MyCRA Specialist Credit Repair Lawyers

Tag: www.fixmybadcredit.com.au

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

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

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

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

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

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

    “It should be withdrawn for further work to address the many criticisms that have been made in submissions.”

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

    Here is more from this story:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Image 2: healingdream/ www.FreeDigitalPhotos.net

  • Facebook finally asks users to report phishing scams

    Most people have (or know someone who has) come across some type of scam via Facebook. They’re those dodgy posts that you shouldn’t click on that get sent from your friend’s accounts without them knowing; or those strange emails in your inbox; odd friend requests; or on rare occasions complete hacking of your account. Most savvy Facebook users take it as a given that this is going to occur and that no one can do a thing to stop it. They just count themselves lucky that they are not one of the users that falls for them. Well now Facebook has finally taken the bull by the horns and decided to get active in stamping out phishing scams. FB has set up an email address to report these attempts. We look at what this means for Facebook users, the potential identity theft risks from falling for a phishing scam which could endanger your credit file and how to spot one before you get caught out.

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

    Facebook’s security page requests that if its users spot phishing scams they should report them to Facebook and its eCrime team. The intention is to help hold scammers accountable and prevent identity theft and account hacking. Here’s an excerpt from their Security page:

    New Protections for Phishing.

    by Facebook Security on Thursday, August 9, 2012 at 7:31am •

    Today, Facebook is proud to announce the launch of phish@fb.com, an email address available to the public to report phishing attempts against Facebook. Phishing is any attempt to acquire personal information, such as username, password, or financial information via impersonation or spoofing.

    By providing Facebook with reports, we can investigate and request for browser blacklisting and site takedowns where appropriate. We will then work with our eCrime team to ensure we hold bad actors accountable. Additionally, in some cases, we’ll be able to identify victims, and secure their accounts.

    You might ask yourself how to spot suspected phishing emails. Our partners at the Anti-Phishing Working Group have put together some helpful tips to avoid being deceived by these messages:

    1.Be suspicious of any email with urgent requests for login or financial information, and remember, unless the email is digitally signed, you can’t be sure it wasn’t forged or ‘spoofed’

    2.Don’t use the links in an email, instant message, or chat to get to any web page if you suspect the message might not be authentic or you don’t trust the sender, instead navigate to the website directly

    This new reporting channel will compliment internal systems we have in place to detect phishing sites attempting to steal Facebook user login information.  The internal systems notify our team, so we can gather information on the attack, take the phishing sites offline, and notify users.  Affected users will be prompted to change their password and provided education to better protect themselves in the future.

    While rare, we hope that you forward us any phishing attempts you encounter. Together we can help keep these sites off the web and hold the bad guys responsible. As a reminder, you can visit www.facebook.com/hacked if you think your account may be compromised.

    You can find out more about phishing in our Help Center. You can also forward phishing emails to any of the following: APWG (reportphishing@antiphishing.org), the FTC (spam@uce.gov), and the Internet Crime Compliant Center (www.ic3.gov).

    This is great news for FB Users, and as it may be just the impetus needed to both deter and attack these predators.

    Technology magazine ZD Net’s Eileen Brown is likewise pleased with this new response, but at the same time, questions the appropriateness of where Facebook has decided to report this information:

    The challenge is that Facebook has hidden this information in its Security notes. This is not an area where the average user is likely to visit. Facebook should place an alert at the top of the home page drawing user’s attention to the importance being vigilant and careful.

    Hiding this page away does not show the duty of care that Facebook should show to its users — especially if it wants to avoid the potential consequences of a password or account breach.

    It is only a matter of time before someone tries it… She says in the article Facebook creates new email address to fight phishing.

    Phishing scams should be a topic that every online user is familiar with, but as we reported recently in our post Identity theft risks high for pre-retirees, some sections of the community can be more vulnerable to phishing scams, and they aren’t necessarily screaming out “identity theft” – they can be well thought out scams that look like legitimate requests for information etc.

    On Facebook, both young and old can be at risk of phishing scams. One prevalent scam reported by the ACCC’s Scamwatch recently is the Facebook password scam email.

    “…the scam email enters inboxes looking as though it is an auto-generated email from the Facebook Team. It announces to subscribers that as a security measure their password has been changed and that this needs to be confirmed. Attached to the scam email are two documents with file names beginning with ‘facebook_password’  that are supposed to include the new password.

    SCAMwatch warns you not to open these attachments. If you do, you will activate a very nasty Trojan or malicious software called the Bredolab Trojan and your computer will be taken over for use by the scammers at their will.”

    If via these scams, criminals are able to gain access to information like names, dates of birth and addresses then identity theft may occur. Fraudsters can build a profile with enough information to request duplicate identity documents – enabling them to have access to their victim’s good name through their credit rating meaning they could take out loans, credit cards, even mortgage properties in their victim’s name.

    Fraudsters are never so kind as to pay the credit back -meaning the identity theft victim is hit twice – financially ruined and then locked out of credit and with no ability to borrow for 5 to 7 years.

    How to spot a phishing scam

    Scamwatch has a great article on their website titled Phishing scams on social networking sites—don’t be tricked into giving your information away! Here’s what they suggest to look out for:

    Protect yourself

    Never send your online account details through an email and think carefully before you give away any personal or financial information.

    Never enter your personal information on a website if you are not certain it is genuine. Don’t click on the link provided in an email or call the phone number provided; instead, find the business’s contact details through a general internet search.

    Keep your computer updated with the latest anti-virus and anti-spy ware software, and use a good firewall.

    When using social networking websites:

    • Check the privacy settings and think about who you really want to have access to your personal information.
    • Be careful about what personal information you put on the internet, because scammers can use these details to guess your passwords or to commit fraud.
    • Check how much information about you is available on the internet—type your name into a search engine and see how many hits you get.
    • Don’t be lulled into a false sense of security—online ‘friends’ may not be who they say they are.
    • If you receive an email that appears to be from a family member or friend, look at the way the email is written and ask yourself whether the email sounds like it was written by that person.
    • If you receive an unexpected request for money from what appears to be a friend, try to contact that friend or their family or friends to verify the request. Do not use any of the contact details in the message.

    Great advice to take on board for any FB user – but it you or someone you know has fallen victim to one of these phishing scams – there are three things you may need to do immediately (among others):

    1. Change your passwords on your computer, bank, Facebook or any other relevant sites via a different computer. If you can’t because you have been ‘locked out’ of your accounts, you may need to contact your Creditors and Police immediately.

