So, I stumbled across the article out there on the big wide web somewhere that was talking about how some two million Aussies, unable to buy a house or take out a loan for a car or business, are now able to get their name off the credit black list thanks to Credit Reboot.
The app – created by a team of ex-debt collectors – is a DIY approach taking users through a series of questions to identify where the faults lie in your file. The Credit Reboot App then runs an automated search through the complex Credit Reporting Code to identify where the credit provider has made errors in marking the consumers the credit file. Documents are then electronically prepared and sent off to credit providers to repair their credit file.
Credit expert Laurence Barlow, the man behind Credit Reboot, talked about how the app allows users to navigate the labyrinth of legislation and come out with a clean file.
“This can all happen within a few weeks depending on the condition of their file,” said Mr. Barlow, “People are often unaware their file contains a black mark until they receive that embarrassing call from the credit provider that their finance application has been declined. When they attempt to resolve the problem they are confronted with a maze of regulations, decide it’s all too hard and end up turning to payday loans.”
I ended up reading into some other studies that showed that more than one in 10 Australian’s, some 25% of the work force, who have a poor credit score are forced into the world of expensive payday loans and lenders of last resort.
I also read that ASIC recently slammed private credit repair companies for their unregulated charging practices, which can cost thousands, sighting that consumers can have their credit repaired with the help of financial counselors; a free service.
Mr. Barlow was reported saying that the “Church and government funded financial counselors do important work and are experts in helping people through very difficult financial hardship. But the challenge is they are dealing with people who are going to jump from a building because their homes are being re-possessed, turning up with your little Telco default of a few hundred dollars is consuming limited resources and can take time,” he explained, “Through Credit Reboot we are using the same tools as the professional counselors but this is DIY application which makes more accessible for the consumer in terms of cost, time and resources. Credit Reboot fills an important gap in consumer services, between private agency financial counseling and charity based financial hardship services.”
It was said that the Credit Reboot app can offer the solution to Aussies stuck in the debilitating cycle of bad credit by addressing the following:
- DIY credit repair: guides consumers through the maze of regulations to help identify errors on their credit file made by credit providers.
- Helps consumers: communicates where the errors are on their file by using the same compliance jargon used by credit providers.
- Avoiding future problems: provides extensive tips and hints to help avoid future debt problems.
- Costs: Typically the process takes one month to fix black credit cards marks and costs $199, however depending on the condition of the file and access to documents, this process can take a few more months – with a monthly subscription fee of $49.
There was also this attached report from someone called Julie *****, a 23-year old Sydney-based artist, who applied for a loan to buy a car. She was knocked back last year due to a $1000 Telco default from three years ago when she was a uni student.
The article said that she “didn’t pay my mobile phone bill because the service was crap and I disputed the bill,” said Ms. *****, “I got a payment demand letters, but when I moved house they seemed to stop, I knew these letters would come back, though. That’s when my mum told me about Credit Repair and I gave it a go. I just wanted to get this over with so I could go on with my life.”
“Credit Reboot helped me clean my file, and then after it was cleaned they gave me some tips on how to negotiate a discounted settlement on the debt and I’m paying this off over the next two years.”
It’s a good thing that Credit Reboot was started to make a difference in people’s lives and do something positive.