying to protect themselves against identity theft.

    The problem with identity theft is, often it goes undetected until people go to apply for credit and are flatly refused due to blemishes on their credit file they did not initiate. Unfortunately when a creditor places a default on a person’s credit file, it remains there for 5 years, greatly hindering someone’s chances of obtaining further credit. Some are even unable to take out a mobile phone plan.

    Keeping identity theft at bay online

    Education and action are the winning combinations in preventing cyber-crime at home and its corresponding evils – identity theft, identity fraud and credit file destruction.

    Here are some quick tips to help people protect themselves and their credit rating:

    1. Keep virus software up to date. Install automatic updates and perform
    regular virus scans.

    2. Keep privacy settings secure on all social networking sites.

    3. Change passwords regularly and use a variety of passwords for different purposes.

    4. Check all credit card and bank statements each time they come in.

    5. Do not give over personal information or credit card details online unless the site is secure, and company details can be verified.

    6. Be aware of who gets our personal information and for what purposes. What can these people do with the information they are gathering? For instance, is it really necessary for the site we are registering on to have our date of birth?

    7. Visit the government’s stay smart online website, and sign up for alerts.

    8. Check our credit file for free every 12 months. By requesting a copy of our
    credit file from one or more of the major credit reporting agencies,Veda Advantage, Dun & Bradstreet and Tasmanian Collection Service (TASCOL) we can be aware of any discrepancies which may need to be investigated. Often it is only through a credit check which comes back with defaults on our credit file do we realise we have been victims of identity theft.

    9. Report any incident of identity theft, no matter how small, or even if we have been reimbursed for the damage – to the Police. The more of us who report identity theft, the more effective will be our Government and Police response to it in the future.

    For people who are already identity theft victims, it can be difficult to navigate the current credit reporting system to have the offending defaults removed from their credit file.

    MyCRA Credit Repairs can completely remove defaults from credit files that have errors, are unjust or just shouldn’t be there.

    Visit MyCRA for more help with credit rating repair following identity theft.

    Image: jscreationz / FreeDigitalPhotos.net

  • Privacy Commissioner releases findings on Telstra mailout error

    Whenever the public are in danger of having their credit file tarnished due to data breaches which can result in identity theft, it is important to warn them.

    Recent news from the OAIC (Office of the Australian Information Commissioner on a botched Telstra mailout has come forth.

    The OAIC today released the findings of its investigation into the Telstra
    mailing error     which resulted in around 60,000 Telstra customers’ personal information being sent to other customers.

    Australian Privacy Commissioner, Timothy Pilgrim opened an investigation after Telstra notified him of the incident in October 2010.

    Mr Pilgrim found that while Telstra did breach the Privacy Act in terms of disclosing personal information of its customers to a third party, it was not due to any failings of the security of its system, but simple human error.

    The investigation revealed that Telstra had a range of security measures in place to protect customer personal information involved in mail campaigns. These measures include privacy obligations in agreements with mailing houses, privacy impact assessments at the outset of mail out initiatives, and procedures to ensure staff handle personal information appropriately during mail campaigns.

    “In this instance, taking into account the range of measures Telstra has in place for mail campaigns, I consider that the one-off human error that occurred does not mean that Telstra failed to comply with its obligation to take reasonable steps to protect the personal information of its customers. Therefore, I consider that Telstra has not breached this particular aspect of the Privacy Act,” the Privacy Commissioner said.

    The Commissioner also noted Telstra’s fast notification of the data breach.

    Mr Pilgrim did say, however, that if an individual complaint came to them following this matter, the complaint would be considered on its own merits.

    “Incidents such as this one highlight how important it is for all organisations to take steps to protect their customers’ privacy. If such an incident does occur, it is best practice to notify the OAIC as soon as possible and take action immediately to prevent further breaches,” he said.

    This incident brings to light a section of Australian privacy law that needs to improve. Luckily, in this incident, Telstra did the right thing and notified its customers and the Privacy Commissioner of the data breach immediately.

