MyCRA Specialist Credit Repair Lawyers

Tag: MyCRA Lawyers

  • Protect your child online, protect their credit rating.

    protect child onlineIf you know how to help your child stay smart online, you could just be protecting their future credit rating. One of the focuses of Stay Smart Online Week 2014 is protecting our children and helping them have safe and positive experiences online. There are significant risks to children in using the internet. Many parents may know that apart from the potential exposure to sexually explicit, violent, prohibited or even illegal content, our children may also experience cyber bullying or be at risk from contact by strangers.

    What many parents don’t know is that children are also a target for fraudsters. If they are not smart online, they may be at risk of damaging their credit rating, before they even have one. We reveal the dangers for children online when it comes to identity theft and their credit rating, as well as giving some general tips to help your child stay smart and stay safe online.

    By Graham Doessel, Non-Legal Director of MyCRA Lawyers www.mycralawyers.com.au . Stay Smart Online Week 2014.

    Stay Smart Online - Proud Partner LRProtecting the integrity of your child’s credit rating is a crucial part of protecting them online. A trick by fraudsters termed ‘data warehousing’ could mean we may see a new generation of identity theft victims. The fraud takes personal information (often freely available) and stores it until the child comes of age to take out credit or to apply for identity documents. The information is then used to take out loans, create false accounts or commit crimes.

    If the personal information is used to take out loans, the young person can end up with a series of defaults or other black marks and may be totally unaware until they apply for their first loan or credit card. For 5 years they could be locked out of credit, refused cards, loans, even mobile phones. It need not be major fraud to be a massive blow to the identity theft victim. Unpaid accounts for as little as $150 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.

    Proving the case of identity theft when attempting to recover a clear credit rating is already difficult for the individual to undertake, as the onus is on the victim to prove to creditors they didn’t initiate the credit. Adding to that the fact that the perpetrator would be long gone with the actual act of identity theft happening years earlier – and those young people will have a very difficult task of recovery indeed.

    Late last year, the Courier Mail featured a story where Police were warning parents about criminals who are tracking the lives of children online, harvesting personal information to steal their identities once they become adults. The story, titled ‘Social media enables cyber criminals to build profiles for identity theft’ delved in to just how this type of fraud can occur.

    Queensland police fear a generation of youngsters could be burnt by their obsession for revealing all on the internet – left with bad credit ratings or associated with crimes they had no part in.

    Detective Inspector Phillip Stevens from the police service’s fraud and cyber crime group said criminals were harvesting the information for their own illegal purposes or to sell it to other fraudsters.

    He said social media sites were prime sources of information for online criminals. Names, ages, places of birth and addresses were all being stored and he warned parents to stop their children putting too many details online.

    “Everyone is a potential victim but we see children as vulnerable (because of the level of detail they post online),” Insp Stevens said.
    He said products such as low-document loans allowed criminals to apply for money over the internet.

    The lack of robust identity checking was enabling fraudsters to take out loans with stolen identities, he said.

    “By using a computer, criminals have no borders, can access more victims and recycled stolen identities.”

    He said by the time some children and adults become more savvy about their online personal details they may have already been a victim.

    “Identities are used for more than just fraudulent financial gains, they also used within the criminal environment as a means of providing a level of anonymity, in order to evade traditional policing methodologies.

    “If you have access to a supply of identities you can hide within the environment, commit crime under one name and hire a car with another. It makes it very difficult for police to actually know who they are looking for.”

    So how can we protect our children?

    It begins with taking an active role in your child’s computer use, and realising that their personal information is just as coveted as our own. Perhaps even more so – as the likelihood the child will have a clean credit history to begin with is even higher.

    It starts with talking to your kids about the internet, and to do that, you need to understand the spaces they are communicating in by being involved. Keep up with the latest sites and technologies to ensure you are always able to give relevant input to your child.

    Put an emphasis on protection, from settings to passwords on all devices and accounts, and encourage regular updating of passwords and codes. And ensure that they understand the importance of protecting their personal information no matter what age they are.

    Here are some other general tips which can help you ensure you are protecting your child online in all sectors, courtesy of Stay Smart Online:

    Top tips

    • Know what your children are doing online-make sure they know how to stay safe and encourage them to tell you if they come across anything suspicious or if anybody says or does something that makes them feel uncomfortable or threatened.

    • Get to know the technologies your children are using. This will help you understand the risks and to be able to talk to them about what they are doing online.

    • Discuss the risks with your children and agree on some rules for internet use. Post them clearly near your computer.

    • Tell your children if they are uncomfortable talking to you they can contact the Cybersmart Online Helpline (Kids Helpline) www.cybersmart.gov.au

    • Place the computer in a family area of the home – the family or living room, rather than a bedroom.

    • Install an internet content filter. This can be used to restrict what content is viewed and downloaded or the times when they can use the internet.

    • Make sure your children know not to share personal information or photos. This includes their full name, mailing address, telephone number, the name of their school, or any information that could allow someone to work out who they are and where they live.

    • Report inappropriate, harmful or criminal activities that occur online or via a mobile device to www.thinkuknow.org.au

    • Report offensive content to the Australian Communications and Media Authority (ACMA). You can do this by completing the relevant online form at www.acma.gov.au/hotline or by sending an email to online@acma.gov.au or phone 1800 880 176

    Don’t let your children get caught with credit rating defaults that should not be there. Don’t let fraudsters take over their good name. Educate yourself and your child on what a valuable commodity your personal information is, and how you and your child can protect what is your ticket to financial freedom in this modern world – your credit file – from fraud.

    So our message this week is: take heed online, and safeguard your personal information to prevent identity theft and credit file misuse.

    For more information on credit file misuse, or to get more help or information about the security of your credit file, visit our main site www.mycralawyers.com.au, or you can contact us on 1300 667 218.

    Image: Ambro/ www.FreeDigitalPhotos.net

  • Secure your smartphone and other mobile devices to prevent credit rating misuse

    securing mobile deviceWith smartphones, tablets and other mobile devices, your life is there at the touch of a button. But the features that make your phone ‘smart’ also make it susceptible to viruses and malicious software. These attributes also make your mobile device a valuable commodity if it is lost or stolen. Your personal information can be accessed via your phone, as well as potentially your passwords, banking details, emails and photos. If fraudsters got their hands on your device, either virtually or physically, what could they get from it? Is the information on your device enough for fraudsters to access your money, or steal your identity or credit rating? For this post in aid of Stay Smart Online Week 2014, and it’s theme ‘On The Go’, we look at the best ways to secure your mobile device. 

    By Graham Doessel, Non-Legal Director of MyCRA Lawyers www.mycralawyers.com.au. Stay Smart Online Week 2014.

    Stay Smart Online - Proud Partner LR

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

    Mobile phones, especially smart phones are mobile computers. They allow you to access the internet and email, download applications and games and store personal contacts, photos and information. You need to protect and secure your phone just as you would your home or mobile computer.

    If you are unlucky to have your mobile device stolen it can be the same as someone breaking into your home or stealing your PC. If the device is not secure, often there is enough information on there for a criminal to go about hacking into your bank accounts, or stealing your identity and taking credit out in your name.

    Likewise if you are ‘hacked’ or download malicious software, passwords and personal information can be taken. The recent iCloud attacks are an example of how you can potentially be at risk. It demonstrates the importance of changing passwords on all accounts regularly. (See the story in The Australian ‘Hacked iCloud account victims face ongoing identity fraud risk‘).

    Identity theft can hit twice, and if you’re hit, you can face an uphill battle with your credit rating if it’s gone that far. Many times you are unaware your good name has been used until you apply for credit somewhere and are flatly refused. You can have credit applications as a minimum and possibly defaults, mortgages and mobile phones attributed to you incorrectly.

    You may have repayment history against your name on your credit rating at a minimum, or once an account remains unpaid past 60 days, the debt may be listed by the creditor as a default. Defaults remain listed on the victim’s credit file for a 5 year period unless they can prove they are an identity theft victim.

