MyCRA Specialist Credit Repair Lawyers

Tag: writ

  • How To Go From Embarrassment To Puffed Up Confidence In Small Business Borrowing

    How To Go From Embarrassment To Puffed Up Confidence In Small Business Borrowing

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     Five Simple Steps TO Fix Your Small Business Bad Credit

    Small Business Credit Repair
    MyCRA Lawyers | five simple steps to clean credit | 1300 667 218

    How To Go From Being Too Embarrassed To Apply For Finance For Fear Of Rejection In Your Small Business – To The Power, Strength & Certainty Of Being Able To Say No, To Too Many Finance Offers! – In Five Simple Steps!

    Historically, We Entrepreneurs/Small Business Owners Often Tend To Put Ourselves Last. This Is How We Survive The Hard Times.

    I know that I personally have chosen to pay my staff (at the time of a cash flow crisis) in preference to paying my personal credit card, my salary, or other Small Business related accounts.

    Your logic might be similar to mine, in that if we keep the business alive we survive to fight another day and pay our bills later, but if the small business folds we lose everything we’ve worked for and our income stream. To me, it’s a no-brainer.

    So if you’ve found yourself with a bad credit rating because of a previous downturn, keep reading and I’ll show you exactly how to get back on top in five easy steps.

     

     

    5 Steps to Fixing Your Small Business Bad Credit History

     

    Graham Doessel | MyCRA Lawyers | Armstrong Doessel Stevenson Lawyers | Chief Executive Officer
    Graham Doessel
    MyCRA Lawyers Founder & 
    Chief Executive Officer

    STEP 1:  Determine What Account The Default Is For.

    Work out how bad your credit rating really is. The best way to do this is to get a copy of your personal and Small Business Equifax, and your personal and Small Business Dun & Bradstreet credit files (see the links at the bottom for more information). Free and Paid options are available.

    STEP 2: Gather All The Information First.

    Review your credit files and make a note of the following:

    1. the number and type of credit enquiries in the last 12 month period;
    2. the number and type of overdue accounts or defaults listed;
    3. the number of writs, judgements, serious credit infringement’s.

    Also, make note of the following:

    1. the date of the listing;
    2. the amount of the listing;
    3. if paid, the date paid;
    4. the automatic deletion date.

    STEP 3: Decide How You’re Going To Tackle Them.

    Now that you know your credit situation and how good or bad it really is, it’s time to take action to improve your credit score.

    Step three is about getting into action. Now you’ll need to negotiate with your creditor to remove the default. Don’t go in ‘guns blazing’, especially if you have a court Writ or Judgment, remember how you like to be treated.

    Before you start, decide whether it’s something you want to spend the time and effort yourself to learn the legislation, find the best contacts within each creditor organisation, understand their obligations to be able to point out the errors, and then have the arguments with each of them multiple times… Or,

    You want to take advantage of MyCRA Lawyers nine years of specialist training, research, systems, contacts, and our independently externally audited 91.6% removal resolution rate, so you can hand over the responsibility, knowing have now taken the right steps to give yourself the best chance of clean credit rating success.

    Decision made!

    STEP 4:  Write To The Creditor To Ask For Information On The Account.

    This is where the rubber hits the road, and it might be hard going if you’re not experienced (there’s up to 8,000 pages of legislation and related reading).

    You, or MyCRA Lawyers will contact your creditors individually and request a series of documents and associated information they are legally required to hold about you and your Small Business.

    When we receive none, some, or all of that information, our solicitors go through it with a fine-tooth-comb looking for legislative or compliance errors or omissions in the way the listings were added to your credit file.

    When we find those errors or omissions (91.6% of the time) we write back to the creditor, instructing them that this default listing is unlawful due to the breach and subsequently requires immediate removal.

    STEP 5:  Consider Getting A Specialist Credit Repair Lawyer On Your Side.

    Your creditor will either argue (we’ve been around a while so it happens less and less), refuse, or simply remove the offending listing.

    29.4% of our clients get the good news in seven days or less, with most in 30 days or less.

    Once your creditor has agreed to remove the listing, on average it takes between one and 10 days to actually have it erased from your credit ratings.

    So if bad credit has been stopping you opening new advertising accounts, securing an overdraft, updating your fleet, refinancing, or anything else that has been holding back the growth of your business, maybe, just maybe it’s time you took some positive action to fix your credit rating and leave the past in the past.

    Give me a quick call on 1300 667 218, and we can chat about your situation and what your options really are.

    Mention you read this article (SBAA0518) when you call, and you’ll receive a 20% discount on any legal service invoiced & paid before 30/06/2018.

    LINKS:

    For a list of credit reporting bodies and where to get your free credit files go to:

    https://mycralawyers.com.au/free-credit-rating-v2

    Meet Our CEO – https://mycralawyers.com.au/who/staff/graham-doessel

    Think about joining the Small Business Association of Australia (SBAA)- https://smallbusinessassociation.com.au/membership/

    Proudly a National Sponsor of the SBAA – https://smallbusinessassociation.com.au/sponsors/

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  • Not all credit repair law firms are created equal.

    Media Release

    20131021-MyCRA-Lawyers-Logo-medNot all credit repair law firms are created equal.

    6 November 2013

    One of the country’s top credit repairers has stepped up to fill a gap in the credit repair industry with the establishment of a law firm.

    Non-legal Director and well known consumer advocate for credit reporting, Graham Doessel says the establishment of MyCRA Lawyers has been motivated by an identified need to do more for consumers.

    “Credit advocates play an essential part in credit reporting, but the only way to truly cover all bases for consumers is to be part of the legal process,” Mr Doessel says.

    He says that in reality, when disputing a client’s credit listing, credit repairers can be met with varying responses and lengthy delays, and are not always taken seriously.

    “We believe that a law firm can provide strength in dealing with a Credit Provider,” he says.

    “Being a law firm allows us to go to the next level on behalf of our clients and bring real quality to our work – without restriction.”

    The credit repair industry has grown in popularity in Australia with tight lending conditions post-GFC.

    At last count 34 firms claim to be affiliated with credit repair or to repair bad credit.

    With that popularity has come criticism from bodies such as Ombudsman Services, other legal centres and even ASIC about questionable practices within the industry. Many have called for the formal regulation of the credit repair industry.

    Mr Doessel agrees more credit repairers should be held accountable, and that Regulation needs to follow.

    “MyCRA Lawyers believe it’s time to stand above the morass, be a leading firm and ensure that it acts to the highest standard.”

    He believes being a law firm with the duties and obligations this brings, will achieve this.

    Legal Practitioner Director and Principal Solicitor, MaryAnn Armstrong (JD. MEd. BEd ) says MyCRA Lawyers are one of the few firms who can legally offer Judgment removal services legally and professionally within the credit repair industry.

