MyCRA Specialist Credit Repair Lawyers

Tag: Veda Advantage

  • How will open credit scores impact Australians?

    access credit scoreCredit reporting agency Veda Advantage has just announced it will allow consumers to receive a copy of their credit score with their credit report. We look at how that will occur, and what possible impact that will have on consumers and also brokers and whether consumers will be better able to manage their credit worthiness using this ‘score’.

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

    It was announced on Monday by Banking Day that Veda has ‘lifted the veil’ on credit scores and will allow consumers to be able to apply to see their credit score. Available to consumers for the first time, the VedaScore is a number between 0 and 1,200 that summarises information on your Veda credit file at a specific point in time. The higher the ‘VedaScore’ the better an individual is considered credit worthy.

    For a fee consumers will be able to access their credit score along with their credit file.

    This is over and above the standard credit report, which is still free from all of Australia’s credit reporting agencies once every year and is sent after 10 working days of application.

    Despite being the credit reporting agency holding the credit files of the largest number of credit active Australians, Veda has in the past remained tight lipped about default numbers and credit statistics in Australia.

    But this week they have offered some insight into credit activity, whilst releasing their ‘VedaScore’ product, by offering up a ‘Veda ScoreCard’ – which reportedly combines consumer research of 1,000 Australians about their finances with analysis of 300,000 VedaScores.

    One of the biggest findings was that more than 2.3 million Australians are at risk of financial strife in the next year, with 27% (628,000) at high risk of credit default from something as simple as an unpaid bill, credit card or loan.

    Veda’s survey also found some interesting facts about credit active Australians. Here are three we found most troubling about the credit active Australians surveyed:

    93% know they have a credit record, but don’t know you can access it

    81% are not concerned about their credit history

    80% have never checked their credit history

    Veda says the national average credit score is 749. But whilst Veda Marketing Manager Belinda Diprose, says in a statement to the media that making the VedaScore available to consumers for the first time “makes it easier for Australians to understand and manage their credit profile” – I am unsure how this will occur – as it hasn’t been announced that there will be a breakdown of that score and how it is calculated. There may be no way for consumers to understand what they can do to prevent their credit score from being reduced.

    Yesterday Business Insider Australia featured an American report on How To Improve Your Credit Score. Whilst the U.S. system has a vastly different credit reporting system – what’s interesting is, the report gives us insight into how the U.S. ‘Fico’ Score is broken down:

    FICO score breakdown

     

     

    Chart from Business Insider Australia’s report.

    A similar breakdown could be useful to consumers looking to improve their credit worthiness or prevent decision making which reduces their credit score.

    How will the VedaScore impact brokers?

    Today we were quoted in The Adviser in a story about the Veda Credit Score.

     Graham Doessel, chief executive officer of MyCRA Credit Rating Repair, said brokers should use the score to select the appropriate loan and lender for their clients, cutting back on rejected loan applications.

    “Being able to see the credit score would be invaluable to brokers,” he told The Adviser. “It will make their job much easier, because they can have an idea very quickly how the client is going to fare with particular lenders.”

    Alex Shumsky from Loan Market Oakleigh also made an important point about credit scoring information in the same story:

    [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”][Credit scoring] can be valuable provided the credit scoring is in line with that of the banks.

    “You can submit one loan to one bank and fail on credit scoring then submit it to another bank and it gets approved, same deal, same info but they’ll score it differently,” he said.

    It will still be up to brokers to match the right product to the right client – so whilst the VedaScore will be valuable in many cases, different banks will have different priorities and different scoring systems.

    We also see it could bring new clients to brokers – those who have obtained their credit score but don’t know how to interpret it, or what the relevance of that score will be with each lender.

    Brokers will still be quite necessary in terms of helping borrowers ‘test’ how their score rates against a range of available credit. What we don’t want to see in the future, are a great volume of borrowers ‘going it alone’ using their credit score, and then falling into the trap of worsening their credit score by generating excess credit enquiries.

    So whilst revealing the score is great, we hope consumer education goes hand in hand with this product release.

    For more information on your credit file, visit our main website www.mycra.com.au. 

    Image: phanlop88/ www.FreeDigitalPhotos.net

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  • Veda credit scores: mystery still surrounds calculation

    Press Release

    credit scoreVeda credit scores: mystery still surrounds calculation.

    2 October 2013

    The decision by Veda Advantage to offer credit scores to Australian consumers previously reserved for lenders has been welcomed by a consumer advocate for accurate credit reporting – as long as Veda  clearly outlines how the score is calculated.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says in general consumers have been kept in the dark about how to best actively manage their credit worthiness.

    “I believe every credit active individual has the right to know what their credit score is, but with that, they also need to know how that score is arrived at to positively manage their own credit decisions,” Mr Doessel says.

    He says people believe if they pay all of their bills on time, their credit score will be high, but this is not always the case.

    “There are a range of factors that go into the score calculation – and it has all been a bit of a mystery to consumers really which is not ideal,” he says.

    Mr Doessel says largely consumers don’t even know they have a credit score.

    “Most times it’s only when their credit score is lower than it should be to obtain finance with a lender that consumers even know they have been rated with a number attached to their approvability,” he says.

    Veda Advantage’s Marketing Manager Belinda Diprose told Banking Day yesterday there was a low level of consumer awareness about credit reporting, with as much as eighty per cent of people having never checked their credit report.[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]

    Mr Doessel says currently the big issue with allocating a credit score under the current credit reporting system, is that the number is only calculated on negative data.

    “It’s not balanced. An individual can have a few too many credit enquiries in a certain period, and perhaps apply for the ‘wrong’ type of credit, which will reduce their rating, and there is no consideration for paying bills on time to offset that information,” he says.

    New Privacy laws to take effect March 2014 will provide extra information for lenders and Mr Doessel says this will deliver a bigger picture of credit suitability and more information from which credit reporting agencies can draw on to calculate a fairer credit score.

    “Until then, any number of things could be shaving points off your score – consumers don’t really know for sure the full gamut of what may reduce it, and this needs to be made public knowledge now that the score is available and moving forward towards comprehensive credit reporting in March.”

    Go to http://bit.ly/My-Free-Credit-File for more information on obtaining your credit score.

    /ENDS.

    Please contact:

    Graham Doessel – CEO Ph 3124 7133

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

    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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  • Your credit report – are you paying when you shouldn’t?

    Media Release

    Your credit report – are you paying when you shouldn’t?

    15 August 2013

    paid credit reportIndividuals seeking a copy of their credit report are being charged up to $70 by credit reporting bureaus, and a consumer advocate for accurate credit reporting says many are not aware they can access the same report free of charge.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says many of his clients have been funnelled into the paid option for their credit report, without being given the option to wait and access it for free.

    “Most people we meet who have already got a copy of their credit report have paid for it. Overwhelmingly most people seem to not know they should be accessing it routinely nor that they have a right to access it for free annually,” Mr Doessel says.

    Consumers are entitled to access a copy of their credit report once per year free of charge with each credit reporting agency.

    Mr Doessel says people should routinely obtain a copy of their credit report if they are intending to access credit in the future, and that doing so will probably negate the need for an urgent copy due to finance refusal.

    “A credit report reflects what lenders will see when they do a credit check before lending people money, so individuals should ensure their credit history is accurate prior to a credit application. Bad credit history can impact credit worthiness for a considerable time,” he explains.