    It is not widely known how difficult recovery from identity theft can be. Unfortunately there is no guarantee that defaults can be removed from your credit file. The onus is on you to prove your case of identity theft to creditors.

    So to prevent this terrible crime from happening to you, take heed of Stay Smart Online’s Top Tips for securing your mobile device:

    Top tips

    • Put a password on your phone and a PIN on your SIM card. Do not rely on the default factory settings. Using a password and PIN will stop thieves getting access to your phone or using the SIM in another phone to make calls. All phones have security settings so familiarise yourself with them and turn them on.

    • Setup your device to automatically lock. If your phone has not been used for a few minutes, it should automatically lock and require a password or PIN to reactivate.

    • Encrypt your data. Some phones allow you to encrypt your data, sometimes using third-party software. Encryption secures your data if your phone is lost or stolen.

    • Consider installing security software from a reputable provider. Anti-virus, anti-theft, anti-malware and firewall software is available for some mobile phone operating systems.

    • Stay with reputable websites and mobile applications (apps). Always keep an eye on your commonly used websites’ addresses and make sure you are not redirected or diverted to other websites. When using any financial mobile applications, such as mobile banking, make sure to only use applications supplied by your financial institution.

    • Be careful when allowing third party unsigned applications to access your personal information. This includes access to your location. Always read permission requests before installing new apps or app upgrades, looking for unusual requests or pleas for money.

    • Do not click on unsolicited or unexpected links. Even when they appear to be from friends.

    • Check your phone bill for unusual data charges or premium rate calls. Contact your service provider immediately if you discover any unusual calls or data usage on your bill.

    • Check for updates to your phone’s operating system regularly. Install them as soon as they are available.

    • Be smart with Wi-Fi and Bluetooth. When connecting to the internet using Wi-Fi, try to use an encrypted network that requires a password. Avoid online banking or financial transactions in busy public areas and over unsecured Wi-Fi networks. Ensure that passers-by can’t watch what you are typing (known as shoulder-surfing). Turn Bluetooth off when you aren’t using it.

    • Back up your data regularly. Set up your phone so that it backs up your data when you sync it, or back it up to a separate memory card.

    • If you decide to recycle your phone, make sure you delete all your personal information first. Most phones have an option to reset to factory settings. Remember to remove or wipe any inserted memory cards.

    • To assist you in case of your mobile theft or loss, ask your provider or manufacturer whether it has services such as mobile tracking and the ability to remotely wipe your information stored on the phone.

    So our message this week is: take heed online, and safeguard your personal information to prevent identity theft and credit file misuse.

    For more information on credit file misuse, or to get more help or information about the security of your credit file, visit our main site www.mycralawyers.com.au, or you can contact us on 1300 667 218.

    Image: adamr/ www.FreeDigitalPhotos.net

     

  • Keep updated about threats to your credit file:

    Do you really know if your credit rating is safe when you’re shopping, surfing, communicating and transacting online?  When you understand personal information and how it can be used by fraudsters, you want to do all you can to protect your personal information both online and offline. We look at one of the best things you  can do to stay up to date with threats to your identity and credit file, and ensure you Stay Smart Online.

    By Graham Doessel, MyCRA Lawyers www.mycralawyers.com.au.  Stay Smart Online Week 2014.

    Stay Smart Online - Proud Partner LR

    It’s important in our age of technology to be able to confidently engage online.  But it is equally important to be able to stay safe while doing that.

    How do you know when you need to update software? Or change a password? When will you know about Security breaches to entities which hold your personal information?

    The Australian Government provides a free subscription based service to home internet users and small businesses offering practical advice about security issues and observations which could impact you, your finances, your identity and your credit rating.

    The Alert Service provides easy to understand information about the latest internet threats, scams, and other risks, and how they can be recognised and addressed. If you’re using your computer at home (and lets face it – who isn’t?) this is like internet security 101.

    We encourage all of our readers to subscribe to this service. It could just save your bacon one day when it comes to internet threats.

    Click here to subscribe to the Stay Smart Online Alert Service.

    Internet fraud can lead to identity theft and in this situation often your credit file can be misused.

    If a fraudster is able to garner enough personal details to get duplicate documents in your name, they not only have your identity – they have access to your credit rating as well.

    This means they can take out credit in your name…and if they’re well-versed in this process – it may not be evident your identity is even compromised until you go to take out credit yourself and are refused.

    Unravelling the tangled web of identity theft at this point can be at times impossible. And unlike bank or credit card fraud, there’s not always reimbursement to be found. Some victims have found they have had to cop the 5 year default on their credit file, because they don’t understand and therefore can’t prove how the identity theft occurred in the first place.

    So our message this week is: take heed, and safeguard your personal information to prevent identity theft and credit file misuse.

    For more information on credit file misuse, or to get more help or information about the security of your credit file, visit our main site www.mycralawyers.com.au, or you can contact us on 1300 667 218.

  • Stay Smart Online and Keep Your Credit File Safe

    prevent identity theftJoin MyCRA Lawyers as we support ‘Stay Smart Online Week’ running 2 – 6 June 2014. This week aims to help Australians using the internet – whether at home, the workplace or school – understand the simple steps they can take to protect their personal and financial information online.

    This year’s theme – ‘On The Go’ – reflects the importance of staying safe and secure online while using mobile devices when social networking, banking, shopping, and navigating the internet. In this post, we give you an overview of what MyCRA Lawyers will be doing to promote awareness during Stay Smart Online Week 2014, and briefly explain why we choose to partner in this week and how important staying smart online is for the safety of your credit file.

    By Graham Doessel, Non-Legal Director of MyCRA Lawyers www.mycralawyers.com.au.

    Stay Smart Online - Proud Partner LR

    The 2014 Stay Smart Online Week (formerly Cybersecurity Awareness Week) is the seventh consecutive annual event conducted by the Australian Government in partnership with industry, the community sector and all levels of government.

    A range of activities are taking place around Australia, including seminars, industry events and community activities which you can attend or participate online.

    What will MyCRA Lawyers be doing during Stay Smart Online week?

    Monday: Staying Smart Online: Why you need to subscribe to Stay Smart Online Alerts.

    Tuesday: We will be exploring the theme for this year “On The Go” and look at how you can best secure your mobile device when social networking, banking, shopping and generally on the internet, as well as the ramifications of not securing your devices.

    Wednesday: We look at how you can protect your child online – particularly when it comes to their credit file. If you are a parent, and didn’t realise your children can be vulnerable to identity theft, then you don’t want to miss this post.

    Thursday: We are holding Stay Smart Online Awareness Day in our office. The team is getting involved and wearing the Stay Smart Online colours to promote this week. We will also be putting out a series of Facebook posts around crucial online safety topics. Don’t miss out on our great safety tips for protecting yourself and your credit file. In addition, we will post in our blog about Facebook itself in more depth and take a look at the dangers of Facebook to your credit file.

    Friday: We look in more detail the reasons why online security and savviness is so important for your credit file, and feature the best tips to protect yourself in the online space to prevent credit file misuse.

    Why did MyCRA Lawyers choose to partner for Stay Smart Online Week?

    It has never been a more important time to think about protecting personal information.

    Recent statistics released from the Australian Institute of Criminology show 1 in 5 Australians surveyed had been a victim of identity theft. The survey revealed 1 in 5 Australians have had their personal information misused, and 10 per cent had experienced the misuse in the past year. The statistics are higher than similar research conducted in the United Kingdom and the United States.

    Dr Clare Sullivan, an identity crime expert and law lecturer at the University of South Australia, says people get upset about the loss of money, but that was usually temporary, and was actually the least of their worries.

    “It’s the loss of identity. Once that has been compromised it’s compromised forever. People don’t realise how important that is and it could come up in six months or a year’s time or five years’ time,’’ she told news.com.au following the release of the survey.