    “Preparing and submitting Court documents, preparing Affidavits – these are all actions which are legally required to be performed by a practising legal firm – and I would argue that any credit repair firm which is claiming to handle any Court matters such as Judgments and Writs should hold a practitioner’s certificate,” Ms Armstrong says.

    She also argues that credit repair is a grey area when it comes to the law –and those in the credit repair industry who are giving the impression of performing a legal service, could be doing so illegally.

    “The law states that any firm which acts on behalf of a consumer in legal matters is deemed to be performing a legal service, and must hold a practising certificate.”

    “Throwing around phrases such as ‘cheaper than a lawyer,’ ‘check if your debt is legal’ or ‘we provide legal removal services’ could be dangerous,” Ms Armstrong says.

    Whether or not Australia’s credit repairers would be required to cease operation in the future could come down to the perception of whether or not these firms were deemed to be crossing the line into a legal service.

    “It could come to light that many credit repair firms are currently operating as well-intentioned law breakers,” she says.

    Mr Doessel says both he and Ms Armstrong are keen to continue to speak out for consumers in matters of credit reporting accuracy.

    “With Australia’s new credit laws coming to fruition in March 2014, it will be incredibly important to be a voice for consumers in the credit reporting arena,” Mr Doessel says.

    He says MyCRA Law’s pricing model remains at a fraction of the cost of many other legal services, but it is not cheap.

    “Our clients are those people who are experiencing credit rating errors, omissions and inconsistencies, which are holding them back from obtaining major credit. We want our services to remain accessible, but we despise the predatory tactics from credit repair firms who target people who are down on their luck – so cheap and nasty is not for us,” he says.

    /ENDS.

    For interviews, please contact:

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

    MaryAnn Armstrong – Legal Practitioner and Director, Principal Solicitor MyCRA Law Ph 3124 7133

    For general media enquiries, please contact:

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

    MyCRA Lawyers 246 Stafford Rd, STAFFORD Qld

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

    MyCRA Lawyers…permanently removing defaults, Writs and Judgments from credit files.

  • Bankruptcy and Debt Agreements should be a last resort for debt struggles.

    debtMedia Release

    Bankruptcy and Debt Agreements should be a last resort for debt struggles.

    17 January 2013

    Australians experiencing severe debt problems are turning to Debt Agreements over Bankruptcy, with a recorded increase of 68% in Debt Agreement numbers since 2007, but a consumer advocate for accurate credit reporting warns that both alternatives fall under the Bankruptcy Act 1966, and should be encouraged only as a last resort for consumers struggling with debt.

    New figures provided by Insolvency and Trustee Service Australia (ITSA) show that bankruptcies declined 20% between 1 January 2007 and 31 December 2012, with 150,353 bankruptcies recorded during this period. During the same period, there were 49,034 new debt agreements made, which represents a 68% increase.[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]

    Reforms to the Bankruptcy Act in 2007 in the form of the Bankruptcy Legislation Amendment (Debt Agreements) Act 2007, aimed to improve the operation of the debt agreement regime.

    Attorney-General Nicola Roxon recently said debt agreements provide better outcomes for someone’s financial circumstances, and may allow those people in debt the chance to save their home.

    “Debt agreements give many Australians in financial distress an alternative option to get back on their feet sooner than bankruptcy,” Ms Roxon said.[ii]

    “Debt agreements in many cases can be the smarter way forward especially as bankruptcy can leave a financial legacy that can affect people for years.”

    But CEO of MyCRA Credit Rating Repair, Graham Doessel says whilst formal Debt Agreements may be preferable to Bankruptcy in many cases, it is important for consumers to know that both options are part of the Bankruptcy Act 1966, and therefore when proposed or implemented, record a Bankruptcy Notation on the consumer’s credit file.

    “A formal Debt Agreement may be a nice form of Bankruptcy, but make no mistake – it is still part of the Bankruptcy Act 1966. Both options will impact a consumer’s credit file and ability to obtain credit for 7 years. But what’s more, the debtor will be allocated a Bankruptcy number, which remains part of their credit history for life,” Mr Doessel says.

    The debtor’s name and other details appear on the National Personal Insolvency Index (NPII), a public record, for the proposal and any debt agreement.[iii]

    He says other than difficulties obtaining credit, having a Bankruptcy recorded can also impact business situations, and in some cases may impact employment opportunities.

    “You can’t get away from this notation, and answering the question ‘Have you ever been Bankrupt or entered into a Debt Agreement?’ incorrectly constitutes fraud,” he says.

    He says consumers owe it to themselves to exhaust all other options before they enter a Debt Agreement.

    “Talk to your Creditors – most don’t want to have to commence legal action against you, and will try to help you with repayment variations if they can,” Mr Doessel says.

    If Creditors have not commenced legal action yet, a consumer struggling to make repayments may be entitled to relief under financial hardship provisions.

    From March 2013, the Consumer Credit Legislation Amendment (Enhancements) Bill 2012 will take effect, allowing for greater ease of request for financial hardship variation and will generally be encouraged as a deterrent to any kind of credit file blemish or prior to someone having a court Judgment or a last resort-Bankruptcy filed against them.[iv]

    Mr Doessel says it is important for people not to bury their head in the sand, and to recognise and address financial difficulty early.

    “By catching it early, and avoiding a Default, Writ, Judgment or Bankruptcy on your credit file, when you’re back on your feet you could have the option to borrow again – even for basics like a credit card or mobile phone plan,” he says.

    ‘Dealing with debt: Your rights and responsibilities’ is a government publication which gives people information on dealing with debts, debt collectors and disputes. It is available through the ASIC (www.asic.gov.au ) or ACCC websites www.accc.gov.au.

    /ENDS.

    Please Contact:

    Graham Doessel – PH 3124 7133

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

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

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

    ——————————————————————————–

    [i] http://www.itsa.gov.au/dir228/itsaweb.nsf/docindex/Statistics+%26+Research-%3EStatistics

    [ii] http://www.attorneygeneral.gov.au/Media-releases/Pages/2013/First%20Quarter/10January2013-Debtagreementsbetterpaththanbankruptcy.aspx

    [iii] http://www.itsa.gov.au/dir228/itsaweb.nsf/docindex/Bankruptcy-%3EPersonal+Insolvency+Information-%3E3.+Debt+agreements

    [iv] http://www.mondaq.com/australia/x/175676/Consumer+Credit/Treasury+releases+amended+NCCP+Enhancements+Bill

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

  • What Does Your Credit File Say About You?

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    Our credit file is like a mirror on our finances. How healthy are you looking? Here’s a back to basics look at the ins and outs of taking on credit in Australia, and why it’s important to look your best when applying for credit by having a clean credit history.