    He says the free credit report is the same document,with the difference being it is sent within 10 working days of receipt of the request.

    “Some people need their credit report urgently, and for this reason the paid service is quite necessary. But others are merely doing routine checks, and should not be duped into paying for their credit report if they don’t require it right away,” he says.

    He says that the free option should be in plain view on the bureau’s website as well as being explained as an option when individuals enquire via telephone about their credit report.

    Mr Doessel is calling for stronger guidelines in the new credit reporting laws around educating individuals about their rights to access their own credit information and how they can do it.

    “With all the new changes to credit reporting coming through, many Australians have been encouraged to check what’s said about them on their credit file. As credit reporting bureaus are in effect caretakers of that credit information, they should be obliged to educate individuals about their rights,” he argues.

    “There should be a stipulation that credit reporting bureaus must routinely offer all options available to individuals when accessing their credit report so they can decide for themselves whether they need their credit report urgently or whether they are able to wait the 10 days for it,” he says.

    He says people can go to http://freecreditrating.com.au/ for help to get a copy of their credit file at no charge.

    /ENDS.

    Please Contact:

    Graham Doessel – Founder and CEO MyCRA Ph 3124 7133

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

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

    246 Stafford Rd, STAFFORD Qld

    MyCRA Credit Rating Repair is Australia’s front-runner in credit rating repairs. We permanently remove defaults from credit files.

    Image: Naypong/ www.FreeDigitalPhotos.net

  • Your Credit Rating – How to Get a Free Credit Check and What to Do if Your Credit Report Comes Back with Defaults

    [fusion_builder_container hundred_percent=”no” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” overlay_color=”” video_preview_image=”” border_size=”” border_color=”” border_style=”solid” padding_top=”” padding_bottom=”” padding_left=”” padding_right=””][fusion_builder_row][fusion_builder_column type=”1_6″ layout=”1_6″ spacing=”” center_content=”no” hover_type=”none” link=”” min_height=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_position=”left top” background_repeat=”no-repeat” border_size=”0″ border_color=”” border_style=”solid” border_position=”all” padding=”” dimension_margin=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=”” last=”no” element_content=””][/fusion_builder_column][fusion_builder_column type=”5_6″ layout=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” border_position=”all” 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=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”no” min_height=”” hover_type=”none” link=””][fusion_text]

    check credit fileWe recently read a comprehensive article on getting a free copy of your credit report written by Alex Wilson over at online savings website – www.Savingsguide.com.au.

    From the long list of comments on this issue, we can see just how many people in Australia still remain in the dark about how to even simply get a copy of their credit rating, let alone dispute any bad credit which they believe should not be there. We take you through some important points from this article and look in more depth at what you should do if you have something like a default or Judgment or other credit listings on your credit report that you feel is incorrect, inaccurate or unfair.

     

    By Graham Doessel, Founder and CEO of MyCRA Lawyers and www.fixmybadcredit.com.au.

    In the article How To Do A Credit Check – Check Your Credit Rating & Credit Report For FREE – you will learn how to perform a credit check to obtain a copy of your credit report. The importance of checking your credit rating – particularly prior to applying for a home loan, or other significant credit – cannot be overstated.

    In this day and age, everything works on credit so you need to have a clear credit rating to be able to function well in society. If you cop a default on your credit file – you will be refused credit with mainstream lenders (at affordable interest rates). If you do get a loan, often the interest rate is much higher. You may also find you can’t get credit cards or mobile phones on a plan. But there are many people who don’t know they have a default on their credit file until they apply for credit and the bank does a credit check on them. To be one step ahead, it is better to check your credit file first – and give yourself a chance to dispute any bad credit history and have incorrect listings removed prior to applying for credit.

    “I was worried about my credit report

    If you are anything like me, you have probably missed a few phone bills, perhaps missed a mortgage repayment by accident or even worse – gone overseas and been missing in action for a few months with banks frantically trying to get in touch with you.

    It made me wonder whether these oversights would affect my credit history and in turn my ability to borrow money come time for a home loan,” Alex writes in the article.

    On a side note, oversights like forgetting a credit card bill, a mortgage repayment or any type of payment to a licenced Creditor will see a late payment notation added to your credit file now – and that will be visible from March 2014.

    Just what impact this will have on your ability to obtain credit is still up in the air – but having too many late payments, or even just one, could mean you are refused credit, or offered credit at a higher interest rate in the future.

    How to Check Your Credit Rating For Free

    You can contact us at any stage to do the work for you to obtain a free copy of your credit file  or alternatively, here is a run-down of how Alex checked his credit rating for free:

    The first credit rating provider I am going to use is called ‘My Credit File’ – they are part of Veda Advantage, one of Australia’s largest credit reporting agencies.

    Like many credit rating providers, they offer both a paid and free service. I am of course opting for the free service. All this means is I have to wait a little longer for it to arrive I am told. Not a huge deal.

    How to do a free credit check with Veda/MyCreditFile [Now Equifax]

    1.)  I went to www.mycreditfile.com.au 2.)  I then went to the ‘personal’ tab 3.)  Scrolled down to find the button stating ‘Free – Find out more’ 4.)  Loaded the page called ‘Free Credit File’ which tells you all the details you need to fill out 5.)  I then downloaded this form to request a free copy of my credit report 6.)  I attached a scanned copy of my drivers license (or passport) and also a copy of my utility bill proving my name and residential address. 7.)  Done

    I have to say, it was all rather easy. I now just have to wait 10 working days for my credit report to arrive.

    Why do they offer a paid version of your credit rating report?

    If you are wondering what the difference is with the paid version from MyCreditFile – please note that the only difference is that you pay $99.95 and it in turn comes to you via post, email or fax within 1 working day. E.g. you save 9 days. Still the same report.

    Dun and Bradstreet credit rating reportCredit Report

    Like Veda[Equifax], Dun and Bradstreet are one of the big players in credit ratings. They are used by many companies as the source of reporting on credit.

    They by law have to offer you a free credit report and free copy of your credit history as discussed earlier. Here is how to get it.

    How to get a copy of your credit report from DNB 1.)  Go to https://www.dnbcreditreport.com.au/ 2.)  Look to click on ‘standard credit report’ or similar – e.g. not fast tracked. 3.)  On the standard request page you then fill out the online form (takes around 3minutes) 4.)  Attach copies of your identification 5.)  Submit/mail it 6.)  You’re done.

    Much easier than the MyCreditFile.com.au website – it’s as if the previous site was trying to hide the free report (well they certainly made it hard to find).

    A bit about the Credit Score

    If the bank does a credit check on you, they will obtain your credit score. But you are not privy to this number if you order a copy of your credit report – paid or otherwise.

    People often ask ‘what is a good credit score?’ – however these credit scoring metrics are often kept confidential with the lenders and credit reporting agencies.

    They are a metric that lets them give you an assigned score based on how much debt you currently have, how many credit applications you have filled out recently and more. It is more for the lenders to use to easily categorise people, so it isn’t often you get to find out your exact credit score – which in turn can make it hard to improve your credit score.

    In my opinion, everyone should have access to their credit score, and the method used to calculate it.

    How do I fix my bad credit?

    If you have bad credit – you have two options….

    1. You can attempt to remove the default or other credit listing yourself, and there are processes to do this – OR

    2. You can use a professional credit repair service.

    The benefit in fixing your own bad credit is that it’s cheap. You may have very little costs associated with disputing your own credit listing. But similarly to defending yourself in Court – the cheap option may not be the best one for you.