    It is precisely this loss of identity which can lead to an even bigger type of fraud than simple bank or credit card fraud. If a fraudster is able to garner enough personal details to get duplicate documents in your name, they not only have your identity – they have access to your credit rating as well. This means they can take out credit in your name…and if they’re well-versed in this process – it may not be evident your identity is even compromised until you go to take out credit yourself and are refused.

    Unravelling the tangled web of identity theft at this point can be at times impossible. And unlike bank or credit card fraud, there’s not always reimbursement to be found. Some victims have found they have had to cop the 5 year default on their credit file, because they don’t understand and therefore can’t prove how the identity theft occurred in the first place.

    So our message this week is: take heed online, and safeguard your personal information to prevent identity theft and credit file misuse.

    For more information on credit file misuse, or to get more help or information about the security of your credit file, visit our main site www.mycralawyers.com.au, or you can contact us on 1300 667 218.

     

    Image 1: marin/ www.FreeDigitalPhotos.net

    Image 2: Courtesy of Stay Smart Online

  • Credit law series: Bad credit mistakes in Australia

    bad credit mistakesIn this credit law series, we look at bad credit mistakes. Do you have a bad credit rating and don’t know why? Have you had bad credit placed on your credit file you don’t agree with? You are not alone. Possibly millions of people in Australia have a bad credit rating, and many people are unaware they have black marks against our name until we apply for credit and are flatly refused. We look at the ins and outs of bad credit mistakes and what you can do about them.

    By Graham Doessel, Non-Legal Director of MyCRA Lawyers www.mycralawyers.com.au.

     

    What is a bad credit rating?

    ‘Bad credit’ in Australia is generally credit listings such as defaults, writs, Judgments or Bankruptcies recorded against your name on your credit file by a Credit Provider.

    Most of these listings can make it very difficult to obtain credit for 5 years for defaults and up to 7 years for bankruptcy. This can affect many major areas of your life such as buying a home, taking out personal loans for vehicles, business loans and in many cases even credit cards and mobile phone plans.

    Currently, most of the major banks are rejecting home loan applications where the credit history shows a default listing (an overdue account which has lapsed past 60 days). Many lenders are even rejecting loans for excess credit enquiries such as two in thirty days or six within the year.

    How common are bad credit mistakes?

    There are over 16.5 million credit files for ‘credit active’ people, held by the major credit reporting agencies in Australia; Equifax (Formerly Veda Advantage), Dun & Bradstreet, Tasmanian Collection Service. (16.5 million credit files are held by Equifax (Formerly Veda Advantage) alone).
    Unfortunately, there are no current statistics on the number of credit mistakes which occur on Australian credit files.

    But to give you some idea, in 2004 the Australian Consumer Association (now Choice) conducted a survey which revealed 34% of the credit files of the people surveyed possibly contained errors.

    Most people that query Credit Providers and credit reporting agencies about their bad credit – especially where there’s a default, are told that the listing can’t be removed but can be marked as ‘Paid’ if the account was settled.

    This is often not good enough if you need to use credit over the next 5 years (which is almost everyone nowadays).

    What sort of bad credit mistakes are disputable?

    You should know that any credit listing which you believe is inconsistent, unfair, or incorrect can, and should be disputed. Credit rating mistakes could be anything from the credit listing placed by your Credit Provider on the wrong credit file; to the basis of the credit listing being unfounded; to incorrect notices being provided to you; right through to system errors and incorrect spelling, to name a few examples.

    How do I repair my bad credit rating?

    One important aspect to disputing a credit listing in Australia (also known as credit repair) is to remember is that we usually only get one chance at clearing our credit file.

    Sometimes we can attempt to deal with Credit Providers to remove the credit rating default ourselves and can do more harm than good by not understanding the legislation. This is where a firm focused on credit law can help.

    What does a credit law firm do?

    Disputing (or repairing) a credit file involves reviewing documentation– including the credit file and all the circumstances surrounding the default, writ or Judgment.

    Then the credit repairer negotiates with the creditor who initiated the listing on your behalf to remove the default.
    This can also often involve lengthy requests and submissions of documentation until an agreement is reached by the creditor and the repairer to remove the offending black mark.

    Not every credit file is suitable for credit repair. The credit repair company can review your situation and determine whether your case is worthy of pursuing.

    How do I seek out the best firm for repairing my bad credit mistake?

    Credit repair with a law firm solely focused on credit law is arguably the safest choice for credit repair in Australia. The process of credit repair is often attempted by companies without a legal practising certificate.

    Some of these companies can charge big bucks to perform the service for you. Some in the ‘credit repair’ industry may also claim to give quasi-legal or legal advice without adhering to the restrictions of the law.

    A credit reporting lawyer can act in court processes; identify legal issues; provide legal advice; prepare binding agreements; conduct formal negotiations and follow through with enforcement where necessary.

    A credit reporting lawyer can also make formal recommendations to Credit Providers making reference to the law, and make representations on behalf of clients.

     

    Click here to find out more about how MyCRA Lawyers can help you with your bad credit mistakes.

  • Is Your Privacy Policy Compliant

    Really? Are You Sure? (Online & Offline?)

    OAIC-logo

    Is your Privacy Policy compliant with the major reforms to the Privacy Act 1988 (Cth) that came into effect on 12 March 2014 ?

    Under the new reforms, the Privacy Commissioner has much stronger and far broader reaching powers to enforce compliance with the Privacy Act, which includes fines of up to $340,000 imposed on individuals and $1.7 million on corporations for serious or repeated breaches.

    The Privacy Commissioner has stated that “he will not shy away” from using these new powers.

    One of the new requirements is that all business organisations must have an up to date Privacy Policy that complies with the new Australian Privacy Principles (APPs) contained in the Privacy Act and that an organisation’s Privacy Policy is made freely and readily available to the public.

    Don’t make yourself an easy target for the Privacy Commissioner. Take immediate steps to update your Privacy Policy NOW !

    MyCRA Lawyers are experts in privacy law and we can provide you with a new privacy policy that is fully compliant with these reforms.

    Here are some “MUST HAVE’s” in your new Privacy Policy: 

    • Specify the personal information to be collected by you;
    • Specify how that personal information is to be collected and how it is to be stored or held;
    • Specify the purpose for which that personal information is collected;
    • Explain how an individual can access their personal information;
    • Explain how an individual can correct any inaccuracies;
    • Explain how an individual can make a complaint and specifically how that complaint will be handled;
    • Whether you are likely to disclose their information to overseas recipients, and if so, the countries the recipients are to be located.

     

    Depending on your needs and budget, we can provide you with a basic but compliant privacy policy or one that is specifically tailored and customised to the needs of your particular business.

    We can also assist you by providing a compliance checklist and if required, undertake a complete internal audit of your current systems and processes for handling personal information, to ensure that they comply with the revised Privacy Act requirements.

    To enquire about MyCRA Lawyers range of Privacy Policy Compliance products and services, please pick up the phone NOW and call MyCRA Lawyers on 1300 667 218 – We can help you avoid the massive trauma a fine from the Privacy Commissioner may cause.

    Justin Russom
    Privacy Law Solicitor
    MyCRA Lawyers

     

     

     

  • New credit laws: the single best thing you can do to prevent bad credit

    change attitude to billsChange your attitude towards paying your bills, and change the likelihood you will suffer from bad credit. That is the single best thing you can do to prevent bad credit in the form of defaults, and now, the dreaded late payment notation. It’s not rocket science of course, but changing your financial attitude and stopping the crazy juggling act is one of those things I have seen in my time that most people on the slippery financial slope don’t do, that they could do to get themselves on the road to long term financial recovery long before they have defaults. Without defaults or late payment notations on your credit file, you score much better in the lender’s systems. You have a much better chance at securing credit in the future, including major credit like a home loan.

    By Graham Doessel, Non-Legal Director of MyCRA Lawyers www.mycralawyers.com.au.

    Although we would like to believe that the credit system is foolproof there are always going to be instances where Credit Providers make mistakes, and you cop bad credit unjustly or incorrectly. That you can’t help. T

    he type of bad credit I’m talking about is the bad credit which is directly attributed to you not paying your accounts on time. Instances where it’s either entirely or mostly your fault.

