MyCRA Specialist Credit Repair Lawyers

Tag: remove defaults credit files

  • Telco Eftel asks customers to pay $299 for their own mix up.

    Media Release

    disputing a billTelco Eftel asks customers to pay $299 for their own mix up.

    8 October 2013

    A recent ‘billing system melt down’ by Eftel has seen new connections over the past 6 months being charged a fee of $299 – regardless of how much the connection actually cost them, due to a loophole in their terms and conditions.

    Stated to be a “widespread problem affecting all customers who connected within the last 12 months”, the billing hiccup in August meant Eftel was able to charge its new customers between $59 and $299 as outlined in their terms and conditions.

    So Eftel opted to charge customers the maximum amount, and customers have been sent a letter advising them that if their connection was less than six months old, they would be charged the rate of $299.

    The letter also advised that all charges more than 6 months old would be waived.

    Eftel customer John Maxwell, who also happens to work in credit repair, received a letter from Eftel in August on behalf of his partner’s Mother, whose first language is not English, stating they were charging her $299, and he saw red.

    “My first response was to question why they were charging her $299 for the connection and not $59 as it was their problem affecting their customers’ accounts. They advised they would be charging the fee of $299 as this is what Telstra has charged them for all of the connections,” Mr Maxwell, Agencies Manager at MyCRA recalls.

    But Mr Maxwell says, he vehemently opposed the original fee range at the time of setting up the account for his partner’s Mum, and had demanded a set connection fee be quoted before he would agree to their services.

    “I requested the consultant access the recorded conversations from archives and verify what I authorised, and to call me back with an outcome,” he says.

    He goes on to say, that it was several correspondences back and forth before Eftel conceded they had overcharged on the account as per his voice recording.

    “I knew the facts of what went on, and that everything I had said was recorded. I advised them I was going to escalate the matter to the Telecommunications Industry Ombudsman for a resolution, and then I finally got someone to listen to all of the recordings,” he says.

    Mr Maxwell says he is happy with the outcome but is left wondering how many thousands of other customers are in this same situation.

    “How many other customers will now be charged $299 without any idea of how to argue for a fair outcome?” he says.

    He worries many will be pushed into hardship upon receiving a bill they cannot afford, without receiving prior notice, or risk default.

    CEO of MyCRA, Graham Doessel, says many people seeking credit repair have defaults originating from billing disputes that went unresolved.

    “People can get angry and emotional over bills they think are unfair or don’t agree with, and end up defaulting on their account by refusing to pay without resolving the matter. Or other times people think they have resolved a billing dispute, only to have been defaulted anyway,” Mr Doessel says.

    He has provided three of the most important things people may need to know when disputing a bill.

    Billing Disputes.

    1. Act quickly. Contact the Bill Provider as soon as you receive the bill and attempt to resolve the discrepancy. Ask them to note that you are disputing your bill and verify it in writing. It’s best to try to resolve the complaint prior to your account going into arrears (within 60 days).

    2. Get everything in writing. Document as much as you can and send a copy of your complaint in writing. Make a note of the name of each person you speak to on the telephone, and the nature of the discussion with each. Note any resolutions that were reached and request those be emailed or sent to you in writing.

    3. See it through. If the credit provider fails to honour the discrepancy, advise them you will be contacting the appropriate Ombudsman.

    For direction in how to dispute a telco bill, visit the Telecommunications Industry Ombudsman website www.tio.com.au.

    /ENDS. 

    For media enquires contact:

    Lisa Brewster     Media Liaison media@mycra.com.au

    Account of Eftel dispute by John Maxwell  available upon request

    For interviews contact:

    Graham Doessel     CEO MyCRA Ph 3124 7133

    John Maxwell     Agencies Manager Ph 3124 7133

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

    MyCRA Credit Repair 246 Stafford Rd, STAFFORD Qld

    MyCRA is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files. CEO of MyCRA Graham Doessel is a frequent consumer spokesperson for credit reporting issues and is a founding member of the Credit Repair Industry Association of Australasia.

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  • A schoolie’s guide to the financial future: 5 important credit lessons.

    Media Release

    A schoolie’s guide to the financial future: 5 important credit lessons.

    While schoolies across Australia are celebrating finishing twelve years of education and looking forward to a bright future of bigger and better things, a consumer advocate for accurate credit reporting says when the good times are over, school leavers should prepare themselves for their new financial life as young adults.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says many young people amble through their early years with credit, making mistake after mistake that can cost them dearly down the track.

    “Young people can often get into a really bad pattern with credit, taking out credit cards, putting cars and electrical goods on credit and getting behind in repayments which sees them taking out new credit just to pay off the old credit.”

    “Before they know it, they’re 20 years old and facing bankruptcy or Court Action and years of being locked out of the finance market coming into the crucial years when they need it most,” Mr Doessel says.

    He says young people have got to be wise and ensure they are making credit work for them.

    He provides some advice for those young people coming of financial age:

    5 Important Credit Lessons For School Leavers

    1. Your credit file follows you…everywhere in Australia.

    Once you turn 18, you can become credit active, and can take out credit in your name. The history of your credit activity, good and bad is detailed on your credit file, which can be accessed by those thinking of lending you money.

    Your credit file lists personal details like name and address, but also any times you have applied for credit, any defaults (overdue accounts), court judgements, writs and bankruptcies.

    This credit file stays with you for life, and is added to by Creditors over your life.

    2. Overdue accounts are considered bad credit history.

    Many young people don’t realise how easy it can be to end up with a bad credit rating. Any account which is 60 days overdue (this ranges from mobile phones to credit and store cards, car loans to mortgages), is then considered in default. The Creditor then has the right to list this default on your credit file.