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

    When you apply for credit, the lender will, after assessing your savings history, your income and your debts – order a credit check on you. This involves contacting one or more of Australia’s credit reporting agencies, to order a credit report from your credit file.

    What the lender sees on your credit file can reflect your assets, your good history, but it can also reveal your financial shortcomings. It can be a reflection of your inability to stick with something, your disregard for repayments, or the financial potholes that are sometimes impossible to climb out of. Let’s look at what a lender might see about you on your credit file, and how you can make sure it looks squeaky clean.

    Your Credit File

    Is a collation of your credit history. As soon as you become credit active, you have a file opened in your name. This file is then attached to you as long as you apply, use and unfortunately abuse credit – it will follow you everywhere in Australia.

    If you have applied to borrow money, or have established an account for services you are considered credit active.

    Every creditor inputs information about you to one or more of the credit reporting agencies in Australasia. Australia’s CRA’S include: Equifax (Formerly Veda Advantage), Dun & Bradstreet, Experian & Tasmanian Collection Services (TASCOL) if in Tasmania.

    What a credit file contains

    – Your credit file includes identity information – such as your full name, date of birth, gender, driver’s licence details, addresses and employer information.

    It also includes other information about your credit and repayment of credit history:

    -Any current active credit and details of current credit providers, for instance mortgages, personal loans and credit cards.
    – Any overdue credit accounts – these may be reported as either a ‘payment default’ or a ‘clearout’.

    How long will I have bad credit?

    Credit Reporting Body Equifax reports these time periods for holding information on your credit file:

    How long is the information held on my credit file?
    • Credit applications and enquiries and overdue accounts are held on your file for five years
    • Overdue accounts listed as a payment default are held for five years
    • Overdue accounts listed as a Clearout are held for seven years
    • Bankruptcy Act Information is held on your file for seven years (prior to January 1998, Bankruptcy Act Information was held for five years)
    • Court Judgments are held for five years
    • Writs & Summons are held for four years
    • Identity information, which includes name, date of birth, sex, drivers license, address history, and linked names (if any) are held for the life of the credit file. This information is used to distinguish the credit file from others held in the database
    • Purge dates are calculated on the date the information was added to the file, and are based on the time limits provided in the Privacy Act 1988
    • Files are scanned each month and out of date information is automatically purged to ensure the files are accurate.

    NB: Even when an overdue account or clearout has been brought up to date or paid in full, it will not be removed from your file.

    All payment default listings remain on file for five years from the date of listing. All clearout listings remain on file for seven years. The fact that an account has become overdue, and then been paid becomes part of your credit history.

    Your credit report

    As the credit file holder, you are legally able to obtain a copy of your credit report for free from all of the credit reporting agencies in Australia every 12 months – and a written copy of your credit file will be provided within 10 days from your written request.

    Every credit active person should obtain a copy of their credit report annually  – regardless of whether or not they think they have a bad credit rating. It is important that when checking your credit file, you obtain reports from all possible credit reporting agencies.

    Definition of a ‘bad’ credit rating

    If you don’t already know you have bad credit, you would be notified at the time of credit application, when the credit provider obtains a copy of your credit file.

    In broad terms, any credit defaults, court actions or writs, external administrations and bankruptcy are all recorded on your credit file and would be considered ‘bad’ credit history by most credit providers.

    In this current economic climate even too many credit applications are often considered to be ‘black marks’ on your credit file.

    Impact of a bad credit rating

    If you discover you have a negative listing on your credit file, you will find it very difficult to obtain mainstream credit in the future, generally for the term of the listing (5 -7 years).

    You will likely be refused a home loan with most lenders and possibly be refused credit of many kinds from credit cards to phone plans right through the term of the listing.

    Too many credit enquiries on your credit file may also stop you from getting major credit with most lenders.

    Most times the loan options available to bad credit clients are at significantly higher interest rates in order to cover the risks associated with taking on someone with bad credit.

    Can you change what is said about you on your credit report?

    It depends if the information on your credit report is accurate or not. If your address or other personal details are inaccurate, you may want to contact the credit reporting agencies to have this rectified. But you should also consider why. Do you think it’s possible that there are inconsistencies on your report? If you also have defaults or other credit listings which you feel shouldn’t be there, you should pursue the matter through making a claim with the Creditor to dispute and remove any listings which should not be there.

    Any credit listings which you feel are unfair, incorrect or just shouldn’t be there should be addressed well before you need to apply for credit. The impact of bad credit is pretty severe – and can haunt you for a long time. Spend the time to make sure everything is correct on your credit report.

    You may only get one chance at clearing your credit file – so it’s important to give yourself the best chance of having any inconsistencies removed from your report by using a professional credit repairer.

    Sometimes individuals can attempt to deal with creditors to remove the credit rating default themselves and can do more harm than good by not understanding the legislation.

    Credit repair is a lengthy process, involving the review of all documentation from an individual – including the credit file and all the circumstances surrounding the default, writ or Judgment.

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

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

    For advice about whether your adverse listing may be suitable for credit repair, contact a Credit Repair Advisor on 1300 667 218 or visit our website for more information www.mycralawyers.com.au.

    Once your credit file is restored and your bad credit is removed, you will be looking great to the lender, and ultimately feeling great when you have access to the best credit you can, at the best rates.

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

    Image 2: imagerymajestic/ www.FreeDigitalPhotos.net

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  • 5 Loan Solutions For Bad Credit

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    MyCRA Expert Credit Repair Lawyers Can Fix Your Bad Credit So You Can Be Approved!
    MyCRA Expert Credit Repair Lawyers Can Fix Your Bad Credit So You Can Be Approved!

    If you have a default, Clear-Out, Judgment, or Writ noted on your credit file – then you have one of the 4 common types of ‘bad credit’ which show up on Australian credit reports every day. It may be something you have been aware of since your Creditor put it there, or it could be something that slaps you in the face right when you are applying for a loan for a house, car or credit card. But if the question you really want answered is…’How can I get a loan with bad credit?’ we show you 5 ways you might still qualify for a loan while you have a black mark on your credit report.

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

    1. Apply with a lender who does not use credit scoring

    Recently Your Mortgage magazine published the Six ways to get a loan with bad credit, written by Smartline Mortgage Adviser, Kim Wight. Here is her first piece of advice on applying for credit:

    Most lenders use a computer-based system called credit scoring to assess your home loan application, says Ms Wight.

    “This means that the data collected in your application is given a rating or score and if the computer scores you as a bad risk, the application is declined before a real person has a chance to look at the application or hear your story as to why you have had credit problems in the past. In other words, ‘computer says no’,” she explains.