    2. Report the scam to the ACCC, and if you think you may be vulnerable to identity theft, it may be better to give them a call on ACCC Infocentre 1300 795 995 and they can direct you for further advice and possibly advise you to contact Police.

    3. Check your credit report. This is often the first way you might spot identity theft which has led to credit being taken out in your name. It is free to check every year from Australia’s credit reporting agencies and it will be peace of mind if it turns up clear. If there is anything on there you are not sure of, investigate and contact Police. If you confirm you have been a victim of identity theft, you can contact MyCRA Credit Rating Repairs to help with removing any bad credit which is darkening your name.

    Image 1: Pixomar/ www.FreeDigitalPhotos.net

    Image 2: Ambro/ 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

  • Identity theft risks for Australian online banking customers: what you need to know

    Commbank’s customers have been warned about phishing scams which could threaten the financial safety of its customers, but this scam applies across the board to all merchants, and all customers should take care not to fall for the viscious emails designed to steal your money from and your good credit rating.

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

    In June, for Cyber Security Awareness Week 2012, we explored the prevalence of phishing scams in Australia – particularly around merchants – banks, credit cards and even Paypal.

    In the posts Experts say getting hooked by Australian Paypal or Amex phishing scams could result in identity theft and following on with Company Obligations on Phishing Scams we looked at both the ramifications of falling for phishing scams in terms of bad credit from identity theft on your credit file and the possible obligations of companies to inform their customers when the company name is being used to promote a phishing scam.

    Commonwealth Bank is the latest company to warn customers about these phishing scams which are hooking many people with their clever requests and look-alike websites.

    The emails are to do with account verification.

    The phishing email asks the customer to verify their details due to a high instance of fraudulent activity. Once they click on the link, they are diverted to the fake bank website, where they enter their personal details and banking information into the so-called “customer” database. At which point if people take the bait they are in reality leaving themselves at very high risk of not only bank fraud, but identity theft through revealing their personal information.

    Commbank recently released a statement on its blog warning its customers about the prevalence of such scams in its post Alert: Identity theft targeting Australian consumers:

    The Commonwealth Bank of Australia is currently investigating a new identity theft scam which is targeting customers of financial institutions, including Australian banks. The scam aims to steal personally identifiable information such as your Internet Banking username and password, passport, driver’s licence, Medicare and birth certificate details.

    The scam manipulates consumers to believe they are using their bank’s normal Internet Banking website, when they are actually using a fake website controlled by the scammers.

    The fake website prompts the consumer to login with their username and password, upon which they are presented with a screen similar to below.

    The message states: “Due to recent frudulant[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”][sic] use of NetBank services we require an Electronic ID Check to verify your identity. This is a one-off process.”

    If you see this message, we recommend you:

    i) DO NOT enter your personal details;
    ii) Contact your financial institution immediately. NetBank customers should phone 13 22 21;
    iii) Install and run a trusted anti-virus program on your computer;
    iv) Importantly, you may need to reset or reconfigure your Internet modem or router. We recommend contacting your Internet Service Provider to verify your modem or router has the correct DNS settings.
    v) In your web browser, enter the full address of your Internet Banking website beginning with https:// (for example, https://www.netbank.commbank.com.au). Entering the ‘s’ in https:// makes it is easier to tell whether or not you are interacting with the legitimate Internet Banking website. If you receive security warnings, or no response, it may be an indication you are affected by the scam.

    Commbank reports that these quite legitimate looking emails have not only been asking for account information, but even more alarmingly – identifiable personal information such as a copy of the customer’s birth certificate, copy of passport and copy of driver’s licence.

    This kind of information in the wrong hands is going to land someone in a whole lot of hot water with unpaid debts, and in turn threaten the clearness of their credit file. Not to mention the risk involved in just clicking on any attachment – opening the customer up for Trojan viruses and other cyber-nasties.

    If the fraudster is able to construct a fake identity from the personal information they have gained, it means they have access to their victim’s good name through their credit rating.

    The fraudster can potentially run up credit all over town in the victim’s name. If the crime is fairly sophisticated, most victims don’t know about it until they have a string of defaults weighing heavy against their name, and the obligation then to prove it was not them that instigated the credit in the first place.

    And so ensues a pretty stressful, difficult time for the victim. With this type of fraud they have not only lost money from their accounts, but are staring down the barrel of credit refusal for 5 years with a string of defaults they’re not responsible for. It’s not always easy to prove your innocence – sometimes people don’t know how identity theft has occurred and often the crooks are working from overseas syndicates and are difficult to trace.

    So here’s what the screen might look like – avoid it and avoid identity theft and its evil twin, bad credit.

    But if you have clicked on a link like this – I would recommend thinking about changing your passwords anyway before using any merchant from that computer again – just in case you’ve downloaded malware with your attachment.

    If you think you are the victim of identity theft, you should immediately contact Police. Also, if want to fix your bad credit after identity theft, talk to our Credit Repair Advisors at MyCRA Credit Rating Repairs about your situation and they can help you make the right moves to restore your good name. Call 1300 667 218.

    Image identity theft: chanpipat/ www.FreeDigitalPhotos.net

    Image screen shot phishing scam: courtesy Commbank blog site: http://blog.commbank.com.au/your-bank/alert-identity-theft-targeting-australian-consumers/[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

  • First Home Buyers Dive in Again But Will They Stay In the Water?

    Most agree that First Home Buyers are the key to the Australian housing market. How are they doing? Are they being attracted by the current market conditions? Or are they even able to dip a toe in with the current lending criteria forcing them to save for years just to get up enough deposit? We look at the factors impacting first home buyers – and why those buyers who present with a good income and a good deposit but bad credit can be saved.

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

    Last week AFG announced it had had its strongest July in 5 years…thanks to first home buyers.

    AFG told Australian Broker a “powerful cocktail of incentives” has helped them to process the highest amount of mortgages in July since 2007 – totalling $2.7 b.

    They report the percentage of first-home buyers has climbed to 17.3%.

    “Low interest rates, soft property prices and escalating rents create a powerful cocktail of incentives to get people into the property market,” said AFG’s general manager of sales and operations, Mark Hewitt.

    Is an improving housing market a reality? Or perhaps – as some experts have touted – simply the result of skewed indicators due to the June ending of government incentives in some States?

    Westpac senior economist Matthew Hassan told the Financial Review last week that there were “consistent” indicators from various sources to the “beginning of a stabilisation in prices”.

