By: Mirage Ratnayake
According to Credit file article published on Sydney Morning Herald Credit reporting agencies will get greater access to your information in exchange for stronger consumer protection.
Under the new changes the lenders have more access to inquire about the consumer credit file.
The government has agreed to make Australia’s credit reporting system more comprehensive in return for tougher consumer protection.
Under the current changes, the reporting agency can include the following information in a credit file:
- Payment on a credit contract is at least 60 days overdue
- A cheque for $100 or more has been dishonored twice
- A bankruptcy order has been made against the individuals
- Individuals current credit provider status; and
- Details of recent credit inquires
The new scheme, which was introduced in amendment to the Privacy Act by the Attorney General, Nicole Roxon, will allow credit reporting agencies to add the following information:
- The date of credit account was opened
- The type of each current credit account(mortgage, credit card, personal loan and so on);
- The date a credit account was closed
- The current limit of each open credit account
- And repayment performance history
The aim of the reform is to facilitate better assessment of consumer credit risk by creating greater transparency; Information about repayment performance will be available only to licensed credit providers.
In return for giving the industry a more comprehensive view of the consumer’s credit position, the government has included tougher consumer protection provisions in the amendment.
There are such as:
- Consumers will be compensated if they are adversely affected by a contravention of the credit reporting provision and courts will be given power to order compensation in cases where a civil penalty has been contravened.
- If a person requests a correction and is refused, the credit reporting agency or credit provider must furnish evidence to substantiate the correctness of the information.
Final Note:
It’s always best to check your credit history once a year. Australia’s two main credit reporting companies, Veda Advantage and Dun & Bradstreet provide access to credit file, via their internet home page.