    But when the Sony PlayStation data breach occurred in May, Sony did not notify its customers of the data breach immediately, they took about a week. In that time its customers were vulnerable to identity theft, and there was nothing our Government could do as recourse. Our data breach notification laws currently do not require companies to notify its customers immediately following a data breach.

    The Australian Law Reform Commission has made a recommendation for amendments of this law to occur, and the Government is currently considering it.

    The dangers of data breaches

    If the wrong person gets hold of someone’s personal details, they can potentially build a profile of identity documentation that can give them the opportunity to commit fraud.

    Fraudsters who have access to small pieces of specific information on someone can then build on that profile, eventually requesting ‘replacement’ copies of drivers licences and can then access bank accounts, get credit cards, apply for loans, phone accounts, and in some cases, buy property in someone else’s name. There are some identity theft cases where fraudsters have even mortgaged or sold the family home of their identity theft victims.

    Once someone’s identity has been stolen, their credit file is generally tarnished. This credit file blemish will unfortunately haunt the victim for 5 years while the listing/s remain on their credit file. Credit file blemishes generally deny someone access to most credit for the term of the default.

    It is important for everyone to know they can order a free copy of their credit file report every year from one or more of the credit reporting agencies in Australia, Veda Advantage, Dun and Bradstreet and Tasmanian Collection Services.

    Contact MyCRA Credit Repairs for help with repairing credit files following identity theft.

    Image: Luigi Diamanti/ FreeDigitalPhotos.net

  • Caught affluenza? How it can affect your credit rating health

    Affluenza is a disease of the 21st Century that can make us sick, and it can make our credit file sick with it –pulling us into a crazy cycle of spending and debt. Many of us are struggling to stay happy under a pile of ‘things’ and a pile of debt.

    The Wikipedia explanation of affluenza refers to it as “a painful, contagious, socially transmitted condition of overload, debt, anxiety and waste resulting from the dogged pursuit of more.”

    It is the disease of consumerism and it is being fuelled by big corporations urging us to buy more, persuading us with clever advertising aimed at selling to our emotions. It drives us to work crazy hours leaving no time for ourselves and our families. It drives up the mental health problems, the suicide rates, the divorce rates, the drug addictions, fraud, the stress related health problems – all these things seem to be a curse of living in the 21st Century in the Western world.

    Recently Fran Sidoti from SavingsGuide.com.au posted an interesting article about this topic titled Affluenza, And What It Might Mean For You. She says it starts by wanting a big house, and then all of those things that go in it, and with it – but that when we have everything, we are still not happy. She suggests we take a step back and employ old-fashioned values like “building a strong family, especially with an awareness of role models like grandparents who wouldn’t recognise affluenza if it bit them. A respect for hard work and the money it earns is crucial, as is emphasis on philanthropy and charity.”

    Australians Clive Hamilton and Richard Denniss’ book, Affluenza: When Too Much is Never Enough, poses the question, “If the economy has been doing so well, why are we not becoming happier?”

    Here is an excerpt from that book:

    “Our houses are bigger than ever, but our families are smaller. Our kids go to the best schools we can afford, but we hardly see them. We’ve got more money to spend, yet we’re further in debt than ever before. What is going on?

    The Western world is in the grip of a consumption binge that is unique in human history. We aspire to the lifestyles of the rich and famous at the cost of family, friends and personal fulfilment. Rates of stress, depression and obesity are up as we wrestle with the emptiness and endless disappointments of the consumer life.

    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.”

    How many of us know someone who has gotten really sick – so sick that they lose everything – the house, the car, the job. If they are lucky enough to survive it, they always seem to have this new-found view of money. They often make that life changing decision to cut back on all those material things. They say they appreciate that the real joy in this world comes from spending time with family and friends and also dedicating some time to themselves.

    A new perspective on credit

    We should think of our credit file as a mirror on our finances. It can reflect our assets, our good history, but it can also reveal our financial shortcomings. It can be a reflection of our inability to stick with something, our disregard for repayments and it shows the financial potholes we fall into that are sometimes impossible to climb out of.

    How healthy are we looking?

    It is perfectly okay to use credit, as long as we make it work for us. We should use it to enhance our lives so that we can spend time with the ones we love, or to really improve our quality of life.