    Credit rating errors are quite common, and the onus of ensuring the accuracy of your credit file rests with you. But how do you know if a listing has been placed accurately on your credit file, or if it should be there in the first place?

    There are strict codes of conduct and legislation which must be adhered to when your Credit Provider is placing a default or other credit listing on your credit file. These laws are in place to protect consumers from unfair and damaging credit reporting. Creditors are largely aware of this legislation (yet may not have adhered to it), but there are very few consumers who are well-versed in credit reporting and industry legislation.

    In order to dispute a credit listing which you believe shouldn’t be there, you must identify where the Creditor has not adhered to current legislation when placing the notation on your credit file. There is a whole barrage of points which need to be met in order to constitute a valid listing, and if you have not been made aware of all the avenues for dispute, then you could be doing yourself and your case a disservice.

    A reputable credit repair Lawyer should dig deeper to conduct an audit-like investigation of your credit complaint to uncover errors or non-compliance.

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

    Image: Ambro/ www.FreeDigitalPhotos.net

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  • Consumers need credit reporting advocates: Credit repairer places in top 10% of companies in Start-Up Smart Awards 2013.

    badge_top50 Start-Up Smart Awards 2013Press Release

    Consumers need credit reporting advocates: Credit repairer places in top 10% of companies in Start-Up Smart Awards 2013.

    27 March 2012

    Credit rating repairer MyCRA has been placed at number 35 in the Australian Start-Up Smart Awards 2013, demonstrating the demand for skilled consumer advocates in the credit reporting arena.

    MyCRA Credit Rating Repair has been operating since 2009, and entrepreneur Graham Doessel – once Australia’s most successful non-conforming broker has been at the forefront of the emerging Australian credit repair industry, which he says has been born out of necessity.

    “The Global Financial Crisis has had a big impact on lending criteria, so all of a sudden it has become vitally important for Australians to have clean credit history in order to obtain approval for finance,” Mr Doessel explains.

    He says most people don’t know mistakes with credit history can and do happen, until it happens to them.

    “Most consumers have very little knowledge of credit reporting. They assume the system works, but they don’t understand that the responsibility for accuracy rests with them. Many times they apply for finance and are knocked back because of defaults or other listings they just didn’t know existed,” he says.

    There are four credit reporting agencies in Australia, and three in New Zealand, with Veda Advantage holding the majority of these credit files – with a total of over 16.5 million credit files in Australia alone. [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]

    Of these millions of credit files, it is not known how many contain negative listings, but some reports claim around 3 million in Australia.

    Those credit files are impacted for a period of 5 to 7 years, and affected people are generally refused credit in this time.

    “We work with those people who feel their bad credit is unfair, innacurate or inconsistent, and we go about proving that, so that unlawful listings are removed from consumer credit files,” Mr Doessel says.

    MyCRA conducts an audit-like investigation on behalf of the consumer, in order to uncover where a listing may have been placed unlawfully on the client’s credit file, and formulates a case based on legislation for requesting the listing’s removal by the Credit Provider.

    “Credit reporting is governed by strict legislation, legislation which most consumers have limited knowledge of, and often very little time to get to know. We bridge that gap,” Mr Doessel explains.

    Mr Doessel says MyCRA has been so warmly received because of the speed of listing removal, and their published success rate of up to 91.7% and he says this is down to the skill and experience of the team, which includes in-house solicitors and specialist compliance officers for each industry.

    “We have a large dedicated team, and our blue-print for success ensures that the overwhelming majority of people we take on are likely to have their inaccurate credit listing removed,” he explains.

    For the future, Mr Doessel is hoping MyCRA can continue to increase their success level and close the gap even further on their current default removal rate. He also wants to continue MyCRA’s strong history of speaking out for consumers in all matters of credit reporting.

    “Consumers will continue to need a voice, especially as new credit reporting laws emerge over the next 12 months,” he says.

    /ENDS.

    Please contact:

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

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

    MyCRA Credit Repair 246 Stafford Rd, STAFFORD Qld

    MyCRA Credit Rating Repair is Australia’s leader 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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    [i] http://www.mycreditfile.com.au/about/ Veda holds the country’s largest database of credit files for more than 16.5 million credit-active Australians.

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  • Credit enquiry scandal shows up faults with credit scoring

    credit enquiriesPress Release

    Credit enquiry scandal shows up faults with credit scoring

    20 March 2013

    Millions of Australians could potentially be unfairly rated during the credit reporting process with little to no education on how their score is arrived at, nor any chance to redeem a bad credit score, a consumer advocate for accurate credit reporting reveals.

    CEO of MyCRA Credit Rating Repair says a recent scandal over consumers being blacklisted from taking out credit because of too many credit applications – often which they have little control over, reveals a gaping hole where legislation is yet to meet current practice.

    “Before we allow consumers to get a ‘scoring’ based on their assessed potential for risk then we need to make sure the information we are using to calculate that score is both fair and accurate, and in some instances under the current system it is neither,” Mr Doessel says.

    These comments come after it was revealed on Channel 7’s Today Tonight on Monday that 5-6 million Australians are in the ‘credit dog-house’ simply because they have applied for finance.[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]

    The report revealed that excess credit enquiries are having a major effect on borrowers, and most don’t even realise they have credit enquiries on their credit report until it’s too late.

    Mr Doessel says credit enquiries are not always due to being refused an official credit application.

    “Sometimes banks can perform enquiries periodically on lines of credit, and another big issue is system generated enquiries through consumers investigating different credit products online,” he says.

    He says whilst in most cases borrowers have technically given permission to perform the enquiry, there is little education on the ramifications of making one.

    “Information on credit applications made stays on a person’s credit file for 5 years. But how many credit enquiries is too many, and over what period of time?” he says.

    The Today Tonight report absolves credit reporting agencies such as Veda Advantage, saying they simply hold the records.

    “It’s the current legislation that only allows negative information to appear on our credit records and loan applications are listed as negative,” Veda Advantage’s Belinda Diprose advises.

    But Mr Doessel says scoring systems such as the Veda Credit Score is far from just reporting.

    “Issuing a credit score goes further, calculating risk based on certain types of behaviours around credit and allocating a score accordingly which is used by lenders to assess whether the potential borrower is a good or bad credit risk. That’s more than reporting, that’s opinion, that’s making predictions,” he says.

    Mr Doessel argues that credit scoring should not have been introduced prior to implementation of the Privacy Amendment (Enhancing Privacy Protection) Act 2012 in March 2014, which allows for more comprehensive data on Australian credit files.[ii]

    “This new form of credit assessment should not have been introduced until comprehensive credit data was available to lenders, not just negative data. To be fair to consumers, an educated ‘opinion’ on credit-worthiness needs to be formed based on many more factors than what is currently available on Australian credit reports,” he says.

    In the meantime, he is calling for education to give consumers clear guidelines as to what constitutes a low credit score.

    “Consumers need to know how this score is calculated, what sort of information will be taken into consideration when they are given a credit score, and what they can do to prevent a score being so low they are refused credit, both in the current market and when comprehensive credit reporting comes into effect next year,” Mr Doessel says.

    Credit active Australians can check their credit file at no cost every 12 months to make sure they are not blacklisted unnecessarily. Go to http://bit.ly/My-Free-Credit-File for more information. If a credit enquiry was not authorised or was incorrectly listed, then they may have a case for requesting its removal.