    With our new credit laws in place, it is quite likely that at some point most Credit Providers holding an Australian Credit Licence (eg banks and building societies) will sign on to comprehensive credit reporting and be able to access and report on your repayment history. So if you’re late by more than 14 days paying your credit card, personal loan or home loan, you run the risk of having a late payment notation recorded on your credit file and remain there for two years.

    A story yesterday from the Brisbane Times, Telcos and utilities could suffer under new credit rules quotes the Australian Retail Credit Association (ARCA)’s Damian Paull. ARCA are the guys that devised the Credit Reporting Code of Conduct, to go with our new Privacy Laws. Mr Paul said there is a danger that banks who chose not to report consumer repayments information and telcos and utilities – which are excluded from the new regime – could find there is a financial impact.

    “Once consumers get a sense of who is reporting, what’s going to happen?,” he said.
    “If I know bank X is reporting and Bank Y isn’t, what is going to happen to banks who do not report that information? What is going to happen to telcos and utilities?
    “Is that going to put pressure on these organisations and their payments – I think this is probably going to happen,” he told a conference organised by Informa in Sydney on Wednesday.

    These comments worry me, because it tells me that it is predicted that people who are struggling with their repayments will simply make their loan and credit card repayments on time, but miss the mobile or energy bill, because those are not subject to repayment history.

    Whilst this may be true, as someone who has been involved in the finance sector a long time, it is not a sentiment I want to accept.
    Fair enough, some months you may be a little short on cash. Yes, to avoid repayment history, you may want to pay your credit card, but leave your phone bill.

    But for those people who are consistently unable to meet all of their repayments on time – there was no mention in the article from any of those commenting, of what they should do, to get back on track.

    By acting early and taking advantage of new financial hardship laws, you can save yourself from mounting debt, late payment notations and defaults.

    If you are suddenly unemployed, fall ill, separate from your spouse or have a period of intense debt stress – you should know there are laws that may be able to help you through this difficult time. By putting your hand up early– before your accounts go into arrears – you could save your credit file. But why are there not more people aware of this?

    Time and again, I see people burying their heads in the sand, robbing Peter to pay Paul, until they are in so much debt it slaps them in the face. You should know that a bump in the road doesn’t have to mean you can’t borrow again, so long as you handle it the right way.

    New financial hardship laws brought out by the Government last year have been designed to protect consumers during times of temporary financial hardship.

    Last year, Steven Münchenberg, Chief Executive of the Australian Bankers Association, said in a statement to the media that only one in four bank customers knew that banks offered hardship assistance.

    As a company involved in credit dispute, MyCRA Laywers has helped many clients in the past dispute credit listings issued during a time of financial hardship.

    If the powers that be played a more proactive role in credit education, this issue would no longer be as prevalent.

    In the past consumers have not been offered hardship variations with their bank, or they have not been aware they have a right to request one and have been defaulted – this locks them out of mainstream credit for five years. If you are largely aware of your rights and obligations, then you might request a variation to your credit agreement early and potentially avoid the long term pain for what is often a very temporary issue.

    The earlier you act, the better off you will be. The key word here is ACT. Don’t hide from your Credit Providers and hope it will all go away. It never does.

    If you are experiencing temporary financial hardship you contact your bank or building society and ask to speak with the Financial Hardship Variation Team. Using the specific words ‘financial hardship’ will help make it clear to the bank what you need. Ideally, act before you fall into arrears on your account – to save your credit file when you recover from this difficult time.

    If you’re not at the point of needing a specific hardship variation with your bank, but you still struggle from time to time – don’t wait till everything goes belly up. There’s plenty of help out there for people who aren’t great juggling their finances or have found themselves over-committed. There are free financial counsellors out there who should be able to help you. Contact the Financial Counsellors of Australia www.fca.org.au for more help.

    Image: Danilo Rizzuite/ www.FreeDigitalPhotos.net

  • Is the 2014 Federal Budget a mortgage killer?

    mortgage killerWe look at Tony Abbott and Joe Hockey’s Federal Budget in detail to determine what the possible ramifications could be for those who will buy a home in the future. Whether you agree with the decisions handed down or not, we look at how the choices in ‘Federal Budget 2014’ could impact home buyers both now and in the future. We also look at the possible ramifications for credit expectations and the credit files of those in the firing line.

    By Graham Doessel, Non-Legal Director of MyCRA Lawyers www.mycralawyers.com.au.

    The property industry has been given a partial reprieve under the Federal Budget 2014, with negative gearing surviving, despite predictions it would be axed. The Government had also said during the Budget announcement that it expected interest rates to remain low in the near future, which is good news for home buyers and mortgage professionals.

    But there are still a number of substantial areas in the Budget which cause negative fall out to filter down to Australian home buyers and be felt on the frontline of the mortgage industry, and we examine them.

    Changes to unemployment benefits 

    There has been controversy about the Government’s harsh new rules on unemployment benefits. The unemployed who are 25-30 years old will have to wait 6 months to receive the Newstart Allowance. But despite the damning headlines, the rules aren’t quite as harsh as they appear. If an applicant was previously employed, the waiting time will be reduced one month for every year they had been employed. This means that if someone has legitimately lost a job prior to 6 or more years of work, they will be exempt from the government’s new stipulations.

    It sounds like a good plan to boost employment, which could in turn be good for the housing and finance industries, except it seems to leave the potential for many people to be quite disadvantaged.

    For those who are forced to wait a month or two before they can receive Newstart, there could still be problems. For instance, how is a 25-30 year old who lives out of home, who perhaps has a family or at least has incurred some level of debt, and who is unable to get work, expected to wait out one or two months, let alone six months with no money coming in – before they receive government help?

    If the unemployed person is truly unable to secure work straight away for whatever reason, they are going to end up relying on credit to bridge the gap until they can either find paid work or become eligible for government assistance. Although the idea of making people wait sounds reasonable as an incentive to get “dole bludgers” off the couch and out in to the workforce, in reality the conditions just don’t seem fair for everyone across the board.

    It brings to mind a survey I featured back in 2012 from Dun & Bradstreet. Their Credit Expectations Survey revealed at the time that a third of low income earners in Australia would only have been able to survive one month without paid work. What if you’re a low income earner, living in an area of high unemployment?

    Furthermore in terms of the housing market – people who go through something like this in their 20’s could be ruined for major credit like a home loan. At best they’ll probably have a credit rap sheet of payday loans and fringe lenders. At worst, they’ll have defaults on their credit file.

    Families saving for a home

    There has also been a significant reduction in the Family Tax Benefit. The Family Tax Benefit Part B threshold has been reduced to $100,000 and will no longer be available after the recipient’s youngest child turns six. The Family Tax Benefit Part A will begin to reduce once the family’s income exceeds $94,316 per year. The School Kids Bonus will also be cut. Having three children is also no longer considered a “large family” with families of four children the cut-off for eligibility for the large family supplement.

    Alongside these cuts, the fuel excise freeze has also gone. This means that fuel prices will rise every six months with inflation.

    First home buyers

    First Home Buyers, already with historically low numbers in Victoria, will have even less incentive to buy a home following this Federal Budget. There are a number of direct and indirect cuts which will impact them. The first is the scrapping of the First Home Savers Account:

    INCENTIVE CUT

    First-home buyers saving for a deposit have lost an incentive with the scrapping of the First Home Savers Account (FHSA) in the Budget.

    The Rudd government initiative, introduced in 2008, provided people saving for a deposit with tax breaks and co-contributions from the government.

    Under the scheme, savers paid concessional tax rates of 15 percent on interest earned in the accounts and the government made a 17 percent co-contribution on the first $6000 contributed each year.

    The government co-contributions to the accounts will end on July 1 and tax and social security concessions will be withdrawn from July 2015.

    Mr Hockey said the accounts were being abolished because their low popularity.