    But he said it was too early to call a definite improvement. He pointed to the end of various state government home-buyer incentives in June, which had pulled forward demand and artificially inflated buying activity.

    Let’s hope house prices are stabilising, and more and more first home buyers have the confidence (and money) to enter the market again.

    So if you, as a broker are in the right market to see a resurgence of first home buyer activity, what are the factors impacting credit decisions?

    An article in The Australian recently, reported that an average couple will need to save for at least five years to reach the amount required for a first home deposit.

    The study by financial comparison company Rate City shows a first home buyer would take five years and seven months to save a 10 per cent deposit of $30,667 for a mortgage size of $276,000.

    And a dual income couple with a mortgage capacity of $540,000 would take more than five-and-a-half years to save a 10 per cent deposit of $60,000…

    A 10 per cent deposit is now the minimum amount required by many lenders, while many banks want at least a 20 per cent deposit before they relax their requirements for mortgage insurance.

    Rate City found it would take a first home buyer 13 years to save the recommended 20 per cent deposit plus $10,000 for fees.

    These people that have saved for 5 to 10 years to be able to buy a home in their area have got to be dedicated. This commitment to frugality is often undermined at the time of finance application by a little thing called the credit file. Well, actually it’s a big thing. The lending criteria for risk-management as it relates to the credit check has changed post-GFC just as the deposit and savings requirements have.

    So how can it be fair that someone who has scrimped and saved for 5 years to get the deposit together can be refused the pot at the end of the rainbow, purely on the say-so of, say a Telco company whose listing may or may not be lawful?

    And how can it be fair that a broker must turn these savers away? Or put them into a loan with a non-conforming lender at high interest rates which sees them struggle just to make ends meet every month?

    These questions often come back with a few different responses from brokers who don’t know about or use the services of professional credit repair firms…

    1. Yes, but if they have done the wrong thing and not paid their credit – they shouldn’t be given any more.

    2. If their listing is not lawful, they should take it up with the creditor before they come and see their broker.

    3. They can refinance the non-conforming loan and get into a standard loan after a few years.

    4. Exactly, I see clients like this, but unfortunately if they have bad credit for whatever reason, they are just not getting a mainstream loan. You can’t remove bad credit until the listing drops off. Don’t touch those clients.

    So what is the reality of bad credit clients? Let’s answer those 4 statements…

    1. If people have done the wrong thing and not paid their credit, they shouldn’t be given any more – it’s true. But what exactly is “the wrong thing?” Moved house and had bills come to their old address despite contacting the creditor to change their details? Had a dispute with a creditor that they thought was resolved? Been the victim of a creditor’s mistake? Had a period of temporary financial hardship which was ignored by the creditor? These are very common scenarios as to why the credit listing is deemed unfair. Often this is reason to request the listings removal from the client’s credit file.

    2. Clients often don’t know they have bad credit until they apply for a home loan. Then often when they attempt to dispute the listing with their creditor themselves, they have little success. There is a host of legislation which must be adhered to when placing listings on credit files. It is the legislation that creditors can hide behind when consumers come to them to dispute their credit listing. Consumers just need someone on their side who is equally knowledgeable in credit reporting and industry legislation, and with the ability to negotiate on their behalf to remove anything which is demonstrated to be unlawfully listed.

    3. Clients could enter into a non-conforming loan for a few years, and sometimes this is the only choice. But it is so much extra money in interest. On an average non-conforming loan of $300,000, the client will pay $15, 046.57 extra at 9% as opposed to a standard rate of 7%. (The cost of employing the services of a credit repairer to restore the good credit rating is miniscule when compared with this). If they are able to remove the bad credit, then they can be sent back to their broker to enter into mainstream credit, and save themselves thousands.

    4. Despite what creditors tell consumers, bad credit can be removed if it is unlawful. There are a host of reasons why it may be unlawful – and credit rating errors are more common than most people think. It has been reported in the past through a study by the Australian Consumer Association (now Choice) that as many as 34% of people surveyed had credit files which contained errors of some kind.

    The solution is, to refer the client to a professional credit repair firm once you find out their credit file is tarnished. They can do the work to repair the credit file whilst keeping in touch with you on their progress. The client can be sent back to you once their credit file has been repaired. You can have the best loan for them lined up and ready to go.

    Talk to a Credit Repair Advisor at MyCRA Credit Rating Repairs on 1300 667 218 if you think we can help you save more bad credit clients.

    Image: jannoon028/ www.FreeDigitalPhotos.net

  • ACMA is set to get tough on dodgy Telcos

    It seems regulators will be stamping their authority over Telcos that breach new customer service rules when they are released in a month’s time. We have been heavily following the introduction of these new laws as a much-needed safeguard for those consumers who have been suffering at the hands of poor advertising and complaints handling from the Telco industry. This has led to many defaults being unfairly placed on credit files, and also invariably sometimes credit file errors.

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

    The Sydney Morning Herald reported yesterday in its story Regulator takes tougher stance with Telcos that in the lead up to the instigation of a new Telecommunications Consumer Protection Code, the Australian Communications and Media Authority (ACMA) is warning telcos it will have little patience for those that ignore the new regulations:

    “The communications regulator is warning of “more investigations [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”][and] more court cases” against telcos that breach new customer service rules starting in four weeks.

    The new rules will stop telcos using the word “cap” and force them to offer clear pricing information, usage alerts and better complaint handling services. It also set up Communications Compliance – an industry funded body that will monitor breaches.
    General manager of content, consumer and citizen at the Australian Communications and Media Authority, Jennifer McNeill, said it will have little patience for telcos that flaunt the new Telecommunications Consumer Protection code.

    The ACMA previously used a gentle ‘engage and educate’ method to help telcos comply, but this attitude would be replaced with a tougher stance, she said.

    “You will see more investigations, more directions and more court cases,” she told a room full of telco industry representatives at a briefing.

    “We expect immediate compliance with the obligations that have been substantially carried over from the old code.”

    Ms McNeill said the ACMA would no longer tolerate “good natured incompetence” as an excuse for breaches and would also ask telcos to substantiate any unbelievable service offers. Staff had been shifted around within the ACMA to bulk up its ability to enforce compliance, she added.

    When the code starts on 1 September, if telco’s breach the code, the ACMA can direct them to comply with it.  If they don’t comply with the ACMA’s direction, the Federal Court can impose a penalty of up to $250,000.

    The industry body that drafted the code, Communications Alliance, is conducting briefings and training sessions around the country to help companies prepare for the changes.