    “By applying with a lender who does not use credit scoring, your application – and the reason for your past credit problems – will be assessed by a real person, who can evaluate your personal situation past and present and use this information to make their decision on your application; it can be a case of, ‘human says yes’.”

    2. Apply with a non-conforming lender

    A non-conforming lender specialises in loan products for higher risk clients. These lenders are an alternative for those people who do not meet the lending criteria of traditional institutions for a variety of reasons, which includes bad credit clients, limited documentation, and low or no deposit clients. With the higher risk also comes a higher interest rate – usually 1% to 3% more than the standard interest rate.

    On the downside, this may add thousands of dollars over the life of the loan. Also non-conforming home loans lenders will require stricter repayment conditions and may penalise late or irregular payments. On the other hand if the payments are consistent and on time for a period of 1 or 2 years some may reward borrowers with interest rate cuts.

    If non-conforming home loans borrowers make regular repayments over 3 years they may be able to refinance their home loan with a standard variable interest rate home loan.

    But this type of loan should really be a last resort for borrowers – and we show you why.

    Norm is looking at a $300,000 loan. The interest rate with the non-conforming lender is 9%. There is a difference of 2% from the standard variable rate of 7% on the loan he was applying for before he found out he had bad credit.

    Norm and his family will pay $15,046.57 more in interest alone with the non-conforming loan just over those first three years prior to refinancing. Use our credit repair savings calculator to find out what it could cost you.

    But how do you apply with a mainstream lender if you have bad credit?

    3. Save more deposit and avoid mortgage insurance

    If you save over 20% deposit, plus your stamp duty and legal costs, you may be exempt from mortgage insurance. The mortgage insurance covers the lender in case you don’t repay the loan. If you can provide the bank with an ample deposit, their approval may be all that is necessary to secure the loan. If your financials stack up, and you have a great deposit, the bank may decide to approve you despite that black mark on your credit file.

    4. Prove to the bank that you can repay the debt

    Your Mortgage also says it is necessary to show a good repayment history if you wish to be considered for a loan while you have bad credit. And this makes sense. If you can’t demonstrate you have moved past those previous problems, by paying your accounts on time – the bank will probably wish to decline your application – whether that be with a mainstream lender or an alternative lender.

    “If you have had problems in the past, you need to show that you are now back on track by ensuring all current financial commitments are being paid on time,” Wight says.

    “This includes not only your loans and credit cards but your rent and utilities as well. Evidence of regular savings will also strengthen your application.”

    The other very essential thing to remember is that honesty is always the best policy when applying for credit. The worst thing you can do when you attempt to look into a loan with bad credit is pretend you don’t have it and hope that mainstream lenders don’t notice. Ah…they will – and this indiscretion will severely hurt your chances of obtaining credit.

    5. Determine whether the bad credit should really be on your credit file

    Sometimes bad credit history is legitimate. It is put there because we haven’t paid our bills on time, and the creditor, having done all the right things, has been left with no choice but to note it on our credit file.

    But in other cases our credit listing shouldn’t be there – because it was issued to our credit file unlawfully. Here are a few quick examples of how bad credit history may be unlawful:

    The listing is unfair (you don’t deserve to have the default in the first place); the creditor has defaulted the wrong credit file (eg system mistake or identity theft); the creditor has not given correct notification prior to the default – just to name a few.

    In these cases and many more, it is in your best interests to check whether you might be able to have the bad credit listing removed from your credit file, so that you can apply with a mainstream lender. If in doubt – get it checked out.

    You should repair your bad credit through a professional for a number of reasons…

    1. Most creditors will tell you they can’t remove the listing.

    2. You need to provide legislative evidence in order to prove the listing was placed unlawfully.

    3. Negotiating with creditors in the wrong way could lead to a fight on your hands and/or documents and client notes ‘disappearing’.

    The best way to see if you may be suitable for credit repair is by contacting a specialist credit repair company or a lawyer.

    You can contact a MyCRA Expert Credit Repair Lawyers Credit Repair Advisor on 1300 667 218 or visit our main site for more information www.mycralawyers.com.au.

    Image: Stuart Miles/ www.FreeDigitalPhotos.net

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  • New Credit laws passed Parliament yesterday which may protect those who need it most

    It’s not the long awaited comprehensive credit reporting, but it is the Consumer Credit Legislation Amendment (Enhancements) Bill 2012 passed by Parliament yesterday and waiting for Royal Assent. The reforms will among other things, alter laws around financial hardship, and put the first national cap on payday loans – which should assist those people who are struggling with credit and access to credit. We look at what this Bill will and won’t do for people on the fringe, or people who are under hardship, and what the implications will be in terms of their credit file and maintaining a good credit rating.

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

    For someone who is struggling with debt, keeping your head just above water and avoiding defaults is the best thing you can do for yourself. This is why the ‘streamlining’ of laws around financial hardship is so important. For someone who is suffering temporary hardship to be able to discuss alternative arrangements with their lender other than being hit with a default on their credit file is so vitally important because if they are unable to secure a hardship variation, the consequences can be dire – which starts with defaults, and can end with more debt and defaults.

    The consequences of having a negative credit listing, whether that be a default, a Judgment, a writ or a Clearout is generally a ‘lock-down’ of mainstream credit services for the term of the listing which is between 5 and 7 years. Once that lower-interest option is no longer available to you, it’s time to seek aid in other areas, especially in times of emergency. So that is where the payday lenders come in, or non-conforming lenders in the mortgage marketplace. These lenders have a bigger ‘risk’ because you may have a bad credit record, so they charge more in interest to offset that risk.

    The Government has decided to crack down on payday lenders and cap their interest rates. Minister for Financial Services Bill Shorten said in a statement to the media yesterday, that these reforms will stop loan sharks from exploiting vulnerable Australians:

    “These laws will place reasonable limits on what lenders can charge. The cap on costs appropriately balances consumer protection while still allowing lenders a return that is commercial.”

    “The Gillard Government has moved to reduce the financial harm caused by lenders who ruthlessly impose excessive fees and charges simply because vulnerable consumers cannot obtain alternative access to credit. These reforms continue the Gillard Government’s ongoing commitment to deliver a fair go for all Australians,” explained Mr Shorten.

    The Enhancements Bill introduces a cap for small amount credit contracts where the amount borrowed is $2000 or less, and the term is 1 year or less. For these loans the maximum any lender can charge is an establishment fee of 20 per cent of the amount of credit upfront and 4 per cent for each month of the loan. This provides for maximum charges of $72 on a loan of $300 over 1 month.

