What does Credit Repair Australia™ do?
Credit Repair Australia™ is a debt and credit repair company who help people with both past and current credit problems. Credit Repair Australia™ works within the law to provide alternatives to bankruptcy and help with the removal of unfair, disputable or contestable listings or misstatements from credit reports. This may allow you to obtain finance where you may have been restricted from doing so in the past.

Who are D.R. Capital and D.R. Administration Pty Limited?
Credit Repair Australia™ Pty Limited ACN: 120 248 311 (CRA) & D.R. Administration Pty Limited ACN: 125 218 340 (DRA) are wholly owned but non-guaranteed subsidiaries of D.R. Capital Pty Limited ACN: 103 959 502 (DRC). CRA & DRA are managed independently of DRC. DRC and its subsidiaries do not guarantee the obligations or performance of CRA & DRA or the products or services offered, nor is DRC liable for any outcome from the actions of CRA & DRA.

Is Credit Repair Australia™ lawyers or financial advisors?
No, Credit Repair Australia™ are not and do not claim to be financial advisors, lawyers or solicitors. However our large network of specialist contacts and affiliates means that if you require the assistance of a lawyer, barrister, solicitor, trustee, financial advisor etc we may be able to steer you in the right direction.

What is a credit report?
A creditor report contains information about who you are, and a history of your financial behaviour. In many cases the credit report is the basis of evaluating your credit rating or determining your credit worthiness.

What is in a credit report?
Each report usually consists of your name, address, personal details such as date of birth and a list of all the mobile phone, gas, electricity, banking, insurance and other finance providers that have enquired about your credit worthiness, in addition to a list of each time you have applied for credit, and information about any late payments, defaults or judgments you have against you and also may include addresses, employment history, current employment, clear outs, crossed or linked files, name changes and bankruptcies etc.

Do I have a credit report?
There are over 14 million credit reports held in Australia. Chances are you have a credit report if you have ever applied for or even enquired about any financial product, mobile phone contract, store credit card, credit card or insurance product.

How did I get this report?
You may not know this, but when you make any enquiry or application for credit, a mobile phone contract, or to apply for an interest free electrical/furniture store offer, chances are you consented for the provider (such as the mobile phone or electrical store company) to add your details to a credit reporting data bank or agency.

Who keeps this information?
This information is kept by private companies who are in the business of collecting data about individuals and their “credit worthiness” (whenever you enquire and/or borrow money, if you pay the money back on time etc).

Is it legal to keep my personal information?
Anyone or organisation can become a credit reporting agency. There is nothing illegal about the service they provide, as long as it does not breach a range of privacy laws, consumer protection, trade practices and laws concerning defamation etc.

How does my credit rating affect me?
Every time you open an account, apply for credit, or when you are late paying a bill, it all goes on your credit report. If you have “defaults”, “late payments” or other negative notes on your file you may be considered a “bad” credit risk. Therefore you may pay more for your loans, credit cards etc, or you may be refused credit altogether.

The fees, charges and interest rate you pay are based partly on your “credit rating”. The cost of credit can be an unnecessary strain on your finances, it can affect your life style it can even affect your career prospects. Increasingly employers and employment agencies require applicants to authorise them to get a copy of your credit report.

How can I find out my credit rating?
You are entitled to a copy of your credit report. The largest credit reporting agency in Australia is Veda Advantage Information Services & Solutions Ltd with over 13 million reports. We are able to provide you with a free copy of your credit report, however this may depend on whether or not we choose to take your case on.

How can I get a bad credit rating?
You can get a bad credit rating by simply forgetting to pay a bill on time, by disputing a bill, by simply assuming you have paid an account if full, or when you have moved address but forget to divert the mail or inform the credit provider. It is also possible to get a bad credit rating by having too many applications for credit, even if you have appointed a broker who has made a number of applications on your behalf.

Is my credit rating legal?
A credit rating has no legal status but credit providers need to decide if you are a good risk before they lend you the money so they check your credit report. They do not need to check the report or even rely on the report they could simple ask you questions to help them decide if they should give you credit and at what cost.

What about my privacy?
Unfortunately, privacy is a secondary issue; the law, the government and the finance industry believe that citizen’s private details can be kept by privately owned and controlled agencies, and that this information should be provided to third parties such as banks, mobile phone companies, retailers, financiers, insurers and other credit providers. However, there are laws and regulations that govern how the information should be collected, published and maintained. You also have to provide consent for your information to be listed so it is important you read your contracts carefully.

How much bad credit does it take to be denied finance?
As you may have already experienced, even one small late payment listing, may result in credit refusals. Any negative credit whatsoever can become a substantial credit obstacle.