    If your Telco has placed a default on your credit file which you believe is unfair, incorrect or just shouldn’t be there – then you may have grounds to request its removal from your credit file. To discover whether you may be a suitable candidate for credit file repair, give the MyCRA Credit Rating Repairs team a call on 1300 667 218.

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

  • What’s the outlook for housing demand?

    Is it doom and gloom for the housing market going back to GFC-level lows? Or is the housing market stabilising? Veda says there are more mortgage enquiries for the April quarter indicating things are evening out, but the HIA has previously warned new home loan numbers will dip significantly for the rest of 2012. We consider the published figures, and look at what this may indicate for new loans and brokers and credit repairers alike heading into the second half of 2012.

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

    The results of  Veda Advantage’s Consumer Credit Demand Index for the second quarter of 2012 shows mortgage enquiries were up (+0.7%) for the quarter building on the small rise (+0.2%) seen in the March quarter.  Whilst still at historically low levels, Veda says the last two quarters results confirm that mortgage enquiries are stabilising.

    “Mortgage enquiries are a good lead indicator of housing demand. This stabilisation in mortgage enquiries suggests housing turnover is also stabilising. Lower interest rates and an improving housing affordability index align with the observed stabilisation in enquiries, after many quarters decline.” Angus Luffman, head of consumer risk at Veda says.

    Veda says the RBA’s cuts in May and June appear to have helped lift consumer sentiment close to a neutral level. However, fears about the global and domestic economic situation, in addition to share market declines and labour market uncertainty means that consumers remain cautious about credit.

    This optimism contrasts with concerns expressed earlier in the month by the Housing Industry Association (HIA) and reported in Australian Broker, which warns the second half of 2012 will see new home loan numbers dip to GFC-level lows.

    HIA is reportedly commenting on data released in conjunction with findings from the Australian Bureau of Statistics.

    HIA’s chief economist Harley Dale said it was a “disappointing result.”

    “It is evident that new home starts will bottom at GFC-equivalent levels this year, which is a very poor outcome for Australian businesses, households, and therefore the wider economy,” he tells Australian Broker.

    Figures show an overall dip of 2.4% in May, although it did show state-level growth across Queensland, South Australia and Tasmania.

    Australian Broker reports decline was recorded across NSW, Victoria and the Northern Territory, which reportedly lead the pack at an alarming 23.8% drop.

    “We needed to be seeing a strong recovery in new home lending coming through in the first half of 2012 to signal a significant turnaround in residential construction from what will historically be a very low trough,” said Dale.

    “That simply isn’t the case and government action in addition to lower borrowing costs is the combination required to restore healthy levels of confidence and activity.”

    Official figures for Housing Finance Data for May 2012 from the Australian Bureau of Statistics do indicate a fall in housing finance from April to May, but the latest figures show the number of new dwelling commitments actually rose marginally (0.8%) and the number of commitments for the construction of dwellings rose 0.3%.

    ABS HOUSING FINANCE MAY 2012 KEY POINTS

    VALUE OF DWELLING COMMITMENTS

    May 2012 compared with April 2012:

    ■The trend estimate for the total value of dwelling finance commitments excluding alterations and additions fell 0.5%. Investment housing commitments fell 0.7% and owner occupied housing commitments fell 0.3%.
    ■In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions fell 1.4%.

    NUMBER OF DWELLING COMMITMENTS

    May 2012 compared with April 2012:

    ■In trend terms, the number of commitments for owner occupied housing finance fell 0.5%.
    ■In trend terms, the number of commitments for the purchase of established dwellings fell 0.6%, while the number of commitments for the purchase of new dwellings rose 0.8% and the number of commitments for the construction of dwellings rose 0.3%.
    ■In original terms, the number of first home buyer commitments as a percentage of total owner occupied housing finance commitments rose to 17.8% in May 2012 from 16.8% in April 2012.

    So what can we expect from mortgage enquiries heading into the second half of 2012?

    Our experience in dealing with brokers daily shows that generally enquiry level and loan numbers are fairly good (within reason depending on the brokerage type) and there is much more positivity out there than there was six months ago. Most of this we assume can be attributed to the drop in interest rates earlier in the year.

    Regardless of numbers, with global economics still dim, lending criteria will probably continue to be conservative, and bad credit history will continue to be a big reason we see mortgage applications declined for some time to come.

    But it will also still be likely that applicants who present with bad credit may have grounds to dispute their credit rating if the listing is deemed to have been put there unlawfully – and there are a whole host of reasons why this may occur. You can check your client’s credit repair suitability with us any time by calling 1300 667 218. And because of the continuing difficulties faced with Creditors and the need for extensive knowledge of credit reporting and industry legislation, it will remain necessary for those people who want to dispute credit rating mistakes to have on their side a professional credit repair firm to be able to negotiate that removal effectively.

    Image: renjith krishnan/ 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

  • How Malware can infect your life and put you and your credit file at risk of fraud

    Think malware is a term used to describe clothes you go shopping in? Then you might have a big problem. Malware is what’s known as a syntactic form of identity crime – where fraudsters attempt to exploit technical vulnerabilities in order to commit fraud. Today the total malware count is just shy of 80 million. That’s scary stuff. We tell you exactly what it is, and what you can do to prevent your personal information from being exploited by fraudsters and prevent debt and bad credit history from credit fraud.

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

    Last week I received a warning from the Stay Smart Online alert service about a new spam email containing a Trojan horse virus as an attachment. This must have caught out enough people for SSO to put out a warning about it. In fact, new forms of malware catch out millions of people every day. It is reported there are 55,000 new unique malware samples per day sent out there. So how can we stay on top of it?

    Stay Smart Online defines malware, and explains how it can infect your life through your computer:

    What is ‘malware’ and how does it affect your computer

    Malware—short for ‘malicious software’—is the term often used to refer to any type of malicious code or program that is used for monitoring and collecting your personal information (spyware) or disrupting or damaging your computer (viruses and worms).

    Spyware

    The term spyware is typically used to refer to programs that collect various types of personal information or that interfere with control of your computer in other ways, such as installing additional software or redirecting web browser activity.

    Examples of spyware include:

    Keyloggers

    A keylogger is a program that logs every keystroke you make and then sends that information, including things like passwords, bank account numbers, and credit card numbers, to whomever is spying on you.

    Trojans

    A Trojan may damage your system and it may also install a ‘backdoor’ through which to send your personal information to another computer.

