“People with defaults on their credit file can be severely disadvantaged; locked out of mainstream credit for five years. Not all defaults deserve to be there. People are getting let down by the system and have equal trouble correcting their credit reporting mistakes.”
While law-makers argue that there’s a legitimate avenue for correcting credit reporting mistakes for the individual, Doessel says many consumers who’ve dealt with big companies will attest to the difficulty in getting a straight answer, getting someone who knows what they’re talking about and ultimately correcting any mistakes.
“It remains to be seen next year how changes in credit reporting law will allow credit impaired individuals to be able to address inconsistencies on their credit report, which can see them disadvantaged and funnelled into expensive credit such as payday loans.”
He’s concerned about how ‘late payment notations’, which he says are now being recorded as part of the Privacy Act changes, will impact credit suitability.
“So there is still going to be a time of uncertainty for many involved in credit, including for consumers. I know the intention is that eventually, we will see a better and fairer credit system for all – but I think the road to it could be a rocky one.”