The impending positive credit reporting regime will be a boon to consumers, it has been claimed.
Global credit reporting agency Experian has today launched in Australia ahead of the positive credit reporting regime due to be introduced in March 2014. While some brokers and industry figures have warned the new system could lock borrowers out of credit, Experian Credit Services Australia managing director Genevieve Juillard told Australian Broker consumers could be set to benefit.
"What this legislation will allow is for credit providers to be able to sit the right product with the right consumers," she said. "It's a great thing for consumers. It provides empowerment in terms of the dialogue between the customer and the credit provider, and provides the ability to ensure the consumer accesses the credit most appropriate to them and their financial position," she said.
Juillard argued that the system would increase efficiencies, not only for lenders but for borrowers as well.
"It allows lenders to utilise data for their processes to decrease the cost of taking on new clients and to increase the speed of taking on those clients," Juillard said.
She said the positive reporting regime could also protect consumers against fraud and identity theft.
"With positive data, the consumer is able to have access to their credit report. I always tell my family and my friends that as a matter of principle, they should be accessing their credit report at least once a year. It's one of the strongest tools they can use to combat fraud," she said.