    The legislation will also introduce a number of other reforms according to Mr Shorten:

    • Applying a cap to other credit contracts based on the 48% cap currently in force in some Australian States. The Commonwealth cap addresses the range of avoidance techniques lenders currently have devised to avoid that cap.
    • Responsible lending obligations to address high risk conduct by small amount lenders.
    • For seniors who use reverse mortgages, greater certainty as to future outcomes when they enter into such contracts that the amount they are required to pay cannot exceed the value of the equity in their home (through a no negative equity guarantee).
    • Simplifying the procedures for borrowers to apply for a variation to their repayments on the grounds of financial hardship, as it is in the best interests of both parties to try and resolve these situations as quickly and simply as possible.

    Some objected to the Bill, saying the Government had effectively gone soft on the payday lenders.

    In The Australian, Greens Senator Sarah Hanson-Young said the final version was so weak it could have been written by the loan sharks.

    As a credit repairer, I am of the view that any restriction on interest rate for pay day loans is a welcome move. But I see the bigger picture. Some people who are forced into these situations are there because the system has failed them. Not all defaults deserve to be there, but they all have the same outcome for prospective borrowers. They are banned from obtaining mainstream credit.

    Where people are getting let down is in copping the mistake in the first place, and also in the correction of the credit reporting mistake. Whilst the powers that be say that there is a legitimate avenue for correcting credit reporting mistakes for the individual, any consumer who has had the pleasure of dealing with a big company for even small issues will attest to the difficulty in getting a straight answer, getting someone who knows what they’re talking about first time, and ultimately correcting the mistake. This is a common complaint of many of our credit repair clients. Most people are told if it’s paid up they can mark it as such but that’s about it. It’s a bit like David and Goliath, and in the end many just go away believing they are in the wrong.

    So in an emergency situation, people who are stuck with bad credit must turn to payday loans. Including those people that aren’t able to obtain a hardship variation for their circumstances, and have a default or other negative listing placed on their credit file.

    So I do applaud the new laws, but it’s not over yet.

    I am still waiting to see how the new credit laws within the Privacy Amendment Bill will impact on the ease of correction of mistakes in credit reporting as well as how overdue payments are going to impact their ability to get mainstream credit before I hang my hat up and say that the Government has done all it can to help vulnerable consumers and give a ‘fair go for all Australians’.

    If you are struggling with obtaining credit after being defaulted, and you believe the listing may be incorrect or unjust in any way, consider credit repair as an option to get an expert on your side who can help permanently remove unlawfully placed Defaults, Writs, Judgments and Clear-outs from your credit file. Call a Credit Repair Advisor today on 1300 667 218 to discuss whether you might be a suitable candidate for credit repair.

    Image: Daniel St.Pierr/ www.FreeDigitalPhotos.net

  • Fixing credit mistakes with a credit repairer – 15 common concerns

    Credit rating repair is a relatively new field and has been fuelled by just how difficult it can be in this economy to obtain credit. The loops and hoops people have to jump through – on top of the massive deposit they need to save, means people can’t afford for bad credit to stand in their way – particularly when they suspect it shouldn’t be there in the first place. If you are one of those brokers or prospective borrowers who are unsure whether credit rating repair is a legitimate option for you or your clients – we might be able to alleviate some concerns.

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

    15 COMMON CONCERNS WE HEAR EVERY DAY AS CREDIT REPAIRERS…

    1. Does the debt need to be paid?

    As we are an evidence based firm, it doesn’t matter if the debt was paid or unpaid. The service is in looking for whether the listing was legitimate or not rather than necessarily appeasing a creditor’s request for payment initially.

    2. Won’t just paying the listing allow me (or my client) to obtain finance without needing credit repair?

    Most clients believe that paying the default or judgment will “make it all right again” only to find out that a PAID default is almost as bad as an UNPAID default to many lenders. Only a CLEAN credit rating will ensure your options are not unnecessarily limited.

    3. When can a listing be removed from my credit file?

    If a listing has been placed correctly, it cannot be legitimately removed. However, in as many as 91.7% of cases the listings HAVE NOT been placed correctly and in accordance with legislation and are successfully removed.

    4. If the creditor says “no” is their decision final?

    Most definitely NOT! In fact in most cases, the Creditor will say No, No, and No again…this is why most times it is difficult for an individual to dispute their own credit listing themselves. The difference in using a credit rating repairer is based on our thorough knowledge of credit reporting legislation and industry legislation, we go about proving that the Creditor has NOT complied with the legislation and the default has been placed unlawfully and requires immediate removal.

    5. Is a default with a small debt amount easier to remove?

    Unfortunately this is not always the case. The dollar value of the debt makes very little difference – there can be just as much work in removing a small debt as a large one – as in most cases it is about doing the work to show unlawful placement of a credit listing. This is why MyCRA does not charge per debt amount. Because as you may already know – defaults for as little as $100 can stop someone from getting a home loan.

    We use a tried and tested system that has seen the successful removal of defaults from $100 to one at $750,000.00.

    6. Can you provide a time frame on removal?

    We’d love to say that all creditors follow the rules and comply with our requests within the legislated timeframes but hey, we’re here because in so many cases they DON’T comply.

    In most cases the delays are directly attributable to further non-compliance by a creditor – we can never know how long they’ll take to respond. The best anyone can do is give average timeframes.

    7. What are the average time frames?

    We have removed listings anywhere from 12 hours and 23 minutes (business hours) right through to almost a year.
    On average, we let clients know they should aim for 45 – 60 days. But of course this is no guarantee, as every case is different, and we don’t know how long it will take until we actually get the word that we’ve got the creditor to agree to remove that listing.

    8. How do I measure the costs involved?

    We like to think we offer excellent value with our rock solid commitment to ride the creditor (as much as we legally can) until ALL possible avenues are fully investigated to the maximum extent commercially open to us. Like a dog with a bone, we don’t give up. If you were to engage a Lawyer at say $350 per hour, it’d cost more than $5200 per default and still have no guarantee of success, so yes, we’re great value.

    Some people feel if there listing is only a small $$ value listing, that it should be easy and cheap to have it removed. The process for removal often includes Legislative Compliance Officers reviewing hundreds of pages of documents for each separate default listing and then comparing them to more than 2000 pages of legislation looking for that one (sometimes very small) point that would deem the listing unlawful and require its immediate removal. Our fees are fixed so there is no risk of them “blowing out” no matter how many hours we work on the case.

    To look at costs in another way, you can compare them with the amount you would pay in interest on a non-conforming loan.

    If you were to enter a non-conforming loan of $350,000 on a 30-year term at 9%, versus a standard loan at 7%, you would be up for an additional $487.62 per month. Over the first three years of the loan, that adds up to a staggering $17,554.34 just in interest alone – without taking into account set up fees etc. You can verify this and measure it against our costs here on the  MyCRA Credit Repair Calculator

    What can be removed???