    The Government expects to make $143 million in savings over five years from its scrapping. (news.com.au ‘Federal Budget 2014: Homeowners and the property sector winners’).

    In addition to this, the Government has decided not to review the First Home Owner Grant to keep it relative to house price movements, despite calls from the Real Estate Institute of Australia to do so.

    Price hikes for Universities

    University fees will be de-regulated after 2016 – and this will see a likely increase in University fees across the States. This could also filter through to the first home buyer market. Students will likely come out of their studies with a bigger debt to repay, and less money to save for a home.

     

    There are some key issues for home buyers, particularly first home buyers given their rates are already so low. I believe it will be important to watch how things unfold over time, particularly  how the new unemployment system is working. But for the housing industry, I don’t see this budget as being a big a mortgage ‘killer’ – but let’s hope it doesn’t end up hurting a little.

     

    MyCRA Lawyers is an Incorporate Legal Practice focused on credit consultancy and credit file disputes. MyCRA Lawyers means business when it comes to helping those disadvantaged by credit rating mistakes.

    The above piece is opinion only and does not constitute legal and or financial advice.

    Image: jesadaphorn/www.FreeDigitalPhotos.net

     

  • Protect your credit file campaign fights identity theft

    Media Release

    Identity theft‘Protect your credit file’ campaign fights identity theft.

    16 May, 2014

    As the Attorney-General announces rates have ballooned to 1 in 5 Australians affected by identity theft, a credit reporting advocate is running an awareness campaign aimed at reducing the numbers affected by this terrible crime.

    Graham Doessel, who is Non-Legal Director of MyCRA Lawyers, a firm focused on credit disputes, says identity theft can have devastating effects, including damaging the victim’s credit rating.

    “Some identity theft victims can wind up banned from mainstream credit for years because a fraudster has stolen their good name,” Mr Doessel says.

    This comes as a result of an Australian Institute of Criminology survey which revealed that 20.7 per cent of those surveyed had experienced identity theft at some time. 14 per cent were also refused credit following the event and 5 per cent had to commence legal action to clear debts and/or their name.

    Mr Doessel says when fraudsters assume someone else’s identity they can leave a trail of destruction on their credit file.

    “Fraudsters are never so kind as to pay the credit back. Defaults can then mount on the victim’s credit rating and ruin the victim’s ability to obtain credit in their own right,” he says.

    Mr Doessel says there are 10 identity theft prevention tips to be aware of:

    1.       Install automatic software updates on your computer and perform regular scans.

    2.       Change passwords regularly and use a variety of passwords.

    3.       Keep your privacy settings secure on all sites you use.

    4.       Subscribe to the government’s ‘Stay Smart Online’ alerts for computer security updates.

    5.       Check your credit card and bank statements each time they come in for strange activity.

    6.       Shred all personally identifiable information which you no longer need.

    7.       Buy a safe for your personal information at home, and a lock for your mailbox.

    8.       Be aware of who gets your personal information and for what purposes. For instance, is it really necessary for the site you are registering on to store your date of birth?

    9.      Visit the ACCC’s ‘SCAMwatch’ website for updates.

    10.   Check your credit file regularly.

    MyCRA Lawyers is encouraging all consumers to check their credit file to make sure it is as it should be. You can do this for free through www.freecreditrating.com.au once per year.

    “We feel so passionately about credit file awareness, and want to promote how important a credit check is to preventing identity theft and all other credit rating inconsistencies,” Mr Doessel says.

    He says during their ‘protect your credit file campaign’ (which began last week during Privacy Awareness Week, and runs through the month of May 2014), MyCRA Lawyers is giving away up to 50 personal shredders to their new clients. (Conditions apply, see website www.mycralawyers.com.au for full details).

    “Personal information is so important to protect, and one of the simple ways we can help our clients avoid identity theft is by promoting the shredding of personal documents they no longer need,” he says.

    /ENDS.

    For interviews and more information please contact:

    Graham Doessel – Non-Legal Director MyCRA Lawyers Ph 3124 7133

    Lisa Brewster – Media Liaison MyCRA Lawyers media@mycralawyers.com.au

    www.mycralawyers.com.au       www.mycralawyers.com.au/blog www.mycralawyers.com.au/mediacentre

    MyCRA Lawyers 246 Stafford Rd, STAFFORD Qld Ph 07 3124 7133

    About MyCRA Lawyers: MyCRA Lawyers is an Incorporated Legal Practice focused on credit file consultancy and credit disputes. MyCRA Lawyers means business when it comes to helping those disadvantaged by credit rating mistakes.

    http://aic.gov.au/publications/current%20series/rpp/121-140/rpp128/07_results.html

    Image: Chris Sharp/ www.FreeDigitalPhotos.net

  • ABS Housing Finance March 2014: The brakes are lightly on

    housing finance statisticsThe Australian Bureau of Statistics (ABS) has released Housing Finance figures for March 2014. The number of commitments for owner occupied dwellings reveal growth has taken a slower pace despite differing predictions from economists. We take a look at the ABS Statistics and what they might mean for the Australian housing market, as well as approvals.

    By Graham Doessel, Non-Legal Director, MyCRA Lawyers www.mycralawyers.com.au.

    The number of home loans approved in March fell 0.9 per cent, weaker than economists’ expectations of a 0.5 per cent rise.

    Australian capital city house prices continued to rise in the March quarter, by 1.7 per cent, softer than the 2.9 per cent rise economists were expecting.

     “We saw very, very solid growth in Sydney and Melbourne, and most other major property markets, and what we’re seeing now is a pull back,” JP Morgan economist Tom Kennedy said in the West Australian today.

     “Over the past few months, there’s been quite a slowdown and deceleration from the euphoria that we saw in the second half of last year.”

    But that growth had been unsustainable, Mr Kennedy said, and “prices are now growing at levels that are perhaps more sustainable over the long term”.

    Here’s the ABS data for Housing Finance March 2014:

    MARCH KEY POINTS

    VALUE OF DWELLING COMMITMENTS

    March 2014 compared with February 2014:

    The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.2%. Investment housing commitments rose 0.4% and owner occupied housing commitments rose 0.1%.

    In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions fell 1.1%.

    NUMBER OF DWELLING COMMITMENTS

    March 2014 compared with February 2014:

    In trend terms, the number of commitments for owner occupied housing finance fell 0.1%.

    In trend terms, the number of commitments for the purchase of new dwellings fell 1.4% and the number of commitments for the purchase of established dwellings fell 0.3% while the number of commitments for the construction of dwellings rose 1.7%.

    In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 12.6% in March 2014 from 12.5% in February 2014.

    The housing market and bad credit

    What happens to people who have bad credit? When they are refused a mainstream loan because of bad credit, but market confidence is high – when it is moving up – they may not think twice about choosing a high interest rate loan in order to take advantage of an increasing market. This comes at a price though – a whopping $15,046.57 or more in additional home loan repayments over the first three years of their loan. But if the market is going up rapidly – a potential buyer may see it as a viable option.

    When confidence is low, or when the market is fairly static, they may not be so keen – they may simply choose not to buy rather than pay the extra in interest.

    Many of the people that currently have negative listings on their credit file may be living with bad credit history unnecessarily. Rather than miss the opportunity to buy because there is no urgency to buy, because they would rather save that $15,000 – there is another option – to actually assess whether they would be suitable to have their credit listings disputed and ‘repaired’.

    To find out how more people can remove their bad credit history – opening doors to lenders that were previously unavailable – contact MyCRA Lawyers on 1300 667 218.

    Image: Idea go/ www.FreeDigitalPhotos.net

     

     

  • Correcting your credit report

    correcting credit reportsSignificant changes to Australian credit reporting have been implemented with amendments to the Privacy Act 1988 (Cth). There is new information available to some Credit Providers on Australian credit reports, and with this has also come an increased obligation for all Credit Providers to provide accurate, up-to-date and fair information on credit reports. There have been changes in the area of correction of credit reports which will make it easier for some Australians to correct inconsistencies. We look at the extensive information out there for consumers about the amended laws, and explain where your rights are enhanced, and where there still may be limitations to correcting some credit reports.

