MyCRA Specialist Credit Repair Lawyers

Tag: Privacy Amendment (Enhancing Privacy Protection) Bill 2012

  • Miss a bill payment by one day and risk your credit rating: New Privacy Laws passed today.

    Media Release

    Miss a bill payment by one day and risk your credit rating: New Privacy Laws passed today.

    29 November 2012

    [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][UPDATE: Listen to the with Privacy Commissioner, Mr Timothy Pilgrim and Graham Doessel on News Talk 4Bc ]

    The credit history of Australian consumers is about to go under the microscope following the passing in Parliament today of amendments to Australia’s Privacy laws, and a consumer advocate for accurate credit reporting says many consumers will not be prepared for the changes around credit reporting which are about to take place.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says most Australians won’t know that from December 2012, they need to make bill payments to licenced Creditors on time, every time to avoid having a late payment recorded against their name. He is calling for greater consumer education to avoid unfair and surprise bad credit.

    “Many people pay bills late, for a variety of reasons – this doesn’t necessarily mean they intend for the account to go into default. People who pay bills late often, by accident or otherwise need to be told that this habit could have a detrimental effect on their ability to obtain credit in the future.”

    Mr Doessel goes on to say “I believe the Government should do its best to ensure that every credit active individual knows about these important changes to credit reporting law prior to the reporting of repayment history on Australian credit files.”

    Amendments to Australia’s Privacy Act in the form of the Privacy Amendment (Enhancing Privacy Protection) Bill 2012 – which includes major changes to Australia’s credit reporting laws were passed in Parliament today and come into effect from March 2014.

    Privacy Commissioner Timothy Pilgrim has also warned consumers that they need to prepare for the changes around credit reporting.

    “If a person misses making a payment from as early as December 2012, it will be able to be recorded on their credit record and may affect their ability to access credit in the future. People will not only need to be vigilant about paying their bills on time, they should also make sure that the information held by these organisations is correct. In most cases they can do this for free’,” Mr Pilgrim said in a statement to the media.[i]

    Mr Doessel reiterates the importance for every consumer to ensure their credit report reads accurately in the coming months.

    “There will be so much more information open to lenders now, and consumers should routinely check their credit file, to ensure there are no inconsistencies, and to generally be aware of what is being said about them on their credit report that could see them refused credit in the future,” he says.

    Every credit file holder is able to obtain a copy of their credit report for free every year from one or more of Australia’s credit reporting agencies – Veda Advantage, Dun and Bradstreet and Tasmanian Collection Services (if in Tasmania).

    A report will be mailed to them within 10 working days. Or for a fee to the credit reporting agencies, they can request an urgent copy.

    “It is the consumer’s responsibility to maintain the accuracy of their own credit file, and it will be more important than ever now. People should be encouraged to request a free credit report every year – regardless of whether or not they intend to apply for credit in the near future,” Mr Doessel says.

    If consumers find inaccurate information or inconsistent data on their credit report they do have the right to have that information rectified.

    Mr Doessel says whilst new laws covering credit corrections within the Privacy Amendments (Enhancing Privacy Protection) Bill 2012 are intended to make the process of disputing unfair or inconsistent entries easier, lack of knowledge of credit reporting legislation could still disadvantage the consumer.

    “As it currently stands, disputing an unfair credit listing is a bit like a battle between David and Goliath, with the consumer rarely holding enough knowledge of what constitutes an unlawful credit listing to be able to remove it from their credit file on their own. It will be interesting to see if this will change after the March 2014 deadline,” he says.

    /ENDS.

    Graham Doessel – Ph 3124 7133

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

    Ph 07 3124 7133 www.mycra.com.au www.mycra.com.au/blog

    246 Stafford Rd, STAFFORD Qld. 4053
    MyCRA Credit Repairs is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files.

     

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    [i] http://www.oaic.gov.au/news/media_releases/media_release_121129_privacy_changes.html[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Consumer groups push for changes to new credit laws

    In a final attempt to plead for correction of what many are calling some glaring mistakes for consumers within Australia’s new credit laws, a coalition of consumer groups is urging the Federal Government to make some changes before they pass the Privacy Amendments (Enhancing Privacy Protection) Bill 2012. We look at what this group is proposing, and how the new laws, if they are passed as is, could affect you and your credit history.