    Maybe we throw that long sought after holiday on the credit card and take the family away? Or take out repayments on an educational course that will change our working lives forever? Or perhaps we do buy a home, but after years of good saving. One that fits all the requirements of what we need, rather than what we want. A home we don’t have to work 24/7 to pay off because it is priced within our means.

    What we shouldn’t do, is 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 a bad credit history.

    A bad credit rating can completely change our financial situation. The black marks placed there by creditors show up on our credit file for 5 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.

    A clean slate

    If we want to try and start again with credit, it may be possible to wipe the slate clean, particularly if our bad credit rating should not be there.  Firstly, we can obtain a  free copy of our credit report from one or more of the credit reporting agencies, Veda Advantage, Dun & Bradstreet and Tasmanian Collection Services (TASCOL). If after checking our credit file we find inconsistencies, we may be a good candidate for credit repair.

    A credit repairer can work with creditors on our behalf to completely clear our credit file of all defaults, clear-outs, writs and Judgments which contain errors, are unjust or just should not be there. This means we no longer have a bad credit rating, but a completely clear credit file, giving us the financial freedom to use credit whenever we need to.

    The rest is up to us.

    Visit MyCRA’s website www.mycra.com.au for more information on credit repair.

    Image: Salvatore Vuono/ FreeDigitalPhotos.net

    Image: photostock/FreeDigitalPhotos.net

  • Government survey reveals our fears of identity theft

    A Governement survey on identity theft reveals 9 out of 10 Australians are concerned or very concerned about identity theft and misuse. Rightly so, considering the grave danger it poses to a victim’s financial future through destroying their good credit rating.

    The identity theft survey, details of which were released by Attorney-General Robert McLelland, was an independent survey of 1200 people conducted by Di Marzio Research.

    It also showed that 1 in 6 people have been a victim or known somebody who has been a victim of identity theft or misuse in the past six months.

    The majority of identity theft or misuse occurred over the Internet (58 per cent), or through the loss of a credit or debit card (30 per cent).  Stolen identify information was primarily used to purchase goods or services (55 per cent) or to obtain finance, credit or a loan (26 per cent).

    Current statistics from the Australian Crime Commission, points to identity theft possibly costing the Australian economy $1 billion per year. The other cost that’s not so widely reported is the expense to the many credit files that occurs as a result. People have their lives put on hold with credit rating defaults they are not responsible for, stopping them from obtaining most credit for up to five years.

    More and more of MyCRA’s clients have been through the ringer attempting to have black marks removed from their credit file due to identity theft. They are often unable to obtain even a mobile phone in their name if their credit file contains defaults and it need not be large-scale fraud to amount to a finance decline.

    This survey follows the Government’s introduction of new legislation the ‘Cybercrime Legislation Amendment Bill 2011’ into Parliament last week, which amends several current laws in order to comply with the only international treaty on cybercrime. This was an attempt to come up to speed with other countries in the fight to tackle an international wave of cyber-attacks.

    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 credit repair can be – even if the individual has been the victim of identity theft. Unfortunately there is no guarantee defaults can be removed from their credit file. The victim has to provide copious amounts of documentary evidence to prove the fraud.

    How does my credit file get affected?

    It begins by fraudsters gaining access to a victim’s account details, or personal details. This then allows them to access the victim’s good credit rating.

    Often the victim is unaware their information has been stolen until they apply for credit and are flatly refused. Generally, by the time police become involved, a client may have credit applications as a minimum and possibly defaults, mortgages and mobile phones already attributed to them incorrectly.

    Once an account remains unpaid past 60 days, the debt may be listed by the creditor  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 credit repair can be – even if the individual has been the victim of identity theft. Unfortunately there is no guarantee defaults can be removed from their credit file. The onus is on the victim to prove their case and provide copious amounts of documentary evidence.

    What can I do to prevent identity theft?

