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Parent equity loans put credit ratings at risk

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Australian Broker | 01 Nov 2012, 05:00 AM Agree 0
A credit rating repairer has predicted an imminent escalation in the number of well-meaning parents who will have their credit ratings ruined by their children as they approach pre-retirement
  • Garry | 01 Nov 2012, 12:38 PM Agree 0
    Under the Privacy Act 1988, a lender cannot list a default on a guarantor's credit file at a credit reporting agency, until at least 60 days after they have given the guarantor a notice regarding the borrower's default. So the scenario outlined above cannot occur unless the lender is listing a default in breach of the Privacy Act.
  • Brett | 05 Nov 2012, 10:33 AM Agree 0
    Thnaks Garry
    I was getting hot flushes reading the above and was hoping that there was a more "formal" process to be followed for enlisting guarantors.
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