    By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs

    A coalition of consumer groups is hoping the Federal Government will make some changes to their new credit reporting laws prior to the Bill’s passing by both houses. One aspect they are opposed to is the minimum debt amount for credit listings – which currently stands at $100 .Various recommendations to increase the minimum amount were submitted to The Senate Legal and Constitutional Affairs Legislation Committee recently. Consumer groups believe the minimum should be increased to $500.

    The consumer groups are: Financial Counselling Australia, Australian Privacy Foundation, Consumer Credit Legal Centre NSW, Consumer Action Law Centre

    Here is an excerpt from the group’s media release, which featured on Financial Counselling Australia’s website Small debts lead to big problems:

    Spokesperson Kat Lane of Consumer Credit Legal Centre, said ‘under the current proposal someone’s ability to access a home loan could be ruined by one overdue electricity or phone bill.’

    ‘It’s easy to fall 60 days behind on an energy bill—it could be something as simple as the bill being sent to the wrong address or the account holder being away from home for an extended period. I don’t think many people would think this should affect someone’s ability to get a home loan,’ said Ms Lane.

    ‘If the amount for which someone could have a default listed on their credit report was increased to $500, people would be far less likely to be overly penalised for one overdue bill or for making one simple mistake.’

    Ms Lane said many small debts listed on credit reports were utility or phone debts and didn’t necessarily reflect a person’s suitability for credit. She also said that smaller debts, such as phone or utility debts, are often disputed by consumers.

    ‘We’d hate to see someone’s credit history affected because of an outstanding bill which they don’t even owe. Billing mistakes do happen and, as the Government’s plan currently stands, these small mistakes could have big consequences.’

    The group is also concerned about the additional information which will be available to lenders once the new laws are introduced, and particularly repayment information. They recommend the Government do more to educate consumers on their rights and obligations under the new laws:

    ‘If comprehensive credit reporting is introduced, Government and industry needs to make efforts to explain the new regime to consumers, especially that repayment information such as whether you repay your loans on time each month will be now listed on credit reports, and consumers’ rights to make complaints if there are disputes,’ Ms Lane says.

    We agree with the group’s proposals in the interests of consumer rights. The Government must do more to educate consumers on their rights if they are going to insist that more information about them be made available to lenders. In my experience, many consumers collectively:

    1. Do not know they can apply for a free credit check every year.

    2. Do not know that their credit file could contain errors and that they are responsible for ensuring their credit file accurate.

    3. Are not finding out they have credit listings in many cases until they apply for major credit and are refused.

    4. Are suffering mistakes with their credit listings which they have very little knowledge of how to rectify – this can go from a disputed bill, right through to blatant mistakes such as wrong names and wrong addresses.

    5. Do not know that if they pay a bill late in the very near future, that this could impact their ability to obtain.

    6. Have had very little explanation from the Government on precisely how correcting credit file mistakes will be made easier with the new credit laws

    We wait in hope that many of the current issues will be rectified following the introduction of these new credit laws. In the meantime, we will continue to try to educate consumers on how to navigate Australia’s credit reporting laws, and continue to insist on credit reporting accuracy by contesting disputable credit listings on behalf of our clients though our business of credit repair.

    For more information on credit repair, contact a Credit Repair Advisor on 1300 667 218 or visit our main website www.mycra.com.au.

    Image: renjith krishnan/ www.FreeDigitalPhotos.net

     

  • Are Australian house prices set to crash?

    Is it good news or bad for the housing market? We look at what’s happening in the property market in Australia and expert opinion as to where we’re heading in the future.

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

    It has been reported by major newspapers that house prices are on the way up. RP Data’s monthly report reveals that property prices have risen for the fourth consecutive month. Capital city dwelling values rose 1.4 per cent in September, according to a Sydney Morning Herald story last week. RP Data’s research director, Tim Lawless attributed the improvement to low interest rates.

    But barely before the housing market has even gotten off the ground, there have been warnings about the over inflation of house prices and over commitment. Credit Rating Agency Moody’s Investors has warned the Reserve Bank and regulators that low interest rates could fuel a housing bubble in Australia which they say will inevitably burst – leaving the market more vulnerable to a crash. Moody’s say despite low credit growth – banks need to maintain high credit standards in order avoid a U.S. style lending surge.

    As reported by Mike King (Motley Fool) in Ninemsn:

    “Lower interest rates could encourage borrowers to load up on more debt, at a time when household debts are still fairly high.  A housing crash could see many homeowners over-leveraged and owing more than their house is worth – similar to what happened in the U.S. However, unlike the US, where banks in many states don’t have recourse to people’s other assets, Australian banks can pursue borrowers to recover any shortfalls between a home loan and the sale value of the house,” King says in the story Are we heading for a house price crash?.