    “Even too many credit enquiries can show negatively on your credit report – so don’t apply with too many lenders – by all means do your homework but don’t sign up or give over your details until you’re sure you want the credit,” he says.

    3. Bad credit history matters.

    A single default for as little as $100 can stop you from getting mainstream credit in the current market for the term of the listing – which is five years.

    You may be forced to pay a whole lot more in interest to secure credit because of the risk of lending to someone with a bad credit rating.

    “Endeavour to pay all of your accounts on time. If you can’t pay, then contact your Creditor to work something out. You have to think ahead about what you want to achieve in another five years and whether the choices you make now could hinder those future plans,” Mr Doessel says.

    4. With all financial dealings, and especially credit – cover yourself at all times

    If you’re dealing with a Creditor in a tough situation, get the name of the person you’re dealing with, write down what is said and if a resolution is reached – get it confirmed in writing.

    If you need to cancel an account, don’t assume its cancelled until you receive written confirmation. If you are moving, provide a forwarding address.

    “This can be a common reason people get bad credit when they move – they may cancel a phone or electricity account and be left with a bill they weren’t aware of,” he says.

    Protect your credit file from misuse by keeping your personal information closely guarded. Your personal information is the key to your financial identity.

    “At all times – online, while making purchases, while banking, you need to be aware of the ways your identity could be compromised. You may not have a lot of money in your accounts – but you may have access to credit – and crooks can open accounts in your name and leave you with debts you can’t afford and your financial future ruined,” Mr Doessel says.

    5. You are responsible for the accuracy of your credit file

    Creditors can and do make mistakes with credit files all the time, but the responsibility to ensure your credit file reads accurately rests with you. Make it a habit to check your credit file once every year. This is free to do annually. All you do is contact the credit reporting agencies Veda Advantage (www.vedaadvantage.com.au), Dun & Bradstreet (ww.dnb.com.au) and Tasmania’s TASCOL (www.tascol.com.au).

    They will mail you a report within 10 working days.

    If you believe there has been a mistake on your credit file, then you have the right to have the mistake rectified. This may not be easy, but it is a point worth fighting for.

    For more information on your credit rating, see the MyCRA Credit Rating Repairs website www.mycra.com.au.

    /ENDS.

    Please contact:

    Graham Doessel – Director 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

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

    Image: photostock/ www.FreeDigitalPhotos.net

  • Parent equity loans skating on thin ice with credit rating

    Media Release

    Parent equity loans skating on thin ice with credit rating

    Predictions of a rise in parent equity loans following the pulling back of first home buyer’s grants in some states has a leading credit rating repairer worried about the possible impact on parental credit ratings in the crucial pre-retirement years.

    CEO of MyCRA Credit Repairs, Graham Doessel says a possible rise in parent equity loans is a dangerous trend. If the loan falls into arrears, parents would be liable, forcing them to work much longer than anticipated to pay off the debts that impact their own credit rating.

    “Many people go guarantor for their children, without assessing the risks to their own finances should the repayments not be met. If the child falls into arrears with payments, the parent is liable for any debt, and they are also blacklisted from credit accordingly,” Mr Doessel says.

    1300 Home Loans managing director, John Koldenda recently told Australian Broker he predicts a surge in popularity for the parent equity type of loan following the wind up of first home buyer subsidies in each State.

    “These loans have many benefits including allowing children to avoid expensive Lenders Mortgage Insurance that is paid by borrowers – often young people – with low equity,” he said.[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][i]

    But Mr Doessel says whilst there are advantages for the child, if repayments are not made, the disadvantages stretch to both parties.

    “If the adult child fails to make repayments the parent is liable for this debt, if that extends past 60 days, the creditor can place a default on both credit files. In some cases parents are not aware repayments have stopped, and it’s not until they attempt to take out credit themselves and are refused that they realise there is a problem,” Mr Doessel says.

    He says a default of this nature on someone’s credit file can severely hinder chances of obtaining credit, and defaults remain on a person’s credit file for 5 years.

    “Worst case scenario, is the bank begins to use the property the guarantor put forward as collateral, to recover lost debts. There is a danger the guarantor can lose their home. Those people who were so close to financial freedom are now facing debt, and a shaky retirement,” he says.

    The Sydney Morning Herald Personal Loans Smart Guide[ii] provides some important questions for people to consider when making the decision whether or not to go guarantee a home loan:

    •How much is being borrowed?

    •How responsible is the borrower?

    •How stable is their employment?

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

    •Can I afford to repay the total sum of the loan?
    “By far and away the most important question parents need to be asking is ‘could we make the repayments on this loan should our child be unable to?’ If there is any doubt of this, it may be best not to guarantee the loan,” Mr Doessel says.

    If people do decide they want to proceed with a parent equity loan, he recommends taking a few additional things into consideration before signing on the dotted line:

    1. Seek third party and or legal advice prior to any agreement being made.

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

    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 copy of all bank statements during the course of the guarantee, so that parents are aware of any late payments. This way, payment problems can be addressed prior to any defaults, and while the parent’s good credit rating is still intact.

    /ENDS

    Please contact:

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

    Graham Doessel – Director Ph 3124 7133

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

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

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    [i] http://www.brokernews.com.au/article/parents-to-step-in-as-fhb-boosts-end-129917.aspx

    [ii] http://www.smh.com.au/money/tools-and-guides/step-4-going-guarantor-20100529-wmcd.html

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