    By Graham Doessel, Non-Legal Director of MyCRA Lawyers www.mycralawyers.com.au.

    There are some changes with the new Privacy Laws which will make it easier for consumers to correct their credit report.

    Four significant changes include:

    1. The requirement of the Credit Provider to provide an individual with written notice if it refuses to correct the personal information as requested by the individual. The written notice must set out:

    • the reason for refusal (unless this would be unreasonable);

    • the mechanisms available to complain about the refusal; and

    • any other matter prescribed by regulation.

    2. The requirement of timeliness in answering a request to correct a credit report, so that a credit provider must respond to a request for correction within a reasonable period.

    3. The right of the consumer to request that if an organisation refuses to make a correction, and an individual requests that a statement be attached to the record stating that the information is inaccurate, out-of-date, incomplete, irrelevant or misleading, the organisation generally needs to attach this statement in a way that will make the statement apparent to users of the information.

    4. The requirement for any Credit Provider or Credit Reporting Bureau to correct a credit report, regardless of whether they are the entity which holds or is responsible for the information on your credit report.

    To read more on our Privacy Laws, you may wish to see our recent post on Repayment History

    Should I use a credit repairer?

    You should be careful of ‘cheap and nasty’ credit repairers who promise to correct your credit report for a small fee, and who are not skilled paid advocates.

    It’s important to know, that your Credit Provider will only make corrections in accordance with the Privacy Act 1988 (Cth). The information on your credit report must be inaccurate, out-of-date, incomplete or irrelevant or misleading to be removed from your credit report.

    A skilled paid credit reporting advocate would offer much more to the individual than what they could do for themselves. But to get the best result, the company must spend the time to do it right. Often there is only one chance at getting that credit listing removed.

    There are reports of people paying $1,000 for credit repair and being sent a ‘do it yourself’ kit. Spending hours on their own case when they thought they’d employed someone skilled in advocating for them. You can access information on how to address credit inconsistencies yourself, and each credit provider should also have a readily accessible correction policy on their website.

    There are also reports of companies charging thousands of dollars who are not skilled paid advocates. These companies are doing nothing but referring the client’s case to the relevant industry Ombudsman. This is also something you can do yourself for free.

    So if you can’t afford to employ a skilled credit reporting advocate, don’t go for ‘cheap and nasty’ credit repair. You should look at what you can do for yourself for free.

    Why might I need or want a skilled paid advocate?

    In our experience, there have been some limitations to consumers correcting their own credit report within the credit reporting system.

    Here are a handful of reasons why you may find it necessary to employ an advocate to help correct your credit report:

    • You may not have the time or patience to dispute your own case (on average we would devote about 28 working hours to each case of dispute).

    • The case could be complicated and require someone more skilled.

    • You may require an advocate to investigate your case more extensively before making a claim for dispute.

    • Better knowledge of Privacy Law may be required in order to make the case clearly.

    • You may not wish to deal directly with the Credit Provider or Credit Reporting Bureau – particularly where you believe the credit listing has been placed unfairly or is misleading, or where there is an ongoing dispute involved.

    • Access to more avenues of investigation and dispute may be required than what an industry Ombudsman (as an impartial Body) can provide.

    • You may simply want to ensure the most chance of success at getting your credit listing removed (especially since in many cases there is only one chance at correction).

    • You may also feel you need or require a lawyer to advocate for you, especially if you are not eligible to use a credit legal centre. A lawyer can: Act in court processes including the removal of Judgment and Writ services, a non-lawyer cannot act in these proceedings; identify legal issues and give advice on these; prepare binding agreements, conduct formal negotiations and then follow through with enforcement where necessary; make formal recommendations to Credit Providers making reference to the law, and making representations on their client’s behalf.

    Unfortunately when clients have already used another company or have done some of the work themselves, it can also place limitations on their case.

    For instance, if you have already engaged the Ombudsman, it is virtually impossible for an advocate to then re-open your case with a different avenue of dispute or by including extra legislative proof to strengthen the case.

    Some inferior companies can also leave an imprint on your credit file after they have done the work. This can be detrimental especially if you intend to apply for finance.

    So what will be the future for credit reporting correction? Despite a set of better laws, we believe consumers will continue to need advocates focused on credit reporting law within the credit landscape, well into the future. Skilled paid advocates in the credit arena will be watching these new laws unfold, ready to put their hand up for consumers and test the new legislation for its effectiveness and fairness as it should be tested.

    MyCRA Lawyers is a firm focused on credit file consultancy and credit disputes. MyCRA Lawyers mean business when it comes to helping those disadvantaged by credit rating mistakes.

    Image: digitalart/ www.FreeDigitalPhotos.net

     

  • Privacy Awareness Week 2014: Protecting the Privacy of Your Customers

    There has never been a more important time in business to consider the privacy of your customers. Personal information is more accessible than ever before, and with that, comes the need to create and define boundaries around personal information in the private sector. New laws have just been implemented which expand the scope of privacy law in Australia. This it seems is not merely being ‘over-cautious’ with privacy. A recent survey on identity crime shows it has officially become one of the more common crimes in Australia. Results from a survey of 5,000 Australians on their experiences of identity crime and misuse conducted by the Australian Institute of Criminology (AIC) on behalf of the Attorney-General suggest identity crime directly affects around 1 million Australians each year.

    personal information

     

    The survey has found almost 1 in 10 people experienced misuse of their personal information in the previous 12 months, and 1 in 5 people experienced misuse of their personal information at some point in their lives, with 5% of people experiencing identity crime or misuse resulting in a financial loss in the previous 12 months. Identity theft can impact the finances and the credit rating of victims. If your business handles personal information, this Privacy Awareness Week 2014, with its emphasis on education of Australia’s new Privacy Laws, is a good time to ensure you are meeting your responsibilities to consumers and to your business around Privacy, particularly if your business has obligations under the Privacy Act 1988 (Cth).

    By Graham Doessel, Non-Legal Director of MyCRA Lawyers www.mycralawyers.com.au.

    With the emphasis on privacy protection in Australia’s new Privacy Laws, businesses which handle personal information are required to update their Privacy Policies and possibly their systems to fall in line with new changes. Under the new privacy law the IPPs and NPPs has been replaced by the new, unified, Australian Privacy Principles (APPs) – these will apply to businesses with a turnover of at least $3 million, as well as government agencies. This is just one of the many significant changes to the Privacy Act 1988 (Cth).

    The Federal body which handles Privacy in Australia, the Office of the Australian Information Commissioner (OAIC) has previously suggested some basic questions for businesses to prompt further investigation if necessary into possibly obligations under the Privacy Act 1988 (Cth).

    • Does your business or agency handle personal information? There are some changes to what constitutes personal information under the Privacy Act

    • Do you need to review your business or agency’s privacy policy? You should have an up-to-date policy that is reviewed regularly. The new laws set out some requirements for privacy policies

    • Do you need to review your business or agency’s outsourcing arrangements? You will need to do this particularly if you are sending personal information overseas.

    • Do you use direct marketing to reach your customers? If you do, you will need to provide an easy way for people to opt-out of receiving these communications. There are some new rules in the area of direct marketing

    • Does your business or agency receive unsolicited personal information. There are some new rules on how to handle this information

    • Do your information security systems need to be reviewed and updated?

    privacy policyOn Monday, the OAIC launched ‘A guide to developing an APP privacy policy’ to assist organisations and agencies meet this challenge. The Guide sets out a step-by-step process for developing privacy policies and a helpful checklist. There are also a number of tips to ensure that privacy policies are accessible and clearly expressed.