    This may be good advice for many borrowers to heed in the back of their minds. It may be better to borrow conservatively, in order to cover the potential loss of a market turning backwards, and to avoid redrawing on the original amount during the early years of the loan.

    Will we really experience a housing bubble?

    If banks heed warnings from the likes of Moody’s, lending criteria will still remain pretty tight through the foreseen house price increases – at least in the short term. Also, the new information which will be available on credit reports may cause lenders to refuse credit to more people in the coming months as well.

    We are yet to see what the addition of ‘late payment’ notations on Australian credit reports (information about when accounts are paid late) will do for lending figures. Under new credit laws, the Privacy Amendment (Enhancing Privacy Protection) Bill 2012,  payments can be as little as one day late and be noted on consumer credit files.

    It is uncertain the impact these notations will have on someone’s ability to obtain credit.

    I would imagine many lenders, in the interest of ‘responsible lending’ would not want to have on record that they have loaned major credit to a serial late payer. Could lending to someone who had a few late payments on their record be classed as ‘irresponsible lending” should they default? What will be determined as too many late payments on a credit file is not yet defined and is quite a subjective aspect of these new laws which will be up to each lender/insurer to decide.

    I predict that this aspect will lead to fewer approvals as banks err on the side of caution, at least in the short term.

    For more information on repairing your credit file and removing inconsistent credit listings for good, to give you the best chance at being approved for credit at the best interest rates contact a Credit Repair Advisor on 1300 667 218 or visit our website www.mycra.com.au.

    Image: Sujin Jetkasettakorn/ www.FreeDigitalPhotos.net

  • New Credit Laws Pass House of Representatives

    Australia’s new Privacy Laws, which include a credit reporting law overhaul are coming to fruition. Amendments to the Privacy Act 1988 passed through the House of Representatives yesterday. What will this mean for you, your credit file and will it make it easier to remove bad credit?

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

    The Attorney-General announced late yesterday that the House of Representatives had passed reforms to the Privacy Act 1988. The Privacy Amendment (Enhancing Privacy Protection) Bill 2012 – which includes major amendments to Australia’s credit reporting laws –will now be introduced in the Senate where it is currently being considered by the Senate Legal and Constitutional Affairs Legislation Committee. The Government may make further amendments in the Senate in response to the Senate Legal and Constitutional Committee’s report, which is due to report shortly.

    “The House Committee has found that the reforms should be passed in their current form and the Government has moved quickly to implement those wishes,” Attorney-General Nicola Roxon said in a statement to the media yesterday.

    Ms Roxon says the reforms will focus on giving power back to consumers over how organisations use their personal information. The power will be extended to consumers in the area of credit reporting.

    “These changes will also provide much more power to consumers to be able to access and, if necessary, correct their credit reports,” Ms Roxon said.

    Through the reforms the powers of the Privacy Commissioner’s will also be enhanced to improve the Commissioner’s ability to resolve complaints, conduct investigations and promote privacy compliance. For example, the Commissioner will also be able to apply to the court for a civil penalty order against organisations for credit reporting breaches. Penalties for an individual range $2,200 to $220,000 and for a company they range from $110,000 to $1.1 million.

    We welcome the changes in the area of credit file correction. The new laws will most importantly enable consumers to force their Creditor to justify a disputed listing; and give consequences for credit reporting breaches. This is important in correcting credit listing complaints.

    Whilst the changes should make a positive difference in ease of correction, what can make or break a credit listing complaint – is the individual’s knowledge of credit reporting law. In order to make a successful complaint to justify removing a credit listing, the individual must show that the Creditor has unlawfully listed it. The complainant must also be able to give evidence to show how that occurred, which means providing supporting documentation from the Creditor– which can also be difficult for the individual to obtain. Then there’s marrying the two together. Then, there’s negotiating with the Creditor.

    All of these aspects of disputing a credit listing could still see a valid complaint come unstuck if not performed correctly.

    In addition to this, there are a myriad of reasons why a credit listing may be unlawful which are not immediately evident by the individual. Creditors can and do make mistakes with credit reporting. They don’t give the right notification to the consumer; they don’t give them adequate time to remedy the arrears; they don’t update contact details for the client; they don’t get the account right in the first place.