    9. Can you remove commercial listings?

    Yes – we’ve had great success in removing commercial listings. Though a point to remember is that as there’s much less legislation protecting businesses, so in some cases it can take a bit longer.

    10. Can City Council Judgments be removed from my credit file?

    City council judgments can and do get regularly removed and in almost all cases, the process is sped up by our dedicated Judgment and Court Action Legislative Compliance Officers and full-time in house Legal Counsel.

    11. Can you remove credit card listings from my credit file?

    Credit Card listings are just like any other listing and can be removed as easily as any other.

    12. If I have paid the listing, does that mean it can’t be removed because I have effectively claimed fault?

    In a large number of the clients we help, many didn’t know they had an actual default until they were refused further credit. They may have had a rough spot or a disagreement with their creditor over the bill but it was all sorted out, the bill was paid and the client moved on. There still may be grounds for removal in many situations, and paid listings are removed just as regularly as any other listing type.

    13. If there is an unpaid amount, wouldn’t the creditor refuse to remove my listing?

    The creditor may not WANT to remove an unpaid listing, but if the creditor has not complied with the legislation relating to that default type, they have no choice – it MUST be removed.

    14. Can a discharged bankruptcy be removed from my credit file?

    Any acts of Bankruptcy, which include Part IX and Part XIIII Debt Agreements, are controlled by ITSA (Insolvency Trustee Service Australia) and the Acts of Bankruptcy are permanently recorded on the NPII (National Personal Insolvency Index). We do not remove bankruptcies.

    15. Do Default and Judgment removals follow the same process?

    We have developed very specialised proprietary systems for Court Judgment, Court Writ, Default, Clear-out and Overdue Account Listings. While many of the processes are similar in that legislation needs to be complied with, the Judgment Process stands out as being VERY different.

    We hope we have helped answers most of your common concerns. If you have any questions not covered here, please call one of our friendly and very helpful Credit Repair Advisors on 1300 667 218 for a no obligation chat. You can also find out more by visiting our main website www.mycra.com.au.

    Image1: Ambro/ www.FreeDigitalPhotos.net Image 2: graur razvan ionut/ www.FreeDigitalPhotos.net

  • Bad Credit Loans In Australia – Are They Right For You?

    After seeing a broker or bank – you find out you’ve got bad credit! After picking yourself up off the floor – you decide to proceed with that home or business loan anyway. But is your only option to seek out one of the many “bad credit” loans in Australia at a much higher interest rate? There could be an alternative for you…determining whether you have grounds to remove the bad credit tarnishing your credit file with the help of a professional credit repair firm. We have provided a basic credit repair suitability test in this post which you can use to find out whether it could be a better option for you than a bad credit loan.

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

    A bad credit report is a big deal. For between 5 and 7 years, you are generally refused mainstream credit with most lenders – especially in the current economic climate. Often people can’t even get a mobile phone plan.

    Despite this, many bad credit loans are available out there for people who are on the outer due to bad credit defaults and other credit listings. But do bear in mind, bad credit (non-conforming) loans generally come at a much higher interest rate, which could cost you tens of thousands more in interest just over the first three years of the loan. For example, on a standard $300,000 loan the difference in 2% from the standard variable rate of say 7% to a bad credit loan rate of say 9% could mean your family is paying as much as $15,046.57 more over those first three years just in interest. Use our credit repair savings calculator to find out what it could cost you.

    Recently savingsguide.com.au published a great article titled A Guide To Loans For People With Bad Credit. It features some pertinent advice about choosing a loan after being refused credit with a mainstream lender. It goes through the steps you may need to take to secure finance in Australia, and includes some final tips for securing a loan. The central tip is, prior to committing to a loan attempt to fix your bad credit issues first.

    “Loans for people with bad credit should really be a last resort, as opposed to the only option. See what you can do to repair your credit rating beforehand and hopefully begin looking for loans just as anyone else would,” savingsguide.com.au’s Alex Wilson says.

    Australians should not put up with bad credit if it shouldn’t be there…contrary to what a Creditor may tell you, bad credit in Australia can be removed from your credit file if it was listed unlawfully.

    If you’re not sure whether you would qualify for credit repair, take a glance at this suitability test. If even one of these 6 questions seems to fit your circumstances, you would be a good candidate for assessment for credit repair by a professional.

     

    Credit Repair Suitability Test

    1. Is the credit listing on your credit file unfair?

    If you believe the Default, Clear-out, Writ or Judgment on your credit file has been unfairly placed then you may have grounds to dispute the credit listing with your Creditor. A professional credit repair firm will build a case for its removal based on credit reporting legislation and also legislation pertaining directly to the Creditor’s industry and your specific circumstances.

    2. Is the credit listing on your credit file a result of identity theft?

    If you have been a victim of identity theft, the onus will still be on you to prove you didn’t initiate the credit. A professional credit repair firm can talk you through the steps to take once you have contacted Police which will help you to recover your good credit rating once again. The process will involve proving to Creditors that you didn’t initiate the credit in your name. It’s not always easy, but it’s a point worth fighting for.

    3. Have you been given the required notification of the credit listing prior to it being placed on your credit file?

    Creditors are bound by strict legislation when it comes to listing defaults, writs and Judgments on credit files. If you suspect you may not have been given the right notice by your Creditor, you may have grounds to dispute the listing and request its removal. It is essential that listings are placed accurately on Australian credit files, and we believe Creditors should adhere to Australian law at all times when placing listings on credit files. If you’re not sure it would be well worth calling a professional credit repair firm to assess your credit file for you.

    4. Does your credit report reflect that the Creditor has the wrong contact information for you despite you notifying them otherwise?

    If you have moved, sometimes bills get sent to your old address. Wrong addresses and phone numbers listed on your credit file can often mean the Creditor has not given you the appropriate notice or warning letters prior to the credit listing. If you think this has happened to you, then this mistake could mean the listing has been placed unlawfully on your credit file.

    5.  Is there an out and out mistake on your credit file?

    Creditors undergo system errors and issues all the time which can sometimes lead to credit listing mistakes. Human error is also a common reason for mistakes on credit files. Sometimes the wrong account can be attributed to you because of a similar name or mistakes with billing amounts or billing addresses can lead to debts you shouldn’t have. If you suspect a creditor may have made a mistake on your credit file, or you’re just not sure, contact a professional credit repair firm who can verify that for you and build a case for the credit listing’s removal from your credit file. It doesn’t have to be a big mistake to constitute an unlawful listing.

    6. Were you undergoing some kind of unusual hardship circumstances which you believe the Creditor has ignored prior to placing the default, writ or Judgment on your credit file?