    /ENDS.

    Please contact:

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

    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.

     

    ——————————————————————————–

    [i] http://au.news.yahoo.com/today-tonight/money/article/-/16389927/ruined-credit-ratings/

    [ii] http://www.oaic.gov.au/privacy-portal/resources_privacy/Privacy_law_reform.html

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  • What’s happened to Gen Y – our emerging first home buyers

    The future of our housing market, rests with Gen Y. Have we prepared them enough? We look at the particular crisis they face with housing finance, and credit defaults what the ramifications could be for their future and ours.

    couple outside houseBy MyCRA Credit Rating Repair and www.fixmybadcredit.com.au https://www.facebook.com/FixMyBadCredit.com.au.

    The older portion of Gen Y are in their mid to late 20’s. This age is the time when many previous generations have claimed their rite of passage by entering the Australian dream of owning their own property. But that was in the good old days of affordability.

    According to the Courier Mail in January, housing affordability seems to be eluding us. In 1981, the typical home sold for $48,000 just a little over three times the median household income of $15,000. But what do you do when wage rises have not matched property price rises? Today, the median home will set you back $408,000 about six-and-a-half times the median household income of $61,000.

    Property owners may say the market is low, but in reality despite a market slump, prices are still exorbitantly high for our first home buyers. Saving enough for a home can take years, and may require sacrificing the rental accommodation in preference for moving in with Mum and Dad just to scrape funds together. All of this effort may be lost, or not even attempted if you have poor credit history.

    The volume of credit available to young people pre-GFC was huge, and for people developing habits around credit, in hindsight it was extremely irresponsible to be throwing money at 18 -20 year olds and expecting them to know how to be responsible with credit.

    So many Gen Yers don’t have any clue why their history with credit matters, or how to commit to spending reduction and consistent habits of repayment because they have a history of getting what they want when they want it, and worrying about it later. Unfortunately the ‘later’ is now.

    We’re sorry Gen Y. Previous generations before you have failed to pass on the skills necessary to give you the right habits of mind to keep you out of trouble and allow you to accomplish the big goals. Goals like property, education, business or starting a family.

    This has been confirmed in two ways. Credit reporting agency Veda Advantage recently released some of their data from the last three years, which showed that Gen Y holds 60% share of all credit defaults. From telco defaults through to loan defaults – Gen Y tops the list in every category. Which invariably is a deal-breaker when applying for a mainstream home loan for the 5 year term of the listing. (See our release to the media today for more information).

    This may explain our latest first home buyer figures. The Australian Bureau of Statistics revealed two days ago that first home buyer numbers have fallen again, almost a whole percentage point from November 2012 to December 2012. (15.8% Nov 2012 down to 14.9% in December 2012).

    What Veda doesn’t tell us from their data, is how many people have defaults in this country. That we have to speculate on. Veda holds the credit files of approximately 16.5 million Australians. How many of those people have bad credit? Last year Fitch Ratings revealed mortgage delinquencies alone (mortgages over 90 days in arrears) were 1.6 % of all mortgages in the first quarter of 2012. So when we look at the number of defaults across the board, taking into account the more common defaults from telcos, energy providers and credit cards – we could increase that figure, to say 5%? If we assume that figure is correct, then 825,000 Australians have defaults on their credit file. If we apply the 60% rule, then 495,000 Gen Yers have defaults on their credit file. Pure speculation, but one that bears thinking about when we look at why interest rate cuts have yet to make a significant impact amongst first home buyers.

    finance educationWhat can we do to prevent young people from finding themselves in arrears and with credit defaults?

    Paramount to prevention, is education. Education about the wider, philosophical issues of finances so they understand where credit fits in to society and to their own lives, as well as the ins and outs of taking on credit in Australia.

    This should begin in schools, and be upheld in the credit arena, by government and the media.

    Second to that, is education and insistence on credit reporting accuracy. With defaults almost ‘a dime a dozen’ in this age group, could consumers get blaze about the process the Creditor took in listing the default? Could accuracy take a back seat and defaults pile up on Australian credit reports without an understanding of what constitutes a lawful listing? Every Australian needs to know that mistakes can happen on credit reports.

    Likewise, bad credit can be listed on credit files unknowingly. We have a responsibility to check our credit report, as the onus on ensuring accuracy rests with the consumer. This can be done for free – but many Australians don’t know this.

    They probably also don’t know that a credit listing should be tested against the appropriate legislation for its validity and its accuracy. The process of dispute is not easy, but Creditors should be called to account for any inaccuracy. Australians should also know Creditors have a legal obligation to remove a listing which was placed incorrectly.

    Changes for the better are coming in Australian credit reporting particularly around correction of credit reporting mistakes, but education is key for every credit active individual to make best use of these changes, aware of the action they need to take to ensure their rights are upheld.

    As the emerging generation into the housing market, Gen Y is at the forefront of this shift in psyche. Let’s hope they embrace it, and insist on changes that will benefit their generation into the future.

    Find more information on getting help with checking and disputing the accuracy of a credit listing, at www.mycra.com.au.

    Image 2: KROMKRATHOG/ www.FreeDigitalPhotos.net

  • Could a spike in credit defaults from Gen Y be part of the housing crisis?

    gen yPress Release

    Could a spike in credit defaults from Gen Y be part of the housing crisis?

    13 March 2013

    More of Australia’s new generation of first home buyers are living with credit defaults and a consumer advocate for accurate credit reporting says this could be a contributing factor in Australia’s dim first home buyer figures – with Gen Y facing credit lockdown in increasing numbers.

    According to a recent report from credit reporting agency Veda Advantage, the number of credit defaults amongst Gen Y has grown 5.3% over the past three years to 60% of the share of all credit defaults.

    Veda says Gen Y has the lion’s share of defaults across all account types – telecommunications, credit cards, utilities and personal loans. The biggest pain is telco bills – with Gen Y responsible for 62% of these kinds of defaults, compared to Baby Boomers (13%) and Gen X (22%).[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]

    Figures released yesterday by the Australian Bureau of Statistics confirm first home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 14.9% in December 2012 from 15.8% in November 2012.[ii]

    CEO of MyCRA Credit Rating Repair, Graham Doessel says goals for owning property may be far out of Gen Y’s grasp.

    “The older portion of Gen Y should be collectively entering the property market, but it seems more are suffering with 5 years of credit defaults and unable to even get a mobile phone plan let alone a home loan,” he says.

    Mr Doessel says education and advocacy is the key to helping Gen Y out of the credit crunch as he says they are only a product of the credit environment they were born into.

    “There is a real lack of education around credit issues and credit reporting and this has been a problem for some time. Many Gen Ys had credit thrown at them in their younger years pre -GFC and now they are feeling the ramifications of credit overload.”

    “On the back of this, has been a noted lack of consistency in credit reporting and this has led to a number of inaccurate and unfair credit defaults placed on consumer credit reports. It is high time that consumers and their advocates insist on accurate credit reporting if we are going to have any chance of moving the housing industry forward,” he says.

    Find more information on credit issues and credit defaults on MyCRA’s website www.mycra.com.au.

    /ENDS.

    Please contact:

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

    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.

     

    ——————————————————————————–

    [i] http://www.veda.com.au/news-and-media/article.dot?id=542009

    [ii] http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5609.0Main%20Features2Dec%202012?opendocument&tabname=Summary&prodno=5609.0&issue=Dec%202012&num=&view=

    Image: photostock/www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Buying a home? 5 things you need to know about Australia’s new credit reporting laws before you apply for finance.