Does paying the debt fix my credit rating?
You would think that would be true. But, yet again, the credit reporting system does not work that way. In Australia we have a system that only records negative events, so there is no good credit to balance any small negatives. When you pay an old debt, the negative credit listing doesn't disappear. And, the most ironic thing is that a paid, current negative listing is not much better than an unpaid negative listing. This is not always true, but in most cases, you will not get much further by paying the old debt.

How can I repair my credit rating?
A credit reporting agency makes their money by having the largest possible data base available to their subscribers, who they charge a fee to access on a daily basis. Subscribers are encourage to add information about any dealings they have such as when you make an application for further credit or when you are late paying an account.

To repair your credit report you can dispute inaccuracies although it is not straight forward. This is because it means the credit reporting agency has to look into the accuracy of the information they hold, it can often be very time consuming, frustrating and without any resolution. It is hard to cut through the “red tape” and understand the certain points of law you may have the right to utilise. This is where Credit Repair Australia™ can help.

What happens if the rating is based on incorrect information?
A credit rating based on wrong information may be defamatory and a breach of a range of laws. This is known as a “contestable” credit report. You will need to identify what part of your report causes the “bad” credit rating then argue that it is incorrect to have it repaired.

Is credit repair legal?
There is absolutely nothing illegal about disputing items on your credit report. In fact, it is your right by law. Credit restoration is as legal as pleading "not guilty" in a court of law. Legislation allows for disputing of listings.

How does credit repair remove my bad credit listings?
The process of repairing a disputed credit rating is achieved through relying on the individual’s rights found in both Commonwealth and State Legislation. Credit Repair Australia™ has designed over many years the process and expertise to legally repair a bad credit listing.

Can this system be trusted?
It is understandable that some people may be wary of credit repair as many people have tried to take the system on, and failed miserably. There are also many people and organisations in Australia who claim to have the ability to perform credit repair, the reality is that only a select few of organisations in Australia can get the job done. Credit Repair Australia™ have spent a considerable amount of time and money, reviewing legislation to establish a process and guidelines to successfully repair the credit reports of many clients over the years. Credit repair depends on the accuracy of the information you provide.

How long does it take?
It is inappropriate for anyone to promise a particular time frame. If credit information is received promptly, many clients see completion of the process within 35 working days. We must warn you not to interpret past performance as a guarantee or promise that we will achieve precisely the same results for you as we have other clients in the past. Your results may be better or worse. This will depend on the accuracy of the information provided to us.

Do you provide a guarantee?
No. It is impossible to provide a guarantee, However Credit Repair Australia™ do provide a warranty. On the basis the information you provide is factual and true.

What happens if I need a lawyer?
Credit Repair Australia™ are not lawyers. If your case needs to go for legal advice Creditor Repair Australia will send it for a legal opinion, at our cost. Once we receive the advice we will send it to you with your options so you can decide what to do next. In rare circumstances you may then be required to pay further costs to the lawyer depending on the complexity of your case.

What do I do next?
To enquire about our credit repair service simply complete the form and one of our co-ordinators will contact you to make an appointment with a consultant. Or you can call Credit Repair Australia™ on our toll free number 1300 FIXCREDIT (1300 349 273).

What is a Debt Agreement?
A debt agreement is a simple method for you to enter into a legally binding agreement with your creditors. You can submit a debt agreement if you have unsecured debts, net assets and a net income less than the indexed threshold amounts and if you are insolvent.

What does insolvent mean?
A person is insolvent if and only if they cannot pay all their debts as and when they fall due.

What is bankruptcy?
Bankruptcy is one of your last resorts when suffering financial difficulties. It is important to remember that there a severe repercussions that result from bankruptcy and you should speak to a financial advisor or consultant before considering to become bankrupt. It is also important to remember that there are alternatives to bankruptcy.

Is a Debt Agreement the same as going Bankrupt?
No, a debt agreement is also known as a Part IX arrangement. A debt agreement does not have the same repercussions that bankruptcy has to offer. It is an alternative to bankruptcy. However, by submitting a Debt Agreement proposal you are committing “an act of bankruptcy”.

What does a Debt Agreement do?
A debt agreement freezes provable unsecured debts upon acceptance of your debt agreement proposal by creditors. This allows you to pay back the debts over an extended period of time at an amount per week that you can afford.

What is a provable unsecured debt?
Examples of unsecured debts are medical bills, store cards, credit cards and some personal loans.

Do all creditors have to agree to my proposal?
No, not all creditors have to agree. The majority in dollar value of those creditors who decide to vote, and are entitled to vote, have to agree to your proposal.