    So it will still give you the best chance of having a disputed credit listing fall in your favour if you open your options, solidify your case, and have the matter handled by a professional credit repairer. But it will be important to choose the right kind of credit repair and make sure you’re looked after each step of the way. Visit our main site for more details www.mycra.com.au or contact a Credit Repair Advisor on 1300 667 218.

    Image: Salvatore Vuono/ www.FreeDigitalPhotos.net

  • Australian Privacy Foundation says new credit laws will work against consumers

    The Australian Privacy Foundation (APF) has come out swinging at the Federal Government’s proposed amendments to privacy legislation, which incorporates amendments to credit reporting law. During the Senate inquiry into the Privacy Amendments (Enhancing Privacy Protection) Bill 2012, the APF slammed the new laws as a “lost opportunity” to improve privacy, and specifically credit reporting practices. We look at the APF’s comments and what consumers should be concerned about in terms of these new credit laws for the health of their credit file, and ability to obtain credit in the future.

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

    The APF’s comments appeared in a recent IT News article titled ‘Australian Privacy Foundation slams Privacy Amendments’.

    APF board member Nigel Waters told the Senate inquiry that the proposed bill would “significantly weaken” privacy protections for Australians and fail to meet current international best practice standards.

    “While we are impatient for reform, we sadly feel that there are so many flaws in this package that it should not be enacted,” Waters said.

    “It should be withdrawn for further work to address the many criticisms that have been made in submissions.”

    IT News says Waters’ argument to the inquiry closely followed those made by the organisation in its written submission to the Senate committee, in which the APF accused the Government of cherry-picking recommendations from a 2008 inquiry into privacy reform.

    Here is more from this story:

    The APF was especially critical of amendments to the credit reporting regime, which the organisation said could be used against consumers, rather than helping to meet responsible lending obligations.

    Richard Glenn, assistant secretary at the Attorney-General Department’s business and information law branch, told the Senate inquiry earlier that morning that the revised regime would give credit providers “a greater richness” of information from which to make judgements about whether a person is eligible for credit.

    But Waters said the provisions would only accrue a “major loss of financial privacy for uncertain benefit”.

    “Although it will help in some ways, the balance, we fear, will be detrimental to consumers,” he said.

    Members of the financial industry called on the Government to delay the introduction of the credit reporting regime until later than the September 2013 deadline currently expected, for fear of being unable to become compliant with included requirements.

    Whilst I am in favour of any new laws which will facilitate an ease of correction of credit reporting mistakes, I have echoed the concern over the “loss of financial privacy” many times. One aspect I have maintained concern about is the additional information which will be made available to lenders in the form of late payment notations.

    It seems ludicrous to give Creditors more powers to effect a credit rating in the form of late payment notations (especially when those notations may not be subject to the same rules as an official credit listing would be) when they are having trouble getting credit reporting right as it stands now.

    Late payment notations will be added to credit files by licenced creditors even if a bill is one day late. The notation will remain on the consumer’s credit file for 2 years. See more in this story: Access Denied… How late payments may ruin your home loan application.

    In this post I urge consumers to be on their guard with this new type of bad credit – late payments – and I predict it will have an impact on those people that otherwise should qualify for a loan.

    Initially lenders will probably err on the side of caution, particularly if the economy isn’t great and adopt a policy of exclusion rather than inclusion to the credit market.

    Many people will take a big gulp when they think about all the bills they have paid late – often more through accident than not having the money – which could now see their loan declined. Who says how many is too many late bill payments? Would three a year be too many, or two in six months?

    And who says when this information will start being collected? I think if you want credit in the future (most of us) you should be on your guard now, be vigilant with making payments ON TIME every time to ensure these late payment notations don’t stop you from getting credit in the future.

    Despite new legislation giving consumers the legal avenue severely lacking in the current laws in some cases to be able to effectively dispute an unfair or incorrect credit file listing, it will continue to be up to the consumer to know the law to be able to apply it to their own case, and this is where credit rating repairers will continue to be needed – to close the gap and help enforce the legislation that Creditors are bound to comply with.

    Credit rating repairers will also continue to be needed – along with consumer groups such as the APF, to ensure that consumers are given a voice following the introduction of these privacy amendments. To put our hands up on behalf of consumers if needed and give accounts of any difficulties that may arise.

    Image 2: healingdream/ www.FreeDigitalPhotos.net

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

    Media Release

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

    29 May 2012

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

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

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

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

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

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

    The new laws around complaints correction will:

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

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

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

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

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

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

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

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

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

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

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

    /ENDS.

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

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

    Client details available on request.

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

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