DODGY credit rating repair websites are ripping off consumers and giving the credit file repair industry a bad name, according to GRAHAM DOESSEL from credit file repair firm MY CRA.

He warns that some suspect credit repair companies are on the loose scamming consumers via websites and SPAM email, and advises people to do their homework before giving anyone their personal information online.

“With the recent credit crisis, a whole host of new companies have sprung up offering to help people repair their credit history. Many, but not all of those firms online necessarily have the skills needed to do the job of credit file repair, but are taking money from people anyway” he says.

This follows finance expert PAUL CLITHEROE’S interview about credit ratings with Kerri-Ann Kennerley on her Channel 9 show last week. He advises people not to go through websites which offer to fix your credit history in order to clear defaults.

“Don’t go to websites saying ‘don’t you worry about a thing we’ll help you’. They’ll help you all right - they’ll help themselves to your money” Mr CLITHEROE says.

He advises consumers to deal directly with the main credit agencies and to not use an outside source to clear defaults on your credit rating.

On this second point, Mr DOESSEL disagrees “It is not as cut and dried as Mr CLITHEROE says. There is a real need for credit file repairers under the current system as the process can be fraught with difficulties. In most cases, a client can do more damage than good by not understanding the process fully, almost like trying to defend themselves in court” he says.  

He says in the majority of cases he sees of people attempting to remove the default themselves, the creditor flatly refuses and says that the best they can do is to mark the listing as paid (if it’s been paid). The creditor will then explain to the client that defaults DONT EVER get removed.  

“Right now any default will stop you obtaining a home loan with most lenders.  In fact at the moment, even having a few ‘credit enquiries’ on your credit file can be enough for an automatic decline, even if you have no defaults. So having a listing marked as paid may not be sufficient to obtain credit in this market” Mr DOESSEL says.

Mr DOESSEL says a reputable credit file repairer would have processes that allow them to access the information without initially alerting the creditors of their intentions. This then allows them to work with the file and having knowledge of current legislation - enable them to actually remove the default.

How do consumers know what type of credit repairer they are dealing with?  Here are ten checks that are necessary to make before giving out any personal information:

1. Check up on ASIC’S ‘fido’ website – they post warnings of the latest scams
2. Check the company is Australian based in Australia
3. Check they publish their street address and verify it
4. Can they be called on a direct phone number?
5. Do they publish their success rate?
6. What are their costs?
7. Are you sure precisely what service you are getting for your money?
8. Do a little research on the principles of the business
9. Does the company allow checks with a third person? Can you call a past client?
10. Does someone recommend them? Finance brokers or past clients?

Mr DOESSEL is in the process of developing a membership based association which would go a long way in controlling and regulating the industry. This would then allow consumers to check with this association before they deal with any credit rating repair firm.

“Hopefully a self-regulating body will allow consumers to feel comfortable to use credit file repairers – sorting the good from the bad in one easy step” he says.

Please contact:

Graham Doessel       http://www.mycra.com.au/

246 Stafford Road, STAFFORD QLD.

Ph: 07 3613 9709       

Business Hours: 9:00am to 5:00pm Monday to Friday (excluding Qld Public Holidays)

Link to Morning Show interview:

http://video.au.msn.com/watch/video/credit-rating/xo3gmhi

                                                            ###

            About MyCRA.com.au

MyCRA.com.au is 100% Australian owned and operated and we are based in Stafford, a northern suburb of Brisbane in Queensland.

My CRA was developed for the sole purpose of giving clients access and ability to work with their Credit File.   This is in order to give them the best chance of getting approval, getting a lower interest rate or just to reduce the upfront fees that can be associated with obtaining credit

We have more than 30 years combined experience in working with and helping clients with their credit files. Not only are we the fastest in getting access to credit files, we are also the fastest known credit file repair agency in Australia. We can often remove judgements in as little as 3 days.  

Identity theft is of major concern to the Australian Federal Government and it should be of concern to you too…

Why?

Because there was more than $2,000,000,000 (two billion dollars) in known losses caused by Identity Theft in 2005 alone.

This has risen dramatically since then and is likely to continue to rise until average everyday people start to protect their privacy.

There are a number of things you can do initially to lessen the likelyhood of you becoming a target of Identity Theft:

• Completely destroy any information that may have your personal details on it (Before it’s thrown away) - such as electricity or phone bills, credit card statements, bank statements, rates notices etc.
• Don’t give out personal information by email or on social networking sites unless you are sure of the identity of the person at the other end of the conversation.
• Never give out personal information over MSN and other Chat Programs as the security of these types of services has been breached a number of times.
• Check your accounts and records carefully for anything that you don’t remember doing, like a few ’small’ transactions on your credit card (these can often be ‘test’ charges)
• When disposing of personal information (Like statements and bills) make sure they are shredded, burnt, cut up into tiny pieces or in some way completely destroyed to ensure the information can not be ‘found’ in your rubbish.

One quick way to see if you might have been targeted for possible Identity Theft is to get an up to date copy of your credit file.

There are a number of agencies out there that will supply you with a copy of your credit file from within one day to 2 weeks.  There is also one known firm that will guarantee you a copy of your credit file in less than 3 business hours.  That firm is MyCra.com.au

Once you have a copy of your credit file, have a look through and make sure you personally have made each and every application for credit that is listed on your credit file.
And YES, every time you make an application for a credit card, mobile phone, electricity account, home phone, interest free purchase or any other kind of finance, it will be listed and recorded on your credit file.

If there are any unknown applications or enquiries, you should begin the process to find out ‘what the heck is going on’.

There are a number of resources available that you might like to look at:

• Consumer Affairs Division – Department of the Treasury   (http://www.ecommerce.treasury.gov.au/)

• Ministerial Council on Consumer Affairs   (http://www.consumer.gov.au/)

• Net Alert    (http://www.netalert.net.au)

• Australasian Centre for Policing Research    (http://acpr.gov.au)

Further information and reading can also be found at www.MyCra.com.au