Credit agencies rejoice as positive regime gets kickstart

by Adam Smith24 May 2012

Credit rating agencies have praised the introduction of legislation paving the way for the controversial positive credit reporting regime.

The Federal Government has proposed changes to the Privacy Act allowing for the introduction of positive credit reporting. The regime will see additional information listed on credit reports, including account payment information.

"The use of comprehensive rather than just negative credit information provides greater visibility of under-served consumers who would otherwise find it difficult to access credit," Dun & Bradstreet director of consumer services Steve Brown said.

Reporting agency Veda also praised the scheme, with senior adviser Matthew Strassberg claiming it would provide a more accurate and safer system for borrowers.

But critics of the scheme have raised concerns that it could violate borrower privacy.

 

COMMENTS

  • by 1martym1 24/05/2012 12:14:16 PM

    Has wored so well in the US hey? Veda and Dunn have lobbied hard for this. They will be stocked.

  • by Broker 24/05/2012 12:40:51 PM

    Well isn't that a typical labour big-brother policy!

  • by Peter Simmons 24/05/2012 1:54:06 PM

    When a Lender or more specifically a mortgage insurer, rejects a loan application because another mortgage insirer rejected an application on that applicant some 5 month's earlier on a ($300 telco default listed 3 years previously & paid within 30 days of listing) and, ignores any other good/excellent credit history available, it will take some miracle for me to believe in "positive credit reporting" being beneficial to an applicant.