    Media Release

    Buying a home? 5 things you need to know about Australia’s new credit reporting laws before you apply for finance.

    Some major changes have occurred to Australia’s Privacy Laws, and home buyers need to know about them before they apply for finance. A consumer advocate for accurate credit reporting warns potential home buyers they need to get up to speed with some of the main changes to credit reporting which could see more people refused a home loan in the coming months and years ahead.

    CEO of MyCRA Credit Rating Repair, Graham Doessel says some simple mistakes made with repayments now, could see people blacklisted from credit even before the Privacy Amendments (Enhancing Privacy Protection) Bill 2012’s March 2014 deadline for implementation.

    “Potential home buyers need to know that from this point on, they need to make every credit repayment on time to avoid having late payment information show up on their credit history and potentially ruin their chances of getting the home they want,” Mr Doessel says.

    Mr Doessel explains more about this change, and other factors in Australian credit reporting which impact your credit rating:

    1. Repayment History Information

    From December 2012, whether or not a credit account was paid on time will be part of your credit history and will be used when a lender is assessing your suitability for a home loan.

    The notation will remain as part of your credit history for 2 years.

    The Government intends for these reforms to decrease levels of over-indebtedness in the market.[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 is worried it could push more borrowers into higher interest rate loans due to being refused credit with mainstream lenders.

    “Many people pay bills late, for a variety of reasons – this doesn’t necessarily mean they intend for the account to go into default. But these late payers could find they end up refused credit, or charged thousands more in interest due to these notations,” he explains.

    2. Types of credit

    The new laws will now allow information on the type of credit accounts you have, and when they were opened and closed to be shown on your credit history. This will give lenders more ability to determine the relevance of each listed credit account for your specific situation.

    3. Credit limit of each account.

    The credit limit on each credit account will be used to assess the potential volume of credit the potential borrower could have access to.

    But there will be no way of telling what level of debt you actually have only what you could potentially redraw to.

    “It may be worth reducing unnecessary credit limits on your accounts before you make your application,” Mr Doessel says.

    4. Beware excess credit enquiries.

    Whenever a person other than you makes an enquiry on your credit history – that enquiry is recorded on your credit file.

    Mr Doessel says some lenders will decline a finance application due to too many credit enquiries, such as two enquiries within thirty days or six within the year.

    “By all means ask questions, and do your research on the best home loan for you, but when it comes to giving over your details, and making applications, leave that until you have decided which lender suits you best, to avoid being disadvantaged,” he says.

    5. It will still be up to you to ensure your credit file is accurate.

    With all of the new information available to lenders about your credit history, it is more important than ever for that information to be accurate.

    You can apply for your credit report for free every year by making a request to Australia’s credit reporting agencies – Veda Advantage, Dun & Bradstreet and Tasmanian Collection Services (if in Tasmania).

    “It is up to you to ensure your credit file reads accurately,” Mr Doessel says, “and the saving grace for this legislation is the improvements set to be implemented in 2014 around access and correction of your credit file.”

    From March 2014, Creditors will be forced to justify disputed credit listings. Notably, your Creditor will have to substantiate the information they report on your credit file if you dispute it.

    “This change is crucial, considering the power the Creditor has to impact your ability to obtain credit for years to come. Up till now, there has been little obligation within the legislation for the Creditor to justify credit listings, nor remove incorrect data,” Mr Doessel says.

    If the dispute escalates, you can complain directly to the Creditor’s Ombudsman, and in some instances may have a right to remedy under the direction of the Privacy Commissioner.

    “Finally there is some real incentive for Creditors to take due care with adding listings to credit files and we as credit repairers ultimately have a better avenue to help our clients remedy their credit rating errors,” Mr Doessel 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 Rating Repair is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

    ——————————————————————————–

    [i] http://www.attorneygeneral.gov.au/Media-releases/Pages/2012/Fourth%20Quarter/29November-2012-FamiliestobenefitasprivacyreformspasstheParliament.aspx

    Image: vichie81/ www.FreeDigitalPhotos.net[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • Nobody immune to identity theft as fraudsters turn their focus to investors

    Media Release

    Nobody immune to identity theft as fraudsters turn their focus to investors

    Wealthy, educated Australians looking to invest have become prime targets for the new breed of fraudster who are concocting elaborate scams designed to lure their hard earned savings. A national credit repairer says this demonstrates that the threat of fraud and identity theft is not limited to the naïve, but for all Australians.

    CEO of MyCRA Credit Rating Repairs, Graham Doessel says victims of the latest very sophisticated investment scams probably did not think they were in a high risk group, but he warns that all need to be on edge about where we could get caught out.

    “We need to get away from this idea that somehow those people that fall for scams are gullible. This is simply not true in all cases. Identity theft is the new black in criminal circles, and some of those criminals are willing to go to great lengths to fool their victims – particularly if the profits are lucrative,” Mr Doessel says.

    The Australian Crime Commission and Australian Institute of Criminology reported this year that more than 2600 Australians have lost in excess of $113 million to this type of investment fraud, but it is believed there is a high level of under-reporting and the extent is far greater. (1)

    They warn that the scam is incredibly sophisticated and has fooled even experienced investors with elaborate back up data, including fake websites and publications and fraudsters even issuing online press releases in the hope of extracting major dollars from their victims.

    Australians have been targets for this fraud because of high levels of superannuation and retirement savings. The Australian economy is also known to have been less affected by the global financial crisis than other nations.

    Mr Doessel says victims can lose their nest egg, and can also have their identity hijacked and potentially credit taken out in their name, which can rob them of the ability to obtain credit in the years when they will need it most.

    “Many people in this age group will generally have a good clean credit rating, and fraudsters can use the personal information they become privy to in order to set up a fake identity. This gives them access to huge amounts of credit in their victim’s name as well,” he says.

    He goes on to say “Fraudsters are never so kind as to pay the credit back -meaning the identity theft victim is hit twice – financially ruined and with no ability to borrow for 5 to 7 years due to bad credit history.”

    The Australian Bureau of Statistics data shows 514,500 Australians were victims of scams in 2011, with 44,700 people citing actual identity theft in the same year. (2)

    Credit reporting agency Veda Advantage also recently reported in its Australian Debt Study that one in five Australians have had their identities stolen or had their personal or financial data illegally accessed. (3)

    Matthew Strassberg, a Veda senior advisor said: “Whilst credit card fraud is a common form of identity crime, many people do not realise that with only a small amount of personal data, an identify thief could take out a second mortgage on a house, or open up a new line of personal credit and purchase items in their name or under a false identity.”

    Mr Doessel says pinpointing identity and credit fraud early can be difficult.

    “Fraudsters often change contact details, and many victims don’t know they have been scammed until they apply for credit and are refused,” he explains.

    He says sometimes there can be some early warning signs of identity theft, and people should watch out for these occurrences:

    1. Strange unaccountable withdrawals on credit or personal bank accounts. It may not need to be a big amount to indicate fraud. Many criminals do ‘test’ amounts to begin with before extracting more significant amounts.

    2. Phone calls or emails from what often appear to be legitimate companies, asking for money or personal details. If you have given bank details or personal information in this way either online or on the phone there is a high chance it was a scam. Verify with the company in question.

