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:
- Check up on ASIC’S ‘fido’ website – they post warnings of the latest scams
- Check the company is Australian based in Australia
- Check they publish their street address and verify it
- Can they be called on a direct phone number?
- Do they publish their success rate?
- What are their costs?
- Are you sure precisely what service you are getting for your money?
- Do a little research on the principles of the business
- Does the company allow checks with a third person? Can you call a past client?
- 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.
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:
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.