Road to fair credit reporting 'going to be rocky' despite govt reforms

by Mackenzie McCarty15 Feb 2013

“Whilst there are many aspects to this credit reform which will be helpful to those disadvantaged Australians, such as hardship provisions and capping pay-day loans, the most significant change for people forced ‘on the fringe’ will be within the area of correcting credit reporting mistakes, which won’t be implemented until March 2014.”

He says the Privacy Amendment (Enhancing Privacy Protection) Bill 2012 will change the Privacy Act 1988 in the area of correction of credit reporting inconsistencies, including enabling consumers to force their creditor to justify a disputed listing - and give consequences for credit reporting breaches.

Next month's implementation of the National Consumer Credit Protection Amendment (Enhancements) Act 2012 will also bring reforms to a range of credit areas, with the sole regulator being Australian Securities and Investment Commission (ASIC).

Doessel says while the new obligations for creditors will have significant advantages, they are only part of the credit reform ‘puzzle’, as credit reporting mistakes still occur frequently and individuals can be disadvantaged and refused mainstream credit by a system that has failed them.


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COMMENTS

  • by Haydn Cooper 18/02/2013 11:35:16 AM

    The people doing it tough in most cases deserve to be. They haven't just missed one payment, they've usually missed many and in the vast majority of cases, had no intention of paying. Their only problem is now they want more money from another lender and so aided by the EDR providers who see not notifying the lender as 'an oversight' rather than the event of default it is and their non-payment as some form of unnotified hardship, many Credit Repair companies use this to earn more than many lenders do from the consumer.

    When we stop allowing these serious corruptions of credit reporting from continuing, everyone will be far better off.