A new mobile application, Credit Reboot, is stirring up interest in the broker community due to its ability to improve client credit scores in at least 10 days.
Credit compliance expert Laurence Barlow – who was also on the team that helped create the app – told
Australian Broker that brokers in all states were already benefiting from the platform.
“The obvious advantage is that brokers who use this tool get a better deal for their prospects and close more business,” he said.
Until the app was launched, brokers had three options to repair a client’s credit, Barlow said. This included:
- Telling them to come back after they had sorted out any issues essentially losing the client
- Sending them to either a lawyer or an accountant who offered credit repair services
- Introducing them to a lender of last resort funding options
With this new option, borrowers have been very happy with the results, Barlow said.
“We have testimonials where we have taken an individual’s score of 600 (below average) to 950 (above average) in 15 days thereby allowing them to secure the best deal.”
The app works to improve and repair a client’s credit score through the broker’s mobile phone, tablet or laptop.
After procuring a copy of the individual’s credit file, the app will ask a series of questions on aspects such as the date of default, amount, prior credit enquiries, etc which are kept within the prospect’s credit file.
“The app then runs more than 80 different tests on the file. These rely on the credit reporting code to search for errors, compliance breaches and unauthorised enquiries made by the credit provider when reporting the default.”
If any errors are identified, the app prepares a digital legal document which notifies the credit provider where they have breached compliance, Barlow said. The provider will also be notified that they need to delete the default or face fines.
“More than 90% of credit departments breach compliance when making a credit enquiry or defaulting a consumer’s file. This is because they have not been trained in the changes to the credit code as of March 2014,” he said. “Hence we have greater than 90% success rate when improving or cleaning someone’s credit score.”
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