    The OAIC also launched ‘A revised Guide to undertaking privacy impact assessments.’ A Privacy Impact Assessment (PIA) is an assessment tool that ‘tells the story’ of a project from a privacy perspective. PIAs analyse the possible privacy impacts on individuals’ privacy and recommend options of managing, minimising or removing these impacts. PIAs are one way of building an organisational culture that respects privacy while also minimising the risk of data breach which can result in reputational damage and a range of other costs.

    What else can businesses do to ensure it is creating a culture of respect for Privacy of its customers?

    Privacy and your business

    Good privacy practice is important for more than just ensuring compliance with the requirements of the Privacy Act. If an entity mishandles the personal information of its clients or customers, it can cause a loss of trust and considerable harm to the entity’s reputation. Additionally, if personal information that is essential to an entity’s activities is lost or altered, it can have a serious impact on the entity’s capacity to perform its functions or activities.

    It is important for entities to integrate privacy into their risk management strategies. Robust information-handling policies, including a privacy policy and data-breach response plan, can assist an entity to embed good information handling practices and to respond effectively in the event that personal information is misused, lost or accessed, used, modified or disclosed without authorisation. (OAIC Guide to Information Security)

    There is a large amount of help in the OAIC’s Privacy Business resources section on their website, including a Privacy checklist for small businesses.

    It is important businesses don’t leave privacy to chance. Possible ramifications of not protecting personal information can be that customers are left embarrassed, distressed, or potentially financially affected. In the case of identity theft, where personal information is used to assume the identity of the victim, there is a grave potential for credit to be taken out in the vicitm’s name. Their credit rating can be destroyed for 5 to 7 years due to defaults they haven’t actually incurred themselves. Click here to find out more about the ramifications of identity theft on the credit rating. (Article courtesy of MyCRA Credit Repair).

    Under the amended laws, the Privacy Commissioner has been given enhanced powers to conduct assessments of privacy performance for government agencies and businesses, as well as the ability to accept enforceable undertakings and importantly, to seek civil penalties in the case of serious or repeated breaches of privacy.

    MyCRA Lawyers is an Incorporated Legal Practice focused on credit file consultancy and credit disputes. MyCRA Lawyers means business when it comes to helping those disadvantaged by credit rating mistakes.

    MyCRA Lawyers is a proud partner for Privacy Awareness Week 2014.

    PrivacyWeek-Banners-R1 - 2013-3

    Link to see more on the AIC Survey on Identity Theft and Misuse in Australia 

    Image 1: pakorn/ www.FreeDigitalPhotos.net

    Image 2: Stuart Miles/ www.FreeDigitalPhotos.net

     

  • Privacy Awareness Week 2014: New Privacy Laws and You

    PrivacyWeek-Banners-R1 - 2013-3MyCRA Lawyers is a proud partner for Privacy Awareness Week (PAW), held 4-10 May 2014. Privacy Awareness Week is held every year to promote awareness of privacy issues and the importance of the protection of personal information. This year is focused on our new Australian Privacy Laws, which came into force on 12 March 2014. Find out about how Privacy Laws may affect you and your credit rating, this week during PAW.

    By Graham Doessel, Non-Legal Director of MyCRA Lawyers www.mycralawyers.com.au.

    In an age of increasing accessibility of personal information, privacy is growing ever more important, and more valued for Australians. According to a recent survey by the Office of the Australian Information Commissioner (the federal Australian Government body responsible for privacy in Australia), a third of Australians reported they had a privacy problem in the last year. In addition, 60% of Australians decided not to deal with a private business and 25% have decided not to deal with a government agency due to concerns as to how their personal information will be used.

    Australia’s new privacy laws were the most significant changes to privacy laws in over 25 years, affecting a large section of the community. The changes to the Privacy Act 1988 include a new set of Australian Privacy Principles that regulate how your personal information is handled and new enforcement powers for the Office of the Information Commissioner (OAIC).

    One of the aims of the new privacy laws is to ensure that your personal information is managed in an open and transparent way.

    Here are some tips provided by the OAIC during PAW, to help you protect your personal information:

    • Know your privacy rights

    • Read privacy policies and notices

    • Always ask why, how and who — this will help you to know how your personal information is going to be used, and if it is going to be given to another agency or organisation

    • Only give out as much personal information as you need to — always think before handing your personal information over

    • Ask for access to your personal information

    • Make sure the information an organisation or agency holds about you is accurate and up to date

    • Take steps to protect your online privacy

    • Make sure your hard copy records are properly destroyed

    • You can ‘opt out’ of marketing communications if you do not want to receive any further contact of this kind

    • Make a privacy complaint if you consider that your personal information has not been handled properly.

    Many identity theft cases that impact your credit rating could have been prevented with better education and more vigilance around the protection of personal information. Complacency around personal information, both on the part of consumers and entities such as agencies and businesses, can be the undoing of someone’s ability to obtain credit.

    Pieces of personal information are the building blocks for credit file misuse. You can lose your personal information to fraudsters in many ways, and you may be unaware of how or when it has occurred – particularly if it has happened via malware, through data breaches or even through too much sharing online.

    Sometimes it’s not until you apply for credit and are refused that you even find out you have been exposed to identity fraud, and by then it may be too late to detect how it took place.

    This is why it is so important for all Australians to educate themselves on how to keep their information secure, and to demand that any information they are required to give over to any person or company be treated with the utmost privacy. Australia’s new Privacy Laws will hopefully add the requirements for all entities holding our personal information to be more aware of and accountable for upholding personal information privacy.

    You can find out about your rights in more detail through the OAIC’s Privacy factsheet ‘How changes to privacy law affect you.’

    THIS PAW WEEK: If you have a business, get some help in our next post with how to navigate the new privacy laws, including how to update your Privacy Policy, and how and when to conduct a Privacy Impact Assessment. For consumers and businesses alike, also stay tuned this week for how Australia’s new Privacy Laws may impact your ability to obtain credit, through changes to credit reporting laws.

     

  • Beware guarantor loans for desperate first home buyers

    Media Release

    guaranteed loanBeware guarantor loans for desperate first home buyers.

    24 April 2014

    First home buyers desperate to get a foothold in the property market are receiving financial help from Mum and Dad or other family members at increasing rates through family guaranteed loans, but a consumer advocate warns there is no financial benefit for the guarantor, and significant credit rating risks.

    Graham Doessel, Non Legal Director of MyCRA Lawyers, a firm focused on credit disputes, says the difficulties people face entering the property market has sparked an increase in guaranteed loans, where the equity of a property owned by parents or other family is used as collateral.

    But Mr Doessel says many people may not be aware of the significant risks involved in this type of loan, which is being offered in some form by most lenders.

    “Most people don’t know that family guaranteed loans can be dangerous for your credit rating, because your credit history is then linked with the credit rating of your child or other family member, despite having no claim to the property, and little control over the outcome of repayments,” he warns.

    Mr Doessel says in most arrangements, if for some reason repayments are not met, both sides are liable for the debt, and both may be defaulted.

    “Unfortunately the guaranteeing party may not be aware the loan is or was in default until such time as they attempt to take out credit for themselves and are refused,” Mr Doessel says.

    He adds that new repayment history information being recorded on consumer credit files means loan repayments must be made on time or possibly face a ‘late payment’ notation against your name.

    “These late payment notations could impact your ability to get credit for two years,” he says.

    Otto Dargan, director of Home Loan Experts recently explained the rise in guaranteed loans to Mortgage Professional Australia (MPA):

    “Guarantor loans are now the only product that allows a first homebuyer with no deposit to buy a home and as a result, their popularity has increased,” he told MPA.(1)

    A survey conducted last year from ING Direct revealed that 32% of first home buyers in Australia receive financial assistance from family to put their housing finances on a firmer footing.(2)

    “The challenge of getting on the housing ladder has inspired a growing trend for first home buyers to obtain financial assistance in order to get the keys to their first property,” ING stated.

    Mr Doessel says a negative entry on a person’s credit report will mean it is difficult to get credit. He says defaults impact the ability to obtain credit for 5 years. In severe cases of delinquency, the guarantor’s own home is called upon.