What if an unsecured creditor does not vote or decides to vote against my proposal?
As long as the majority in dollar value of those creditors who decide to vote, and are entitled to vote, accept the proposal then it is legally binding on all creditors.

Can you guarantee that my creditors will accept my Debt Agreement proposal?
No. It is your creditors who decide whether they accept or reject your proposal. However as a debtor your responsibility is to make full and complete disclosure of your financial position; put forward the best offer you can and commit to complying with the terms of the proposal.

Will I be able to make one single payment weekly or fortnightly to all of my unsecured creditors?
Yes, we will set up a weekly, fortnightly or monthly payment system by way of direct bank debit.

Will a Debt Agreement affect my credit rating?
Both the debt agreement proposal and the debt agreement are registered on the National Personal Insolvency Index (NPII). Credit reporting agencies, can access the information on the NPII to inform creditors of your debt agreement or proposal.

What is ITSA?
ITSA stands for Insolvency and Trustee Service Australia. It is a government department responsible for reviewing your proposal to creditors and the registration and facilitation of debt agreements.

Does ITSA have to accept my proposal?
No. ITSA may reject your proposal for processing if they think it is not in the best interest of your creditors, or if you are ineligible to submit a debt agreement proposal.

How long does it take?
Once ITSA has accepted your debt agreement proposal for processing, creditors may vote to either accept or reject your proposal within 35 days. (42 days if submitted in December)

What are the important dates?
The Processing Date: This is the date ITSA accepts your debt agreement for processing.

The Deadline Date: This is the date by which creditors may vote to either accept or reject your proposal. It is 35 days from the Processing Date to the Deadline Date. (or 42 days if processed in December)

Do I pay my unsecured creditors between the date ITSA accepts my debt agreement for processing and the deadline date?
You may continue to pay your unsecured creditors, however, you should as a minimum advise them of your intentions until they receive the paperwork from ITSA. You must continue to pay your secured creditors unless it is your intention to surrender the asset to the creditor regardless of the result of the voting process.

How does the process work?
If you are eligible to submit a Debt Agreement proposal then your consultant will help you with your paper work. Once it is completed then D.R. Administration will submit all your paper work to ITSA. ITSA will process your proposal after they have assessed it. That is, they have determined that you are insolvent; that the proposal is in the creditors’ best interest; that you are eligible to submit a proposal; that your income, assets and liabilities are within the threshold limits and that all documentation is complete. ITSA then writes to your creditors advising of your proposal.

Should I continue to talk with my creditors?
Yes, your relationship with your creditors is important and by talking with them you can explain to them your situation and ask them to support your Debt Agreement proposal. You may also forward their contact details to us and we will talk with them on your behalf.

What happens if I do not disclose all of my debts?
Full and accurate disclosure is required to ensure the debt agreement is the correct option.
An undisclosed debt is also an undisclosed expense. This will effect your ability to comply with the agreement as the amount will not be accounted for in your budget.
Creditors will vote to reject a proposal where undisclosed or understated debts are discovered.
Section 267(2) of the Bankruptcy Act provides for penalties for false statement.

What happens if my debt agreement proposal is accepted by my creditors?
All provable unsecured debts will be frozen. Your unsecured creditors cannot take any further collection or legal action against you. The debt agreement ends when your obligations under the proposal are satisfied. In most cases this is point at which you make the final payment.

Refer to the “your debts and creditors” section of the Prescribed Information Booklet to determine the unsecured debts that you must continue to pay or may have to pay when your debt agreement ends.

What happens if my creditors reject my debt agreement proposal?
Should creditors reject your proposal then we MAY be able to resubmit. However this will depend on your creditors and the reasons why they rejected your proposal. Should this happen we will contact you to work out a solution. However if creditors reject your proposal your debts are revived. This means that creditors can pursue you for payment.

If creditors accept my proposal, do I have to pay any fees?
Yes. A Realisation Charge of 3.5% and trust account interest (net of bank charges) is paid to the Federal Government to finance the services provided by ITSA. The administrator will also charge a fee to administer the agreement.

However the amount you put forward as your proposal is all you have to pay, The realisation charge is deducted from this amount. Creditors vote to allow your administrator to withhold an agreed sum to administer your agreement. For example if your agreement offers a total of $15,600.00 which you have proposed to pay back at the rate of $100.00 per week over 156 weeks, then creditors vote to allow the administrator to withhold $3120.00 for example to administer the estate, the balance of the funds less the realisation charge of $546, or $11,934.00 go to paying your creditors. (These figures are an example only.) This administration fee is paid to the administrator on a pro rata basis as a percentage of funds received.
Contact us for more information. (Link to online form)