    In order for people to prevent identity theft affecting their credit rating, the best defence they can take is to get educated. They should learn how their personal information can be put at risk, aiming to keep their personal information as secure as possible, both online and off. They should change passwords regularly, conduct regular virus software updates, and be wary of providing unnecessary information to companies online, just to name a few ways. As instances like the Sony PlayStation  data breach shows, people relying on other companies to do it for them can often result in vulnerability to fraud.

    People should also educate themselves on the latest scams that are going around, whilst also keeping an eye on what’s happening with their credit file, being alert to any changes which may occur.

    People can contact one or more of the major credit reporting agencies, Veda Advantage, Dun and Bradstreet and Tasmanian Collection Services (TASCOL) to request a free copy of their credit file. With Veda Advantage, they can also for a fee, sign up to Veda’s Alert system, which notifies the credit file holder of any changes which occur to their account within a 12 month period.

    If people find they are victims of identity theft, probably the best way to go about removing defaults is to enlist the help of a credit rating repairer, who can negotiate with creditors on their behalf, giving them the best possible chance of having the defaults removed completely from their credit file.

    Contact MyCRA Credit Repairs for more details.

    Image: Louisa Stokes/FreeDigitalPhotos.net

  • Identity theft warning: Microsoft phone scam

    Microsoft customers should be alerted to possible identity theft, as a phone scam involving fake computer security engineers who contact them personally offering to fix problems they have detected on their computers escalates in Australia.

    The scam, which Microsoft has been warning its customers about since last year, has even affected the head of CPA Head of Accounting Policy, Denis Pratt – according to a story ‘Microsoft Tech-Support Phone Scam Escalates,’ posted by business website SmartCompany yesterday.

    Mr Pratt told SmartCompany he was contacted on his home phone this week by people claiming to be from “Windows technical support” who knew his name and address. He said the callers claimed they could see problems on his computer, and asked whether he
    had noticed his computer becoming slower recently.

    “They wanted to take over the machine and fix the problems,” Mr Pratt said.

    Mr Pratt was luckily alert to the scam before any damage was done, but many people have lost thousands of dollars giving away credit card details to these fraudsters who claim to provide computer maintenance subscriptions.

    Microsoft Australia released a statement in August 2010, warning Australians about these fraudsters, who conduct themselves in a professional manner, and sound genuine.

    They say the scam typically unfolds in the following manner:

    •A cold caller, claiming to be a representative of Microsoft, one of its brands or a third party contracted by Microsoft, tells the victim they are checking into a computer problem, infection or virus that has been detected by Microsoft.

    •They tell the victim they can help and direct them to a website that then allows the scammers to take remote control of the computer.

    •The cold caller will then spend some time on the computer trying to demonstrate where the ‘problems’ are and in the process convinces the victim to pay a fee for a service that will fix the computer.

    MyCRA’s own Documentation Quality Assurance officer, Christina had also received a strange email last week from a Microsoft ‘gmail’ account, claiming to be advising about a Microsoft system error.

    “I just deleted the email without even opening it – it was obvious to me it was a scam designed for me to send them my personal information, or some kind of virus,” Christina says.

    The message is clear – be wary of anyone who calls or emails to request money or personal details from you and verify their information before parting with any information.

    Microsoft delivered this advice a couple of weeks ago to its international English-speaking countries who had reported problems with this scam:

    • Be suspicious of unsolicited calls related to a security problem, even if they claim to represent a respected company.

    •Never provide personal information, such as credit card or bank details, to an unsolicited caller.

    •Do not go to a website, type anything into a computer, install software or follow any other instruction from someone who calls out of the blue.

    •Take the caller’s information down and pass it to the authorities.

    •Use up-to-date versions of Windows and application software.

    •Make sure security updates are installed regularly.

    •Use a strong password and change it regularly.

    •Make sure the firewall is turned on and that antivirus software is installed and up to date.

    If people do suspect they have been scammed, firstly they should report the identity theft to the Police, and secondly obtain a copy of their credit file, to ensure it has not been tarnished by defaults resulting from identity theft.

    Visit MyCRA Credit Repairs for more information on how to repair your credit file following identity theft.

    Image: Idea go / FreeDigitalPhotos.net

    Image: Maggie Smith/ FreeDigitalPhotos.net