    “In cases of significant arrears, the bank begins to use the guarantor’s property to recover lost debts,” he says.

    He suggests parents or family guaranteeing a loan should sit down and ask some tough questions before committing.

    “The most important question anyone contemplating guaranteeing a loan should be asking is ‘could we make the repayments should our child or family member be unable to?’ If in doubt, don’t risk it,” Mr Doessel says.

    He says it is vital to make these considerations:

    1. Seek outside independant and or legal advice prior to any agreement being made.

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

    3. Set a specific amount that will be guaranteed.

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

    5. Request a duplicate copy of all bank statements sent during the course of the guarantee. This way, payment problems can be addressed prior to any defaults, while your good credit rating is still intact.

    “Get in and do your research about alternatives to a guaranteed loan before you agree. As a parent or family member you may find you can help your first home buyer in other ways without risking your good credit rating to do it,” Mr Doessel says.

    /ENDS

    Please contact:

    Graham Doessel – Non-Legal Director Ph 07 3124 7133

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

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

    MyCRA Lawyers 246 Stafford Road, STAFFORD QLD. Office Ph: 07 3124 7133

    About MyCRA Lawyers: MyCRA Lawyers is an Incorporated Legal Practice focused on credit file consultancy and credit disputes. MyCRA Lawyers means business when it comes to helping those disadvantaged by credit rating mistakes.

    (1) http://www.homeloanexperts.com.au/wp-content/uploads/2009/09/Otto-MPA-Guarantor-Article.pdf

    (2) http://blog.ingdirect.com.au/2013/01/02/is-housing-expensive-66-of-australians-say-yes/

    Image: Ambro/ www.FreeDigitalPhotos.net

     

  • Critical internet security information: bug ‘Heartbleed’

    Is your website or online service running OpenSSL? Or are you an internet user who gives out personal details or uses services within OpenSSL? Then your security may be at risk. According to internet security experts ‘Heartbleed’ is a major vulnerability in common encryption software which is affecting many websites and online services. Heartbleed is so widespread it could leave millions of servers on the internet open to an attack and could allow sensitive data including usernames and passwords to be stolen. We look more at this vulnerability, what you can do about it, and what the risks are when personal and financial information has been stolen, especially for the affected person’s credit rating.

    By Graham Doessel, Non-Legal Director MyCRA Lawyers www.mycralawyers.com.au.

    internet security

    The bug

    The Government’s Stay Smart Online (SSO) website has issued a HIGH priority security bulletin for those websites and online services running OpenSSL due to a major security vulnerability which has been discovered:

    The OpenSSL vulnerability is reported to have been around since 2011. Following recent publicity, there is growing evidence that websites are being targeted using this vulnerability.

    According to SSO, around two-thirds of websites and many other services currently use affected versions of OpenSSL (which stands for Open Secure Socket Layer, the most common cryptographic software used on most web servers). You would recognise websites using OpenSSL by the small padlock icon in the browser address bar or the ‘s’ added to the ‘http’ prefix for web addresses.

    There is an official webpage for this bug, and I encourage all to read the webpage, and seek help in this area if necessary. It advises that unlike bugs in single software or library which are able to be fixed by new versions, this bug is more dangerous because it has left a large amount of private keys and other secrets exposed to the Internet. Considering the long exposure, ease of exploitation and attacks leaving no trace this exposure should be taken seriously.

    Heartbleed.com explains in more detail what the bug does:

    The Heartbleed bug allows anyone on the Internet to read the memory of the systems protected by the vulnerable versions of the OpenSSL software. This compromises the secret keys used to identify the service providers and to encrypt the traffic, the names and passwords of the users and the actual content. This allows attackers to eavesdrop on communications, steal data directly from the services and users and to impersonate services and users.

    The even scarier part of this vulnerability, is that if there had been someone hacking information, they would leave no trace of attack.

    Who is at risk

    OpenSSL is the most popular open source cryptographic library and TLS (transport layer security) implementation used to encrypt traffic on the Internet.

    According to Heartbleed.com:

    Your popular social site, your company’s site, commerce site, hobby site, site you install software from or even sites run by your government might be using vulnerable OpenSSL. Many of online services use TLS to both to identify themselves to you and to protect your privacy and transactions. You might have networked appliances with logins secured by this buggy implementation of the TLS. Furthermore you might have client side software on your computer that could expose the data from your computer if you connect to compromised services.

    How widespread is this?

    The most notable software using OpenSSL are the open source web servers like Apache and nginx. The combined market share of just those two out of the active sites on the Internet was over 66% according to Netcraft’s April 2014 Web Server Survey. Furthermore OpenSSL is used to protect for example email servers (SMTP, POP and IMAP protocols), chat servers (XMPP protocol), virtual private networks (SSL VPNs), network appliances and wide variety of client side software. Fortunately many large consumer sites are saved by their conservative choice of SSL/TLS termination equipment and software. Ironically smaller and more progressive services or those who have upgraded to latest and best encryption will be affected most. Furthermore OpenSSL is very popular in client software and somewhat popular in networked appliances which have most inertia in getting updates.

     

    Affected versions of the OpenSSL

    Status of different versions:

    •OpenSSL 1.0.1 through 1.0.1f (inclusive) are vulnerable

    •OpenSSL 1.0.1g is NOT vulnerable

    •OpenSSL 1.0.0 branch is NOT vulnerable

    •OpenSSL 0.9.8 branch is NOT vulnerable

    Bug was introduced to OpenSSL in December 2011 and has been out in the wild since OpenSSL release 1.0.1 on 14th of March 2012. OpenSSL 1.0.1g released on 7th of April 2014 fixes the bug.

    In Australian Broker on Wednesday, Deloitte security, privacy and resilience head Anu Nayer said it is vital for businesses who run a website or online service that the company’s technical team knows all the websites and web services the organisation has so they can check all the necessary sites. He outlined some important questions to determine your level of risk:

    •How have you determined whether each of our websites and web services has OpenSSL service enabled?

    •What type of sensitive information do we have that is accessible from the internet? What type of information would have been at risk?

    •Have we looked at our logs to determine if there have been any successful or unsuccessful attempts to exploit this issue? What did we find? Are we monitoring our network to look for indications of attacks?

    •What steps have we taken to mitigate the issue?

    •How have you confirmed that the fixes have been applied successfully?

    •Have you got assurances from our vendors, external hosting providers and application cloud services that they have fixed any vulnerable systems?

    The risks

    Obviously the information being shared in OpenSSL is of a secure nature for one reason or another, so someone with access to this information could do a whole host of things, including make use of, or on-sell information to fraudsters, cyber-terrorists or spammers.

    They can also use the information to commit identity theft – the fastest growing crime in Australia.

    Information like dates of birth, account numbers, full names and other personal information can be used to steal your identity and take credit out in your name. Fraudsters have been known to go so far as to take out personal loans, credit cards and even mortgage homes in their victim’s name. Unfortunately fraudsters are never so kind as to pay this credit back – which leads to defaults on your credit rating. Most victims are unaware of this until they apply for credit in their own right and are flat out refused.

    Defaults remain on the credit file of individuals for between 5 and 7 years. Often not much of a trail is left and prosecutions don’t come easily.

    The fix

    Open SSL 1.0.1g or newer should be used.

    If this is not possible software developers can recompile OpenSSL with the handshake removed from the code by compile time option -DOPENSSL_NO_HEARTBEATS

    Nayer says for organisations, it would also pay to consider if it is appropriate to revoke any Certificates which were used while the organisation ran exposed versions of OpenSSL.

    “Even after a fix is applied, the private cryptographic keys your systems are relying on to protect their communications could already have been compromised and this fix won’t address that compromise,” he said.

    For consumers, changing passwords regularly may help, and in addition a regular credit check can ensure you aren’t vulnerable to identity theft. Look for changes in personal details as well as suspicious credit enquiries in your name as a first sign of identity theft.

    Image: joesive47/ www.FreeDigitalPhotos.net