    Viruses and worms

    Viruses and worms typically self-replicate and can hijack your system. These types of malware can then be used to send out spam or perform other malicious activities and you may not even know it.  Both can use up essential system resources, which may lead to your computer freezing or crashing.  Viruses and worms often use shared files and email address books to spread to other computers.

    How does your computer become infected with malware

    Most spyware is installed without your knowledge. It often gets onto your computer through deception or through exploitation of browser vulnerabilities.

    •Spyware can come bundled with other software. When you download a program, the spyware can be downloaded and installed at the same time.
    •Some spyware infect a system through security holes in the Web browser or in other software. When the user navigates to a Web page controlled by the spyware author, the page contains code which attacks the browser and forces the download and installation of spyware.
    •Be wary of USB sticks from unfamiliar or untrustworthy sources, for example those given away at conferences, trade shows, or in promotional packs. These devices may contain malicious software, which could cause severe damage to your computer or compromise your personal information.
    •Some “rogue” spyware programs masquerade as security software.
    •Worms can also be used to install spyware on your computer.

    A recent article published in the Sydney Morning Herald Tech Section has some alarming concerns from some pretty hefty security people about the internet’s battle with malware. Many wonder if we could possibly be losing the fight against it – with updates unable to keep up with new developments, and anti-virus letting some slip through the cracks. If you’re game, you can read this article here: Anti-virus can’t keep up with threat onslaught.

    Concerns aside, far and away the best way we can have any hope of fighting it – is with installing updates on our computers. Here are Stay Smart Online’s best tips for preventing malware:

    How to prevent spyware from getting onto your computer

    •Install anti-spyware and anti-virus software and set it to automatically check the product website for updates. This will ensure that your computer is protected against the latest viruses and spyware.

    •Install a firewall. It will prevent unauthorised access to your computer and the installation of spyware on it. Some firewalls can also prevent information being taken from your computer and sent to someone else.

    •If you must use a USB stick from an unfamiliar source, you should always scan the USB stick for viruses or other malware before accessing any of its content. You should also disable the autorun function, which is commonly enabled on the Microsoft Windows operating system. This will lessen the risk that any malicious software that may be on the USB stick, will automatically start when you connect it to your computer.

    •Keep yourself informed about the latest security threats and solutions. You can sign up for the free Cyber Security Alert Service from this website. Alternatively, your anti-virus software vendor may have an email alert system. Look for a ‘keep informed’ tab or section on the software’s main screen.

    •Be cautious about opening emails from unknown or suspicious sources. Look at the sender of the email as well as the body and the subject of the email. Do not open email attachments or click on hyperlinks in these emails. You should install spam filters to minimise the amount of spam you receive.

    •Set your anti-virus software and anti-spyware software to automatically scan incoming email.

    •Only download files and software from reputable web sites. Read the licence agreement and terms of use before you download software and don’t download it if you don’t understand or trust the terms and conditions.

    •Be wary when exchanging files even with colleagues or friends. Scan the files before you install them or run them on your computer.

    •Never click on an ‘Agree’, ‘Ok’ or ‘No’ button to close a window on a suspicious website or pop-up. This can launch spyware onto your computer. Instead, click the red ‘X’ in the corner of the window to close the window.

    Your credit file at risk

    In SMH’s article, Charles Wale, security and risk consultant at Lee Douglas and Associates, who has consulted for over 50 ASX-listed companies says consumers need to realise their machines are targets.

    “They are after your personal information for identity theft and login details, especially for banking sites so they can remove funds in their favour,” he tells SMH.

    What can fraudsters do if they can get their hands on your personal information?

    They can steal passwords to your bank or credit accounts and they can also create a patchwork quilt of information that can allow them to eventually have enough on you to request duplicate identity documents, and apply for credit in your name.

    Running up credit all over town, perhaps buying and selling goods in your name, or in some cases mortgaging properties – the victim can have a stack of credit defaults against their name by the end of their ordeal – and sometimes no proof it wasn’t them that didn’t initiate the credit in the first place.

    Recovery can be slow, and in some cases victims have had no way to prove they weren’t responsible for the debt – with fraudsters leaving no trail and the actual identity crime happening long before the fraud took place.

    So to prevent devastating identity crime, which leaves you in debt and can leave you without any way of obtaining new credit for years to come, make it your business to educate yourself on internet and or computer risks. And think before you click….it could save your financial future.

    If you need help in recovering your good name following identity theft, you may find a professional credit repairer can give you the best chance at having the defaults removed from your credit file. Contact MyCRA Credit Rating Repairs on 1300 667 218 for more information.

    Image: Idea go/ www.FreeDigitalPhotos.net

     

  • Women and Credit: What You Need to Know

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    Bad credit history plays no favourites, it can basically happen to anyone. Both sexes can be severely disadvantaged when it puts a halt on plans to borrow money. In this post we explore some issues around credit, women in particular may need to be aware of and show how important financial knowledge and independence is to ensuring a good credit history for both women and men.

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

    The title of this post came as inspiration from a blog post concerning women and debt.  The post was titled Build A Clean Credit History and it centred around the issue of women and credit and how women can sometimes let their partners have control of the finances to their own detriment. The blogger “Women In The Black” is a forum for women to discuss personal finance, saving, investing and ‎building wealth. ‎

    Women In The Black implores women to get involved in their own finances rather than leaving it to their partner, in order to build up a good credit history of their own.

    “I’ve heard stories of women in their 50’s, who are either divorced or widowed, and have had to begin managing their finances now, which they previously didn’t have to do. Be assured at some stage in your life, you’ll be the sole manager of your finances,” the post says.

    “No matter what age you are, you need to take an assertive fiscal approach to money. Focus on earning more money as well as managing your debts which will lead to a long clean credit history.”

    Both men and women need to be educated and ultimately responsible for their own finances, and particularly their own credit history.

    Here are some of the issues women may come across when it comes to their credit rating but this can apply to men as well…

    Not knowing about your finances

    Do you know how much your insurance is per year? Do you know when your registration is due, or how the phone bill is paid? Leaving all the repayments up to your partner and never verifying them is a recipe for disaster most of the time when it comes to your credit rating. Women should strive to make joint financial decisions with their partner, regardless of their income level and both women and men should know what is said about them on their credit file by applying for their annual credit file check once per year.

    Financial incompatibility

    Sometimes we can get mixed up with someone who ticks all the boxes on an emotional level, but who has very different ideas about money, or perhaps a debt-ridden past.

    It’s important to ask some tough questions about new partners – including whether they have any current debts, if they always pay their bills on time and generally how they feel about money. You could even go so far as to order a copy of your credit file – to prove to each other that you are both default-free!