    3. Can’t log in to social networking or bank accounts.

    4. Bills or letters of demand sent to you for accounts you don’t know about.

    5. Missing mail – particularly credit card statements which could indicate someone has overtaken your accounts. In this case no news is not good news.

    6. Credit refusal due to a bad credit rating.

    If people feel they may be vulnerable to identity theft, they should alert their creditors, and also alert credit reporting agencies, who may be able to ‘flag’ their accounts to prevent fraudsters accessing credit in their name.

    Mr Doessel says regular credit checks are vital – and if a credit check reveals any “surprise bad credit” through possible identity theft – victims should act immediately to notify Police.

    “This crime is not very widely reported. But it is only through people reporting it that any real statistics get collated. Likewise, if people want to try and repair their credit rating following identity theft, the first thing I tell them is to make sure they have a Police report,” he says.

    For more information on restoring a credit rating following identity theft, contact MyCRA Credit Rating Repairs on 1300 667 218 www.mycra.com.au.

    /ENDS.

    Please contact:

    Lisa Brewster – Media Relations Ph  3124 7133 media@mycra.com.au

    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.

    (1) http://www.ministerhomeaffairs.gov.au/Mediareleases/Pages/2012/Third%20Quarter/9July2012-Newwarning-seriousinvestmentfraud.aspx
    (2) http://www.abs.gov.au/ausstats/abs@.nsf/mediareleasesbytitle/B634CE9C7619C801CA25747400263E7E?OpenDocument
    (3) http://m.smh.com.au/nsw/identity-theft-hits-one-in-five-study-20120705-21j37.html

     

    Image: worradmu/ www.FreeDigitalPhotos.net

     

  • Carbon price scam warning for Australians. Advice to protect your good credit history

    The ACCC’s SCAMwatch has released a warning for Australian consumers and businesses about carbon price scams. Fraudsters are out there trying to pilfer personal information and banking and credit card details from unsuspecting recipients under the guise of pretending to be helping them recover carbon credits and compensation. We explain what this scam is in detail, and how your credit file could be compromised.

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

    Carbon price scammers are out in force again. The scam may come in a number of forms, targeting consumers and businesses across the country.

    Here are some examples for you to look out for provided by SCAMwatch:

    • People are telephoned and asked to provide their bank account details to a caller claiming to be from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA). They are offering a grant for mortgage assistance under the Federal Government’s Household Assistance Package of up to $100,000. These offers are false.
    • People have had phone calls seeking their personal banking details to pay carbon ‘tax’ compensation into their bank account – these are likely to be a scam.
    • Scammers may also know people’s names, addresses and phone numbers and may try to make an appointment to visit them in their home.
    • Scammers may set up fake websites which look very similar to official Australian Government websites. The sites may ask people to enter personal or financial details, or offer to sell people fake carbon credits.

    Here is how SCAMwatch recommends consumers and businesses protect themselves from these scams:

    Protect yourself

    The Australian Government will never call you to ask for your bank account details or to receive the Household Assistance Package. Government services are never paid via money transfer services, nor will they ever ask you to send money this way. The Australian Government website www.australia.gov.au is a safe portal for finding government services.

    If you receive a phone call or letter asking for personal information such as your Tax File Number, Veteran’s Affairs client number or banking details, do not answer straight away. Contact the Australian Taxation Office on 13 28 61 or your nearest DVA office on 133 254 (or 1800 555 254 if in regional Australia) to confirm that the source is legitimate.

    Never provide or confirm your personal or business details over the phone (including banking details or identification numbers) unless you made the call using contact details you found yourself and you trust the information.

    If you think that a call might be a scam hang up and check by using official contact details which you have found independently such as through a phone book or online search. Never use phone numbers, email addresses or websites provided by the caller.

    Never enter your credit card or banking details on a website unless you have checked it is authentic and secure. Legitimate websites which ask you to enter sensitive personal or business details are commonly encrypted to protect your details. A secure site is usually identifiable by the use of “https:” rather than “http:” at the start of the internet address, or by a closed or unbroken key or padlock icon at the bottom right corner of your browser window.

    If you are a business, make sure you only deal with people you know and trust. Avoid having a large number of staff authorised to make orders or pay invoices. This will reduce the risk of your business paying for something that it is not required or is not legitimate.

    If you think you have provided your account details to a scammer contact your bank or financial institution immediately.

    Further to this, if people think they may have provided personal information to scammers then they may be vulnerable to identity theft.

    Apart from contacting their bank, here are three more things which are imperative for people to do if they think they might be vulnerable to identity theft:

    1. Contact Police. They can take some information about what happened and file a report – which you may need later if you do find your accounts and or your credit history compromised.

    2. Request a copy of your credit file. Check that everything is up to date, addresses are correct for you, and that there are no suspicious entries – like strange credit enquiries, or loans you have no knowledge of.

    3. Contact the Credit Reporting Agencies. Contact Veda Advantage, Dun & Bradstreet and Tasmanian Collection Services (if in Tassie). Let them know that you may be vulnerable to identity theft. They should be able to alert you to any new entries if they arose that could point to someone attempting misuse your good credit history.

    You may also wish to contact the ACCC to report the scam.

    If you are having trouble recovering your ability to obtain credit following identity theft, we might be able to help. Contact a Credit Repair Advisor on 1300 667 218 to discuss your circumstances.

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

    Image 2: David Castillo Dominici/ www.FreeDigitalPhotos.net

  • Australia has new privacy legislation to fight worldwide cybercrime

    New laws passed the Senate yesterday changing Australia’s privacy legislation to bring us in line with other countries and pave the way for Australia to accede to the Council of Europe Convention on Cybercrime – effectively allowing Australia to work alongside other countries to share and access information to aid in investigations of cybercrime. We look at the implications for this new bill, and the benefit in investigating fraud cases which can not only lead to loss of monies but negatively impact the victim’s credit file.

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

    We have been following the passage of this Bill through Parliament for over 12 months, since its introduction into the House of Representatives in June. See http://mycra.com.au/blog/2011/06/government-brings-laws-war-cyber-crime-identity-theft/ and http://mycra.com.au/blog/2011/11/bill-fight-global-cybercrime-coming-year/ and looking at the possible impact these changes could have on identity theft numbers.

    The Cybercrime Legislation Amendment Bill 2011 amends the Mutual Assistance in Criminal Matters Act 1987, the Criminal Code Act 1995, the Telecommunications (Interception and Access) Act 1979 and the Telecommunications Act 1997.

    The Government amended the Bill in the Senate to address some of the recommendations made by the Joint Select Committee on Cyber-Safety, including privacy protections and aspects of the provision of assistance to foreign agencies. The Government has agreed in principle with 12 of the Committee’s 13 recommendations.

    The passing of the Bill means Australia is one step closer to acceding to the Council of Europe Convention on Cybercrime, meaning it would join 34 other nations that have already become a party to the Convention. The Convention is the first international treaty on crimes committed via the Internet and other computer networks, dealing particularly with computer-related fraud, child pornography and violations of network security.

    Attorney-General Nicola Roxon said in a statement to the media yesterday that the Convention will help make it easier for police to track down cyber criminals around the world.

    “In particular, this will help combat criminal offences relating to forgery, fraud, child pornography, and infringement of copyright and intellectual property.

    “The Convention promotes a coordinated approach to cybercrime by requiring countries to criminalise these computer related offences. The Convention also establishes procedures to make investigations more efficient to improve international cooperation,” Ms Roxon says.