    If you have told your Creditor you were undergoing financial hardship, then they are generally bound to help you make better payment arrangements as a solution to this hardship rather than immediately placing a credit listing on your credit file. If your credit report reflects this issue, a professional credit repair firm might be able to help you have this unfair listing removed.

     

    There are many more reasons why you might be suitable for credit repair based on your individual circumstances. If you would like an assessment for your suitability for credit repair, talk to a consultant at MyCRA Credit Rating Repairs who can assess how you might fare in removing bad credit before you commit to any bad credit loan in Australia.

    Image 1: Stuart Miles/ www.FreeDigitalPhotos.net

    Image 2: Master isolated images/ www.FreeDigitalPhotos.net

  • Bad credit ratings forcing people out on the fringe

    If people need access to money – and quickly – there are a number of options. Whilst many people may not be able to walk in to a bank and withdraw from their savings, they could use their credit card, extend their mortgage or take out a personal loan to cover that unexpected expense. But what about the over 3.47 million Australians (Veda Advantage – 2009) who are living with a negative listing on their credit file – also known as a ‘bad credit rating’?

    When times get tough, many of these people are left with very few choices. Negative listings are recorded on a person’s credit file for between 5 and 7 years, depending on the type of listing. How many people would NOT have surprise expenses during that period? Not many.

    People with adverse listings can be the lepers of the finance world. Particularly those people with a significant number of negative listings on their credit file. No one wants to touch them. No one that is, except for those ‘informal’ finance companies such as pay-day lenders and pawnbrokers.

    Last Friday, the Sydney Morning Herald ran a story titled ‘Finding favour on the fringes’ in which Bina Brown writes of the fine line between meeting a legitimate market demand and preying on desperate people. The SMH reports that 500,000 people a year access $800 million in short-term credit facilities. Pay-day loans are typically considered to be loans taken for less than $500 for two to four weeks.

    The article quotes a report ‘Measuring Financial Exclusion in Australia’ prepared by the Centre for Social Impact (sponsored by NAB). The Centre looked in to the growing demand for this ‘fringe’ credit market, and the rapidly expanding network of companies willing to supply it.

    The report says “Financial exclusion exists where individuals lack access to appropriate and affordable financial services and products – the key services and products are a transaction account, general insurance and a moderate amount of credit.”

    How the fringe credit market works

    “Lender fees vary, but $25 to $30 per $100 advanced would be typical. A loan of $1000 for three months might attract a fee of about $450, or ultimately $111 a week for 13 weeks in scheduled repayments.

    While many consumer groups are against this type of lending since it is often vulnerable people who access the loans, industry proponents argue anyone can find themselves short of cash and short-term credit can make a considerable difference to people’s lives.

    Both sides admit there are rogue players in the industry, such as those who charge an upfront fee of $30 on a $100 loan plus the interest rate which is capped at 48 per cent a year.

    They then set a two-week period to repay the loan (which the broader industry believes to be too short a time period).

    If the loan can’t be repaid after two weeks or the next pay date, they charge another $30 and give them another two weeks and so on. If the client defaults on the loan they charge $75.” SMH reports.

    Reforms to legislation

    Under the Consumer Credit and Corporations Legislation Amendment (Enhancements) Bill 2011 before Federal Parliament the most a person borrowing $100 can be charged is $100, although this would exclude any default fees.

    The proposed reforms have also included a cap on the upfront fee that can be charged on small amount loans (loans for $2000 or less for less than two years) of 10 per cent of the loan amount, plus an interest rate of 2 per cent a month. A parliamentary committee reviewing the legislation is due to report by November 14.

    These reforms would be welcomed, to ensure that those people who don’t have access to standard credit are not digging an even bigger hole for themselves by being forced to pay exorbitant fees and interest charges when they are obviously in desperate need of a break.

    If not fringe credit, then what are the options for those who are financially excluded due to a bad credit rating?

    Well, it depends on what a person’s credit file reads like.  If the person has entered into a debt agreement or bankruptcy – the options are unfortunately limited, access to these types of loans may be necessary. An alternative could also be found in Government assistance.

    In many other cases, there may be no need for people to be disadvantaged in this way by a bad credit rating. Particularly if their credit file shows defaults, writs or Judgments which they believe are inaccurate, unjust or just should not be there.

    Credit repair allows the consumer to have the black mark/s completely removed from their credit rating. This gives them the lending options that they would have had prior to the blemishes on their credit file.

    So, they can borrow at a lower interest rate with the lender of their choice (provided they meet all other criteria of course). This can potentially save them thousands of dollars in interest alone.

    Credit repair is the best solution for those potentially hundreds of thousands of Australians who may be living with a bad credit rating and who are completely capable of repaying a loan. It was bad luck or creditor error that instigated the adverse listing in the first place.

    Many people are victims of simple and sometimes complicated errors with billing procedures from creditors, are victims of identity theft, have had joint lending situations go wrong (such as divorce, guarantors etc) or have had the default listed incorrectly. Despite all of these very fair complaints many consumers have been unable to settle the account themselves with the creditor and unable to remove the offending default, writ or Judgment from their credit file.

    How likely would it be that a credit file would contain errors?

    It is astounding how common credit file errors may be, considering the debilitating effects for the credit file holder once they have a negative listing on their file.

    The possible volume of errors on Australian credit files was exposed by a small scale study conducted in 2004 by the Australian Consumer Association (now Choice Magazine). It revealed about 30% of credit files were likely to contain errors.

    “In our view, there are serious, systematic flaws which are leaving an increasing number of Australian consumers vulnerable to defamation, mis-matching and harassment,” the ACA report said.

    Transferring those figures from the Choice study to the number of credit files in Australia today, could mean potentially 4 million errors currently exist on credit files in Australia.

    Recently Channel 7’s Today Tonight interviewed Veda Advantage’s Head of External Relations, Chris Gration on the possible number of errors on credit reports. He admitted errors within their system alone amounted to 1%.

    “We give out about 250,000 credit reports to consumers every year. But only in 1 per cent of cases is there a material error on the file, so a default or an enquiry that’s incorrect,” Mr Gration told Today Tonight.

    Even if as little as 1 per cent of those 14 million credit files contained errors, that would still currently leave 140,000 credit files in Australia containing errors that just shouldn’t be there.

    So rather than allowing their credit file to continue to plague them, navigating the world of ‘bad credit history’ finance, or the ‘fringe credit market’ which can sometimes leave them with more problems than when they started, people should be educated on the possibility that their good name can be restored.

    So if people know anyone, or are in the situation themselves where they do have a bad credit rating which shouldn’t be there – it could be good advice to get them to seek out a reputable credit repairer to review their credit file and help them back to financial freedom.