    If their answers prove less than ideal – you might want to keep your finances separate especially if you have assets of your own.

    A tangled web of credit history

    At MyCRA we often see people who have been left with bad credit history due to the partner’s financial mistakes.

    You see, when you branch out and make a life with someone, inevitably the lines of whose credit is whose can become blurred. You can have a phone account in one name, electricity in the other, a mortgage in one or both. Often it doesn’t matter whose name is on it, as long as someone is paying it – it’s more a joint effort to get the household where it needs to go and you both figure it’s ‘yours’.

    But where this goes wrong time and again is at the point where couples are trying to divorce or separate.

    Then those blurred lines of credit history can be extremely confusing, and often the divorcees’ credit histories can be mixed up long after they have physically separated. When you separate and there’s joint debt, you can lose control of your finances.

    Often we see people at the mercy of their exes’ big ‘post-relationship spendathon’ –  whether that be redrawing on the mortgage, or just taking out credit they don’t pay back – and sometimes both credit histories take the fall.

    Years later, when the woman finally gets back on her feet, she might want to get a house in her own name, or a car or even a credit card, and is refused due to bad credit that she hasn’t had any part of.

    One thing we maintain with everyone who is going through a divorce or a separation is to try to look forward into the future to what you need to do right now to prevent a bad credit score down the track.

    If you have just left your partner or spouse, here are 10 steps to financial separation you should take as early as possible in the break-up to keep your clear credit file. If these steps can be accomplished together, you can both get on with your lives as individuals without a bad credit score:

    10 Steps for financial separation

    1. Cancel joint bank accounts. Don’t hold on to joint accounts and assets ‘just in case’ you reconcile. Even the most amicable of separations can potentially turn sour down the track. The sooner you make the break, the better off your future will be – even if you do decide to get back together in the future.

    As far as creditors are concerned if the debt is in both names, then you are both responsible for it regardless of who accrued it. You could use the money from these accounts to go towards paying off any debts you may have together.

    2. Pay off and cancel joint credit cards. If the debt on the card/s can’t be paid off, inform the creditor that you have separated and ask them to put a stop on the account so there may be no more transactions. They could possibly make arrangements to transfer the repayments to two separate accounts.

    3. Resolve the mortgage debt. Sell the home and divide the proceedings, or sell your share of the home to your ex-spouse or vice-versa. Before this takes place, notify the bank you have separated. Make sure no further amount can be redrawn on the loan and that you receive separate statements whilst you are separated and both still own the property.

    4. Transfer names on other accounts. Phones, electricity accounts, rental properties, rates, car loans and store credit should all be transferred to one name as appropriate.

    5. Pay any unpaid accounts. No matter who has accrued these debts, the creditors will still see you as responsible. Ensure all accounts are paid on time while they are in both names.

    6. Keep a record of all undertakings. Keep good paperwork and notes related to the separation, including cancellation or changes to any accounts for future reference.

    7. Employ a good family solicitor. Legal advice is important as it relates to children, family businesses, and property. Also if anything runs off course with the division of debt, they can give good advice on the next course of action.

    8. Notify credit reporting agencies. Let Equifax (formerly Veda Advantage), Dun & Bradstreet, or Tasmanian Collection Services know of your separation and any steps you have taken to separate accounts to-date.

    9. Check your credit file. Request a copy of your credit report and check each entry.  A free copy of your credit file is available every 12 months from one or more of the credit reporting agencies in Australia. This is essential particularly if the settlement is drawn out over a number of years.

    10. Seek help from a professional credit repairer for any defaults, writs or judgments. Once outstanding accounts accrued by your spouse are paid, there is the issue of the bad credit score which needs to be cleared so you may have the opportunity to borrow again in the future. However, dealing directly with creditors could be problematic, they will tell you that defaults are never removed but can be marked as paid. However, at the moment even ‘paid’ black marks against your name can be enough for credit refusal, particularly if you are trying to buy a new property on one income.

    A professional credit repairer can check the creditor’s process of listing defaults for legislative and or compliance errors, any such errors could deem the credit file default listing unlawful, advising the creditor to remove the default.

    Image 1: twobee/ www.FreeDigitalPhotos.net

    Image 2: graur codrin/ www.FreeDigitalPhotos.net

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  • Banks, telcos to have access to better id theft prevention through document verification (DVS)

    Identity theft…what can we do to prevent it and in doing so protect our credit rating from misuse? We look at how it occurs, and what the Federal Government is doing to help minimise the instances of identity fraud through implementing a better system of verifying important personal information.

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

    How do identity thieves go about taking credit out in your name? If they have enough personal information about you, such as your full name, date of birth, and heaven forbid your mother’s maiden name – fraudsters can forge identity documents, or request new ones in your name, which then gives them access to funds via your clean credit rating. This credit is left owing and you are stuck with a mountain of debt, and a bad credit rating you probably don’t even know about until you go and apply for credit yourself and are refused because of defaults you didn’t initiate.

    This doesn’t occur as regularly as other types of personal fraud – but it occurs more than you might think. Current statistics from the Australian Bureau of Statistics 2010-11 Personal Fraud Survey estimates that a total of 1.2 million Australians, or 6.7% of the population aged 15 years and over, were a victim of at least one incident of personal fraud in the 12 months prior to interview. Within these figures, 0.3% of the population had been a victim of specific identity theft. This amounts to 44,700 Australians. These were the people who admitted to being duped. Identity theft is one of the most under-reported crimes, due mostly to embarrassment from the victims. It is also extremely difficult to Police, with it often being initiated from overseas crime syndicates. So prevention in this case is often better than the cure.

    For those of you who have been following our updates on identity theft prevention, you may remember the government’s introduction of The Document Verification Service – a national service which allowed government agencies which took it up to verify documents. In May the Attorney-General announced her plans to roll the DVS out into the private sector we blogged about this then in the article Identity theft prevention in budget 2012. She spoke yesterday of the intended service, and said it will be available for the private sector from 2013.

    Yesterday Computerworld published an article Identity crime in sights of Australian Attorney-General detailing the Attorney-General Nicola Roxon’s comments about the DVS during the Security 2012 conference in Sydney.

    She told delegates the move will save businesses money by reducing unnecessary manual processes, data collection and record keeping.

    “It will also help to support law enforcement agencies such as the Australian Federal Police [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”][AFP] in their efforts against identity crime,” she said.