    Privacy Protection or Privacy Invasion?

    One well publicised change to Privacy Law will be the increase in police powers of surveillance. Police will be able to enforce the retaining of data by internet service providers on persons of interest even before they have an arrest warrant.

    Whilst these legal changes are widely approved, some raised concerns during a Senate inquiry into online privacy that this part of the law threatens the Privacy of individuals and threatens human rights and civil liberties.

    There are so many reports that the world is effectively chasing the tail of cybercriminals – the extent of which is far-reaching and difficult to combat. Australia is reportedly now a prime target for fraud with many accounts of scams, bugs, phishing attacks etc etc often instigated from overseas shores.

    To find out more about how we as ordinary Australians fit into the cyber-crime puzzle, you can read our blog post about the ‘Dark Market’: http://mycra.com.au/blog/2011/09/insight-%e2%80%98dark-market%e2%80%99-cyber-crime-underworld/.

    And often by the time people know they have had fraud committed against them the dust has long settled on any trace.

    But the effects can be felt for years by their victims, especially if the fraudsters are able to steal an identity, and take credit out in their victim’s name. The victim is then not only faced with a mountain of debt, and a series of defaults against their credit file. Both of which are not easy to recover from. They have to prove it wasn’t them that initiated the debt – pretty hard when there is no actual ‘perpetrator’ that anyone can see.

    For the sake of people in this situation, and victims of other cybercrimes – in particular, child pornography which is possibly more rampant, more damaging and more difficult to investigate – we need to get united as we are on the Web.

    It may be a bitter pill to swallow for Australians to give up some of their rights to Privacy to be replaced with more privacy protection but we may all have to swallow it regardless.

    What you can do to protect your credit rating from identity theft

    Our message at MyCRA Credit Rating Repairs is: please take steps to protect your credit rating from fraud!

    Educate yourself – visit the government sites like SCAMwatch, Stay Smart Online, and the Attorney-General’s website. If you are interested in keeping up to date with what could be occurring – say in cyber-circles you can visit technology sites like ZD Net Australia, or Computerworld or even subscribe to MyCRA’s RSS Feed for updates on security issues affecting credit files.

    Know what’s on your credit file – grab a free copy of your credit file today from one or more of Australia’s credit reporting agencies, Veda Advantage, Dun & Bradstreet, and TASCOL in Tasmania which will be mailed to you within 10 days.
    Your credit report is free every 12 months – take advantage of this by ordering a copy every year. Make sure there are no defaults currently attached to your file. If they shouldn’t be there or there are errors – you may be eligible for credit repair.

    If you feel vulnerable to fraud, for a fee credit reporting agency Veda offers an ‘alert’ service, which informs you of ANY changes to your credit file such as a change of contact details or a credit enquiry, which would point to you being a victim of identity theft – possibly BEFORE there are harmful defaults put against your name.

    For more information on identity theft, or help with credit repair following identity theft, contact MyCRA Credit Rating Repairs tollfree on 1300 667 218 or visit our website www.mycra.com.au.

    Image: Victor/ www.FreeDigitalPhotos.net

    Image 2: thanunkorn/ www.FreeDigitalPhotos.net

  • Access Denied… How late payments may ruin your home loan application

    You’re a busy young couple, both employed in good paying jobs, you’ve never defaulted on your loans, and you’re in the middle of saving hard for a home loan. Once you’ve got the deposit, you should be a bank’s dream customer right?
    But if you miss paying a few bills, you may not be so lucky. A warning to all future first home buyers about the new laws around late payments that could see you denied that home loan despite all of your good financial deeds.

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

    Comprehensive credit reporting is about to be brought in to Australia. The Government has introduced new legislation into Parliament to amend Australia’s current Privacy Laws under the Privacy Act 1988, which includes the area of credit reporting.

    In total there are 236 pages of amendments to the Privacy Act 1988 within the Privacy Amendment (Enhancing Privacy Protection) Bill 2012, which had its second reading in Parliament in late May.

    These new credit laws are heralded as ‘revolutionising’ credit reporting in Australia, and in theory there are some great changes about to take place which should see more emphasis put on the much-neglected realm of credit reporting accuracy.
    But not all changes will see more people given access to credit.

    The most important change to be aware of is the addition of repayment history information to credit files. In layman’s terms, this means if you pay your bills even a bit late – the company can make a note of it on your credit file.

    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 your credit file for 2 years.

    This extra information will be further used to assess credit risk by lenders. The Government says these reforms will lead to decreased levels of over-indebtedness but will also allow people who have a credit file listing the chance to ‘make up’ their negative listing with consistent positive repayment data.

    In discussing New Zealand’s move to comprehensive credit reporting – which occurred in April this year, credit reporting agency and supporter of comprehensive credit reporting, Veda Advantage said it would be the pattern of late payments rather than one or two late payments that will stop someone from obtaining credit.

    “A few hiccups should not hurt anyone’s ability to borrow money for a house, car or holiday in the future,” Veda Advantage New Zealand’s John Roberts told Business Day.

    But lending criteria is quite subjective, too subjective to guarantee those ‘hiccups’ will not penalise potential borrowers. 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.

    Accuracy Concerns

    The big area of concern around late payment notations from consumer advocates – including myself has to do with accuracy. At the moment credit rating mistakes are pretty common. The other issue is how difficult it is for people to dispute a credit listing themselves, let alone a late payment notation.

    NSW-based Consumer Credit Legal Centre Principal, Katherine Lane told the Sydney Morning Herald last year she was concerned over the fairness of listing a payment that is only slightly overdue or late for a good reason. She says credit reporting continues to operate as an “honour system” relying too heavily on the word of the creditor.

    ”My overriding concern is fairness,” Lane says of the exposure draft, which is now the subject of submissions to the Senate Finance and Public Administration Committee.

    ”Fairness is clearly a problem under the current law and they haven’t fixed the problem.”

    With the new legislation will be laws which will allow you to dispute your credit file listing easier if you believe it has been placed in error. But the thing is it will still be up to you to know the law to be able to apply it to your own case, and this is where credit repairers will continue to be needed – to close the gap and help enforce the legislation that Creditors are bound to comply with.

    To ensure you remain a good candidate for a home loan in the future, pay your bills on time, and prior to loan application order a free copy of your credit file to make sure you’re not going to be disadvantaged by someone else’s mistake. If there’s something you don’t agree with – contact a professional credit repairer to see if you would be a candidate for credit repair to remove credit rating errors.

    Image: basketman / www.FreeDigitalPhotos.net

  • Veda throws new light on identity theft and credit fraud: 1 in 5 affected

    Identity theft numbers continue to climb. How can this impact your credit file and possibly lead to a wrong default listing? And what action can you take if you are a victim of identity fraud?

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

    Credit reporting agency Veda Advantage has revealed more results of their annual Australian Debt Study, of around 1,000 Australians that one in five have had their identities stolen or had their personal or financial data illegally accessed.

    The results, released on Thursday to the Sydney Morning Herald and published in the story Identity theft hits one in five: study, shows the figures have climbed higher than previous studies on identity theft. This includes the widely attributed study on identity theft commissioned by former Attorney-General Robert McLelland twelve months ago, which revealed one in six Australians had fallen victim to, or knew someone who was a victim of identity theft.

