Aussies “On the Move” Need To Tie Up Loose Ends

Media Release

Aussies “On the Move” Need Clear Strategy To Tie Up Financial Loose Ends

18 December 2012

Australian residents are as mobile as ever, according to a recent Australian Bureau of Statistics report, but an advocate for accurate credit reporting warns every time Australians move, they run the risk of damaging their credit rating by not tying up loose ends on their accounts.

CEO of MyCRA Credit Rating Repairs, Graham Doessel says it is vitally important that consumers have a strategy for making a clean break at each residence to maintain the integrity of their credit rating.

“Time and again we have the situation where clients apply for a home loan and are refused because they have ‘surprise bad credit’, which when we track it back for them is due to the fallout of accounts sent to their previous address,” Mr Doessel explains.

The recent ABS report ‘Still on the Move’ examines internal migration across Australia between 2006 and 2011 censuses. The report revealed that 41.7% of Australian residents had moved in the five years prior to the August 9 2011 Census night [i]

Mr Doessel says the rate of Aussies on the move is reflected in the volume of moving-related credit issues, and these are not always the fault of the consumer.

“For example, we had a client who needed their credit rating repaired because their Energy Provider could not work out that cancellation of their old account and installation at the new address meant that they had actually moved. Their final account was sent to their old address because they had not specifically provided a forwarding address,” he says.

Mr Doessel provides 5 tips for keeping your credit rating in check when moving house:

1. Let all your Creditors know you will be moving and give them a forwarding address.

You are obliged to update your Creditors with your forwarding address when you move. When you make that call to your Credit Provider, be sure to make a note of the day, time and person you spoke to about the request.

“Often we have people say they have told their telco or their energy company they are moving, and provided a forwarding address, but mail has still gone amiss and the client has ended up paying for it. If you have specific details of your call – the Creditor may be able to bring up the recording and verify your request,” Mr Doessel says.

2. If ending an account with a Provider, request a final account.

If you need to cancel your account, such as an Energy or home phone account when you move, make sure you request a final account for services. There may be incidental charges, or pay out fees as well as days accrued in the new bill period. Pay that notice as soon as possible.

3. Don’t assume your account is finalised until you get it in writing.

Once you have paid your final account, request a statement be sent in writing verifying the account is at an end. If you don’t receive that notice, chase it up.

4. Cancel any direct debits.

Places such as gyms and childcare centres operate payments via a separate direct debit company. If you have any direct debits set up, you should notify the company of the cancellation and of your forwarding address.

Mr Doessel explains, “Don’t assume correspondence with your gym is enough to cancel that account. You will have signed a separate contract with the direct debit company, and you are just as obligated to them if you have missed payments, for whatever reason.”

5. Redirect mail.

Despite providing a forwarding address, and despite your attempts to finalise your accounts, there can be instances where a Credit Provider continues to send mail to your old address.

“Creditors can and do make mistakes, and one common mistake is simple computer or human error with billing systems. To prevent their oversight from costing you your good name through bad credit, consider redirecting mail through Australia Post to your new address,” he says.

Mr Doessel says Australians who have moved and have now been lumbered with surprise bad credit need not put up with it for 5 or even 7 years.

“If your Creditor has an incorrect address for you and they have placed a default or Clear-out on your credit file then you should dispute your credit listing and insist your credit file reads accurately,” he says.

www.mycra.com.au/blog

MyCRA Credit Repairs is Australia’s number one in credit rating repairs. We permanently remove defaults from credit files.

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[i] http://www.abs.gov.au/websitedbs/censushome.nsf/home/CO-68

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