    The DVS was introduced as an electronic online system used by government agencies to check whether a proof-of-identity document that has been presented by a person applying for a benefit or service is authentic. If a document matches information held by the issuing agency, a positive response is returned. The service does not store personal information, but allows verification only.

    “Requests to verify a document are encrypted and sent via a secure communications pathway to the document issuing agency,” Ms Roxon says in a statement on the AG website.

    A spokesperson from the Attorney-General’s Department said that it expects to be able receive applications for private sector access to the DVS from the end of 2012.

    “This would allow the private sector to commence verifications of documents from September 2013, possibly earlier,” the spokesperson told Computerworld.

    The Federal Government set aside $7.5 million in this year’s Budget to extend the DVS to the private sector from 2013-14.

    “The DVS will provide a tool to help reduce the incidence of identity fraud and improve the integrity of consumer identification used by the banking and finance, telecommunications, aviation and maritime security industries,” read the Budget 2012-13 documents.

    Perhaps the introduction of the DVS into the private sector will encourage those government agencies which have failed to take up the service to implement it.

    Last year prior to the private sector introduction, the DVS was criticised for its inadequate take up amongst government identity issuer and user agencies. At the time we blogged about it (Can official documents be forged to commit identity fraud?), agencies such as Centrelink, the Department of Immigration, and state road authorities and birth and death registries, were not connected to DVS.

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

  • 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

  • Businesses on verge of default: Cash flow issues leave more businesses unable to pay bills on time

    According to credit reporting agency Dun & Bradstreet, the June quarter came up grim for Australian businesses and particularly small business repayment terms. The number of businesses paying their bills on time fell considerably. It is predicted this will have a flow on effect to the whole economy.  We look at Dun & Bradstreet’s report, the ramifications for those individual businesses when it comes to commercial and personal credit rating defaults, and offer some simple ideas for managing business cash flow and keeping a clear credit file.

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

    According to the latest Dun & Bradstreet Trade Payments Analysis – examining the ability of firms to pay their bills, and pay them on time – the number of payments falling within the standard 30-day term fell 16.5 per cent quarter-on-quarter.

    Further underscoring the deteriorating conditions faced by businesses is the performance of small businesses, which recorded the biggest deterioration in payment terms of 2.2 days. Businesses with between one and five employees are now operating under an average term closer to that of larger firms, at 53.2 days.

    Dun & Bradstreet attributes simple lack of cash flow as the reason for the decline in businesses meeting the standard 30-day term.

    D & B Director, Adam Siddique, says cash flow issues within the small business sector will have a significant knock-on effect to the rest of the economy.

    “It is particularly concerning that SMEs are waiting longer to be paid, and as a result are taking longer to pay their own bills. Trade credit constitutes a significant and critical portion of non-banking finance.  When this is delayed, it withholds millions of dollars from businesses and the wider economy,” Mr Siddique said in a statement to the media .

    “Small business payment terms now more closely resemble those of a large corporation, however small operations are less equipped to manage for cash flow issues, particularly if they are waiting more than two months to be paid for goods and services.”

    In addition, two-thirds (62%) of all trade payments were late during the second quarter.

    The number of severely delinquent payments (90+ days overdue) also rose noticeably during the last 12 months – up 13 per cent since the June quarter last year.

    Mr Siddique predicts economic uncertainty and conservative consumers will continue to impede cash flow for businesses through the rest of 2012.

    He warns businesses to remain focused on the ‘fundamentals’ such as cash flow.

    “A proactive approach to risk and receivables management can often prevent a situation where businesses wait months to be paid,” he says.

    With the threat of delinquency facing many more commercial credit ratings in the small business sector, it is important to realise the connection to personal credit ratings that can often follow the small business default.

    Small business owners who allow overdue accounts to become the norm during the course of business could be unaware of the ramifications for not only the future of their commercial credit rating, but their personal credit rating as well.

    People should not take trade credit lightly, as it can impact both credit files. This applies to both outgoing and incoming accounts. Dropping the ball on either is not the best way to ensure repayments continue to be made within standard terms of trade. If repayments are delinquent, creditors can place defaults on the business credit rating.  But often the owner finds out as Director this is tied in to their personal credit rating as well.

    Long after the business problems are over, the owner can be haunted by this bad credit and denied the basics for their family – mortgages, car loans, credit cards, even mobile phones for 5 years. For someone recovering from a business failure, this can be completely debilitating, particularly if savings have previously been thrown at the business to try to keep it afloat.

    Here’s some ideas for the best ways a business can keep track of its cash flow and stay in the clear with their credit rating:

    1. Pay all accounts on time. Have systems in place whereby credit cards and all bills are paid on schedule if not by the Director then by Administration. If the business is running behind, creditors need to be contacted and payment plans possibly worked out before the due dates to best avoid a default listing.

    2. Ensure all accounts are paid in on time. Chase up bounced cheques and failures to pay immediately.  Too many accounts left unpaid can leave businesses short on cash and run the business into the ground if left to continue. People should regard any client non-payment as potential risks to their credit rating.  Develop a tactful system for retrieval ahead of time – reminding clients of the risks to their credit rating by defaulting on payments. If overdue accounts go beyond 60 days, businesses should notify the account holder in writing they will be referring the non-payment to a credit reporting agency.

    3. Consider credit checks for all potential account holders. As suggested by Sue Hirst in her article ‘Why You Need Good Terms of Trade’ (My Business Magazine August 2010) business owners should consider implementing a system of credit applications for potential clients who request a major account. This involves the business requiring a credit check on the prospective account holder with one or more of the major credit reporting agencies prior to undertaking a credit account with them.

    4. Regularly obtain a copy of both credit files –it is free for both consumer and commercial credit files once every year from one or more of the Australian credit reporting agencies. This will alert the owner early to any inconsistencies or errors on either business or personal credit files which could see their ability to obtain credit in jeopardy. If there are wrong defaults or mistakes on either the commercial or consumer credit file, it is important to address those inconsistencies immediately – and before it is a matter of urgency.

    5. Keep credit card limits within a set budget as specified by the needs of the company. Don’t be tempted to set a lofty limit to business credit cards as it may encourage needless spending and blow out the business budget.

    6. Be wary of excessive credit enquiries. People should get their credit health checked before applying for new credit, and only apply for credit they have full intention of pursuing.  Some lenders are rejecting loans for as little as two enquiries in 30 days, or six enquiries within the year.

    7. Most importantly, monitor accounts regularly.  Business owners still need hands on knowledge of the business’ expenses.  Check accounts are being paid and check receipts and credit card statements regularly.

