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​Get your Act together, brokers

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Australian Broker | 10 Mar 2014, 08:22 AM Agree 0
You have two days to get ready for changes to privacy legislation, lenders say.
  • Xavier | 10 Mar 2014, 09:03 AM Agree 0
    As spokesman for the industry can you help and point your readers/brokers to these changes to help in updating their privacy consent, etc
  • QEDRisk | 10 Mar 2014, 10:45 AM Agree 0
    Xavier, this is all a storm in a teacup. Unless you are doing credit checks yourself, you do not need a privacy consent from your clients. Your existing privacy disclosure does not need changing on Wednesday.

    Just make sure you are using the latest forms from the banks to comply with THEIR requirements.

    If you need further assistance, call us on 1300 817 662.
  • Positive Broker | 10 Mar 2014, 01:19 PM Agree 0
    It will be fascinating to see how the lenders utilise the new reporting rules. Looks to me like they wont be any immediate impact.
  • Maria Rigoni | 10 Mar 2014, 01:21 PM Agree 0
    Most small business are not required to comply with the Privacy Act 1988. Under the Act a small business is one defined as:
    1) Having an annual turnover of $3million or less
    2) Not a health service provider
    3) Not trading in personal information
    4) Not related to a larger business
    5) Not a contractor that provides services under a Commonwealth contract
    6) Not an AML/CTF reporting entity
    7) Not an operator of a residential tenancy database.
    The Office of the Australian Information Commission has a checklist for small business on it's website.
    I consider small businesses who abide by good privacy protection practices demonstrate ethical behaviour but let's not be confused about our legal obligations.
  • QEDRisk | 10 Mar 2014, 02:01 PM Agree 0
    Sorry Maria, but you have missed one key point. ANY business that discloses personal information about an individual for a benefit, service or advantage.

    Mortgage Brokers are definitely captured. Sorry.
  • Maria Rigoni | 10 Mar 2014, 02:53 PM Agree 0
    QED Risk - I believe the words you refer to relate to businesses who TRADE in personal information, that is, those who on sell data bases etc.
  • QEDRisk | 11 Mar 2014, 11:28 AM Agree 0
    Hmmm, then I and all the other legal and compliance professionals that provide valued advice to this industry must all be wrong. Have a nice day.
  • Bottom Line | 11 Mar 2014, 03:19 PM Agree 0
    The next step will be when banks start pricing their home loans per individual now that they have +ve reporting. Eg Mr & Mrs shows you were 5 days late in making a personal loan payment on another Bank's loan 8 months ago...Fortunately we can still give you a home loan, but it will need to be priced at 0.5% above the normal carded rate - rate for risk.

    And therein we have the Bank's real reasons for 'positive' credit reporting. ie it will improve their bottom line.
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