    It was reported that credit card crime such as skimming is one of the major problems plaguing consumers. Here is more from that story:

    Australians aged 35-49 are the most likely group to fall victim to identity fraud while 18-24 year olds are the least likely to report illegal access to their personal or financial data…

    …people earning more than $70,000 are much more likely to be targeted for bank account and credit card crime than those earning $40,000 a year or less and cases of identity theft and financial fraud are highest in Western Australia and NSW.

    Findings also show that almost one in three Australians suffered some form of credit crime and lost their wallet containing credit cards and identification.

    Matthew Strassberg, a Veda senior advisor said: “Identity crime is a thriving industry in Australia, with the Australian Bureau of Statistics estimating the cost of personal fraud to consumers at $1.4 billion dollars a year.

    “Whilst credit card fraud is a common form of identity crime, many people do not realise that with only a small amount of personal data, an identify thief could take out a second mortgage on a house, or open up a new line of personal credit and purchase items in their name or under a false identity.”

    Credit card fraud is the most common type of identity crime, but it is buffered by substantial bank insurance and good general knowledge of the steps to take should a person’s credit card be stolen – cancel cards, let the bank know etc etc – but the silent ‘killer’ if someone’s wallet is stolen or a home is broken into; or personal information accessed over the internet or through the various sophisticated computer viruses that are out there – could be the personal information that can be accessed and misused.

    We consider if someone is alerted to having money stolen from credit cards early, or perhaps is able to call their bank and stop fraud in its tracks – that they are the lucky ones.

    The unlucky identity theft victim is unaware of the fraud until their identity is misused, and their credit rating with it. When identity theft damages a person’s credit rating – it is because the fraudster has been able to overtake credit accounts, or has gained access to enough personally identifiable information about the victim to forge new identity documents.

    This gives the fraudster access to credit cards, loans, even mortgages which allows them to extract significant amounts of money without the victim realising it straight away.

    If credit accounts are not repaid – after 60 days the victim may be issued with written notification of non-payment and the intention for the creditor to list a default on their credit file. It is at this moment that some people who were previously unaware of any problems find out they have been victims of this more sophisticated type of identity theft.

    But often the credit file holder has also had their contact details changed – and this means it is not until they apply for credit in their own right and are refused that they find out about the identity fraud. This can be a significant time after the initial crime.

    It can often be difficult for Police to track down who was responsible for the fraud, and likewise, it can be difficult to prove to creditors the victim did not instigate the credit in the first place. People can be left not only owing thousands of dollars, but can also be left robbed of the ability to take out new credit. Major fraud such as this can completely debilitate a family for years after the crime took place. Bad credit sticks around for between 5 and 7 years, depending on how the unpaid credit is listed on the victim’s credit file.

    Knowing how to dispute a credit report which is damaged from identity theft is a science, as is all credit listing complaints. The onus is on the credit file holder to prove to the creditor they did not initiate the credit. This requires proof, including Police reports and documentary evidence.

    This is why many identity theft victims – and all victims of credit file mistakes – turn to professional credit repairers to repair their bad credit in these instances. Often there is only one shot at disputing a credit listing with a creditor. Seeing a professional can give people the best chance of correcting bad credit and having those mistakes (including mistakes from fraud) which appear on their credit report removed for good.

    If you are the one in five who has been a victim of identity theft, have you checked your credit file lately? Do you know whether you could be at risk of identity fraud and credit misuse?

    You can get a free copy of your credit file annually from one or more of the credit reporting agencies in Australia and you should do this to make sure your good name hasn’t been compromised.

    If there is something on your credit report that you don’t agree with, or you think you may have fallen victim to identity crime, contact Police and contact a credit repairer – don’t be embarrassed, and don’t put up with bad credit that shouldn’t be there.

    Image: scottchan/ www.FreeDigitalPhotos.net

    Image: vichie81/ www.FreeDigitalPhotos.net

  • Bad credit affects refinancing market too

    Refinancing numbers are at a record high. But any home owner looking to refinance needs to consider they could have surprise bad credit history. Before you apply for a new loan, it is important to check your credit history prior to making any finance application, even if you think your repayment history is impeccable.

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

    Australian Broker reported Tuesday on figures coming through from AFG showing figures for refinancing have gone through the roof in the past 12 months, with two in five loans now refinancing:

    Refinancing outweighed all other loans on AFG’s Mortgage Index at 39.1 per cent for June.

    Mark Hewitt, general manager of sales and operations at AFG attributed the growth to a more competitive market.

    “Refinancing is very strong as borrowers take advantage of a more competitive market to secure a better deal,” he said.
    AFG also said fixed rate loans fell to 16.5 per cent – a significant decrease from March’s peak of 25.4 per cent.

    “It’s significant that, as we begin a new financial year, the vast majority of borrowers are opting not to lock in an interest rate. Most see a period of stable or even softer rates for the foreseeable future.”

    Before refinancing

    Prior to making a re-financing application, you should order of free copy of your credit report – in case your credit history contains inconsistencies you aren’t aware of. For some home owners, it can be years since you applied for major credit, who knows what information is present on your credit file?

    Under current credit reporting legislation, you are entitled to obtain a free copy of your credit report from the credit reporting agencies once a year. A person requesting their own credit report does not generate a ‘credit enquiry’ on their credit file so it is important to do this prior to putting in the application. If a credit enquiry from a lender finds a default against your name, warranted or not, you will be refused finance. That lender’s ‘enquiry’ now shows up on the credit file for 5 years along with the default, creating two negative entries instead of one.

    You need to contact all the credit reporting agencies to request your credit report – as creditors have access to 2 main agencies within mainland Australia and 3 if in Tasmania. The report will be sent to you within 10 days of the request.

    Regardless of whether you have been diligent with paying bills, creditors can and do sometimes make mistakes with credit files, which can leave you with black marks against your name that just shouldn’t be there.

    Sometimes you may not know your good name is compromised until you apply for finance or in this case re-finance and are refused.

    What is bad credit?

    A bad credit rating can result often due to unpaid accounts. When a bill or repayment goes unpaid past 60 days, it is listed as a default or a ‘clear-out’ on your credit file. In the current finance market, any black mark generally results in an automatic decline with the major lenders, as does too many credit enquiries.

    So how many credit files contain errors? The volume of credit file errors on Australian credit files is uncertain.

    A spokesperson from credit reporting agency, Veda Advantage estimated 1% of the 250,000 credit reports they give out as a credit reporting agency to Australians every year contain a material error on the credit file.

    But the Australian Consumer Association (now Choice) survey from 2004 revealed that 34% of the credit files surveyed in their small scale study contained errors or inconsistencies.

    And the real numbers? They may be somewhere in between.

    Approximately 63% of the clients who request credit repair have defaults, writs or Judgments which are listed in error on their credit file.

    We have clients who are facing identity theft; some are caught in issues over separation from their spouse; some have been disputing the bill which went to default stage and many people are just victims of the fallout from inadequate billing procedures – wrong names, wrong addresses, human and computer errors.

    Listings are not removed by creditors unless you can provide adequate reason and lots of evidence as to why the listing should not be there.

    Credit repair requires knowledge of the legislation, lots of evidence and perseverance. But if your financial freedom is hindered because your credit file contains errors, it is a point worth fighting for.

    Contact MyCRA for help with getting a free copy of your credit file, or for help with credit repair on 1300 667 218 or our main site: www.mycra.com.au.

    Image: Michal Marcol/ www.FreeDigitalPhotos.net

    Image: Stuart Miles/ www.FreeDigitalPhotos.net