    Bad credit attached to your business?

    If you are suffering with a bad credit rating, or have errors or mistakes on your credit file impacting your ability to get business credit, it would be well worth investigating whether you are suitable for credit repair.

    The criteria for credit repair success is generally people who have a credit listing that contains an error or errors, or people who believe their listing is unjust or incorrect.

    By engaging the services of a professional credit repairer, you are giving yourself and your business the best possible chance of being credit active again.

    Image: David Castillo Dominici/ www.FreeDigitalPhotos.net

    Image: sscreations/ www.FreeDigitalPhotos.net

  • FOS explains nature of systemic errors by FSP’s which lead to mistakes on credit ratings.

    We examine a recent Financial Ombudsman Service (FOS) article which reports on instances of errors on consumer credit files in the finance industry. This type of systemic error can and does occur in every industry. This is why the presence of Industry Ombudsmen is vitally important to assist the resolution of disputes. A report like this also serves to illustrate the prevalence of credit rating errors across not only the finance industry but the credit industry entirely, and should serve to demonstrate the great need for assistance with credit rating inconsistencies in the form of credit rating repairers – who are helping clients to both recognise and make successful complaints about their credit file errors.

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

    The Financial Ombudsman Service (FOS) received a number of complaints in the first quarter of this year relating to serious credit infringements being listed by a financial services provider (FSP) on clients’ personal credit files.

    In the winter edition of its quarterly Circular publication, the Financial Ombudsman Service (FOS) reported (Systemic issues update – January-March 2012) on a number of complaints received in the first quarter of 2012 relating to serious credit infringements being listed by a financial services provider (FSP) on consumer credit files.

    Here is an excerpt from an article by Money Management on the FOS findings, titled FOS concerned over credit infringement listings:

    “FOS said it had contacted the FSP to advise that serious infringements had been listed even though the FSP had not sufficiently determined that applicants no longer intended to comply with their credit obligations.

    FOS also advised the FSP it would review whether serious credit infringement listings had been made against other customers without a reasonable basis to believe they would no longer comply with credit obligations.

    The FSP advised FOS that all the relevant disputes had involved third party tracing agents, but following a review of some of those listings FOS determined a high proportion had been made incorrectly and that the issue was systemic.

    In addition to asking the FSP to advise of the removal of incorrect listings, FOS asked the FSP to formally consider, case by case, any claims for non-financial loss from customers whose listing was made in error.

    In a separate but similar case, a complainant said his FSP had not correctly assessed his application for hardship assistance regarding a hire purchase agreement for which he had acted as guarantor.

    FOS found the FSP had listed a commercial debt on the applicant’s personal credit file that could not be considered credit under the relevant legislation and was therefore an inappropriate listing.

    Again, after a review FOS found a number of incorrect default listings and determined that the issue was systemic. FOS asked the FSP to correct the incorrect listings and to provide copies of its policies and procedures relating to default listing business guarantors on their personal credit files.”

    This report demonstrates it is important to champion for accuracy in credit reporting. A listing which has been placed incorrectly or unlawfully on a consumer or business credit file – or one that simply should not be there should be challenged. The consequences are generally bad credit for at least 5 years – so it is always a point worth fighting for.

    Most people put up with bad credit, even when it shouldn’t be there, because they find it too difficult to negotiate with their creditor. But having the correct information, going through the correct channels, with the right knowledge of legislation can make all the difference to a person’s chances of success at removing an incorrect listing.

    What a credit repairer will do for a client who wishes to repair bad credit, is look at their credit file and determine through investigation whether there is an avenue for removal of the credit listing based on legislation, and negotiate in the right way, with the right people and through the correct procedures for the listing’s removal.

    If you want to know more about credit repair – .visit the MyCRA main website www.mycra.com.au.

    Image: 89studio/ www.FreeDigitalPhotos.net

  • AFP and FBI sign agreement to pool resources on identity crime

    Police from Australia and the United States have joined forces to pool their resources to fight a number of crimes which cross international borders, including identity crime and cyber-crime. We watch these changes with interest as they apply to fighting the increasing instances of identity crime which can result in victims being stung with bad credit and being banned from borrowing for 5 to 7 years when frausters use their good name to take out credit.

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

    The Australian Federal Police (AFP) and the Federal Bureau of Investigation (FBI) signed a memorandum of understanding (MoU) in Washington on Friday to share intelligence in order to fight many types of crime, including identity crime and cyber crime, ninemsn reports in its story AFP, FBI pool resources against crime.

    The MoU, called Combatting Transnational Crime, Combatting Terrorism and Developing Law Enforcement Cooperation focused on collaboration between agencies in terrorism, illicit drugs, money laundering, illegal firearms trafficking, identity crime, cyber crime and transnational economic crime.

    It also consolidated AFP and FBI cooperation in the exchange of information, resources and technical and forensic capabilities.

    The Australian Government made changes to Australia’s laws in June last year, to allow for the international collaboration of information on cybercrime. The Cybercrime Legislation Amendment Bill 2011, amended several laws in order to comply with the only international treaty on cyber-crime.

    This was done in the hope of coming up to speed with other countries in the fight to tackle an international wave of cyber-attacks.

    Cyber-crime and identity crime are a global phenomenon, and potentially this relationship between Police forces could improve the chances of tracking fraudsters, and potentially lead to more arrests.

    Currently, identity crime and cyber- identity crime is often one of those largely ‘untrackable’ crimes  – especially if it originates overseas. It can lead to the victim having any number of credit accounts taken out in their name, which can result in the victim being stuck with wrong defaults on their credit rating, or a bad credit rating they didn’t initiate, and a whole heap of trouble recovering their good name. Often Police are unable to prosecute anyone, and it is up to the identity theft victim to go about proving they didn’t initiate the bad credit.

    It will be interesting to see whether more arrests can be made or whether the sharing of information could deter cyber-criminals in the future.

    If you have been a vicitm of identity crime or cyber-crime, we would be interested to hear from you, and the process you went through. Did you let Police know of the attack?

    If you need help with a bad credit rating you didn’t inititate which would point to identity theft, whether inititated on our shores or overseas, you may be able to get assistance in recovering your good name. You may be eligible for a Victims of Commonwealth Identity Crime Certificate, and/or you may be able to get help from a professional credit repairer to help with getting those wrong defaults removed from your credit file.

    Contact our credit repair team on 1300 667 218 to get advice.

    Image: Victor Habbick/ www.FreeDigitalPhotos.net