    Contact MyCRA Credit Repairs tollfree on 1300 667 218 or click here to find out the 6 simple steps to credit repair.

    Image: Nutdanai Apikhomboonwaroot/ FreeDigitalPhotos.net

  • End of financial year best time to check our credit file

    Media Release: The end of the financial year is an opportune time for people to check their credit rating and get it in order, according to a national credit repairer.

    Director of MyCRA Credit Repairs, Graham Doessel says if people are reviewing their yearly phone records, bank statements, and credit card statements for tax time, it can be a good idea for them to request a credit report as well from credit reporting agencies,to cross-check any adverse listings which may have been placed on their credit file.

    “The problem with credit reporting in Australia is that many people are unaware of how the system works, and what their rights are. It is important for people to know they can apply for a copy of their credit file for free every year and the end of financial year is a great time to do this, because people already have their paperwork out,” Mr Doessel says.

    He says it is essential for people to know what is said about them on their credit report – as there is opportunity for errors to occur when creditors apply listings to credit files. Even if people believe they have a good payment history, their credit report may still contain errors.

    “Many of my clients have impeccable repayment histories and would have never dreamed they would end up with a default. Let me tell you mistakes do often happen. Sometimes simple human error by the creditor leads to adverse listings put there incorrectly,” he says.

    A small scale study conducted by the Australian Consumer Association (now Choice Magazine) in 2004, revealed a staggering 30% of credit files were likely to contain errors.

    “In our view, there are serious, systematic flaws which are leaving an increasing number of Australian consumers vulnerable to defamation, mis-matching and harassment,” the report said.

    A credit file exists for anyone who has ever been ‘credit active’ and is used by creditors to assess the risk and borrowing capacity of potential borrowers.

    The most common type of adverse listing is a default. Defaults are put there by creditors when accounts have remained unpaid for more than 60 days.

    Defaults remain on a person’s credit file for 5 years from the date of listing, and have the potential to severely impact a person’s ability to obtain credit.

    “Currently, any default can be enough for an automatic decline with most of the major banks. Many lenders are even rejecting loans for excess enquiries such as two in thirty days or six within the year. Some people nmay even be unable to take out a mobile phone plan in their name if they have defaults on their credit file.”

    “It also affects the type of home loan people may be eligible for, the interest rate they are offered and price of establishing the loan. The lending options become more expensive and limited” Mr Doessel says.

    People can contact Veda Advantage, Dun and Bradstreet and Tasmanian Collection Services (if they live in Tasmanoia) to request their free report. A creditor may have listed defaults with one or all of these credit reporting agencies.

    If people find errors, or feel a listing is unjust or shouldn’t be there, they do have the right to have incorrect information rectified.

    Mr Doessel says if people are in a hurry or it seems too difficult, they can use a credit repairer who can work on their behalf.

    “A credit repairer should be able to completely remove offending blemishes from someone’s credit file,” he says.

    Contact www.mycra.com.au for more details on how to check and repair credit files.

    /ENDS

    Please contact

    Lisa Brewster – Media Relations

    Ph: 3124 7133  Mob: 0450 554 007  media@mycra.com.au

    Image: Arvind Balaraman / FreeDigitalPhotos.net

  • Don’t let a bad credit rating force you into unsuitable finance

    The Age recently reported on a Tribunal hearing involving a well-known finance company.

    The Victorian Civil and Administrative Tribunal found that a motor trader who primarily targets people with bad credit history had a leasing process which was seriously flawed and in urgent need of change.

    The customer in the case lived on a low income, had been through a bankruptcy and suffered from chronic depression. The Tribunal found the company used inaccurate financial analysis, unfair tactics and unreasonable pressure to get the client to sign a contract.

    After the hearing the company was ordered to set aside a car lease and compensate its customer.

    Read more: http://www.theage.com.au/money/borrowing/credit-scoring-hammered-20110607-1fpp2.html#ixzz1OvztZSXi

    The above example may not be a true reflection of all transactions with the motor trader in question. But it does highlight the need for people who find themselves in a situation where they cannot use the major lenders to do adequate research before deciding on alternative finance.

    People with a bad credit rating have their options severely limited when it comes to obtaining finance. Most of the major lenders refuse to lend to someone with a bad credit history – often with good reason.

    A person’s credit history shows their ability to repay a debt. Under Australia’s new responsible lending laws, it would not be ethical to offer further credit to someone who already demonstrates problems with repayments.

    The thing is many people with a bad credit rating still need to buy cars, live in houses and use phones.

    What are the options for someone in this situation?

    Well, it depends on what a person’s credit file reads like. In the situation above where the consumer has a bankruptcy on their file – the options are unfortunately limited.

    But a little more research, perhaps leasing a cheaper car and having a trusted adviser help in negotiations with finance companies, or even going away and thinking about it before signing may have helped the customer in this situation.

    In many other cases, people can take the above option, or they can discover whether they may be suitable for credit repair.

    Credit repair is an option for any person who has a default, writ or Judgment on their credit file which they believe is inaccurate, is unjust or just should not be there.

    A successful credit repair allows the consumer to have the black mark/s completely removed from their credit rating.

    This lending options that they would have had prior to the blemishes on their credit file. So, they can borrow at a lower interest rate with the lender of their choice (provided they meet all other criteria of course).

    This can potentially save them thousands of dollars in interest alone.

    Credit repair is not encouraged as an option for a consumer who truly has a problem repaying debt. This person should look at minimising as much credit from their lives as possible, and possibly entering into some financial counselling, so that when they are able to borrow again, they don’t repeat the cycle.

    However, there are a large number of people with a bad credit rating who are not struggling with repayments. They are simply carrying the bad credit rating unfairly.

    Many people are victims of simple and sometimes complicated errors with billing procedures from creditors, are victims of identity theft, have had joint lending situations go wrong (such as divorce, guarantors etc) or have had the default listed incorrectly.

    Despite all of these very fair complaints many consumers have been unable to settle the account themselves with the creditor and unable to remove the offending default, writ or Judgment from their credit file.

    They are then left to navigate the world of ‘bad credit history’ finance, which can sometimes leave them with more problems than when they started, due to the often high interest rates involved.

    So if people know anyone, or are in the situation themselves where they do have a bad credit rating which shouldn’t be there – it could be good advice to get them to seek out a reputable credit repairer to review their credit file and help them back to financial freedom.

    Contact www.mycra.com.au for more information on credit repair.

    <p><a href=”Image” _mce_href=”http://www.freedigitalphotos.net/images/view_photog.php?photogid=879″>Image”>http://www.freedigitalphotos.net/images/view_photog.php?photogid=879″>Image: luigi diamanti / FreeDigitalPhotos.net</a></p>